11 Ways to Trim Your Winter Expenses
The cold weather can inspire a flurry of overspending to help combat the colder temperatures and lack of outdoor activities. These 11 tips will help you keep the upcoming winter expenses in check so you can conquer the season without hurting your budget.
1. Cash in. If you've built up credit card rewards points, now is a good time to take advantage of them, by converting them into a gift for yourself or friends and family, says Farnoosh Torabi, financial expert and author of "When She Makes More." She's used points on new computer purchases and gift card gifts for family members.
2. Bundle up. Torabi also recommends turning down the heat to save on energy costs and instead bundling up with extra blankets. Plus, she adds, you might discover that you sleep better that way. At the same time, check your home's insulation to make sure heat isn't leaking out through cracks and windows. Foam and caulking can help address any problem areas.
3. Make the ask. Certified financial planner Lauren Lyons Cole suggests getting ready to ask for a raise at performance review time by checking out salary-comparison sites, such as PayScale.com and Salary.com, to see how your pay stacks up. She also urges people to take time to think back on their year's accomplishments, so they can explain them to supervisors, as well as big work goals for 2015.
4. Manage gift expectations. This tip is especially important for parents: Children can learn early that Santa Claus doesn't bring everything they want. Cole says when she was growing up, her parents gave her and her siblings specific holiday budgets, which influenced the gifts they put on their wish lists. "Determine an amount you can realistically afford by taking a close look at your budget, as well as any other financial responsibilities, such as traveling to visit family. Telling your kids will help manage their expectations and also teach them a bit about budgeting," she says.
5. Use up flexible spending dollars. Employees who have contributed money to flexible spending accounts typically have until the end of the year (or until mid-March of the following year) to spend that money. New glasses, acupuncture appointments, dental check-ups, and physical therapy are all eligible, along with dozens of other medical costs, for health FSAs. If you've been putting off a doctor's visit, now is the time to schedule it, and be sure to keep the receipts for any out-of-pocket costs for easy filing.
6. Make your own treats. When you're ready for hot chocolate, chili and other bone-warming meals, consider making them yourself. You'll be able to do it for a fraction of the price of going to a coffee shop or restaurant.
7. Set 2015 money goals. While you might have your eye on some huge goals, such as buying a home or getting a new job, the best way to achieve those goals is by breaking them down into smaller steps, according to BJ Fogg, director of Stanford University's Persuasive Technology Lab. That might mean changing small, daily habits to start saving more or updating social media profiles to network more.
8. Avoid the shopping rush. Last-minute sales and super discounts can inspire frantic buying, which can lead to poor decisions. Consumer psychologist Kit Yarrow suggests avoiding short-term sales for that reason, as well as deal-a-day programs that require immediate action to buy a product.
9. Use leftovers. With family and friends visiting and big holiday meals to plan, you might find yourself with a fridge full of leftovers. To turn those meals into future lunches and dinners, consider repurposing the ingredients into casseroles and soups.
10. Buy a new thermostat. Programmable thermostats let you adjust your energy usage when you're not home. That's useful, since the Environmental Protection Agency reports that most of us leave our heat on even when we're out of the house. The Union of Concerned Scientists, a nonprofit science advocacy group, reports that you can save $180 a year on heating costs by making those daily adjustments.
11. Cancel catalog subscriptions. More catalogs might start showing up soon, thanks to the fact that the gift-giving season lets retailers capture the addresses of both gift givers and recipients. You can tell stores directly to unsubscribe you, or use a service like the one at catalogchoice.org to take care of it for you.
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