Back to Basics: Budgeting your money

EAST PROVIDENCE, R.I. (FOX Providence) - Now more than ever, we are watching our spending and trying to save. But, can you really save money while also paying off debt?

We have some great tips for you that will help you get your costs in check and regain control of your budget.

Peg Marty, Executive Vice-President of Citizens Bank has some advice on how you can get back to basics.

Find ways to reduce your expenses.

Replace your latte habit with brewed coffee. Saving $2 a day, five days a week, adds up to more than $500 a year.

1. Take a close look at your cell phone statement to see whether your usage minutes line up with your plan. Downgrade your plan if you're buying more minutes than you use.

2. Switching to ENERGY STAR-rated heating and cooling equipment can cut your annual energy bill by nearly $200.

3. When considering an adjustable or fixed rate loan, consider factors like a higher monthly payment with an adjustable loan that may affect your monthly spending.

4. Think about refinancing your mortgage. Lowering a 15-year $100,000 fixed-rate loan from 7% to 6.5% can save you more than $5,000 in interest over the life of the mortgage.

5. Become an electronic coupon clipper. A variety of Web sites publishes coupons and discount offers for hundreds of local and national retailers. For instance, couponmom.com

Keep a record of what you're spending in a month.

Using your debit card for all your everyday purchases can help you track your spending habits, and identify opportunities to cut back and save on non-essentials.