One way to save is to try to make what you have last. I know that things are not made to work as long as they used to in previous generations, and that it often costs more to get something repaired than to replace it. However, there are still ways to make what we have last longer and as a result make our money go further.
Firstly, don’t waste resources – it will help the environment, as well as your pocket book. Here are some ideas:
1. Reduce your utilities bill by conserving. For example, switch off lights when you leave a room and aren’t coming back for a while. Conserve water by having shorter showers. Adjust the thermostat by one or two degrees so that the air-conditioner or heater runs less. Over time, these simple measures will make a difference to your utilities bill.
2. Downsize – and pay less for – services you don’t need. Have a look at your Internet plan and phone plan, for example, where there may be fixed charges for the data downloading amount or the number of calls. Don’t pay for a large amount of downloading if you are only sending out a few emails per week.
3. Evaluate subscriptions – be it online or by mail. Are you using all the services you have subscribed to – newspapers, magazines, books, CDs, online clubs? Subscriptions are often easy to get into – the initial offer of a free or near-free item may be hard to resist. Then the item, such as a newspaper or online information downloads come every day, week or month, but time or other factors get in the way of us using them. Payments may be automatically deducted from our bank or Paypal account without us even noticing. The key question is: Are you making a full use of the service? Unsubscribe from anything that is not necessary or useful to you.
Secondly, maintain what you have to make it last longer so that you will need to replace it less often. Some tips include:
1. Take good care of things.
Learn to do simple repair jobs, such as stitching up a broken seam on a piece of clothing or a small hole in a sock, rather than quickly discarding the item and buying a new one.
2. Keep things that are still functional for longer, rather than buying new ones every year or two.
It is not necessary to have the latest model car, computer, or kitchen appliance – as much as the advertisers try to convince us to the contrary. If something malfunctions in a small way, see if you can get it fixed for less than the cost of a new appliance.
3. Look after your health by eating a healthy diet, exercising, and getting sufficient rest.
Kick any destructive habits, such as smoking or excessive drinking. You will save money in two ways – on the cigarettes or alcohol, as well as on potential doctor visits due to self-induced health problems. Instead of frequent eating at fast-food places, buy wholesome, nutritious, natural foods in the supermarket which are often much cheaper. Learn the art of simple food preparation – it doesn’t have to be complicated or greatly time-consuming. Then save on medicines and doctor’s bills, because you are likely to have fewer colds, headaches, flus, etc. Not only will you feel better, but your finances will also be healthier. This will give you less stress – another health promoting measure.
By following several other principles, you can significantly reduce your living expenses. Let’s start with the basics – food and shelter.
To stretch your food budget, consider:
1. Making a shopping list and sticking to it.
2. Before going shopping, write down everything you need. A good way to build the list is to jot down items when you notice that they have almost run out. For example, when the flour bag or tomato sauce bottle is close to empty, write down the items on a shopping list. In the store, resist the temptation to add to the cart things not on the list – no matter whether or not they are on sale (unless of course you have unintentionally left them off the list and you really need them.)
3. Shopping only once a week.
Plan your weekly menu and see if you can get everything in one shopping trip. Divide your monthly budget into roughly four parts and as much as possible, stay within your weekly allotment.
4. Preferring larger supermarkets to smaller shops. If on a tight budget, your money will go further in these stores as they tend to be lower priced. You also have more choice and can select cheaper products over more expensive ones, where the quality is not greatly different. Prefer home brands over other brands, as often you will pay more just for the brand name.
5. Preparing your own meals as much as possible. Rather than buying a lot of canned and processed foods, consider a bag of beans, peas or lentils. Each can be combined with a bit of meat and/or some vegetables and placed in a pot or slow cooker. With very little time and effort spent in the kitchen, they can make tasty, delicious and nourishing soups or stews. And best of all, the meals are healthy and inexpensive.
As far as your second basic need, shelter, consider:
1. Downsizing, if your accommodation is unneces-sarily big.
If there is only two of you, for example, consider a two-bedroom apartment or a small house. Of course, the cost of a move needs to be considered in the context of the overall expenses – but the move might pay for itself before too long.
2. Sub-letting a room.
If the children have left the nest and you have a spare room, could a single person rent it to help with your rent or mortgage payments?
3. Taking a look at the utilities.
Check to see if another supplier can provide you electricity, gas, water, phone and Internet services for a lower cost. There may be a number of competing companies providing these services. Shop around and check what each one offers.
4. Repairs and insurance.
Again, if repairs become necessary, check around and get several quotes. You may be amazed how similar services vary in price. You can reduce insurance in two ways – by comparing quotes from different companies and by increasing the sum you would pay yourself before making a claim. Chances are good that nothing will happen, and by agreeing to a bigger deductable, your premium will decrease while you are still protected in case of a major problem.
Regarding other costs, such as clothing, appliances and entertainment, again, you can reduce these by shopping around. Often you can buy economically without sacrificing quality. Sometimes, even a second-hand reconditioned item can be a good low-cost purchase. You can always upgrade when finances become better and you don’t have to be concerned about every dollar.
Checking around also applies to holiday travel – there are significant cost differences in airfares, hotel accommodations, and eating out. And if you are on a really tight budget, consider camping or simple day trips. Use your imagination and resourcefulness in coming up with ideas for enjoying life on a limited budget. There certainly are ways and means to do that.
Christmas is a time when we like to do special things, including buying special foods and giving gifts. While these activities have their place, if one is on a tight budget, care needs to be taken not to overspend. If not careful, it is easy to get carried away by the spirit of the season and run up a credit card debt that we could still be paying off next December. The following tips might help in ensuring that both the Christmas season and the new year are financially happy times.
1. Plan ahead.
Ideally, begin your planning in January. Make a reasonable Christmas budget, for example, 2% of your annual food and miscellaneous items budget. Then start your Christmas saving at the beginning of the year by putting aside a small sum each week. You will hardly notice this sum missing, but over the weeks and months, it will grow nicely.
2. Evaluate your gift-giving list.
If budget is tight, talk to the family and consider options such as limiting gift buying only for the children in the family and/or just the immediate family – not the nephews, nieces, cousins, etc. Another way is for each person to pull a name out of a hat and buy gifts only for the person whose name has been drawn.
3. Take advantage of sales.
By planning ahead, you can make use of sales and discounts that you encounter during the year – even post-Christmas sales! Sometimes you may find inexpensive things at yard / garage / rummage sales. People often sell unused items at a greatly reduced price and these can make lovely gifts.
4. Be resourceful.
Consider creating a gift using your own talents. This may cost you very little in terms of money, yet be greatly appreciated, and even treasured. For example, can you paint a picture, create a wood carving, sculpt a mug, knit a jumper, or make a quilt?
5. Avoid impulse buying.
Don’t wait till the last week before Christmas to buy gifts. With the pressure of the situation, it is easy to get frustrated, buy on impulse and without thinking, and overspend. Rather, accumulate your gifts progressively, or slowly and steadily work on creating gifts for others.
6. Watch the credit card.
While the plastic card is convenient to use, keep track of how much you are charging on it. Don’t charge more than you are able to pay off within the interest-free period. Or, if the temptation is too great, simply resolve not to use the credit card and only spend a predetermined cash amount. Once the cash is gone, your shopping is finished – even if you haven’t got a gift for everyone you had in mind. Better that than waking up in January or February with a credit card hangover that will take you a better part of the year to pay off – with a high interest percentage added, of course.
By exercising discipline and responsibility in connection with Christmas, you can enjoy the season as well as the coming year – with no unnecessary financial headaches and setbacks.
To sum up, make your finances stretch by avoiding waste and looking after what you have. In addition, examine ways to make your food and shelter budget go further, shop around to get the best price for your other needs, and be careful not to overspend with Christmas shopping.