MAKING A LIVING ON LESS INCOME

 

LIVING ON LESS INCOME

TIPS TO SAVE MONEY ON EVERYDAY EXPENSES

Cutting back on everyday expenses can help people who are trying to live on less income or save more money. Here are tips to learn how to live on less income.

With so many people either losing their jobs or at risk of losing their job, now is the time to re-evaluate everyday spending and save money. Some ways to do this are to re-evaluate housing costs and lower monthly bills by cutting back. Other ways are to cut back on using credit cards, eating out or spending money on other extras that may be available for free. Here are some tips on ways to cut back on spending in order to save money.

Pay Down Credit Card Bills

There is only one solution to lowering credit card debt and that is to simply stop spending. It’s time to get the credit card debt under control and stop adding to it. First, find a credit card with the lowest interest rate available and move the majority of the debt onto it. This way the monthly payment is combined and with the lower interest rate the debt is paid off quicker. Next, stop using credit cards for everyday purchases and use a debit card or pay by cash instead. It won’t take long to see the credit card debt begin to dwindle, and in time, disappear.

Cut Insurance Costs

This is a good time to re-evaluate house and car insurance costs. It may be surprising how much money can be saved on the insurances, especially if it hasn’t been re-evaluated for several years. It is easy to get quotes online and compare insurance costs quickly. In many instances, a person can save $200 or more per year on their auto and home insurance by switching to another company.

Save on Groceries

Eating at home for breakfast and dinner instead of at restaurants is a sure way to save money. The trick is to be frugal when shopping for groceries. Plan out meals for the week before going grocery shopping. Watch for the weekly specials, stock up when items are on sale and don’t cringe at using coupons. Even saving $3 or $4 a week using coupons can add up to a savings of $120 to $192 a year. There are many internet sites where grocery coupons can be printed. Look also in the Sunday paper and in magazines for money-saving coupons.

Use Consignment Shops

Use consignment shops to both buy and sell. Consignment shops are popular again with so many people looking for ways to save money. Sell unwanted clothing, toys and household items to earn extra money. While there, have a look around. It is surprising how many nice things are available for such a reasonable price.

Use the Library

It is so easy today to go out and buy a book or DVD movie, but it can get very costly. Try visiting the local library to save money. Most libraries have movies to borrow, and the book supply is endless. Another way to save money on books is by using the online site Paperback Swap.

Save on Entertainment

Make a rule to never pay full price for entertainment. Go to the movies during matinee time when the price is much less expensive. Check on schedules for local free music concerts to attend. Many museums, aquariums and zoos have a free day each month for locals. Find out when this day is and save with free admission. Check also for free historical sites to visit. Look for free lectures on interesting topics at the local college. There are many ways to be entertained without having to spend a lot of money.

Living on less income does not mean having to do without necessities or entertainment. By being frugal when spending money, watching how much debt is incurred and taking advantage of many free services, a person can learn to live on less income.

 

 

CREATING A MORE FRUGAL LIFESTYLE

Tips for Living on Less with What You Already Have

As the economy grows worse, it's more important than ever to learn to live on less. Besides saving money, you'll also be living a more green lifestyle.

While tightwads used to be the target of jokes, being cheap is getting trendier. A more positive label is “frugal living”. Or, even more radical are the “Freegans.” A newly coined term for thrifty, Freegans are people who go beyond cheap, opting to live outside a society obsessed with consumerism. Besides choosing a simpler lifestyle, Freegans live “green” as they cut back on producing garbage that's later dumped into landfills. Promoting less waste, they buy less, using only what they need. Some even rummage through garbage cans for their things, including salvaging food.

If you caught a recent Oprah show (February 27th) , you may have been shocked over the young professional couple (a doctor and engineer) who not only shop at thrift stores, but also scrounge through grocery store dumpsters to furnish their home, as well as even recover discarded food.

Granted, this is extreme. But perhaps they have a message. Do you yearn to live a simpler life, spending less money, living on less? You probably don’t want to go as far as the Freegans. But if you’re looking for a more frugal lifestyle, here are a few tips.

 

Besides living within your means, being frugal is also reusing things not just a second time, but until it’s no longer useable. In other words, find creative ways to recycle everyday household items. Of course, a familiar example is the ordinary sandwich bag. But this can apply to numerous other items such as food containers, glass jars, and so on.  

Make Your Own

Creative moms everywhere are saving money by creating new items from old ones. Whether it’s making your own Baby Wipes from old T-shirts or plastic bag containers from old tissue boxes, nothing gets thrown in the trash unless it’s totally useless. With a little creativity you can come up with your own inventions. Not only will you be saving money, but you’ll also be throwing less garbage away, cutting back of your own trash.

Do It Yourself

The more services you can do yourself, the more money you can earmark toward your savings. For example you can….

Trade Services

• Pet sitting - Rather than pay a kennel, trade with a friend or neighbor who has pets similar to yours. Not only will you be saving money, but your pets will get to stay in their own home.
• Babysitting - Trade child care rather than paying a hunk of your paycheck to a daycare center.

Saving Money on Holidays and Special Occasions

Make your own greeting cards and use old magazines, newspapers (such as the comics) and aluminum foil for wrapping paper. Save those old Christmas cards for next year’s decorations and gift tags.

Saving on Vacations

A Florida vacation may seem more appealing in winter, but if you want to pay a lot less, then go off-season (April through October). And, with spiraling gas prices, re-evaluate your vacation plans. Instead of spending money traveling to faraway places, choose vacations closer to home. Or better yet, just stay home and see the local sites.

When you start living more frugally yourself, you'll not only be saving money, but will also be setting an example for others to follow. Rather than preach, people are more impressed by what you do than what you say. In other words, a simple, more frugal lifestyle is more "caught than it is taught."

How to Save Money by Cutting Back on Spending

Like Saving Money? Stop Spending Too Much or Make More Money

Saving Money Can Be Logical; Spend Money Wisely - gracey with MorgueFile

Think it's easier to save money than make money? Saving money is easier when the decision is logical.

A difficult part of budgeting is cutting back on discretionary spending.

Many people wish they had more personal savings. There are two basic ways to build personal savings:

1.    Save money already coming in.

2.    Make more money.

This article focuses on the first way to build savings– saving existing money.

How to Save Money by Curbing Spending: Learn to

Stop Spending Money Unnecessarily

One way to save money that is already coming in via a paycheck or investments is to curb spending. Spending too much money drains disposable income, depletes savings, and limits a person’s ability to invest money.

Cutting back on spending is not an easy feat. The urge to spend money is a habit learned over time; logically, it follows that learning to save money is a habit that must be practiced. Furthermore, anyone who is used to spending freely because there has never been a need or urge to cut back on spending and save money may find it difficult to suddenly stop spending money.

One way to combat spending too much money is to adopt an objective way to evaluate potential purchases. Removing emotion from the decision will automatically decrease spending for most people.

Spend Too Much Money? Consider These Questions Before Making a Purchase

To make the purchasing decision a logical one instead of an emotional one, consider implementing a check in the system in the form of a question that forces objective evaluation of the situation. Choose one or two questions that make the most sense and consider one or both of them before making any purchase; these questions have a way of making personal goals surprisingly clear. Below are some questions to ask before making the decision to spend money.

• Was this item needed yesterday? If it is an impulse buy, the answer is almost always no.
• Does it fit within the household budget? This is an easy one. Simply don’t exceed monthly budget limits without good reason.
• Will the purchase cause regret next month?
• Is the money better used or saved for something else?
• Does this expenditure align with personal goals and values? This question is often posed in Your Money or Your Life, a personal finance book on frugal living and early retirement.

What if the questions above result in a reason to spend money? Then consider shopping around to get the best deal on that purchase.

Fewer things hinder savings than unnecessary expenditures. Those interested in building personal savings can use the mottos above to keep spending at bay and use the difference to fund personal savings accounts.

 

Easy Ways to Save Money and Get Out of Debt

Learn How to Spend Less and Pay Off Debt

Wondering how to save money and get out of debt during a recession? Learn some basic debt management methods and tips to save money on shopping, bills and life.

In a bad economy or recession, many people immediately look for new and easy ways to save money and spend less on groceries and other shopping. But easy ways to save money can also be expanded to other areas of life and when a person can employ money saving methods in all areas of life; it's a sure way to help get those personal finances in good shape without too much effort.
In this article, readers will learn how to save money on shopping, how to save money on electric bills and other utilities, how to save money on credit card bills, and how to reduce spending across the board. These methods can be used by anyone who's looking for ways to save money and get out of debt.

Save Money and Get Out of Debt by Tracking Spending

The first step is to determine where those finances are going. For a period of about two weeks, carry a notebook and track spending. Every purchase must be recorded; include the item that was purchased and the price.
At the end of the tracking period, add it up. People often fail to realize how much a particular spending habit is really costing them. That daily bottle of Pepsi may seem insignificant, but over the course of a year, that daily soda will cost more than $500! The more cost-effective method is to purchase a 2-liter bottle of soda instead (usually for the same price or less than the small soda bottle) and refill a soda bottle to make it easier to drink on the go.

Start Getting Out of Debt and Saving Money With Better Spending Habits

The first step to getting out of credit card debt involves removing the credit cards from that wallet or purse. Pay for all purchases with cash to avoid the credit card interest that inevitably sinks the cardholder deeper into debt.

The next step is saving money on those necessary purchases; less money spent on groceries and other items means more money is available to pay off credit cards and other debts and bills. Consider the following ways to save money while shopping, around the house and in everyday life.

• Avoid Starbucks! A coffee drinker who spends $5 a day on coffee spends $150 per month - money that could easily be used to pay off debt and bills. Instead, make coffee at home or purchase coffee from a convenience store. This will save in excess of $100 a month or $1,000 a year.
• Plan all shopping and purchases. At the beginning of each week, create shopping lists for the grocery store, the drug store, etc. Before heading out to the store, save money by checking store circulars for sales and coupons. For additional savings, visit coupon websites to find printable coupons for groceries, cleaning supplies, diapers and baby supplies and much more.
• Buy in bulk. Save money on groceries, paper products, cleaning supplies, over-the-counter medication and other items by buying in bulk at B.J.'s or Costco.
• Turn off the lights and unplug appliances when not in use to save money on electric bills. Winterize the house to save money on home heating bills. These are just a few of the many ways to Save Money on Electric Bills and Utilities.
• Forgo unnecessary purchases. Try the following method to avoid impulse purchases: Wait 24 hours before purchasing a non-essential item. This enables many impulsive shoppers to save money since the 24 hour waiting period allows them time to really consider the purchase.

SAVE MONEY BY LEARNING THE BASICS OF DEBT MANAGEMENT

AND HOW TO GET OUT OF DEBT

A bit of homework on personal debt management and how to get out of debt can go a long way. Many people who are in debt don't understand why their credit card bill keeps rising month after month, despite the fact that they're paying more than the minimum amount due.

Unfortunately, many credit card rates will hike the credit card interest rate - to 30 percent or more in some cases - for a period of time (usually 3 to 6 months) if the cardholder misses a payment. Other credit card companies will charge an additional fee of $25 or more per month if the credit card balance (including interest) exceeds the cardholder's credit limit, making it even harder to get out of debt.

Read the paperwork associated with debts, like credit card debt, and do a bit of research. It's impossible to get out of debt and improve one's financial situation if one has no idea how credit card companies and other debt.