Last Saturday, I called in to the KAXE radio show Between You & Me. Host Heidi Holtan was talking about what kinds of things you can do for entertainment when faced with high gas prices. My tips were pretty local… but the concept can be applied anywhere: Be a tourist in your own hometown. Go to places you’ve never been… or haven’t been to since you were a kid. In Minnesota, lots of free/cheap entertainment abound in the great outdoors.
It was a great show. But what struck me the most, was the first caller. He called in and was commenting on how much gas prices were hurting his finances. He wanted to know where to cut. He wanted to know how he could adjust to the price increases of virtually everything.
The problem is that there is no simple answer. Everyone’s financial situation is different. But there’s always something you can do.
Here are 5 things you can do right now to free up some cash in your budget:
Raise the deductibles on your car insurance. This move saved us approximately $20 a month. And since we had already paid our six-month premiums prior to changing the deductible, we got a refund check back. Yes, it’s a gamble… but let me tell you, when you have high deductibles on your car insurance, you are extra careful when you’re driving!
Change your tax withholding. If you are getting a refund from Uncle Sam every spring, stop letting him have your money interest free! Instead, adjust your withholding. There are calculators at the IRS and H&R Block to help you figure out how many allowances you should take. We put an extra $150 a month in our pockets by doing this. It made a huge difference in our budget.
Use your car one less day a week. Walk, ride bike, or car pool with someone else. You’ll find that you not only save the gas money, but you will also avoid those incidental expenditures that come with being out and about. Not going to town one day a week saves me $8…. or $40 in a month!
Determine needs vs. wants. You don’t need a morning latte, dinners out at restaurants, or candy at the movie theatre (gasp!). You don’t need gum, soda, breath mints, Ziploc baggies, nail polish, Swiffers, or car washes. You will find that when you cut out the little stuff you want but don’t need, you will have extra money in your pocket.
Find money at your house. Turn in your spare change for extra cash. Sell some stuff you don’t need or use anymore. Have a garage sale. Haven’t you been meaning to clean out the basement anyway?
The best advice I can give you in these hard times is to keep a positive attitude. Yes, the prices of things are high. Yes, it’s hard to make ends meet. But it also forces you to be thrifty, to be creative, and to appreciate all the wonderful things you do have.
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