Coping with The Economic Downturn, Part 4

Audrey’s 20 Tips for Reducing Expenditures:

1. Bring your lunch to work as often as possible. Always eat breakfast at home on workdays. (No need to forgo an occasional breakfast out on Elgin Street as a weekend treat.)
2. Drink the cheap coffee at work.
3. Eat dinners at home more often. When you eat out, order the burger, not the dinner special.
4. Avoid the pubs, or, if you indulge, have fewer drinks.
5. Go to the cinema on nights when the price is lower.
6. Avoid using your car. Use public transit or walk. However, don’t take risks to save money. Walking home in the bitter cold or in freezing rain could jeopardize your health; walking home alone late at night can be dangerous for men as well as for women.
7. Ask yourself if you really need something before you buy it.
8. Wait for your favourite items to go on sale.
9. Only make changes to your home that will add value – e.g. modernizing kitchens and bathrooms, and having a basement professionally-finished.
10. We all know that we should withdraw money less frequently so as to reduce bank charges. However, how many of us meet with our bank to discuss our finances before there is a problem Set up an appointment with your bank and discuss your accounts. Can you prepay some of your mortgage? This will save you in interest in all the remaining years when you have a mortgage. Obtain a line of credit and transfer the balance on your credit cards to this lower rate product.
11. Become more knowledgeable about the income tax system – for example, I’m going to add my charitable donations for 2009 to those for 2010 when I file my 2010 tax return.
12. Review your pension plan at work. If you work for the Government of Canada, can you buy back pensionable service (eg. from when you were a summer student)? This will reduce your fears about not being financially secure in your old age.
13. If you are a renter, make appointments to view less expensive properties. You might be surprised to find one that you like better than your current home.
14. Roll your change. My boyfriend had $35 in nickels and dimes and $40 in quarters!
15. Make greater use of the Internet.
16. Marry your true love and move in together. You’ll have more time together and you will save on household expenses! A co-habiting couple can also take advantage of pension and benefit plans. There are also tax advantages to co-habitation.
17. Have a trusted friend do your taxes for you, instead of an agency.
18. Recycle the beer and wine bottles in your basement. My boyfriend and I had a contest – I made $25 and he made $23!
19. Unplug your beer fridge. Disconnect your vcr and other appliances that are drawing power even when not in use (the “phantom load”).
20. Call your cable company and find out if you can save money by switching to digital services. My boyfriend did this, and he is getting more channels for less money. He also advised that people should ask service providers if there are any discounts available.