Hi All,

With inflation roaring ahead at 5%, you’ll need to find ways to increase your purchasing power to keep up. A great way to do this is to reduce your household expenses. Here are some ways you might consider cutting back.

1) Cancel your landline: If you have long distance service on your cell phone, you certainly don’t need it on your landline. Better yet, get rid of your landline service all together.

2) Be careful about using your ATM for cash withdrawals. ATM fees have gone up in recent years, and you could be charged up to 5 dollars to make a withdrawal, especially if you use an out of network machine. Consider making fewer larger withdrawals instead of several smaller withdrawals. For example, take out $100 once a week, rather than $50 twice a week. This way you’ll avoid the ATM fees.

3) Reduce or Cancel your Cable: A while ago a para-legal friend of mine ordered 100 dollars worth of cable every month. He had like 600 channels – it was more programming then he could ever hope to watch. Trust me, you don’t need 6 movie channels, the home shopping network, the Oxygen channel, the A&E network, etc. Cut back and save a few bucks, or better yet – cancel your cable all together and sell your television.

4) Avoid Buying Bottled Water: Filtered tap water is free. Bottled water costs nearly as much as gasoline.

5) Dump Your Magazine Subscriptions: Subscriptions are pretty cheap these days, but if you find the magazines are just piling up or you’re throwing them out without reading them, then by all means pick up the telephone and cancel the subscription. A lot of magazine content is available on-line for free anyways, so canceling your subscriptions makes good sense.

Best,

James

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3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

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