The Update

How to Cut Costs and Save Money

If these past months have taught us anything, it’s that we should prepare for the unknown. Many have experienced job loss, rising debt, and diminished savings. Some things we can’t control, but we can control what we spend and how we approach debt.

One of the best ways to spend less is to cut down on regular monthly expenses. Some bills may seem insignificant, but when added together can make a real difference. Ask yourself three questions:

1. What expenses are essential to your family’s well-being?
2. Which expenses have the highest priority?
3. Which areas of spending can be reduced?

Here are some areas to investigate. Chances are, you’ve overlooked something that could save you money!

Housing

• Don't pay for space you don't need. Think about more efficiently using space so you can purchase or rent less square footage.
• Live near your workplace. While this isn't always possible, driving 5,000 miles less a year can lower transportation costs by more than $1,000.
• Refinance your mortgage to lower interest charges.
• Choose home repair contractors wisely. Favor contractors who have successfully performed work for people you know.

Home Heating & Cooling

• Ask PNM a free or low-cost home energy audit. The audit may reveal inexpensive ways to reduce home heating and cooling costs by hundreds of dollars a year. Use their handy Home Energy Advisor - https://pnm.energysavvy.com/ - for more tips.
• Weatherproof your home. Caulk holes and cracks that let warm air escape in the winter and cold air escape in the summer.
• Use window coverings to block sunshine in the summer, open them in the winter.

Food

• Substitute coffee for expensive coffee drinks. $2 a day could save $500 in a year.
• Bring lunch to work. If eating lunch out costs $5, but making lunch at home costs only $2.50, then in a year, you could save $500.
• Eat out one fewer time each month. If it costs you $25 to eat out, but only $5 to eat in, then the $20 you save each month equals $500 in a year.
• Shop for food with a list and stick to it. People who do food shopping with a list spend hundreds less than those who don’t.

Transportation

• Keep your car engine tuned and its tires inflated to their proper pressure. Doing both can save you up to $100 a year in gas.
• Shop around for gas. Comparing prices at different stations can save you hundreds of dollars a year.
• When driving, avoid fast start-ups and stops. Over time, you will save hundreds of dollars on lower gas and maintenance costs.
• Refinance your car loan to RGCU and save on your monthly payments.

Clothing

• Look for sales at discount outlets. There are huge price differences between clothing at discount stores and that at many department stores.
• Consider purchasing previously-used clothes from second-hand stores, or thrift sales.
• Assess clothing in terms of quality as well as price. An inexpensive shirt or coat is a poor bargain if it wears out in less than a year.
• Clean clothes inexpensively. Wash and iron clothes yourself. If you use a cleaner, compare prices at different establishments.

Insurance

• Shop around for auto and homeowners insurance. Before renewing your existing policies each year, check with RGCU.
• Raise the deductibles on auto and homeowners insurance. Being willing to pay $500-$1,000 on a claim, rather than only $100-$250, could reduce annual premiums.
• Assess your need for life insurance coverage. If your children are now on their own, or if your spouse works, you may not need as much life insurance protection.

Entertainment

• Give up premium cable channels. It’s a lot cheaper to rent one film a week than watch one on premium cable channels.
• Borrow books rather than purchase them. Local libraries are a wonderful source and can save you hundreds of dollars a year.

Banking

• Avoid bouncing checks or overdraft fees each month. The $20-30 you save by not bouncing a check each month could save over $500 per year.
• Reduce credit card debt. If you don't have a low-rate credit card from RGCU, get one and transfer your balance to a lower rate with no balance transfer fees.
• Make your monthly credit card payment on time. Late fees add up and hurt your credit.
• Use only the ATMs of your credit union. Using the ATM of another financial institution once a week could well cost you $150 per year or more.
• Consider free checking with RGCU. You can save money and accumulate reward points when you use your debit card!