How to reduce monthly expenses

August 5, 9:03 AMSan Diego Personal Finance ExaminerJerry Troyer

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As we tighten our belts during the recession, many of us are looking at opportunities to reduce monthly expenses. In this article, we will address some effective ways to do just that.

First, if you are not using coupons when grocery shopping, begin immediately. Some of us feel guilty about handing our coupons to the checkout clerk. However, let me ask this: if the grocery stores were not willing to accept them, why would they put them in their ads? They want your business and it is fine to use coupons. Of course, they want you to buy things that are not on sale too. That is their strategy. You can find coupon website information in previous articles. Coupons can be used in drugstores, auto repair and maintenance, restaurants, etc. Get a Sunday Union Tribune or ask the grocery store to send you their coupons by mail. There are plenty of saving coupons. Also check your junk mail - there are some valuable coupons in there too.

Next, track your spending for a month. Keep a list of all you spent money on each day. If you need a form and do not feel comfortable creating your own, there are many available on the internet. Just do a Google search. Recording your daily expenses will be most revealing. Most people are very surprised. This tracking device will indicate where you have financial leaks. The next step is to recognize them and plug the leaks. Here is an example of a financial leak. You use $50 a week in personal spending – cash. But where does it go? Nobody knows. When you track your spending, you will discover where it goes and how you spent it. Following discovery, you can determine where you can reduce the spending.

Ways to reduce your utility bills include only doing large loads of laundry. Wait until there is a large load even if the children are yelling for their jeans. Run the dishwasher only when it is full. Do not run the dishwasher when it is only half-full. Further, raise the air conditioning temperature. Everyone can adjust to a few degrees warmer. Also, take shorter showers. In addition, water your gardens and landscaping less. Both of these things will help reduce your water bill. (check bewaterwise.com for more tips).

Here is the painful suggestion. Review all the offerings for the bundled packages for telephone, internet and cable. These days we can keep our same telephone number when we change companies. I realize what a pain it is to change companies, but the reward can be a reduction in your monthly expense. So check out the different companies and go with a provider that wants your business and will do it at a lower cost than what you are paying today.

While we are on the telephone idea, what about your cell phone coverage? Is your contract reaching its end? Research and see if there is a different provider that will offer as good or better service for less money.

Here is a great rule to follow: do not buy any new clothes until you need them. Then only buy if it is in your Planned Spending Program (budget). How do you define "need". The item you are thinking of wearing is worn out. That is right worn out.

These are some effective ways of reducing your monthly expenses to make living less painful during a recession. There is one more very effective way to reduce expenses: get your children involved. Sit down with them. Put all electronic devices aside and explain to them in detail, that times have changed. Explain what a recession is and how it is affecting your family. Ask them to join in with reducing expenses. You will need to tell them there will not be a financial reward for curtailing their expenses. What you can offer them is a better home life if they will join the family team with a goal of reducing expenses. After they join in be sure to show appreciation when they are conscious about reducing expenses. Review with them each month how much the utilities have dropped.

You will need to continue to set the example to your children. Stay focused and committed. They will not remain committed if you don’t. They act and react to your example.

You can do it. Go on. It is time. We can all live on less.