Minimize Your Cost of Living

a new report confirms exactly what many families have been enduring for quite some time: it's getting more costly to meet basic needs such as housing, food and child care. according to the university of washington, as noted in the seattle times, the bare-bones cost of living in that state has increased nearly a third since 2001.

it's no secret that everything from raising kids to paying your mortgage can take a toll on your bank account and your quality of life. which is why it's important to know how much money you'll have to shell out for specific daily needs, and, more importantly, how to minimize these expenses.

raising kids
having children of your own is definitely priceless. but the actual event of raising a child comes with a price tag of about $221,000 on average, according to a recent msn money article. and that only accounts for taking care of junior up until age 17. after additional expenses like college tuition are factored in, that number can double.

the base figure varies depending on household income and actually can range from $160,000 for lower-income families to as much as $400,000 for high-income, city-dwelling families, says msn money. according to the consumerist: "the cost break downs [based on msn money's findings], as well as basic suggestions on how to minimize them, are as follows:
• housing cost through age 17: $53,100 to $126,180. you could ignore one of the basic assumptions used in calculating additional housing costs. you could decide not to move into a larger home.
• food cost through age 17: $29,250 to $44,790. set strict limits on the more discretionary forms of food spending [such as fast food].
• transportation cost through age 17: $22,710 to $45,570. avoid buying a new car. instead, look into a used car such as a relatively new model that's coming off of a one- or two-year lease.
• clothing cost through age 17: $10,860 to $18,540. take full advantage to skirt the outlandish expense of buying clothes for your little one(s). also, seek out some of the thousands of manufacturer outlets across the country where you can buy perfectly good clothes as low as half their original price.
• health care cost through age 17: $12,810 to $19,860. because much of this expense comes from health insurance premiums, it pays to shop around if you have the option of choosing your insurance carrier.
• child care and education cost through age 17: $20,670 to $77,130. if staying at home full time isn't feasible, look into forming a cooperative with other parents.
• miscellaneous cost through age 17: $10,470 to $34,590. general cost savings strategies."
indeed, in an effort to reduce child-care costs, some families are initiating sitter co-ops, according to a recent associated press story. each set of parents takes turns in a rotation as the baby sitter for participating families' kids, saving all involved the cost of having to hire an outsider. though these cooperatives sometimes form casually among a group of friends, there's been a push for more formalized set-ups, through online parent forums and on sites such as http://www.maxoutyourlife.net and http://www.seemyonlinelocaladlink.com



though finances usually don't heavily weigh in when deciding whether to take the plunge into parenthood, it helps to prepare for expenses ahead of time and find ways to reduce costs. for more money-saving advice, check out god said go travel and/or http://www.godsaidgotravel.com and http://www.onlinetaxdeductibletravel.com .

putting food on the table

when it comes to cutting food costs, the obvious resolution is to cook more often and eat out less. taking this a step further, stocking up on generic brands can save you up to up to 50 percent or more. and this applies to anything from grocery items to skin-care products and over-the-counter drugs. don't believe me? check out this clip from cbs' the early show:
a helpful tip: compare your trusted brand items alongside their generic counterparts and make sure the main active ingredients are the same for both.

brown-bagging lunch and bringing it to work can also go a long way in reducing daily food expenses. a recent blogger named "clever dude" ran an experiment with his wife in which they both made a diligent effort to bring lunch to work each day. their annual savings: $998. add kids and their lunch money into the equation, and that figure can reach upwards of $2,000. for an even closer look at just how much fat you might be able to trim from your lunch budget, check out this lunch-savings calculator.

but let's face it: we're not perfect. and all of us, from time to time, are bound to inherit a sudden desire to splurge on eating out. when you do, it's important that you know where to go -- and what to order. my colleague anthony catalano recently touched on the $5, $10 and $20 promotions that are currently saturating the fast-food and casual-dining market. check out some of the latest deals.

keeping a roof over head

according to the news reports. some families are resorting to last-minute negotiations with lenders to save them from foreclosure.

regardless of the magnitude of the problem, it's a wise financial move to consider refinancing as a way to lower the cost of your home. check out anthony catalano's blog post "should you refinance?" as well as this list of home refinancing do's and don'ts. when refinancing, consider a short-term mortgage, for example, but don't rule out government programs.

there also are a number of cost-saving tips that apply directly to your home, from finding ways to reduce utility bills to cashing in on green appliances.

unfairly, there isn't much families can do to influence the inflated expenses of living, even for the most basics like food and housing. but careful planning and strategizing can go a long way in stretching your dollars as far as possible and boosting your family's quality of life.

are you finding it harder than ever to maintain your standard of living amid rising costs? what are you doing to help make ends meet? share your stories.

For more information click here