This is a guest post.
After the Christmas holiday, many Americans find themselves saddled with unexpectedly high credit card bills on their January statements. Even if you had the best of intentions to stay debt free this holiday season, you probably still wound up using your credit cards to pay for gifts, travel, entertainment and holiday food expenses. This means that it is now more important than ever to get your bills in order so that you can get out of debt. There are several steps you can take to save money this January and for the rest of the year.
Compare Insurance Rates
Use price comparison sites to help provide you with buildings and property insurance comparisons. After you input the necessary data in a price comparison site, you can see which companies provide the insurance you need in your area. You can usually save money by switching to another insurance company. The side by side buildings and property insurance comparison allows you to see the price for each insurance policy, as well as the details and coverage for each policy. Using a price comparison site to compare insurance policies can easily save you hundreds of dollars a year.
Decrease Transportation Costs
If you are overwhelmed by transportation costs, such as gasoline, auto maintenance and parking fees, look for ways to limit your transportation expenses. Use alternative ways to get to work, such as joining a carpool, using public transit or walking to work if possible. If you can limit your in-city driving, you can use your personal vehicle for longer trips without having financial setbacks.
Adjust Your Eating Habits
The average American family of four has a food budget of over $770. This number can be drastically decreased by using smart shopping strategies. The first step is to make a grocery list. When you have a list, you are less likely to indulge in splurges. Plan to go to the grocery store once a month for most purchases and periodically to purchase produce and other products that spoil more quickly. Base your grocery list on the sales in your area. Plan your meals around what is on sale. Stock up on small snacks so you or your children will not feel the need to stop at a fast food establishment when hunger hits. If you and your spouse both work, plan meals that do not take long to prepare and stock up on a few packaged meals. This will also help you decrease how often you eat out. Prepare your lunch at home so that you do not go to restaurants during your lunch hour. Use your personal experiences to help you determine when your food budget is exceeded and use this information to make the necessary changes to your budget and the food purchases you make.
Switch Brands
If you have been a loyal customer to a product for years, now may be the time to renounce your loyalty. Switch to generic products whenever possible. Many generic items have the same ingredients as more expensive brands, but simply lack the pretty packaging. Buy the product that offers the best price after a sale and a coupon are combined.
Be a Better Accountant
Resolve to pay your bills on time and keep track of all of your debit transactions to avoid unnecessary late fees. Keep your check book balanced so you can avoid overdraft fees. If you have a phone contract, ensure that you do not go over the allotted minutes or data usage. Switch to a no contract phone for even more savings.
An expensive December may help motivate you to change your spending habits so that you can be frugal in January.
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