What are some tips on living cheap?

Answer 1

Misti,
I have some things you can do, but you may not like them all. I can tell you though - if you have to cut living down to a bare minimum, this is how.

1. Start with the big ticket items in your life and minimize them. Almost everyone's biggest expense is rent or a house payment. If you have a house, clear out a bed room or two, and rent them. Roommates you don't know at all are a huge risk though, so network around - classmates, work friends, friends from church, and even family. Don't get in a hurry, and you'll find someone you like ok to split rent and utilities. This could be worth 300-700 a month.

2. If you have a cell phone, ditch the land line going to the house or apartment. It's better to pay slightly more for too many minutes than it is to go over for only one month and have a $200 cell phone bill. This will save you $40 if you have a land line and a cell phone.

3. Only have one vehicle. If you don't have a paid-for car, minimize your payments and minimize your repair bills both. Do this by getting a not so old, but not brand new reliable American made car. Get something decent that has 2-4 years and 50-70,000 miles on it. Finance it at a credit union. You should be able to get about 7% right now on a 3 yr loan. An 8K loan should be less than $250. Pickup trucks are more durable and are built tougher than cars, even if you don't really need it for truck type usages. The gas mileage will stink though, so balance this with your distance from work and how much you drive. You might be better off with something small with a 4 cyl engine. Insure it for a $500 deductable, and then be careful.

4. You'll need full coverage car insurance if you have a loan, but spend the 25 bucks on defensive driving and get the 10% discount on your insurance. Don't smoke and get that discount. If there's no alarm, get the cheapest alarm you can put on it, (you might get one for around $100) and get that insurance discount as well.

5. Find someone - neighbor or roommate - to split your internet connection with. It's simple to set up a wireless router that will allow you both to use if as if you were the only one.

6. Drop cable tv. You don't need it. If you have favorite shows, you can now watch them online on the network websites - at least for the most popular stuff.

7. Make time to cook and make enough for lunch later. Eating out is a big expenditure that most people don't think about but it adds up. Watch how much you put into vending machines if you have them at work or school. That adds up too. Ditto on stuff like starbucks coffee. 5 or 6 bucks a day a buck or 2 at a time is 100-200 a month.

8. Change your electric provider if it's unregulated where you are. Most people are not with the cheapest provider and most could save 5% just by switching.

9. Don't keep your credit card with you most of the time. It's psychologically easier to use than parting with the cash in hand.

10. Put as many of your bills on auto-pay as possible unless you pay them religiously on time, and avoid any late fees.

11. Seek out cheap entertainment instead of higher cost entertainment. Go to the dollar theater. Go the the lake and fish, or pack a picnic and go to the park or the zoo. Keep yourself busy with stuff like that, and it will distract you from the stuff that costs more, plus a lot of it's more fun

12. Stay out of nightclubs and bars if this is something you do. They are fun, but there's no reason to be paying 3 bucks for a drink. By the end of the night, you may be 30 or 40 in the hole depending on cover charges, tips, drinks, or even parking. Have some friends over for pizza and beer and play poker with chips.

13. Evaluate your friendships and make sure they are supportive or at least neutral (not causing you financial problems). Do you have any that aren't sympathetic to your economic situation, or that, through peer pressure and the places they want to meet or hang out are causing you to spend more than you want, but you don't want to say anything about it? Talk to them or minimize the time spent with them, or call them up and just visit, or tell them where you'd rather meet, but don't spend money at a 4 star restaurant if it's just lunch when it's ok for their budget but not yours, because they think it's cool. This may not apply, but for some people it does.

good luck.
Kevin

Answer 2

Do NOT buy anything on a CREDIT CARD. Pay cash! Except for a major purchase such as a Home, Car which you would probably want to finance. Have you every thought of joining a government agency or the US Military? They provide all that you need, including great benefits, travel, and retirement after just 20 years of service.

Answer 3

Mac n cheese, hotdogs, multivitamins, plenty of OJ, fruit, and veggies. Do this for one week every month and you should end up banking an extra $50.

Cut the home line and use your cell phone.

Trim the cell phone plan to the minimum you need.

Balance transfers to get a lower interest rate.

Pay down the debt and let the good times roll!

Answer 4

Skip the Starbuck's coffees ($2 - 3/day adds up to $60 - $90/month!).

Get a roommate to share expenses.

Hang dry your laundry, rather than toss it all in the dryer.

Frequent garage sales, flea markets, etc. for deals on cheap clothing, household items and so on.

Limit your driving.

Answer 5

Don't eat out! Eating out will end up costing you lots of money that can easily be saved during a year. Instead, buy groceries so you have no excuse to eat out. :) Buy off brand things, and create a budget so you can track exactly where all your funds are going and cut out unecessary things.

Answer 6

Write down every cent you spend for a few weeks - you might be surprised at how much you're spending on small expenses, that you don't need to spend.

Answer 7

http://www.pennypinching-grandma.com/ has some good articles on saving money

Answer 8

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