Budget Trimming: Making room for savings and debt reduction

Budget trimming is one of those activities than can be beneficial.  Finding money or places in your budget that can be trimmed to lower you expenses and allow you to make room in the budget for other items might seem daunting, but it shouldn’t.   Maybe you feel that you have already cut everything out of your budget that you can to survive. But you might be surprised to find additional areas to trim from your budget that may have simply been overlooked in the past.

First, think about the fact that fuel prices have dropped over the past several years. I would have never imagined that gas prices would fall below $2.00 per gallon but they have dropped under $1.45 in my part of the world. Well, did you stop to think about the money you used to spend on fuel? Have you been using the savings on fuel to payoff debt or build wealth? If you haven’t, make a conscious effort to try and save the difference in what you used to pay and what you are currently paying. What has probably happened is that you have just absorbed the savings into your budget without being intentional with it.

Next, consider the fact that some areas of the country have had an extremely mild winter. My family’s utility bills have been less this year than in the past few years. You may be in a similar situation. This would also equate to additional money in the budget that could be used for debt reduction or wealth building. It is possibly being lost in the budget because it has simply been overlooked.

Finally, take a close look at all of your expenses and I do mean all. Don’t overlook an amount just because you may think it is insignificant. Small costs add up, too, so don’t forget to add them into your budget calculations. Cost cutting can change a budget just like adding income. Either way you do it, it’s still saving money that can be used in other more beneficial areas.

Do yourself a favor and take the time to go over your budget again to make sure you are wisely using all the money coming in and are trying to find different ways to save every month. If you become complacent, you might miss opportunities to change your financial future.