by Connie Earl Robertson

Created on: December 20, 2009   Last Updated: November 12, 2011

There often comes a time in a person's life that it is necessary to cut expenses in order to survive their circumstances.  Sometimes it is the loss of a job and the inability to find another one.  Other times it is a major accident or illness.  Whatever the reason may be, it is mandatory to learn how to drastically reduce expenses.

Eliminate Non-Necessities

This is a time that you cannot think of what you like and what you want.  Look around your house, and see what you are paying for that can be eliminated.  Stop renting DVDs and going to the movies.  Instead, borrow some DVDs from a friend, or check them out of your local library for free. 

Stop your cable TV.  Stop watching television all together, or just watch what is available on the local stations.

Credit Purchases

This is a drastic measure, and it may hurt your credit score for a short time, but it must be done.  Return any recent purchases you haven't used yet.  This could be things like clothing, shoes, tools or household items. 

Look at the things in your home that you purchased on credit and that you are still paying for.  Consider how many payments you still owe, and ask yourself if you are going to be able to make the payments.  If the answer is no, call the store you bought it from, explain your situation, and ask them to come and pick it up.  The fewer bills you have to pay, the better off you will be.

Food

Start making menus.  Write down the things you will need each week, and only purchase those items.  Always shop for groceries after you have eaten a meal when you don't feel hungry.  It will be less of a temptation to purchase things you don't need.

Eat at home, and stop eating out.  Eating out for one meal will pay for your groceries for an entire day or more.  This is a great way to cut expenses.  When you prepare a meal, prepare double the amount and freeze one.  This will come in handy when you need something quick.

Stop buying snack foods.  It is incredible how much snack food can add to your grocery bill.  Be creative and make your own snacks.  In the morning, make up a vegetable and fruit tray, and put it in the refrigerator.  It can be used for snacks throughout the day when someone has the urge to munch on something.

The Car

If you have a new car you are making payments on, sell it, and purchase an older car you can pay cash for.  That will eliminate another payment.  Only use your car when it is absolutely necessary in order to cut down on gas expense.  Stop taking pleasure rides.  If you live in town, consider walking to the store or riding a bike.

Shopping

Only go to the store when it is absolutely necessary.  If you don't shop, you won't spend money.  When you do need to go to the store, leave your credit cards and debit cards at home.  Take only enough cash with you for what you need.

 When you find something you think you need, don't purchase it.  Wait three or four days, and think it over.  Most of the time you will forget about it or realize it really isn't necessary.  This will keep you from buying on impulse.

These are emergency measures you can take when you are confronted with a difficult situation that requires you to learn how to drastically reduce expenses.  The idea is to get rid of debt as fast as you can, and live with the bare necessities.  If you are careful and do your best to stay afloat, one day your life will return to normal.

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