You might consider approaching from the other side of the equation too ? increasing your spendable monthly income by reducing other expenses.

Awhile back, went through this exercise with one of my brothers. I?m the ?financial guy? in the family, and he admits to being fiscally-challenged. We started by looking at where his income goes now, then ways to trim output (fertile ground in his case). These aren?t for everyone, but the results:

1. His cable package included occasionally watched ?premium channels?. Nixed. Annual savings: $180

2. He and wife have cell phones w/family plan w/lots of minutes, and free nationwide calling. Landline phone service plus average long distance charges totaled $35/month. He?s considering cutting, and relying on cell-only (see #3 below). Annual savings: $420

3. Alternative to #2, if wife resists getting rid of phone: internet access is cable modem, (although uses internet primarily for e-mail and occasional web surfing) at cost of $39/month. For his limited use, dial-up, at $10/month, will do the job OK. Switching = annual savings: $348

4. Homeowner?s insurance: hadn?t shopped rates/companies in awhile, and carried an unjustifiably low (IMO) deductible (low deductible = higher premium). Shopped rates, changed companies, increased deductible to $1000 (little stuff, he?s capable of repairing himself, and is it wise to submit small, potentially rate-increasing, claims?). BTW, he hasn?t had a claim in over 10 years. Wide premium range among insurance companies for identical coverage. Annual savings: $300.

5. Carried full-coverage auto insurance on his 15-year old work truck; reduced to liability-only. Annual savings: $300.

6. They subscribe to local newspaper, but admit admits pretty much uses only for TV schedule (despite fact cable has on-air guide); the rest pretty much ends up unread in the recycle bin. Stopped subscription. Annual savings: $120

7. Between him and his wife, used ?other than their own bank? ATMs an average of 5 times a month to replenish pocket money, at $2 fee per pop. Convinced to carry more cash/reduce frequency of replenishment, and to get cash-back when pays for groceries with debit card (effectively making grocery store his free ATM). Annual savings: $120.

8. Has had same checking account ?package? for about six years. Costing $5/month for ?benefits? he didn?t need or use. Switched him to a more-appropriate ? and free ? checking account with same bank. Annual savings: $60.

9. Unable to pin down cost of outside-the-home eating (mostly fast-food). For two of them, anecdotal info suggested $150/month (2x week). Cutting in half, minus cost to eat at home, still results in annual savings ~$450.

Without significantly impacting lifestyle, trimmed ~$1900 from annual outgo (could?ve trimmed more, but his eyes were starting to glaze over).

Lots of preparedness toys can be bought with $1900, or put into savings account if you?re into ?practical.? <img src="/images/graemlins/grin.gif" alt="" />