by Amanda Dcosta

Created on: July 30, 2010   Last Updated: January 16, 2011

The early twenty-first century has witnessed a recession in the financial world that will take many years for a lot of people to recover from.  There is a never-ending list of debts on account of bankruptcy, loss of homes, loss of jobs, and split families / marriages.  Half the number of American families witness to being cared for by a single parent, which makes it extremely challenging to adjust to living on a smaller income.

There are a number of strategic ways in which an individual or a family as a whole can make it through on a smaller income.  Listed below in random order are a few suggested tips to adjusting to life on a tight budget. 

# 1.  Work through finances as a family:

'United we stand, divided we fall', can have no better significance than this issue.  It is imperative that every member be involved in a family discussion about the condition of the family finances.  Discuss, debate, or disagree; whatever the opinion that each one has, it has to be brought out at a family discussion so as to note points of high relevance and that which can be done away with from the habits of everyday routine.  A unified understanding to cutting down expenses is absolutely necessary.  It is important that every member of the family renders support towards this family crisis.

# 2.  Work out a balance sheet:

Make a list of expenses that are mandatory and those which can be minimised or deleted altogether.  Start out with monthly payments such as mortgages / rents / loans / tuition fees / taxes / phone bills, etc.   Be on the lookout for alternative or cheaper phone solutions.  Cut out on extra expenses like movies, rentals, excessive partying, socializing, etc.   Avoid using electronic items if they serve no useful purpose other than socializing or gaming.  Reduce the amount of subscriptions, memberships to clubs if possible and also fun trips depending on the importance it holds.  Be on the look out for sundry / miscellaneous expenses that go unnoticed, but tracking / noting down such expenses as they happen. 

# 3.  Food:

With the budget tight and with no option but to live on a smaller income, avoid buying food rather than the raw materials for making it, if possible.  For example, why buy a burger when it can be made at home.  Assembling the raw materials together can be way less expensive and healthier.  Cook meals at home rather than dining on

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