How to Avoid This Winter’s Financial Freeze

For many families, winter can be a time of financial crisis. Not only does the financial crunch of the holidays arrive, but for those who live in states that routinely get inclement weather, there is also the cost of higher utility payments. Even fresh produce becomes more expensive. However, by taking a few steps in preparation, families can easily build their nest egg for winter to prevent financial strain.

For many families, the biggest expense is the cost of the rent or mortgage. Unfortunately, unless you refinance or move, there is not much that you can do about the cost. However, there are ten easy ways that you can cut spending and save money for a rainy (or snowy) day.

1. Buy Heating Oil Now! Prices tend to skyrocket as the temperature drops. Stocking up on heating oil now will help you get through the winter months without paying premium prices.
2. Little food changes add up to big savings. Food is a big expense for most family, both in the form of groceries and eating at restaurants. Cutting back on dining out expenses will save you a lot of money. Instead of eating at the local fast food joint on your work break, pack a lunch from home. Skip the donut shop for breakfast, but instead buy a box of granola bars or some single serve yogurt. You will not only save money, but end up eating healthier. Buying a coffee pot for home and brewing your own coffee can save you the cost you spend at fancy coffee shops. All of these expenses can add up to hundreds of dollars a month.
3. Be a smart grocery shopper. Even groceries can get expensive during the winter, especially if your fresh foods are shipped from out of state. However, becoming a savvy shopper can save you hundreds at the grocery store. Take advantage of manufacturer’s coupons and store sales to stock up on nonperishable items when they are at their cheapest. Compare store brands and generics to the name brands – you can often get bigger packages at smaller prices. Purchasing a deep freeze can allow you to take advantage of deals on frozen items or meats.
4. Be prepared for a rainy day. Even the best budgets can incur strains if your heater breaks down, your pipes freeze, or the car stalls. Researching emergency short-term loans ahead of time will give you an idea of where you can get the best terms, allowing you to buy what you need to get through the pinch.
5. Lower your thermostat. Utilities also cause a big strain on the budget, particularly in the winter. For starters, turn your heat down and grab a sweater or put an extra blanket on the bed. For every degree lower you set your thermostat, you will save about 3% on you energy bill that month. Having a programmable thermostat installed can also help you save money by heating your home only when you need it. Going away for the holidays? Turn the heat down or off while you are gone.
6. Change your lights. The winter months tend to be darker, causing people to leave their lights on more. However, there are numerous ways that you can save money here. Buy fluorescent bulbs for lights that are on often. Install motion sensors that will automatically turn lights off when no one is in the room. Take advantage of daylight hours, and open blinds and curtains on brighter days to avoid turning on unnecessary lights.
7. Watching the water. Water is another source of spending for many families. There is nothing nicer than relaxing in a warm bath after a cold day outdoors in the winter. However, turning your water heater down a few degrees will help save money in your energy bills and prevent scalding. Waiting to run the dishwasher and the laundry machine until they are full will also prevent water waste.
8. Evaluating entertainment. With the inclement weather that winter brings, it can be hard to keep the family entertained. However, you may want to rethink some of your options. If your family enjoys movie watching, getting a membership with one of the rental programs will be cheaper than going to the theater every weekend. Reconsider your TV package – do you really need 300 channels or can you cut back? Can you save money combining your internet, phone, and TV into one of those package deals? If your family enjoys reading, get a library membership instead of buying new books.
9. Inquiring about interest. Start thinking about your credit card debt and see if you can lower your interest rate. If you have a good payment record, the company may be able to offer you a better deal. Even a temporary reduction can help save a significant amount of money for a few months.
10. Reuse last season’s wardrobe. If having a new winter wardrobe is a must for you, try rethinking your purchases. Can you save money by reusing some of last year’s items? Sprucing up an old coat with a new hat and scarf set can save money. Watch for sales on winter items and shop around before purchasing. Or you can even consider sharing clothes with a friend to expand both of your wardrobes for free.
11. Plan ahead for the presents. The holidays are a big money drain for many people. If you can, set aside a monthly savings amount throughout the year to use at the holidays. Some people will buy a gift card when they do their weekly or monthly shopping – they can then use these as gifts or to purchase gifts later. Write a budget and stick to it, and consider talking to family members about purchasing one family gift instead of separate kids’ gifts, or doing a name exchange instead of buying for everyone.