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Life Events


Every stage of life has its own financial needs and concerns. The life events on this page can help you target the key financial strategies and issues that are likely to be most important to you in this stage of your life.

Starting Out    Changing Jobs    Coping with Unemployment    Getting Married    Starting a Family    Buying a Home    Saving for College    Starting a Business    Planning/Saving for Retirement    Managing College Expenses    Long-Term Care Planning    Planning an Estate    Nearing Retirement/Retirement    Loss of Spouse    Financial Windfall    Getting Divorced   
 
How can I reduce my spending?

Answer:

To reduce your spending, you first need to know where your money goes. Start out by keeping track of all of your expenses for a month. None are too small or insignificant: the daily newspaper, coffee on the way to work, an extra gallon of milk, that burger at the fast-food outlet. Next, categorize the expenses so you can see what you spend and where you spend it. Be sure to factor into your monthly expenses a prorated portion of the annual cost of your irregular expenses (e.g., clothes, gifts, car maintenance, insurance premiums).

Expenses generally fall into two categories. Essential expenses are ones you can't avoid (e.g., rent, utilities, groceries, car insurance). Discretionary expenses are ones you choose to incur (e.g., eating out, entertainment, gifts, cigarettes, videos). Discretionary expenses are the ones over which you will have the most control. Do you buy a lot of books? Try the library instead. Take coffee or lunch to work rather than buy it once you get there. Limit eating out to once a week rather than twice. Quit smoking, or at least begin to cut back on the number of packs you smoke each week.

Although essential expenses are fixed, there may be ways to reduce them. Make sure you shut off the lights and TV when you leave the room. E-mail your distant friends and relatives rather than call them long-distance. Change the oil in your car on a regular basis to avoid more costly repairs due to neglect. Review your insurance policies: Can you save on your premiums by taking a nonsmoker discount or increasing your deductibles? Clip the grocery store coupons, always shop from a list, and avoid the impulse items at the end of the aisles.

Pick a realistic goal for your monthly spending reduction and try not to make too many changes all at once. To see how big a difference this can make, do the math. If you start by committing to reduce your spending by $2 a day, that's $730 a year! Set the saved money aside, perhaps in a savings account for your planned vacation, or use it for a specific purpose, such as reducing debt faster.



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 Doncaster Insurance & Financial Services, Inc.  1020 N. Center Parkway #C  Kennewick, WA 99336  www.tomdoncaster.com Securities and advisory services offered through Independent Financial Group, LLC a registered broker/dealer an Investment Advisor and member of FINRA and SIPC.  This is not an offer to sell securities, which may be done only after proper delivery of a prospectus and client suitability has been reviewed and determined.  Doncaster Insurance & Financial Services, Inc and Independent Financial Group, LLC are unafiliated entities.   OSJ Branch:  12671 High Bluff Dr. Suite 200  San Diego, CA 92130
 
Office Hours of Operation for Doncaster Insurance & Financial Services, Inc:   Monday - Thursday  9 am to 4 pm (Noon - 1 pm Lunch)

This communication is strictly intended for individuals residing in the state(s) of AZ, CA, ID, MO, OK, OR and WA. No offers may be made or accepted from any resident outside the specific states referenced.
 


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