by Lana Stockton

Created on: January 24, 2010   Last Updated: August 08, 2010

When you are serious about cutting living expenses you will need 3 things; commitment, a plan and determination to see it through. How much are you willing to give up in order to get ahead? With a little planning and a lot of determination, you can live reasonably well on far less money.

Electronics

Cut back on phone, TV and computer expenses.  Tools such as phone service, cable TV and Internet service usually involve fixed monthly expenses.

Cancel cell phone, cable TV and Internet service. For families this will mean finding creative ways to spend your time together instead of sitting in front of the TV or computer. 

Internet access

Access free Wifi connections in a variety of shops. Some cities offer  free Internet  service you can tap into from your own home. Libraries usually offer free Internet access. Either use the library's computer or bring your own laptop and connect to their network at no charge.

Phone and TV services

Purchase a pre-paid phone and use it only for important calls such as a contact number for employers, emergencies or other necessary calls. Download Skype onto your computer for free Skype-to-Skype calls and very low cost calls from Skype-to-other. Unplug the TV and watch news videos through online news stations. Enjoy TV shows on your laptop by tapping into Hulu.com.

Entertainment

Re-discover fishing, hiking, camping and playing basketball. Take your teen-agers to the school track and run a few laps with them. Plan lots of family picnics where homemade food is inexpensive. In winter roast hot dogs and marshmallows in the fireplace, build a snowman together, go sledding down a hill or enjoy a special meal together.

Housing suggestions

Rent a room with all utilities included. Many homeowners are renting out a spare room or an entire basement or attic apartment. If you are renting an apartment, take on a roommate. Even among friends or family members a simple business contract spelling out each others' obligations is an important step. Move in with a friend. You will be a more welcomed guest if you agree in advance just how much you should contribute every month toward living expenses.

Downsize your home. This may mean selling your existing home and purchasing a smaller one. If you are renting, consider moving to a different location or settle for a smaller, less expensive apartment with fewer bedrooms.

Before you buy anything

Use up what you have first. How many bottles of shampoo and conditioner do you have in the bathroom? Use every one before buying more. If you are serious about cutting living expenses, you will need to be content with what you have. Using one product at a time saves money.

When you do need to make a purchase

Ask yourself, can I get this item at a thrift shop? Do I need this item right now or can I wait until it goes on sale? Patience, planning and re-evaluating your spending habits will do wonders for reducing your living expenses.

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