Entertainment Budgeting
Entertainment Budgeting
Cable Television
We realize that there are some people who do not have cable service available in their area as well as some of you who do not chose to watch TV at all (or on a very limited basis). However, since most people do use cable, this can be another good sized savings. Obviously, you will want to look at your miscellaneous spending on movies to see if you can save by using cable or renting movies rather than going to a theater. Cable service is another area where you need to look at last month’s bill carefully. How much did your basic cable service cost? If you want to keep basic service, you will not be able to cut costs here. But how much did you pay for premium channels such as HBO? Most premium stations are movie stations and most movies that are released to these channels are also available for rental. Therefore, is it sensible to pay $30 a month to watch 2 or 3 movies a month at home when you could rent them for around $5 each ($15)? Again, a smaller savings that can add up to $200 or more a year in savings.
Also, how many TV sets do you have in your home? How many do you need? And how many of these need to have cable attached to them? If you have a place for young children to watch cartoons and such, they do not need cable on the TV. For other shows you want them to watch, they can use the family set that has cable.
Unfortunately, television watching seems to be the favored pastime of all ages today. But learning to cut back even a little will do more for your family then just save money. We know very well that it is much easier to just collapse in front of the TV after a hard day at work rather than go out for a walk, but we also know which is better for us. Try breaking the habit a little at a time. Instead of turning on the TV right after dinner every day, go for a short easy walk first. Yes, it takes more effort to plan a family trip to the beach or to go fishing then it does to spend the day in front of the TV, but we can just about guarantee that you will enjoy your day out more then you will watching old reruns all day.
Computer Lease
If you use your home computer for a home business or just for word processing and email, you do not need to have the biggest and fastest and most up-to-date computer out there. If you think you do, you are playing keeping up with the Joneses. If your home business requires very fast speeds and the best graphics available, then you probably do need the latest model. In other words, for the average user (and we are not talking about those of you already addicted to going online), a less expensive model will do and should last you for a very long time as word processing and email do not change a great deal. And if you feel that you need faster email service, remember that Grandma is used to waiting a week for a letter to come through the mail. If you need the newest model to keep your business running, you might want to consider a lease. The best way to decide whether a lease will help you financially or not is to ask your CPA or whoever does your taxes. Do not ask the salesman because he will tell you what is best for him, not what is best for you.
If you decide to use a lease, it can be for 2 or 3 years allowing you to trade in that older computer for a new one at that time. This will cost you less than buying a new computer outright every two years.
However, if you want to really save on your computer expense, the only way to do it is to not buy a new one. That is, keep the old one as long as possible. It is more cost effective to use a $2,500 computer for 6 years ($417 a year) then it is to buy a new one for $2,500 every 2 years ($1,250 a year). When bringing yourself out of debt, you must look at every purchase carefully. And the average person will not have any use for leases at all. A little precaution is good practice and a great way to make sure that you don’t need a debt cosolidation provider.