Finance Quick Answers
I have had a drop in my income. What can I do to cut back on my expenses?
Decide where you can cut back. Put on your creative thinking cap and find ways to cut your expenses. It may be as simple as taking your lunch to work everyday instead of eating out or clipping coupons. Assess car insurance premiums to see if there are coverages on older cars that could be dropped or if deductibles could be raised (which will lower monthly payments). Call to get quotes from various insurance companies to see who offers the lowest rate. Look for sales on clothing and food. Avoid waste by turning off lights, reusing items (such as using coffee mugs instead of disposable cups). Walk through your house/apartment with family members to find creative ways to cut costs. Carpool with friends and neighbors and share services, such as babysitting. (For more ideas on how to cut costs, see the Extension guidesheet, "Living on Less.")
Dr. Joyce Cavanagh, Former Assistant Professor and State Specialist, Consumer and Family Economics
Last update: Monday, July 14, 2008