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Step 20:

Identify ways to reduce spending

To create a balanced budget or increase savings, most people will have to find a way to earn more or spend less. If the idea of spending less sounds challenging, try starting small.
It’s important to understand that every purchase we make-excluding such absolute necessities as food, rent, and gas for the car-is a choice. This table offers the following examples of how making some small changes can save you an impressive $150 per month.

Tip
Monthly Saving

Save $.50 in loose change
$18
Cut fizzy consumption by one liter a week
$6
Bring lunch to work $60
Send one free Ecard per month instead of buying a card $4
Buy grocery store brands
$10
Use fewer phone features $10
Eliminate premium sky channels
$20
Borrow, rather than buy, one book per month $15
Hand wash, rather than dry clean, one shirt per month $3
Use supermarket coupons for petrol $4
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Savings
________________

$150

Finally, in addition to making small changes, resolve to boost your savings by including all of your "windfall" money. This "free money” includes increased income from a pay increase, birthday gifts, insurance settlements, tax refunds, and inheritances.

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Small changes can make big savings.
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