6 of 20

Adjusting to living on a smaller income

by M. L. Kiser

As more and more people continue to lose their jobs in this economy; more are looking at ways to cut back on spending. If you were a two-income family that has been reduced to a one-income family then you are, no doubt, looking for ways to pay the bills until you can secure another income. It’s not easy and all too many people today are enduring this crisis on a much smaller amount of money. People are re-adopting the ways of their grandparents and living more sensibly without the frills. The fact is that our society has become so dependent on technology and easy access to nearly everything that we’ve collectively forgotten how to survive on less cash. It can be done; it’s not as fast-paced or often not as easy as the technology, but it is considerably more affordable. If you are a family or individual looking for ways to make ends meet with less money, then here are some tips that just may help.

Consider what you don’t need for survival. While we all need air, food, water, clothing and shelter; many of us also need or are required to purchase school supplies and good clothing for the kids; dress clothes for work or our job search, gasoline and maintenance on our cars, insurance for our homes, cars, etc. No doubt, many of these things are simply necessary and you probably can’t do without them, but do you really need that cable or satellite bill every month?

Many people, even today, live with no television at all while others only have access to the local broadcast channels. No one needs a television or gaming devices like the “X Box”. Why not introduce the kids to the library and let them watch a video or two during the week on your computer instead? Set a rigid schedule so that they get a couple of nights with a movie instead of letting them watch shows all night long or play video games for hours on end. Engage them in the classic board games that everyone can play and make one night a week, family game night. Really, it’s not as dull as you may think and the kids won’t go blind staring at a screen all evening.

Do you use your cell phone enough to keep a monthly plan? If not, why not buy a card phone and load on the minutes as you need them. Better yet, give the kids one and tell them that they have to buy their own minutes with their allowance instead of letting them run up your monthly bill. They’ll talk less and have more time for studies and chores, as well as, learning the value of a dollar.

No one needs a smart phone, laptop, desktop, handheld and an iPad, too. If you just use your machine to access the web, eliminate all except for the machine that is most convenient or that which you use the most. You’ll save electricity, batteries and monthly bills.

If your ISP is costing you too much, check and see if they offer a less expensive package; many do offer smaller packages that still allow for unlimited access or use for as low as $9.99 a month. Why pay $30.00 when you can get it for $10.00?

Switch those land lines to broadband; many land lines start at $$25-40.00 a month when broadband can be purchased for as little as $50.00 for phone and computer or $99.00 a month for phone, computer and cable.

Set up a budget; know what you need to pay, when and pay those bills first. Decide on how much you can afford to spend at restaurants for lunches and family meals. You can eat in more often and take your lunch to work a lot cheaper than you can eat at restaurants.

Cook all of your meals on your day off for the week ahead and plan the family lunches. pre-pack utensils and napkins so that you can just pop them into the lunch sacks. Better yet, buy some cheap cotton napkins and re-use them rather than using paper napkins and towels. Use re-usable lunch bags rather than brown bagging lunches. Use washable water bottles rather than buying pre-bottled drinks.

You can cook and freeze meals ahead of time and save energy by using your stove one or two days a week. You will have to cook in greater volume in order to have enough to take to work, but in the long run, it’s going to save you a bundle.

Making soups and stews from dry beans and rice, among other grains, can go a long way towards saving you a lot of money. Buy your own flour and corn meal, you can even get wheat, rye and other gluten free flower at your local food co-op or health food stores. Making your own breads and biscuits is a lot of fun, especially for the kids and it’s a great way to teach them to cook so that they don’t have to spend a fortune on fast food when they go away to college.

Don’t buy anything that you don’t absolutely need. You can visit the library for free books, DVD’s, Videos, CD’s and more instead of adding more to the junk in your home. Why pay a fee for movies every month when you can watch them for free by checking them out at your local library or by watching them on your PC?

Don’t take unnecessary trips. Take vacations closer to home; there are plenty of places in your own state where you can have a great vacation without the huge expense.

Save gasoline by planning your outings to cover all of the stops in one trip. Make a list of all of the places that you need to go and go to the farthest away place first, the next closest on the way back, the next closest, etc., finally ending up back at home with all of your errands done. That way, you won’t have to keep starting up the car several times a day which can use more gasoline than you would think.

Use that motorcycle or bicycle or even public transportation rather than the car to save money on gas. You could carpool to work or school instead of driving, thereby, saving both money and your environment.

Don’t use your charge cards unless absolutely necessary. Interest rates, late fees, etc., can push up the amount on your bill incredibly fast and why spend more money when you can pay cash or write a check and pay less? It doesn’t make sense. Don’t use the debit card when you can write a check or pay cash; debit card transaction fees are just as bad as those credit card fees.

If you owe money on several credit cards, consolidate them into the one with the lowest interest rate, pay it off and don’t use it again if you don’t have to.

Cut up any old credit cards that are paid off so that you won’t be tempted to use them. Pay off any credit cards that you owe on, paying off the highest one first because it’ll also have higher monthly interest rates.

Don’t fall for those special deals that credit card companies offer. Many of these, you will never even need, but you might pay up to $30.00 a month for them. You should never pay for anything that you won’t use or aren’t using, so when your credit card company calls to offer that, “special security protection”, “identity protection”, “overspending protection”, etc., tell them a flat, “NO!”

If you have a mortgage, look around and see if you can downsize to a smaller home. If you cannot afford to move or if it’s too inconvenient, you can review your mortgage to get the payments and interest down a bit more.

If you have a spare room in the basement, upstairs or over the garage, consider renting it out for more income. Make sure that you have a binding rental contract drawn up so that you don’t end up with damage to your home or someone who skips out on the rent.

Look at the type of insurance that you have; compare policies, get quotes and see if you can get that same coverage for a little less. Many agents will tell you that you can’t get the same coverage for less; that the market doesn’t allow for it, but don’t fall for that; remember, they are insurance agents and are not going to do anything that will take money out of their pockets. Shop around and compare; you could save hundreds per year by changing companies.

If you have insurance that you don’t think you’ll ever need, or multiple life insurance policies; cash some in if they are vested. Use the money for your bills and living expenses or use it to start the kids a college fund. You could also use it to fix up your home, re-invest it in an IRA or mutual fund, for the future or add it to your retirement fund or savings account to let it accrue interest.

Some people even eliminate their life insurance policies altogether. Did you know that many funeral homes will allow you to buy your own urn or coffin and you can pre-arrange your own funeral and pay for your grave plot years before you pass on, so that you don’t have to deal with the insurance at all? It’s true; it can all be arranged and paid for without having to locate an agent and go to the expense of buying and upgrading a policy and you don’t have to deal with the red tape that many states create with their estate laws. Believe me, it’s not an easy task to execute an estate when you are grieving and it’s made worse by the legal mumbo jumbo that you have to endure when trying to cash in that life insurance so that you can bury a loved one. Insurance companies do not want to let go of that money, so if you can, just eliminate the life insurance and pay for your funeral and burial in installments over time.

If you have a room that is not being used, why not rent it out to a friend or family member for some income? If you live near a college campus, the chances are that someone you know is going to need to travel long distances to get to college. You could rent them a room; perhaps even cheaper than that dorm room at the college would be for them.

When you shop for groceries, read the labels thoroughly and compare prices. While it looks like healthier foods may be more expensive; you can often find safe and healthy food by simply reading the labels and comparison shopping.

Shop at the “Farmers Market” more often and with friends, family and neighbors. You can get a lot more for a lot less when you shop in a group and split the produce and the cost.

Don’t buy designer clothing when you can find some nice pieces at Wal-Mart or Target or even at yard or garage sales. Yes, you can find a lot of nice looking dress clothes at discount stores and used clothing stores that look just as dressy and nice as those expensive designer togs. The same goes for purses and shoes, as well as, the kids clothing and shoes. A little common sense when purchasing can actually get you some great compliments.

If you are good at sewing, knitting or crocheting; make your own clothing and the kids, too. Repair the old, torn clothes rather than replacing them if they’ve only lost a button or have a hem coming out or a small tear.

Use old sheets to make curtains for the bedroom windows rather than buying expensive curtains. You can also find some attractive ones at yard sales to use for curtains.

Most parents’ end up being told what to buy for the school year; many schools can be downright knit-picky when it comes to supplies; special pencils, pens, highlighters, markers, notebooks, notepads, book covers, storage media for the computer, etc., so, if you have more than one child; buy in bulk when school supplies are on sale and buy as many as you can at places like the dollar stores. You can also go in on the supplies and divide the cost with family members, friends, neighbors or other parents’ at the school. It doesn’t have to be a herculean expense on your part.

If your child needs a laptop for school, check for a good used on in your local newspaper’s classified ads or online at sites like eBay. You can get some great deals here that the kids will love and many of these refurbished machines look like new. Really, do the kids have to know that it’s not a brand new machine? If the kids can all share one computer or a family machine; you’ll save a bundle!

Buy refurbished printer cartridges or refill them yourself rather than the expensive new ones. If you have an older printer; the chances are good that you can take out the cartridge when it begins to get low, tap it a few times on a blank piece of paper to loosen the toner inside and it will go further when you re-insert it into your printer. If you have a newer printer, one of those that won’t work unless you put in a new cartridge or use the brand the manufacturer requires; trade it in for an older model that you can find in the classifieds or on eBay that will take refills. The newer printers are not any cheaper to use than the older ones; in fact, they cost about the same or more to maintain.

Buy recycled printer or copier paper rather than the regular type. You can get the same weight in the recycled and at a reduced cost. If you can return your old printer cartridges to an office supply store for a printer paper voucher or credit; do so. It will allow you to get a discount on your printer paper, so save up those old cartridges and cash them in.

To save money on bills, grill out more in the summertime rather than firing up that energy-guzzling microwave or conventional oven. Who doesn’t like a good cookout? Just about anything can be cooked on a grill or a smoker and you can save a lot of money if you grill with charcoal rather than the expensive propane. Personally, I prefer the taste of charcoal and mesquite grilled foods to that of the propane grills; especially when I’ve got some freshly grilled corn on the cob…yum.

Open the windows more, especially when it’s not up in the 80’s or 90’s or more; you’ll get fresh air more often and save on air-conditioning costs. Use fans more, ceiling, box, tower, and window fans all over the house. In the colder months, turn your thermostat down to 70 or 75 and make sure that you winterize well by caulking and sealing up holes in plaster, around piping, doors, windows and vented appliances. Wrap your pipes in insulation and make sure that your attic is well insulated. Repair or replace damaged or broken windows; if you can’t replace them, you can seal small holes and cracks with clear packing tape, temporarily so that the air can’t get through.

If you are athletic or enjoy exercise, don’t waste money on a gym membership; re-visit that old basketball hoop on your garage; it’s fun and healthy and the kids may just enjoy a good game of basketball rather than sitting in front of the TV or that video game.

One great way to get good, healthy exercise is to trade in that gas powered mower for a new push mower. They may take more work, but, hey…you are saving money on exercise by not giving it away to a gym.

When you compare the cost of a gym membership to the cost of a good treadmill, ski machine, stationery bicycle or a set of free-weights; you’re going to get more exercise for a lot less money and you don’t have to waste gasoline or wear out your car, driving to the gym 3 times a week. Your equipment is right in your home and you can exercise when you want to; the family can even exercise together; it’s encouraging and great moral support, as well as, quality time with the family.

Do your research on herbs and medicinal plants that you can grow yourself rather than buying expensive prescriptions or OTC medications. You would be surprised at how Mother Nature takes care of us and starting your own herb garden is a great family project. When you can decongest a stuffed up head with fumes from hot peppermint tea, why spend $10-20.00 on an OTC decongestant that may or may not work for you. Likewise with those expensive sleeping pills; if that chamomile and lavender growing in your yard will relax you enough to help you sleep; why spend hundreds of dollars on prescription sleeping pills that are only going to harm you with their negative side effects? Both chamomile and lavender can be brewed into a tea to help you relax or you can add them to your bath water for a relaxing soak before bed.

There are many books and videos on the market and at your local library that list medicinal herbs, their side effects and interactions with each other, as well as, with OTC and Prescription medications. Watch the videos, read the books; buy 2 or 3 copies or collect a whole library of herbal guides of your own. You can sometimes find these at yard or garage sales and they have a wealth of health information that you won’t find at your local hospital or clinic.

Caution: Many herbs are medicinal and using them with similar medications or overusing them can lead to some serious medical conditions, so, it’s important to read and research any herb or plant extract that you want to use for medicinal purposes. Be sure to let your doctor know that you are currently or plan to use a natural or alternative substance in order to avoid serious interactions or possible allergic reactions. You may be allergic to some herbs or extracts, so better to be safe rather than sick later. Learn and know what you are using and exactly how much to use and in what manner.

The chances are that you are already using herbs in your cooking that may be medicinal, Rosemary, Sage, Parsley, Fennel, Peppermint, Spearmint, Lemon Balm, Thyme, Marjoram, Dill, etc., are all culinary herbs that have medicinal value. Fortunately, culinary herbs have little or no side effects or interactions, but some like, Rosemary or Chamomile, can have negative side effects or interactions when overused, so, educate yourself for a tastier meal and a healthier body; it’s worth the effort and can save a lot of money if you grow your own herbs.

Start your own family vegetable garden; it’s a great educational experience for the kids and by growing your own, you don’t have to worry about getting the toxic chemicals in your system that commercial growers often use. You can have all that you want of your favorite vegetables without the added cost. Seeds are inexpensive and if you save and dry the seeds from this years’ crop; you’ll already have plenty for planting next Spring.

Learn to freeze, dehydrate and can your own food. Make your own jams and jellies from the fruits and vegetables that you grow yourself. You’ll even save money on Christmas gifts; people love getting homemade bath salts, jams, jellies, soups, stews, soaps, etc., that are homemade and you’ll save a small fortune on holiday gifts.

If you are an apartment dweller, you can grow some nice herbs and vegetables in potted plants. Fill your balcony or kitchen with fresh grown herbs and vegetables and it’ll save pennies on the dollar.

Buy your gardening pots from dollar stores or discount stores and garage or yard sales. You’d be surprised at how much you can get for a few dollars just from going “Yard sale’ing” on a Saturday morning.

If you need construction work done and you are good with woodworking and tools; refurbish your own home. Floor tiles can be bought at many discount super-stores a lot cheaper than at home stores; so can the adhesives.

Every homeowner should have a, “do-in-yourself” book; especially in case of emergencies. Knowing how to replace and electric plug or a light switch saves a lot of money, as does knowing how to change a washer on your faucets.

There are plenty of people who have built their own patio’s and decks to save money and many times they are better, stronger and safer than those built by the professionals.

Do your own painting, wax or polish your own floors, lay your own tiles and linoleum, make and hang your own curtains; go ahead, it’s inexpensive, fun and a great diversion from the usual daily grind. Don’t be afraid to shop for flooring, carpeting or linoleum at discount stores and outlets; you can save a bundle of money that way.

Recycle; you’d be surprised at what you can do with garbage. Even small pieces of old wood can be used as sculpture materials and used to patch small sections on your shed or garage. Old sticks and coat hangers can be used to hold climbing plants in the garden, like beans and tomatoes; plants can be tied to them with old hosiery. Old plastic milk jugs and soda bottles make great containers for watering plants both in the garden and house. Old soda bottles can be cut in half and be used as baited wasp traps to keep those pests away from your cookouts, so before you throw away anything, ask yourself what it can become.