Washington DC Financial Expert Offers Advice on How to Cut Costs
(Washington, DC – July 1st, 2008) Financial advisor Cinnamon McCann knows that rising
food and gas prices are making everyone think twice about their personal finances.
The Washington, D.C.-based entrepreneur says this is a time for you to step back and review how you spend each and every dollar, particularly when it appears that your salary isn’t increasing.
McCann, who is the owner of her own financial education firm, Financial Fashion House
(http://financialfashionhouse.com), hosts regular hosts seminars – in-person and online – on managing your finances, starting a business and how to invest in real estate.
McCann offers the following financial advice on how to make ends meet:
- Give yourself a financial wake up call.
During these tough economic times, you’re probably pulling money from everywhere, but don’t really don’t know what to cut and by how much. More than ever, it’s very important to start tracking where your money is going. Maybe others have told you about tracking your expenses, and your eyes have glazed over. Try doing this during a for two months period so that you can at least get an estimate. It’s very simple: Until you’re conscious of what you’re spending, you won’t know what to eliminate. Tracking your expenses puts everything in clear view. You’ll be surprised how much you’ll learn. - Check your credit card and debit card statements.
Are you getting automatically charged for items or membership that you’re not using? Do you have subscriptions to magazines you never read? Are you a member of a health club that is taking a monthly fee? Many companies offer the automatic deduction because they know that customers “tend to forget about them”. Cutting monthly automatic charges from various vendors can add up to major savings. - Cable TV can be a huge expense.
If you find yourself paying $100 or more for cable, that’s $1,200 a year, you can save and put that money toward your child’s education, your retirement of even your savings account. You can catch most TV series on DVD at your local library or now, even free online. Honestly, how much time do you have to watch TV with work, kids, and that ‘oh so desired’ social life? - Make that dollar stretch further at the supermarket.
Plan meals and write a list before you go grocery shopping. This can help you reduce impulse purchases. Cut back on the prepackaged, microwavable instant meals at the grocery store. You may think there types of meals save you time, but they can be costing you a small fortune. Many times these types of items may be 30-75% more expensive when you examine the cost of the individual ingredients, and the amount of food provided. Also, the prepackaged food is usually high in sodium, fat, and sugar. You can drop your grocery bill considerably – and eat healthier which in the long run could help reduce your medical costs. If you have any extra room in a pantry or closet to store items, you may want to consider shopping for regularly used items (paper towels, napkins, laundry detergent) at one of the discount grocery stores and buy those
items in bulk. - Check your phone plan.
Maybe you need to change subscribers or reduce your home and cell phone plan. Did you know that many home phone companies can offer you a basic plan for $7-18 a month? Take time to review your bill over the past couple months and determine if you’re really using all those minutes you signed up for or if you need to upgrade your text message plan to a set monthly fee after you realize your child is “texting” you into debt! - Check your insurance premiums.
So many people go year-to-year never reviewing their plan. This is a good time for you to pull your car and homeowner’s insurance plans out of the bottom of that desk drawer and refresh your memory. If you’re overwhelmed by trying to sift through the documents, set up an appointment with your agent to find out if you can reduce costs. Here are some items to consider:
* For your car(s), you can save a substantial amount of money by raising your deductible. The deductible is the amount you have to pay before the insurance company will pay a claim. Although a lower deductible may help you sleep at night, over the long run, it is not helping you much. For example, increasing your deductible to $1,000 may be able save you up to 50% on your annual premium. If you can increase you deductible payment to an amount you feel comfortable with, you may be able to save yourself hundreds of dollars a year. Also, don’t forget to shop around for the best rates when you’re up for renewal.
* For your homeowner’s insurance, the same rules apply as with your car insurance. The higher deductible you choose, the lower your annual premium. By becoming responsible for a higher deductible, you shave hundreds of dollars off your annual payment.
To learn more about McCann or to book her for speaking engagements, contact Neil Foote, Foote Communications LLC, 214.448.3765, neil@neilfoote.com.
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