Cheap Week: Living Cheap

We're kicking off Cheap week with Financial Expert, Andrea Woroch. She'll share tips on how to cut down on your expenses and still live your best life on a budget.

Being frugal doesn't have to compromise your lifestyle. In fact, making just a few small changes could help you enjoy doing more on less. But if you aren't sure where or how to start, follow these cheap and easy steps to start living on less.

DOs

• Do use coupons. From the Sunday circular to cell phones and internet, coupons are more readily available making them easier than ever to use. in fact, spending just 20 minutes looking for coupons can save you up to $1,000 a year! For those who can't be bothered clipping coupons, check sites like CouponSherpa.com for printable in-store and grocery coupons. CouponSherpa also offers a free downloadable iPhone coupon app that uses a GPS to provide coupons for the stores based on your location. Simply present the barcode on your phone to the cashier to receive an instant discount.

• Do-Do It Yourself. From home improvement projects like painting to sewing a ripped dress and changing your oil, you can save a lot of money by doing things yourself and not paying for the service (a savings of up to 70% or higher).

• Do review cell phone bills & cut the extras. The average cell phone users pay for more minutes than they use. With unlimited nights and weekends, unlimited data and text packages, do you really need 900 peak minutes? Make sure to review your monthly minute usage and figure out how much you really need vs what you pay for. Consider switching to pre-paid services. This way, you pay for what you use and nothing more, and you'll never worry about those expensive overage fees. You can also download free text messaging apps for iPhone, Droid & Blackberry and forgo the $15 per month text fees.

• Do turn down the thermostat. Reducing the temperature in your home by just 1 degree could save you up to 5% in monthly heating costs. In the summer, open windows to let the natural breeze cool your home. Another tip for reducing electric costs, plug all your electronics and appliances into power adapters and switch those off when not in use. Although the gadgets and appliances may not be in use, they still consume energy when plugged int the socket.

• Do freeze gym memberships during Spring & Summer. Enjoy the warm weather and take your workout outdoors for free! Most gyms allow members under contract to freeze their account for a small fee. This allows members to return after the freeze period (say 3 or 4 months) at their previous membership status while avoiding cancellation fees. The result could be a few hundred dollars in savings over the freeze period. If your membership is up, consider investing in exercise equipment to build an at-home gym. Although the initial cost may seem high, you'll save more over time when compared to paying a monthly fee of $50 - $150.

• Do shop smartly. Always compare prices online before buying anything in-store and review costs among brands to find the best deal. Shop off-season and wait for holiday sales to pick-up big tickets items when retailers are likely to offer lower prices and special promotions. Shop with cash if you aren't responsible with a credit card -those who shop with cash are less likely to buy on impulse and using a list at the grocery store will help you stick to the items you need. And, always

• Do buy in bulk. Buying almost anything in bulk guarantees savings of 30 to 60% off. From prescriptions to cleaning supplies and pet food, consider warehouse memberships or shop online at big box retailers like Walmart and Target for bulk deals that will be shipped right to your home. Don't have room or a need for 36 rolls of toilet paper? Get with a friend, neighbor or co-worked to split these bulk buys and share the savings!

• Do use a flexible spending account so you can pay out-of-pocket medical expenses with pre-tax dollars.

• Do drink water and don't pay for it! Americans consume lots of calories through soda, juices and coffee drinks. Switch to water to be healthy and save money, but don't buy water bottles either. Instead use reusable bottles and bring your H20 with you to stay hydrated.

• Do get organized & sell your clutter. A little bit of Spring cleaning can go a long way. Find items that haven't been used in a while like sporting goods, perhaps a like-new-pair of jeans or shoes or furniture and use resources like eBay or Craiglists to sell your clutter for cash. Your local consignment shop can help you make money on gently used clothing or consider hosting a yard sale to make some extra bucks.

• Do cut cable premiums and take advantage of specials. So many channels yet so little to watch-it's a statement you hear many consumers make. Consider going basic for huge savings. If you have high-speed internet access, you can stream videos, movies, popular shows and sporting events right through your computer (connect it to your TV) via netflix, hulu and popular network apps. Also, take advantage of promotions. A quick call to your cable & wireless internet provider could result in special savings whether for a 6 or 12 month period.

• Do haggle. From electronics to various membership fees, always bargain. Inquire about special promotions, any available coupons when shopping in-store or if the salesperson/customer rep can drop the price by 10%. The worst they say is "no" but often times you may get a deal. Perhaps a complimentary camera case with new digital camera purchase or an extended introductory rate for your home internet access. Online shoppers can call the customer service center to find out about free shipping offers, coupons or any special promotions. Don't forget to check the competition, most big box retailers will price match their competitors.

DONTs

• Don't rely on restaurants, takeout or prepared foods. Learning how to cook is one of the most essentials steps in saving money. In fact, the average person spends well over $2,000 a year on eating out. With so many resources for finding recipes and step-by-step cooking guides online, anyone can learn how to cook. Don't have time to prepare daily meals? Pick one night a week and cook in bulk to prepare several meals for quick meals throughout the week.

• Don't buy lunch everyday. Preparing your own lunch could save you up to $3,000 per year.

• Don't pay for overpriced airport food. Whether traveling solo or with three kids, paying for airport food is a quick way to wasting money. Always pack snacks and sandwiches for longer flights. Prepared foods are generally more expensive than cooking. Factor in inflated prices at the airport and you might as well throw your money away! Plus, packing your own food is healthier too.

• Don't pay interest on your credit card. Always pay your balance off in full each month or switch to a credit card that offers a 0% introductory APR to catch up on your debt. With rising interest rates, consumers could get caught in a vicious cycle of paying the interest rate and not paying down debt. Always aim to pay double to triple the minimum fee to get out of debt.

• Don't marry a brand. Always consider generic from food to paint and gas, you can save anywhere from 10 to 30% by avoiding brand names.

• Don't go out to the movies. Instead of going to the movie theater for your date or family night out and paying up to $12 per person and buying overpriced candy/popcorn, create an at home movie experience for as little as $3. Sign out a free DVD from your local library or rent from REDBOX which offers some of the hottest new release for just $1.

• Don't let gift cards go unused. The average American household has $300 in unused gift cards. Instead sell them for cash at sites like GiftCardGranny.com. You can also buy discount gift cards for a variety of retailers and for various products and services including movie theaters, restaurants, apparel, gas and food to save up to 50% on purchases you would make anyway.

• Don't visit the nail salon