Like many of you, we are scrambling to downsize our lifestyles.
Luckily, we found some professional help in Peter J. Sander, who coauthored “The Pocket Idiot’s Guide to Living on a Budget’’ with his wife, Jennifer Basye Sander. (The couple’s new book, “573 Ways to Save Money,’’ is due out next month).
“We’re professional writers,’’ Sander joked. “We had to figure out how to do this.’’
His first tip: Figure out what your fixed costs are and use them to set a budget. Then, figure out where you can cut.
The biggest expense, obviously, is probably housing. If you’re renting, try negotiating a better lease or look for a cheaper apartment. In some areas, rents are dropping because of the bad economy and an influx of new units on the market. And whether you rent or own, consider taking on roommates or boarders to defray costs. We’ve got a one-bedroom South End apartment where - since rent has increased yearly - we’re paying $1,600 a month. Our options are roommates or moving farther out of the city in hopes of finding a less costly home. With our budget, we’re looking for something $1,200 or less. Next, check out your cellphone bill. Some providers, like Verizon Wireless, will break out talk minutes, text messages, and Internet charges so you know exactly how you’re using your phone. Your provider might then be able to direct you to a cheaper plan that fits you better. For example we found that we texted more than we talked and then downsized to a Verizon plan with fewer minutes that was about $20 a month cheaper. And since we hate sitting through automated phone messages while waiting for a customer service representative, we did it all online where we could also take advantage of a service upgrade and Internet discount to get a nifty new phone. Netflix, is another matter, however. We don’t own a TV, so this $9-a-month indulgence along with our Internet connection is an entertainment lifeline. Still, we put Netflix on hold - the service allows for a three-month hiatus - in order to a save a little bit of cash in the short-run. If you do have a television and possibly expensive cable services, consider using your computer to watch shows and movies, and downgrade your cable service. Bundling is another option. Comcast and Verizon offer deals to wrap your television, Internet, and phone services together to save a few bucks. At Comcast, you can get all three for $79.85 a month, or combine two of the services for a cheaper option tailored to how you entertain yourself. At Verizon, you can do the same, saving $5 to $50 a month depending on which options you go for. For instance, a package that includes unlimited local and long distance calling, and FiOS Internet and television costs $109.99 together - a $37.98 savings, based on the prices of the individual products. Finally, look at all your subscriptions. Are the New Yorkers piling up at your house? They are at ours, right alongside the always fun but often unread Outside magazines. Those two subscriptions were costing us about $70 a year, so out they went. (We’ll miss you, Talk of the Town and Parting Shot). Now that you’ve figured out where to cut, Sander’s second tip: Set your goals and then reward yourself at a regular interval - like once a month - so you have an incentive to follow your budget rules. Maybe it’s a cup of that expensive espresso that you stopped drinking in favor of a less-costly cup of regular coffee, or a night at the movies.
“You have to have a little bit of pleasure,’’ Sander said. “Otherwise people see no need to comply and just go about their bad [spending] habits.’’
And the last tip - more a caution - from Sander: Whatever you do, don’t cut your retirement contributions. You want to save for the future, even it means belt tightening elsewhere.
“If you can get by without cutting your retirement, then you are still working toward what you were working toward before,’’ he said. “You’ve still got your future.
Erin Ailworth can be reached at eailworth@globe.com. 
© Copyright 2009 Globe Newspaper Company.
