Watching spending, cutting debt can boost family’s balance sheet

ASSOCIATED PRESS

Gary Foreman, a former financial planner who edits “The Dollar Stretcher” newsletter, says that consumers have a number of options to help them weather a troubled economic climate.

“What concerns me more than anything is the lack of savings and the amount of debt we’ve been taking on over the last 10 years,” he said. “We’ve been unwilling forgo any ’wants’ or pleasures in life, whether we can afford them or not.”

Some of his suggestions:

•Look at a month’s worth of spending and see where the money is going.

•Cut back on the nonessentials, whether it’s luxury cars or premium coffee.

•Look for big savings. Increasing the deductibles on auto and home insurance can save hundreds of dollars on premiums.

•Housing and transportation are hard to cut, but food bills can be quickly reduced. Eat out less, carry leftovers from home for lunch, cook in batches and freeze portions for future meals.

•Reduce credit card balances by making more than the minimum payment each month.

•Start a “rainy day” fund, with enough to cover three months to six months worth of expenses, and you’ll sleep better at night.

•Don’t wait until you’re laid off to seek work alternatives. Network and take night classes to learn something new.