Although there have been some promising signs that the US economy as a whole may be rebounding, it's going to be quite a while before those trends (if they are, in fact, truly positive) make their way down to the household finances of many individuals. So lots of people are still looking for ways to trim their already frugal budgets even further.
If you have already been cutting back, you may think you have no further to go, but there may still be areas you can reduce your costs that you haven't thought of. The best way to find these areas may be to have fresh eyes look at your budget. Show your household expenses to a trusted friend or family member and together you may be able to spot waste you previously overlooked. If you don't have someone you can trust to help you, make one up. Sit alone in a room with your bills, and look at each one and explain out loud why this expense is necessary to your health and happiness. Just the act of putting such an argument into words may be enough to help you spot some expenses you can do without.
Interest
If you are paying interest on credit card debt, car loans or other kinds of debt, that is the first place to look to save. Paying down your high interest debt is the fastest way to improve your personal finances. If you have to take money out of a savings account (where you are earning 3% interest) to pay down a debt where you are paying 12%, do it. Just make sure to divert those payments back into your savings account when your debt is retired to rebuild your depleted savings.
Incremental Changes
Rather than trying to slash your budget all at once, pick a new area to work on each month. Pick a certain type of discretionary spending, such as entertainment, eating out, clothes or music and see if you can find ways to reduce your spending on just that one category. Over time, you may find these incremental changes really add up.
Recurring Costs
If you have any membership fees or other recurring costs you have signed up for in the past, take a look and see if you are really using the service as much as you thought you would. These include things like gym memberships, Netflix, membership in clubs or recurring spending on hobbies. Also look at any recurring pledge you have made to charities. You are not a heartless fiend if you need to terminate your support of a charity. You need to take care of yourself first, or you will be in no position to take care of others.
Kids
Involve your kids in your financial discussions. I know that most parents want to sheilf their children from any sort of worries, but the truth of the matter is that if you are concerned, they will pick up on it. Without honest information, they may imagine the situation is more dire than it actually is. You don't need to share with them all the nitty gritty details, but do keep them informed of the big picture, and let them know what you are trying to change and why. Involving them in these sorts of discussions not only empowers them, it's a valuable learning experience as well. Children who are never taught how to balance a household budget grow into adults who dig themselves into very serious financial holes.
Phone/Internet/TV
Between cell phones, landlines, internet access, and premium TV, you may be paying a hefty portion of your monthly budget to stay connected with the rest of the world. Look over all these bills carefully and you may find that you are paying for extras and features (caller ID, premium channels, etc.) you really don't need or use that often. Do you need to carry both the cell and the landline? If you live in an urban area, you may be surprised how many HD TV channels you can get very clearly with just a set top antenna. Call your provider and see if they can slash your bill by bundling your services and if they can't, try a different provider. Most companies offer some sort of great introductory deal to lure new customers. Of course the catch is that you may have to switch to a different provider again when that great deal runs out.
Property Insurance
Look over your insurance policies (car, home, renters, etc) and speak with your insurance agent about ways to lower your bills. Ask about any kind of discounts you may be eligible for, such as safe driver, multiple policy, or age related discounts. In addition, you may want to increase your deductible to lower your annual rates. You are increasing your risk when you do this as well, but often that sort of a tradeoff can be beneficial.
Cigarettes
If you smoke, you don't need me to tell you it's expensive, you know that already. Quitting is not easy, and it's not even that much cheaper initially if you use the patch, the gum, or other drugs, but it will save you money in the long run. If you are looking for help quitting, this web site is a good place to start. If you just can't, or don't want to quit, there are still ways you can reduce your expense. You can buy in bulk at a warehouse store, switch to a cheaper brand, order them online from a Native American outlet or you can even roll your own. If you are looking for ways to cut down, without totally quitting, try limiting yourself to only smoking in a certain room or area of your house or yard. If you limit the amount of fun other stuff to do in that room, (e.g., don't make it the TV room) you may find that you are happy spending less time smoking.
Food
Food is usually the first thing people look to slash when trying to reduce their bills. If you have already modified your spending on food, there just may not be anymore you can trim on this, but here are some ways to help trim your food budget, step by step. If you currently go out to eat a lot, try going out less, and go for less expensive trips when you do. If you want to splurge on a fancy restaurant, go for lunch instead of dinner, and don't order alcohol (ask if the restaurant will let you bring in your own wine, you can save a lot this way, even if you pay a corkage fee). If you don't have time to cook at home, buy premade meals in the frozen food section and heat them up at work rather than eating out at lunch. If you already cook most of your meals, try buying your ingredients in bulk. Check your local stores' weekly advertisements and stock up when you find things you will use on sale. To save time, try cooking several meals in advance and freezing them for future use. Shop for seasonal produce. In a couple weeks, pumpkins will be available for a song. Check out this article to find out how to eat the entire thing.
Miscellaneous
If you are like most people, money can tend to flow out of your wallet on a daily basis on things that you don't even realize you are spending. One way to reduce this flow, is to put yourself on an allowance. Decide how much money you are willing to spend on incidentals, and put that cash in your wallet at the start of the week. Keeping your purchasing limited to cash only may help you stay within your predefined limits.
OK, that's all I have for now, be sure and share your favorite tips for slashing your budgets below.