Reduce Life Expenses

Although it sounds like tough measures and a forced change in life style, aren't these practices considered good ones?

I mean, when you turn off the lights when not using it, isn't that better for your budget and for the environment?

And when you make efficient use of the energy in the kitchen, isn't that a "greener" life style?

Also, the less energy you consume, the more energy that will be available at a lower price for other families. You see, when you participate in reducing the demand on energy, the price has to go down or at least stay where they are.

And this is just one example.

One of the most logical practices is that when you are short in money you look for the best value you can get for your dollar.

This concept is sometimes miscomprehended, and consequently practiced improperly. Like in switching from your brand to a cheaper one. Most of the time you get lower quality which will cost you more money on the long run.

The correct way to get the best value for your dollar is to develop a factor you can use to compare services or goods. Let's call it Cost Per Usage Unit.

One simple method to calculate it is to divide the price of the item by the number of usage units. Let's say you are comparing two detergents. Divide the price by the number of loads to get the cost per usage unit (in this case the load). The lower the cost per usage unit the better the value you are getting for your money. With some detergents you might have to do the laundry twice, that means two loads of this detergent represent one usage unit.

Some services and stores offer referral commission when you bring in a new customer. This practice is known in several industries and you can benefit from it in reducing your expenses.

Some communication companies, especially long distance ones, offer referral programs that you can use to reduce your own bill. Say your bill is about $50/month and you get $10 commission per new customer. Refer 5 new customers and your bill will become $0.00.

If you need a web hosting for your business, or for your personal website, don't just buy any hosting. Compare the number of people you need to refer in order to get your web hosting for free. Also consider how frequently you need to refer that many new customers.

Even in items you get from the grocery store, like shampoos, shower jells, tooth paste, deodorant or antiperspirants, soap, dish-washing detergent (hand or machine) laundry detergents, floor cleaners, glass cleaners, chocolate bars, acetaminophen (as in Tylenol TM), ibuprofen (as in Advil TM), hand sanitizers (especially these days with H1N1 around), foot care products, lip stick, nail polish, eye liners, eye shadows, any kind of make up products, hair styling products, hair conditioners ...

There is a company with an excellent referral program that sells those items and more (400 products) and rewards you for your referrals for life. Not only that, when your referrals refer new customers you get commission on their purchases, and so on for 7 levels deep. It doesn't get any better than that. You can actually not only save money this way, but also make money to help you with your other expenses that have no known referral programs.