Eliminating Unnecessary Costs from Home Budgets
Limit or Replace Luxury Item Purchases to Reduce Household Costs
When trying to bring order to a household budget some bills cannot be avoided and it is possible to economise with others. Some spending habits simply need to be given up for the short or long term.
The trick to preparing a successful budget is learning which expenses fall into which category.
Removing all unnecessary expenses from a budget can help to achieve savings goals or pay off outstanding debt, but it can also result in a feeling of deprivation. This can lead to budget ‘blow-outs’ on luxury or treat items.
It is possible to have a establish a budget with some allowance for occasional luxuries. Others treats can be replaced with free or much less expensive options.
Identifying Luxury Expenses
The first step is to recognise those purchases and expenses that can be removed from the budget. These may include:
- Expensive clothing and jewellery purchases
- Magazine subscriptions
- Pay TV
- Regular fast food or restaurant meals
- Regular book, CD or DVD purchases
- Regular outings to the cinema
Finding Alternatives
Once luxury items have been identified, it is time to find alternatives that won’t stretch the household budget to breaking point. Consider the following:
Books, Magazines, CDs and DVDs
- Join the local library and take advantage of the large collection of FREE books, magazines, CDs and DVDs that are available for loan. Many libraries accept requests for specific magazines or books be purchased for the collection. It is often possible to have books transferred from another branch in the library network for a nominal fee.
- Form a bookclub or book/CD/DVD share system with friends. Everyone contributes 5 – 10 items to the collection (noting the owner's name on the case or cover). All the members can contribute a small amount ($10 - $15) to be put towards purchasing new release books or CDs. Arrange for a get together every 2 – 4 weeks to swap items to ensure everyone gets an equal opportunity to enjoy favourites.
- Get together with friends for a movie night at home. The cost of a DVD rental and pizza split between 4 – 6 friends is significantly less than a trip to the cinema. Even a DVD at home for the family can be fun with some popcorn, ice-cream or other treat.
Clothing
- If there are several members of a group with similar size and style tastes, consider having a ‘clothes library’. Instead of purchasing a new item for a special event, review friends’ wardrobes to find something suitable. This works particularly well for formal wear items that are not worn frequently and maternity wear, which is only worn for a limited time.
- Set up a clothes swap amongst friends or work associates. Each person brings clothing, shoes and accessories in good condition to the swap and can choose items from those brought in by others. Keep any leftover items for the next swap or donate them to a charity. Most women have a variety of clothes in their wardrobe that they never wear but won’t throw away because they are ‘too good’. This is a great opportunity to clear those items out and replace them with something more useful at no cost.
Food
- Invite friends over for a meal instead of meeting at an expensive restaurant. Everyone contributes something – drinks, hors d’oeuvres, main or dessert.
- Halve the number of fast food or restaurant meals to halve the expense.
- Learn to make quick easy meals, such as home-made pizza, or have a weekly leftovers or cheese on toast night to ease the pressure on preparing evening meals.
By thinking ahead and economising it is possible to meeting savings goals and still be able to enjoy hobbies and other interests.
