Jerrold J. Johnson
Career Writer

"My budget is already so tight I can't make it any leaner. I have to eat!"

So often I hear this and similar views expressed by persons as they discuss their financial plans for 2009. Reviewing one's budget is not a favourite activity, but with what is happening here in Jamaica today and, indeed, much of the world, it is a challenge for which we must find solutions. And we can!

Here are some simple things we can do to maximise the funds we have. Let's start with the smaller things that are more easily within our reach; practical ways that we can save money and reduce our expenses.

1. Take lunch to work.
Instead of buying lunch every day, cook a little extra dinner and take it with you for lunch the next day. The average daily cost of lunch is $300.

Multiply that sum each workday for the month and you would have made a saving of approximately $6,000 per person. For a couple, that would be a potential saving of $12,000 per month. Not bad!

2. Plan your snacks.
Many of us have the habit of snacking. This is usually costly, as we snack on impulse and sometimes end up buying the items at a premium price at convenience stores, gas stations, on the side of the road, at pharmacies and so on.

For instance, a soda at a convenience store costs almost twice the price of a soda sold at a wholesale grocery store or supermarket. So you can spend much less with a little discipline, while still satisfying your urge for a light 'meal' every now and again.

3. Shop less frequently.
Instead of shopping every week and sometimes in between, make your major purchases monthly. If you are like me, every time you enter a supermarket you see something else that you think you need.

Often those 'needs' are really wants. They are items you would have lived happily without, had you not seen them and been reminded they were available. They are the 'wants' that play havoc with your budget.

Every day I receive requests for practical ways to save. We each need to take special care with how we spend the dollars we have.

So really, much of what it takes to tighten your budget is a little planning. If we think differently about how we make purchases, we can gain significant savings and take care of our priorities.

Jerrold J. Johnson is financial advisor JN Fund Managers Ltd. He can be reached at Jerrold@jnbs.com