I hope you are enjoying this holiday season. Here’s a very timely guest post from Trisha at DestroyDebt.com.

As 2008 comes to a close many people have been forced to take a second look at their finances and spending habits. While there are many ways to adjust your spending to reduce outgoing money in the future, don’t forget you may be able to trim the cost of existing bills as well.

Cut, Bundle and Negotiate Contracts

There are many ways to cut costs with existing contracts. First you should determine which services or accounts are vital to your survival. For example if you work from home and require high speed internet you certainly do not want to miss paying your internet service provider. However if you turn your computer on once a week to check your email or sports scores you might be able to cut back on your internet bill.

Almost every person young and old has a cell phone these days and in conjunction there is a cell phone bill that must be paid. Do you have extra services that you can cut, such as insurance on your phone, text and media packages? Examine how often you use these services and if feasible, cancel services that you really don’t use or need. Many families have cable or satellite services that offer hundreds if not thousands of channels. Does anyone really have the time to watch all these channels? These are just a few bills that you pay monthly that you can reduce, combine (if you have separate providers) or cut all together to save money each month.

Shop Smarter

The global economy does not change the fact that both you and your family need necessities such as food and clothing. What you can change is the way you spend your money. The first place that people can reduce spending is at the grocery store. Before heading out to the local store for your weekly or monthly shopping, take the time to review store flyers to see where you will get the most bang for your buck and have a detailed list of what you need to prevent impulse purchases. If you don’t already, consider using coupons to stretch your dollar farther. Keep in mind that while coupons can save people considerably when shopping, this only works if you are already planning on purchasing the items, otherwise you’ve just added to your bill.

When buying food, household staples and other necessities break the name brand habit and try some store brands. In many cases you will find the items are exactly the same with the exception of packaging. You can save considerably when shopping for clothes by trying consignment stores or second hand stores for gently used items. This works great for kids clothes since they often grow out of a size before there is time for much wear and tear.

Are You Over Insured?

Now would be a great time to gather all of your insurance policies for a little refresher course on your coverage. Are there any areas where you may be able to cuts costs by amending your insurance policies? Take the time to go over auto, home and health insurance to ensure you are not paying more than you have to. Perhaps you are driving an older car but still paying for full coverage? Health insurance is a necessity, but would you be able to cut your premium by raising your deductable? If you have trouble understanding exactly what coverage you have, contact your provider to help you understand where you can safely cut costs while maintaining the level of coverage that you need.

By taking a look at where you money is already going you might be surprised at how easy it is to reduce costs and put a little more money back in your wallet.

Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.

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