Live Large on a Small Salary: Budgeting Help in This Economy |
By Alexander Carl on April 20, 2010
.jpg.aspx?width=75&height=75) Face facts: the economy is really crummy right now.
Whether you’re looking at reduced wages, reduced hours, a lower-paying job or no job at all, the trickle-down effect is felt in nearly every sector. Employers and consumers are forced to cut back everywhere.
This often means drastic changes. But reducing spending shouldn’t be a matter of slash-and-burning your budget— it’s about maximizing what you can get for a minimum.
Less money doesn’t lead to poor living… not necessarily. You can achieve a fulfilling lifestyle by making cuts where it hurts less:
Food. Okay, everyone needs to eat. But here’s a general principle: more preparation labor means a lower cost— consider the price differences between a restaurant pizza, a frozen pizza, and one you assemble yourself. Food made at home also tends to have less salt and fat.
Utilities. They seem like budget essentials, but there are still ways to reduce costs. Appliances can drain electricity even when turned off, so unplug them when not in use. Run the air conditioning only as much as you need. Use the dishwasher and washing machine for full loads only. And the classic: take shorter showers.
Clothing. What’s the shame in thrift store shopping? I’ve found jackets and pants worth hundreds at Goodwill for a few dollars each. Bear in mind that thrift stores in upscale neighborhoods tend to have nicer items. Also, many retailers desperate for sales are offering huge price cuts— these are worth taking note of.
Coupons. Clipping coupons may seem like the pastime of grandmothers and welfare-recipients, but the truth is that they are saving more money than the rest of us. Be on the lookout for store discounts, too.
Generic brands. What’s in a brand name? Sometimes greater quality, sometimes nothing. Check out if a generic equivalent holds up to the brand.
Extras. Do you need the newspaper? How much cable TV do you actually watch? Do you really need a new cell phone right this instant? If you really want to scare yourself, add up how much you spend on coffee, soda, alcohol, or energy drinks per week.
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