If you are interested in
living on less money, not just because you want to, but
maybe even because you have to, there are many ways to cut
down on spending and conserve what you do bring in. Everyone
knows the economy is in rough shape these days. How can't
you know when the news mentions it every second of the day?
In fact, it's so over-discussed it's practically become
white noise. It seems there is a lot of discussion about the
world's financial problems, but little information offered
about how to solve these issues. Don't become overwhelmed by
the big picture, but rather focus on what you can do to
improve your own personal financial situation. Follow these
simple, yet effective tips to live a more frugal and
peaceful life.Budget
- Everyone knows the word budget, but not everyone knows how
to set one up. It's quite simple. On a peace of paper, or a
spreadsheet on your computer, list all of your expenses. Add
them up. If your expenses are more than your income, you'll
have to cut the fat so to speak. For example, if you are
spending $100 a month on something frivolous, like a daily
soda from the drive-through, you'll have to start buying a
case of cans from the supermarket instead at a much lower
expense. If your expenses are still more than your income
after you've pared down, you'll need to make more money.
Selling unused belongings or getting a part-time job are
good options. In dire situations, you may have to downsize
your home, car, or other expensive possessions. Once you get
the budget balanced, post it where you will see it and abide
by it.
Pay Off Debt - Starting
today, stop using credit cards and gaining even more debt.
Credit cards are for emergency use only and buying a new
flat-screen TV is never an emergency! Make sure you build
paying off debt into your budget. List your credit cards and
other loans from the lowest balance to the highest. Knock
off the first one on the list and then work your way down
until they are all at a zero balance. In the meantime, call
the credit card companies/banks and try to negotiate a lower
interest rate. Transferring balances to cards with lower
interest rates can also be helpful, but make sure you don't
hurt your credit rating with all of the inquiries into it
that are required to get a new account.
Save - Benjamin Franklin is
quoted as saying that, "A penny saved is a penny earned".
Truer words have never been spoken. In the literal sense,
start a change jar. At the end of each day, put whatever
coins you have in your pockets, wallet, or purse into this
jar. Cash it out once a year and pay off a debt or deposit
it into an interest-earning account. In a more abstract
sense, you can save money countless ways. Buy less, consume
less, expend less, conserve more, reduce/reuse/recycle more.
Enjoy yourself in non-monetary ways like taking a walk in a
park on a sunny day, or checking out the latest mystery
novel from the library. Teach your kids how to be creative
with what they already have or to have fun the old-fashioned
way...playing outside! Money does not need to be spent in
order to enjoy life.
Be A Smart Shopper - It's
so easy to go to the supermarket without planning your
excursion, but with a little research and coupon clipping,
you can save a significant amount of money. Stock up on
items that you would normally buy that are on sale and can
be stored without spoiling. Many supermarkets offer a
membership that will allow you to take advantage of
additional savings simply for being loyal to their
establishment. If possible, get the weekly store fliers in
the mail or online before going out and plan your meals for
the next week or two based on sales. Also it can be
economical to go to more than one store to score the best
deals at each place as long as they aren't so far away from
each other that you are losing money on gas expenditure.
Finally, buy generics when you can which are just as good,
if not better, than the expensive name-brands.
Save On Clothing - When
shopping for clothing, consider patronizing thrift or
consignment stores, or buying from online auction sites. No
one but you will know your clothes were once enjoyed by
someone else. If you simply don't like the idea of wearing
someone else's clothes, shop the clearance racks of your
favorite stores. Buying at the end of a season for the
following year is a wonderful way to save. If you have more
than one child, try to take good care of the oldest child's
clothing to hand-down to younger siblings. If you have the
time and desire, making your own clothes can be a huge money
saver. Buy basic shoes in neutral colors that match
everything and can be worn in any season. Purchase classic
winter coats that never go out of style and can be worn from
year to year.
Cars And Houses - Cars and
houses are two things that can definitely be bought used!
Cars lose value as soon as you drive them off the lot so
buying new is rarely necessary or sensible. Buying a
pre-existing home is often much more economical than
building new. In the case when one loses his or her job,
downsizing a car or home may end up being an unfortunate
last resort. Try to buy the minimum of what you need in the
first place to avoid ending up in this sad situation.
Living on less money may
not sound appealing in our consuming-obsessed society, but
the peace of mind that being debt-free and having tight
control over your finances can afford makes it all worth it
in the end.
