Saving Money - Part 1

When purchasing an upgraded home or condo, it is often necessary to cut out many other expenses in order to afford the down payment and subsequent monthly payments. It might seem tricky, but eliminating little luxuries you've grown accustomed to can make a difference. First ask yourself: do I really need this item or have I just become used to having it? Next, make a list of pros and cons. Your pros would include the benefits of maintaining such an expense. The cons would be the consequences of not having the expense at all. You might be surprised at the number of things you can eliminate or reduce while still enjoying your current standard of living. And remember that small amounts add up quickly. If you bring a lunch to work instead of buying it and save $5 a day, you are saving $25 a week, $100 a month, and $1,200 a year!

Here are some other tips to help you cut down on unnecessary spending habits:

Shopping: Shopping online can be a great and quick alternative to shopping in grocery stores and malls, especially if you're pressed for time. There will be a small delivery charge, but it will allow you to do more than one thing at a time, and you will save on alternate expenses such as babysitting and transportation. Try websites such as www.grocerygateway.com for groceries, and www.ebay.ca for just about everything else.

Eat before you go grocery shopping so that you won't be tempted to make impulse purchases. Stock up on food staples when they are on sale. Buy generic or store brand essentials such as sugar, flour, toilet paper, paper towels, napkins, etc. where a brand name is not necessary.

Avoid buying expensive "empty calorie" snack foods. Instead, try buying healthy alternatives such as nuts, dried fruits, and crackers without hydrogenated fats at bulk food stores. Not only will you save money, but you will also be eating healthier.

Check the unit price of items. Just because something comes in a big box doesn't mean that it's cheaper! Sometimes two smaller packages are cheaper than the big box. Compare prices ounce per ounce.

When cooking, prepare twice the amount and freeze the leftovers (this works especially well with cookie dough). It will deter you from buying frozen and pricey ready-made foods when time doesn't permit you to cook an entire meal.

Shop at discount grocery stores and bring flyers from surrounding area shops and pharmacies and ask them to meet the prices.

If you are a regular monthly book buyer, stop the habit and visit your library instead! If you insist on buying books, get them used or online  www.amazon.ca.

Kids: For kids' birthday parties, try buying all of your goodie bag items from the dollar store.

Household: Save up to 50 per cent every month on convenience cleaner cloths such as dryer softener and face cleanser cloths by cutting them in half.

Auto: Use less expensive gasoline. If you live in North America and have Internet access, you can search for the cheapest gas in your neighbourhood at www.gasbuddy.com.

Personal Care: If you don't have the time or expendable cash for manicures, try investing in some of the major tools (nail file, polish, cuticle remover) and do it yourself. Tip: If your fingernails get a yellowish tinge from dark polishes, try soaking them in a mixture of one part lemon juice and two parts warm water for five minutes.

Remember that when you've met the savings and debt reduction goals you need to get or maintain your new home, you can put some of these "luxuries" back into your life again.