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Money TIGHT? DO THIS !

Cutting through the crap, straight to the chase. Times are tough, the economy sucks and everyone is struggling to keep things together. There are two things you can do. ONE, increase your revenue and TWO, cut your expenses.

My short list here should save you at least $200 per month, hopefully more:

RENEGOTIATE your office fee or split. 100% of nothing is still NOTHING. Now is the time to negotiate everywhere you can, your goal is 0 out of pocket expense.

CANCEL subscriptions to all magazines, periodicals, business journals, and around the office reading material that does not bring $ $ $ $ to you. (This is just about everything).

CELL PHONES....time to evaluate. Check to see if you are under contract and if so, when it renews. As soon as you are able, shop for a better deal. Companies are hurting, and inclined to offer huge incentives for new business.

PARK the Lexus. Start driving the Honda that gets a billion miles per gallon. Looking cool is overrated anyways. On that note, make EVERY trip count for something.

ROLL HIGH INTEREST CREDIT CARD BALANCES to a lower, fixed rate card. There's plenty of companies in on that action. Juniper Card and Capital One both have some great deals going right now.

RETIREMENT ACCOUNTS should be off limits but desperate times call for desperate measures. You may be able to borrow against it or withdraw it altogether. There will undoubtedly be a penalty .... check with your accountant first.

LIFE INSURANCE policies usually allow for low interest loans against accrued value. Make sure this is something you can afford to pay back if you do borrow against it.

LIQUIDATE your unwanted & unused items. Post your unwanteds on Ebay, Craigslist, Amazon or Shopzilla. Even some private companies will post your items for sale for a portion of the profits when they sell.

RENT out that extra bedroom. This is not for everyone but in certain situations, can provide that much needed extra income.

DINE OUT LESS, eat at home more. Home cooked is always better anyways, right?

PUT SHOPPING on the back burner for now. Chances are you already have enough purses, shoes and God knows, clothes, to last a lifetime.

WANT vs. NEED Honestly choose only what you need. Now is not the time to buy just because you want it.

JOB .... Find one, real estate related or not.

"WATCH THE PENNIES AND THE DOLLARS WILL TAKE CARE OF THEMSELVES"

Posted by Bend Oregon REALTOR ® Kelli Fronabarger on 09/18/2008 12:51 AM

Comments (63)

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tough economy, cutting expenses

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63 Comments on Money TIGHT? DO THIS !

SEP

2008

Great ideas here! I was a starving artist before getting into real estate so I really know how to live on a dollar! When money is tight I have a 3 day rule on shopping. If I see something I want to buy, I give it 3 days and if I am still dying to have it I go get it. If not I forget about it. I rarely go back to get it!

Kelli: Very helpful list here. One thing I have done:cut my cell phone bill back--fewer minutes a month, program ($20.00 bucks a month savings).

Thanks!!!

Kelli...I couldn't agree with you more! Many live beyond their means and you're absolutely right the biggest expense aside of credit card debt is the vehicle we choose to drive. Why people buy cars they CAN'T afford is beyond me.

Kat~ I learned the hard way. My husband took my oldest daughter down to get a phone and came back with a $150/mo. plan..... sstill has no idea of what he signed up for. Craziness I tell you : )

We spend money we don't have on things we don't need to impress people we don't like.

Yvette~ I don't know either, money alters common sense sometimes. Thanks for your comments : )

Great ideas for saving money- just changed my plan for my cell phone, and my office lines will soon expire on their contract, will start to shop that. I've even considered renting out my office and moving to a home office. Just think of the money I would save!

Thanks I sure need to make some cuts I'll look at the big picture.

Great ideas, especially about dining out. Even getting coffee or something quick for lunch adds up over time.

I like all the great tips except the dining out because I REALLY AM A BAD COOK!! Trust me! Lol !

Thanks

Tom Davis
World Class DE Realtor

Cell phones are the worst but dining out is a close second. Anyone else notice that food prices are going up and not down? Thanks for your comments everyone!

I had recently gone through my cellphone bill to see how many minutes I was really using that weren't "in" minutes and I could cut my plan down over $50 per month.

One thing I did recently was consign tons of my childrens clothing at at consignment sale called Just Between Friends. Some of the clothes I had actually gotten at garage sales but I made $270 at the sale!! That was even my net after I had paid the company the 30% to sell them. My friend made over $400! Now I have enough "extra" money to go towards Christmas!

SEP

2008

Great ideas. I'm starting to cut back on my marketing that has not produced any lead. We also stopped dining out.

Kelli, most cell companies will let you go to a different plan with no change in contract. So, it is a great idea to check usage and see what works.

Good points, belt tightening is the sign of the times.

Great list. I need to re-evaluate my cell phone...but what is this Dining Out??? lol. I let that go months ago...unless someone else is buying! Actually I have a friend that I dine with on a fairly regular basis. Some of the most fun times we have had are when we meet at the grocery store, shop together,go back to his house (more peaceful there) and cook together.

Kelli -

God Bless You, Lady - you've hit the nail right on the head!

We started the year by trimming our expenses on virtually everything - car payment (traded the Premium-sucking Acura for a new Honda Accord), Health Insurance, Unnecessary Internet Memberships, Extra Dinners Out, Expensive Vacations, etc.

Why? Because tough times call for tough action.

If there is a blessing as the market has faltered a bit, it's that it has forced us to re-examine our expenditures, and trim the fat. When things get stronger again in RE, we'll be that much more lean and mean.

Thanks for your insights, and your outline. EVERYONE should print this out and paste it on their office wall.

DEAN & DEAN'S TEAM CHICAGO

or fifnd the way to close only one more deal a year, and you could afford all things that you will have to cut from your life.

Of course, if we can get that extra closing...

You got it right -- cut back and don't spend on anything except what is absolutely needed.

Some good ideas AND some I disagree with. Thank you for taking the time.

Cameron Novak
Corona Real Estate Broker - Short Sale Specialist
The Homefinding Center^TM
Corona, California
951-212-7479

Chat About Corona Real Estate 24/7/365

You could not have said it any better. I still agree 100% of nothing is still NOTHING!!!!!

Kel - nice to see your smiling face - cutting back seems to be a trend in this household -

Thanks for your great list of money saving thoughts. Indeed, it is time to trim expenses and give thought to the things we think we need.

When money is tight, you have to cut your expenses to stay afloat.

Kelli, great, no awesome list. Nothing wrong with buckling up during hard times. You should see all the second homes on the market here? glad to see you here.

Im trying to find that Honda now. My suburban (I love it) is killing me on gas. We constantly are looking for way to cut back! Im calling my broker!

Kelli,

All great ideas. Thanks for putting them in a list to bring them to our attention. With the stock market doing strange things, we may need to take these steps more to heart than ever before. Thanks.

To put cutting back or being frugal in a really positive and trendy perspective -- think of it as "going green" and reducing your carbon footprint! Makes it seems more noble and exciting at least!

Some great ideas that we should continue to do even when the markets improve. Did you know about www.etsy.com ? It's another platform where people can sell handmade and vintage items. I love to buy things there but am curbing my enthusiasm for the site right now.

Hi Kelli - great common sense tips. Especially the magazines!!! Though I have to comment on this one:

DINE OUT LESS, eat at home more. Home cooked is always better anyways, right?

You have not eaten my food! LOL

Right on!!!!!

Kelli, Great list. When I suggested dining out less to my son as a money saving idea, he looked at me as if I had a 3rd eye. There is a lot of money to be saved when you cut down your dining out when you do it 6 nights a week and never eat leftovers.

Excellent ideas even in a ggood economy...I was downsized several years ago allowing my wife and i to re-evaluate all our expenditures, resulting in a huge lifestyle change. Today we love comfortable and still adhear to the changes we made many years ago.

HI KELLI!

I think everyone can appreciate tips on saving money nowadays. These are good, solid tips that will help your bottom line. Thank you for helping to put $$$$ back in the pocket!

It is a great list and I know well how hard it is to implement all those ideas into your daily life. I've been through thick and thin and it looks like we are heading into deep hole up here in Canada too... so about that last item on your list: Find a job... Now consider this, do you realy want to work for someone else? Or perhaps you would prefer to work for yourself?

Everyone, and this is especially true in case of Realtors, has a goldmine of knowledge. It can be the knowledge about anything that you love to do: skiing, sewing, gardening, cooking, flying... selling homes in the tough market... it could be just the fact that you lived in your city your whole life and know it like a back of your hand. Use that knowledge and make a living from it! Or at least supplement your income. Make money using your knowledge! Take a moment to visit my site, than scroll all the way down to "Powered by Site Build It!. www.Selling-Barrie-Homes.com You will notice that this is my Real Estate site, but I also have 2 other ones that I rely on for money. Those have nothing to do with Real Estate. One is about winter vacations in Ontario (because we have 6 months of winter here and I love it) and the other is based on the knowledge I acquired in my previous job, hardwood flooring.

I truly am passionate about this and I will provide help and explanation if anyone needs it, but you need to check that link out! It helped me 5 years ago come out from under pouring rain of everything that was going wrong, and today, even though the worst is yet to come up here, I will be OK.

To all that are hanging on, you can do it! We all are in this together. All the Best from Barrie, Ontario, Canada.

Great tips, Kelli. Great list.

Even when the market is better, living beyond one's means, is always a bad idea. If people lived within their means, and saved a little money, they would have a cushion for when times are tough(er).

Yesterday I was at the office, using the land line, watching other agents pace back and forth, on the phone, using their cell phone. I had to remind both to use the land lines; and to save their minutes. (I never use my cell phone when I can use a land line.)

Good luck saving, everyone. :)

Great tips Kelli. We all need help with getting back to basics in our personal lives.

Kelli, what a timely post! You've listed what I believe are some absolute fundamentals. May I also, suggest a focused and concerted effort to eliminate debt. I think we all expect a bit of rough sailing ahead, and the less debt expense we have, the better able we will be to ride the waves.

Good Morning All~

A big thanks to the MODERATORS for that beautiful gold star ! It seems fairly obvious that most all of us are already doing some of these things. For how long we'll need to do it, I don't know. Many of these suggestions should become part of our lifestyle anyways, for a myriad of reasons. I'll save that up for another blog though.

Thank you ALL for your wonderful comments. Have a blessed and fabulous day!

Great information, cut expenses that you can not afford.

Hi Kelli,

Great list full of valuable information! Everyone I know has had to cut back in one way or other, thats the way it is right now. Dining in is also waaay better for you! :)

These are good ideas, and many we started doing a couple of months ago. Thanks for the information.

Greetings from Virginia Beach!!!

Great ideas, good thing I started some of these already but lots of other new ideas to utilize, THANKS!!!

These are great ideas! It is hard to liquidate.... though I'm getting better at it.

It's always a good idea to run your business like a business and hold each expenditure accountable. If it doesn't help you produce income is it really worth having in the first place?

Kelli - this makes a lot of cents! We form habits that can be hard to break - and yet the solution is easy if we are willing to look at it and implement. Thank you for this post!

Great list - now more than ever it makes sence to look at the ROI of all of your expences.

Good no-nonsense advice!

Thanks for all of the great advice. Fortunately, because I work with Keller Williams Realty, my office fees are very low, $58 for a small cubicle. The biggest reduction in monthly expenses for me has been by cutting back how often I go into the office. We live 13 miles out of town, so I only go in to meet with clients or attend ongoing trainings and office meetings. I have been able to cut my gasoline bill from $500 a month down to $300 by performing more work at home.

Great list. I keep telling our agents to "save your money" and "stay out of the mall"

Unfortunately, most do not change their living habits at all.

Kelli--My husband and I took much of this advice years ago when we first got married. Living on a budget and being frugal when times are good makes it easier to deal with cutting back when times are tight. Lots of good advice--We constantly reevaluate the budget. Once you start making cutbacks, it is fun to look where you can save next.

We all were taught these lesson early in life and with things having been easier may have forgotten the lessons. Time to get back to basics. ~ Evelyn

Kelli-I agree a 100% with your list. I have really paid attention to the wants and needs, except mine is more of: I can't afford it-I don't need it. LOL

Another good point is the car situation-now is the time to drive for value not look. Great post!

Hey.... I'm glad I don't have kids at home. They don't like it when you cut expenses!! Horses and dogs don't necessarily know the difference.

I should fire my assistant but I don't want to be responsible for worrying about her family. She has worked for me for over 9 years.

I was just in Bend for a Brooks and Dunn concert. It sure is pretty there.

Yea I don't know about the Honda though but I did trade down to a Hummer. But you've got a good list. Seems pretty easy to do. A year ago I as calling leads for an hour a day, now I am calling three hours a day to do the same amount of business. Don't get me wrong it is slow but I perfer to just work harder, stay busier, cut back at the office (but not at my house). People are still buying and sellers are still selling and I am still doing everything I can to get in between em.

Kelli, didnt park a Lexus, but I did park the big red truck and got a little honda (the thing is AWESOME). Great list and many Americans need to realize that alot of what we enjoy is not neccessary.

Good tips, Blue Cross is offering now a go blue plan for only $ 42.00 a month, and this is a cutting expense too!!! Medical insurances are so expensive these days- and this plan looks to good to be true!!! Thanks for post and Congrats.

Great ideas on saving money--we can use all the tips we can get these days with the economy as it is! I'm thankful that I work from home (saving tons of gas!)...and that I love to cook--eating in most nights is no big deal for us! Also, I liked the 3 day rule on shopping that the first commenter, Lizette, made--I'll have to think about doing that.

--Anne Rains

LadyofRealty.blogspot.com

www.TheRainsTeam.com

SEP

2008

Good Evening All~

A couple more suggestions that came to me after the fact. For those really having a hard time, you can negotiate with your credit card companies for a hardship agreement. In some cases, they will negotiate your interest, your payment or both.

If you have an auto loan, you may be able to "skip a payment". I don't think they will let you do this more than once per year, but if you're struggling- it's worth the phone call.

Thanks everyone for the great comments and sharing of ideas!

SEP

2008

Excellent advice and it should probably be something to consider always.

Great post and I will certainly try to take the advice and use some of these ideas!

SEP

2008

Kelli- Well worth the gold star! Too often peple overlook the simple ways to save money. You have compiled a great checklist for budget minded professionals.

Thanks, this is a great list. I have already began to implement some of them. I cook most of the time and only shop for what I need. With four kids, it is pretty hard to say no or not right now lol.

Great list. I've also started to Freecycle stuff (www.freecycle.org) and trade toys with friends. When I look around my house, I've got too much junk everywhere. The situation on Wall Street has made me want to do spring cleaning on my own house & business...

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