Living on Less Money

How to Live on Less?


Living on less requires careful planning. You can "calculate the expense" of living within your means if you create a budget. How does it work? Try this:

When you bring home your earnings, designate specific amounts to be put in separate categories to care for present or future expenses. When your expenses are organized, you can see where your money is going and how much is being spent on nonessentials. That, in turn, will help you to determine where you can cut back.
To develop a budget that works for you, put into practice the following suggestions.
 

Shop Wisely

  • Look for discount coupons and grocery store specials that offered two items for the price of one.
  • Plan your weekly menu around what is on sale.
  • Buy basic ingredients instead of pre packaged foods, and cook from scratch.
  • Stock up on items that are on sale or in season.
  • Buy in bulk, but be careful not to overstock items that will eventually spoil.
  • Slash clothing costs by purchasing quality used garments at resale stores.
  • Travel to areas where prices are known to be lower, if this is cost-effective.
  • Cut back on how often you shop. 

Put It on Paper


You need to have a budget, so keep a record of what you need to pay out immediately and what you need to have on hand for the rest of the month.

You have to know exactly how much you can spend when you go to the market. At times when you need to buy something for the kids or the house, look at the budget and think, 'Can I afford it?” If not, you will have to wait until next month. Having a written record is the key!
 

Before Buying, Think


Get into the habit of asking yourself: 'Do I really need this? Is the old item actually worn out, or do I just want something new?' If you will rarely use an item, would renting one suffice? Or if you anticipate using it frequently, would buying a good used one work just as well?

While some of the above measures may seem insignificant, they can add up! The point is, by establishing a pattern of saving with little things, you will do the same when faced with large expenses.
 

Be Resourceful


To cut down on nonessentials, get creative. For example, instead of owning two cars, get rid of one and carpool. To save on gas, plan as many errands as possible with each trip. Trim down to the essentials. The following are some other ways you can be resourceful:
  • Plant a garden and grow your own vegetables.
  • Follow manufacturer's maintenance instructions, which may prolong the life of your appliances.
  • Change out of your good clothing as soon as you come home - a practice that will keep them looking new longer.

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