The price of everything – gas, groceries, utilities, fun, necessities, everything – is up.
Expecting a paycheck that was perfectly adequate a couple of years ago – or even a few months ago – to meet the current financial realities is like trying to stretch a size 2 sweater onto a 6-year-old.
People have been asking for help for about 18 months, said Jessica Cecere, president of at Consumer Credit Counseling Service of Palm Beach County and the Treasure Coast.
Credit counseling for housing issues, primarily pre-foreclosures, is up 200 percent over last year, she said – and the 2007 figures were a 900 percent increase over 2006.
The budget and credit side of the agency has seen a 38 percent increase, she said.
So what can you do?
Cecere recommends a "complete budget overhaul. Look at everything and see if there are ways to cut back or do things differently."
In addition to the government-supported credit counseling service, we consulted numerous other sources to compile these real-world strategies for saving money.
At home
In Florida, weather is the No. 1 cause of high bills, according to data on the FPL web site. Cooling your home can account for more than half of your monthly electric bill – even if you never change your thermostat. Heating is two to three times more expensive than air conditioning.
- Set your air conditioning thermostat at 78 degrees in the summer (82 when you're away from home) and 68 degrees or cooler in the winter (and 65 at night or when you're away). Also, clean or replace the A/C filter every month.
- Install a programmable thermostat, which can cut your energy bill an estimated 10 percent to 20 percent.
- Don't rinse your dishes before putting them in the dishwasher – you can save $70 a year, by FPL's estimate. Also, use the energy-saving cycle to shorten the run time and save water.
- Turn off the ceiling fan when you leave the room. A fan that runs constantly can cost $7 a month, depending on size and age.
- Wash clothes in cold water. About 90 percent of the energy needed to wash clothes goes into heating the water. Always use a cold rinse. Also, adjust the water level to match the load size, especially if you feel you need to use hot water.
- Appliances can use a lot of juice – even when they're not on. Unplug TVs – especially large TVs and plasmas, which produce heat and make your A/C work harder – stereos, DVDs and DVRs and cell phone or battery chargers when not in use.
- Turn off the lights. Install new compact fluorescent (CFL) bulbs – or, better yet, LED bulbs. CFLs cost more initially, but last longer and use about 75 percent less electricity than an incandescent bulb. LEDs use only about 2 percent as much electricity as ordinary bulbs.
- Keep your pool clean and limit how long you run your pump and you can save as much as $100 a year. Run the pump no more than six hours a day in summer, four hours a day in winter.
- Combine your cable, Internet and telephone service. Combined service not only costs less, but also offers the convenience of a single bill.
- Or eliminate long-distance home phone service altogether. You'll save on taxes on other fees added to the land-line charges. Instead, consider a long-distance calling card (about $20 for 700 minutes) that can be used from your home or cell phone.
- Pay bills online – you'll save on stamps and envelopes, trips to the post office and late fees.
In your car
With gas at $4 a gallon, filling the tank is painful. Trading your SUV for a hybrid – a popular suggestion on those lists of money-saving tips – may not be practical, especially in the short term. Two other favorites – doing your errands on foot and biking to work – don't really work that well in South Florida.
- Maintain your vehicle. A car that runs smoothly uses less gas. Change the oil and air filter regularly – a clean air filter can improve gas mileage by 7 percent – and perform other routine maintenance as recommended by the manufacturer.
- Don't buy hot gas. Gas expands in the heat. Fill up in the morning when it's cooler and you'll get more for your money.
- Pay cash for gas. You'll know exactly how much you're spending.
- Avoid rush hour. Stop-and-go driving is one of the worst ways to waste gas. If you can't telecommute, try to go to work early or arrive late to avoid getting stuck in traffic.
- Do all of your errands at one time trip instead of making lots of one-item trips.
- Don't idle. It wastes gas. If you're going to be idling for more than a minute, turn the car off.
- Easy does it. Driving the speed limit is more fuel-efficient than speeding. Ditto for accelerating and braking gently. And use the cruise control – a steady driving speed improves fuel economy.
At the supermarket
- Make a list before you go shopping and stick to it.
- Never shop hungry. You'll actually spend less – and stick to your list better – if you have a good meal before shopping.
- Shop when the kids are in school. They won't ask for treats – and you won't have to feel guilty for giving in or for saying "no!" a million times.
- Try generic or store brands.
- Buy staples in bulk. Trash bags, toilet paper, laundry detergent, diapers and similar items aren't perishable and you save twice: large-volume packages cost less per unit/ounce and you don't have to shop for them as often.
- Also, try to buy staples in one big trip per month. And use your list here too – resist impulse buys. You're only saving money if you were going to buy that item anyway.
- Use coupons. Some 21st-century tips: Use online coupons, available on many supermarket web sites and from sites such as nesteggz.com. Use a mix of online and print coupons to maximize savings. Check the websites of your favorite brands for online coupons or mail or e-mail offers. "Stack" your coupons. Use a store coupon and a manufacturer's coupon for the same item, or use a manufacturer's coupon on items the store offers at two-for-one. Some supermarkets double or triple coupons on certain days. Check your local stores and shop on those days.
- Learn to love water, especially the kind that comes out of the tap. It's cheaper than soda, Kool-Aid, bottled ice teas or bottled water. And definitely cheaper than Mom and Dad's beer and wine. Water is healthier too.
- Brown-bag your lunch. If you can't do it every day, at least try it a couple of times a week.
Financial services
- Always ask for fees to be waived. Whenever you sign up for any kind of service with up-front fees – a cell phone plan, for instance – ask that they be eliminated. Even if they refuse, you might get a reduction.
- Ask your credit card company for a rate reduction. On a $5,000 balance, a 3 percent rate reduction saves you $150 a year.
- Pay off your credit card balance each month. If you don't, you can get socked with high interest payments.
- Don't pay bank fees. There are plenty of free checking accounts available. If your bank won't waive the fees, you can easily take your account to another bank.
- Don't pay ATM fees. If you need cash and you're not near one of your bank's machines, use your bankcard to make a purchase a supermarket and ask for cash back.
- Refinance your mortgage. It's worth it if you can reduce your interest rate by 1 percent or more, especially if you have a higher rate because of a less-than-wonderful credit score. You may qualify for a better rate if your score has improved.
- Delete your credit card numbers from your online accounts. Spending is easy when you can just click and buy. If you have to hunt for your card and type in the numbers, you'll have time to decide whether you really want to spend the money.
- Raise the deductible on your car insurance – just make sure you have money set aside to cover costs if you're in an accident. Also, shop around for lower rates. If you've been with the same company for a while, you may not realize what else is out there. Be careful though: Be sure you're getting a quote for the same coverage. If you don't want to switch companies, ask your existing company to match the offer.
Miscellaneous
- Buy video games with a lot of replay value - and don't buy any new ones until you've mastered the ones you have. Good options include puzzle games and long, involved quest games.
- Cancel club memberships – the gym, for instance – that you don't use. You can always rejoin later if you change your mind.
