Beech Tree News Network

Living in our economy, I try to be cautious with my spending. Most people seem to be doing the same. As Benjamin Franklin said, “A penny saved is a penny earned.”

In the past decade, our spending patterns have changed. In 2011, one article reported that individuals were spending less on clothing and eating out and spending more on household fuel bills and healthcare. Tobacco product spending had fallen by 23%. Also, spending on fruits and vegetables increased while spending on sugar and sweets declined. During the good times of 2003-2006, consumer spending on alcohol and household furnishings rose by 8.2%; but, during 2007-10, spending on these items declined again. And, as we all know, spending on education, housing and new cars/trucks decreased (http://www.economist.com/blogs/dailychart/2011/10/us-consumer-spending).

Sometimes, we overlook money-saving techniques. In the article “10 Ways to Cut Your Monthly Budget,” the author suggested that people periodically review their household expenses in 10 areas to ensure that they are getting the best deal. Those ten areas include: insurance, financial fees, cable and satellite television, cell phone (plans and whether to upgrade), telephone, Internet provider, refinancing your home, credit card rewards points, utility bills and credit card interest expense (author Laureen Brunelli at http://workathomemoms.about.com/od/finances/tp/cutmonthlybudget.htm). This kind of review takes some time, but could be broken into a manageable timeframe. Benjamin Feldman also shared his thoughts about how to “rein in spending”: reduce the money spent on food, reduce the car payment, choose free entertainment, reevaluate how much to spend on gym membership, and reconsider how much to spend on clothing (“5 Easy Ways to Cut Monthly Expenses” at http://finances.msn.com/saving-money-advice/250402406). These money-saving techniques illustrate Sir Henry Taylor’s statement: “The art of living easily as to money is to pitch your scale of living one degree below your means.”
I asked family and friends the following question: When you want to cut back on your spending, in what area do you usually cut back first (example: clothing, entertainment, food, gasoline, tobacco, etc.)? Their responses are below:
•    I was frugal when frugal wasn’t cool!
•    I married frugal! Seriously, we cut back on gasoline and electricity.
•    Entertainment; eating out; shopping for new clothes; minimize travel; eliminate trips to spa and pedicures/manicures; change cable package; shop for insurance; buy store brand instead of brand name; drink tea instead of soft drinks and eat left overs; put off big purchases like cars, especially if current vehicle is paid off; vacation at your relatives instead of going to a new place.
•    Eating out.
•    I watch how I spend money on eating out and take something from home to work for lunch. I look in the pantry and freezer for food rather than shopping so often. And, I don’t get pedicures/manicures.
•    Clothing.
•    Entertainment.
•    Eating out; vacation; adjust the thermostat; less expensive everything; and buy only what I really need. I stay out of debt and away from fabric shops.
•    Clothing and restaurants.
•    Entertainment, clothing, food (eating out), and travel expenses, in that order.
•    I don’t put myself at risk. I stay away from Wal-Mart and don’t take my family to eat. I stay home more. Like an addict, I try to stay away so I’m not tempted to eat or buy things I don’t need. I’ll open the cabinet and look at the things I’ve bought and never used, like placemats and plastic picnic items.
•    We would usually stop eating out and not buy anything extra that we don’t have to have, such as clothing and extra items.
•    Eating out and going out. I don’t shop a lot, but I love not having to cook.
•    I do the Dave Ramsey envelope system when I need to cut back. It keeps impulsive spending at bay and limits the trips to Wal-Mart.
•    You’ll have to ask my wife. As I don’t smoke, I don’t need money. Ha!
Much has been written about spending and saving. Kin Hubbard said, “The safest way to double your money is to fold it over and put it in your pocket.” And, I like the proverb that money grows on the tree of patience.