by Nanette Piotrowski

Created on: May 08, 2010   Last Updated: June 01, 2010

Managing to survive on a low income is not for the faint of heart. Sacrifices have to be made and in some cases, your pride will take a temporary hit. It has happened to the best of us and it all comes down to how you handle it.

Whether living on a low income is temporary or permanent, it can be a learning and humbling experience. The first thing you must do is have a plan of action.

Regardless if you are single or have a family, now is the time to sit down with pen, paper and all your bills along with any saving accounts, CD's, IRA's or 401K's.

List all your bills on one side of the paper and all your assets on the other side. In order to manage on a low income, you have to figure out if you can eliminate some of those bills.

If you have no savings, CD's, IRA's or 401K's, we'll start from scratch. Contact all your creditors to see if you can lower any payments. Most credit card companies have a program that lasts one year where you will pay a set amount with no fees, however, you will not be able to use those cards for that year.

If you have an extra vehicle, collectibles or anything else of value, sell them and eliminate other outstanding bills. Remember sacrifice is needed in order for the income that you do have, to last from paycheck to paycheck. By eliminating unnecessary bills, you will be able to keep your head above water.

Set a budget and cut out fast food, theater movies or any other extravagances. Your family can do a lot of things together that doesn't require money.

Start clipping coupons and using grocery ad sales to cut down on the cost of food. If necessary, contact your local Food Stamp office to see if you qualify and visit your local food bank.

Instead of going to high-end department stores, start using Walmart, Sam's Club or K-mart. Check out your local thrift stores, Salvation Army and Goodwill's. You will find clothes, appliances, toys and many other items at extremely low cost.

Save gas by making all your trips in one day or car pool with others who are going to the same places. Remember all the conservation tips for your home in order to save on your heating and cooling bills.

Refrain from buying items that are unnecessary: new TV, iPods, cell phones, fancier computer; anything considered an extravagance.

Living on a low income is possible. It may not be what we want but with a little thought and sacrifice, it can be done. You will become a smarter consumer and a stronger individual.

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