Eating out is a major convenience cost. (Photo Credit: CC BY/Christian Cable/Flickr)

Instant gratification may feel good, but the truth is that the cost of convenience is killing budgets everywhere. Whether it’s a matter of “keeping up with the Joneses” or partaking in smaller daily indulgences, impulse spending can challenge the best budgets, particularly during a recession. With a little help from Wise Bread, here are five smart spending tips that will help you tame the runaway cost of convenience.

Cut back on cleaning services

If you have the means to support small cleaning businesses in your community, then by all means keep the wheels of the economy spinning. However, maid services are definitely a luxury for most people. Do it yourself and save. You’ll even get some exercise in the process.

Cut back the cell phone bill

Mobile devices are ubiquitous these days, but for most people who don’t rely upon them for business, they are yet another cost of convenience. Land lines are cheaper, and cheap VOIP telephone services are available for people with a computer and broadband connection.

Cut back television

Thousands of channels and still nothing to watch tends to classify cable and satellite programming for many people. Not only do TV addicts think they need the variety, but some will have multiple televisions within the same household, so ingrained is the passive habit. Read a book. Use the radio or Internet for news. Go outside and exercise. These options are cheaper than television and better for you.

Cut back on your ride

Having reliable transportation is necessary for school, work and other obligations, and in well-designed cities, public transportation serves the public need. However, most U.S. cities do not have adequate public transportation systems, so having a car is helpful. For those who need a car, buy based upon need, rather than signing up for all the bells and whistles. Paying for more car than you need is a prime example of the great cost of convenience. Try riding a bicycle instead.

Cut back on eating out

Cooking is an essential life skill that many Americans, unfortunately, never learn. Simple meals are not difficult, and as MSN Moneycentral reports, U.S. families with children tend to spend $300 per month or more eating out each month. With some planning, eating out can be cut to a minimum and save recession-starved families a few thousand dollars per year.

Sources

MSN Moneycentral

Wise Bread

Just like in the "Rime of the Ancient Mariner," fewer people want an albatross around their neck like debt. Image from Wikimedia Commons.

Everyone has heard the phrase “keeping up with the Joneses,” and it means doing the things everyone else is doing to keep status. This instinct is what drives people to do things like get flat screen televisions, iPhones, riding lawnmowers and so forth. Well, according to the Federal Reserve, the Joneses are getting debt settlement relief these days instead of putting more stuff their credit cards.

Household debt falling, says Fed

The Federal Reserve recently released new data about the levels of household debt in America. It seems that once the recession came, people decided to tighten their belts and pay things off. (A little debt consolidation never hurt anyone.) According to the Wall Street Journal, consumer debt levels have fallen for seven straight quarters. Second quarter of 2010 showed a 1.5 percent reduction from the past quarter and a 6.5 percent reduction from the previous peak, in third quarter of 2008. That’s $178 billion of debt that’s been paid off in the last three months. That’s a lot of people essentially giving themselves a cash advance every month.

A few caveats

Falling household debt and an increased savings rate isn’t the entire picture. Not only did consumer debt go down, the delinquency rate went down as well. This quarter was also the first instance of delinquent debt being reduced, which fell by 0.5 percent. However, as a corollary, bankruptcies increased by 34 percent. It seems fewer people are using payday loans to keep up with paying for credit cards, as 272 million accounts were closed and only 161 million opened. At this rate, credit card companies might need an emergency loan themselves.

Getting rid of debt

Overall, more Americans are trying to get rid of debt. More people are trying to pay credit cards off than get new ones. Unfortunately, though, more people are filing for bankruptcy. Still, there are a lot of positive signs that people want to stay out of debt, preferring the security of cold, hard, cash.

Further Reading

Wall Street Journal