Surviving the crunch: How to trim monthly bills

And a plate of rice has risen from Bt5 to Bt7; although that is only Bt2 more, it's still a 40-per-cent increase and can add up over a year.

You are now having to pay more for butter, cooking oil, coffee, vegetables, shampoo and soap. You wallet is getting lighter because the cost of living is rising faster than your regular income, which is normally adjusted once a year. And don't be surprised if this year's salary adjustment is lower than the rate of inflation.

You are left with three alternatives in the fight against inflation: working harder to make more money, making a wise investment to ride inflation or trimming your monthly spending. If you don't want to sacrifice your private or family life to work harder, and you don't have the skills or resources to invest, then it's time to tighten your budget by eliminating unnecessary spending. And this must be done precisely and methodically. It cannot be achieved by casual guesswork.

First, work out where your money is going by writing down all of your purchases, no matter how small. Putting your budget on paper helps you understand how the cash is flowing in and flowing out. Without it, you won't know where cuts can be made.

When you start tackling your expenditures, adopt the mindset that each baht is important and valuable to your personal goal. Maybe Bt5 or Bt10 does not seem like much to save off one bill per month, but if you multiply that by all of your bills, then over the course of a year, you get a much more substantial figure.

The first items that may call for cost cutting are those "impulse sales" areas: mobile-phone bills, fitness expenses, cups of coffee, hairdressing and shopping for unnecessary items.

Where mobile phones are concerned, most service providers offer special packages. Monitor your use each month and analyse your bill before choosing a package that fits your calling habits. If you call the same people regularly, consider a bulk-call package to a particular person, such as GSM Advance's Love Package.

Giving up your fitness-club membership can help you save Bt10,000 or more per year. You should consider daily exercises outdoors or in public parks.

Stop buying cups of coffee at premium-coffee shops every day. This can save you about Bt420 a week, or Bt1,500 to Bt1,600 a month. Make your own coffee at home or in the office or buy it from lower-priced shops.

Make a grocery list when you shop. Buy what's on the list and leave the store without buying non-essential stuff. Try to buy what you're going to eat within a reasonable time. How many people do you know whose cupboards are full of food they may never eat? I know you need things to cook with, but let's get real. We all end up cleaning out our refrigerators because they become full of stuff we don't eat. Buy only what you will eat and don't waste your money.

Cut your weekly entertainment costs. If you go to dinner once a week, make it once every two or three weeks and think about a cheaper restaurant. Rent DVDs or VCDs instead of going to the movies and don't renew your subscription to magazines or newspapers that you don't read.

Give yourself a weekly cash allowance to pay for incidentals and stick to it. You'll be proud of yourself when you succeed.

Last but not least, don't cut corners on your dietary requirements or on habits that cannot be changed, or you may end up saving cents but spending dollars.