by Mary Rose-Sellers

Created on: August 04, 2010   Last Updated: November 01, 2010

In today’s economy it’s hard enough to make a living, let alone adjusting to a smaller income.  To many people’s disappointment the economy has affected everyone, one way or another.  Some of us are able to make a living yet others are still having difficulty either by trying to find a job or by losing their homes.  Finance experts tell us that in order to make money we have to spend money.  Circulate the economy.  But how can that be done when your income has decreased by 10% or 20% because the company is cutting back? 

And here comes the day when the hefty paycheck you were receiving so far, is 20% less.  You go home and do your finances and realize that after you pay the mortgage, the utilities, the phone bills, there is not that much left.  There are a few things that you can do to adjust living on a smaller income. 

If you were getting coffee every morning from Starbucks, you have to stop.  That’s about $4.00 a day times five, it’s $20.00 a week.  Between you and your spouse, granted your spouse also works, you are saving $40.00 every week on coffee. 

Pack your lunch.  The money you spend every day going out for lunch can add up to a tremendous amount of money.  When doing the groceries, cut back on any junk food.  It’s amazing how much you can save.  Buy foods in bulk, like meats and separate them into individual servings.  It's amazing of how much money you will save this way.  Cut back on any ready made frozen meals.  They are expensive and can add up to your grocery bill.  Instead, try and cook at home and take some for lunch the next day. 

Cut back on the cell phone service.  There are services that you can negotiate your rates.  You don’t really need to have texting, do you?  If it costs less to call someone, why text him.

Carpool with someone who works with you that lives close by.  This way you save money on gas but also help the environment. 

Another option is cutting back the cost on clothes and dry cleaning.  Try not to buy clothes or shoes that you don’t need.  Evaluate what you have in your closet and ask yourself: “Do I really need that extra top or pair of shoes?”  If the heels on your shoes wore out, it's cheaper to have them fixd than buying a new pair.  The cost of having the heels fixed would cost $10.00 the most. 

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