Living on a Budget

It seems nearly impossible to live on a tight budget these days. Our government is probably the largest example of how to spend money that is not really there. However, not spending more than one has can be done. There are countless money managers and experts that are providing some insight into how to live within one's means and actually save without depriving oneself of the necessities.

It is not these fancy money managers that can really provide the best lessons and examples. It is the ordinary people stung by the recession and unemployment that can provide some simple help in living on a tight budget. Here is one example: " There is no quick fix to saving money. It takes time, thought and dedication. I know, it kind of stinks that we have to change the way we do things...When I have leftovers from a meal, I freeze it, then once a week or so, I use those frozen leftovers to feed the family. The kids get to pick their choices. It's like having their favorites again without all the mess" (Commons 57).

Budgeting priorities can help see that one can stick to a budget. First, make sure that there is a budget for food for the family, even if it may mean planting one's garden (if possible) or buying in bulk and freezing for future meals. It is amazing how much one can save with (1) buying in bulk and (2) clipping coupons.

Second, make sure there is money for health insurance and, when and if possible, cash reserves for health emergencies that may require co-pays.

Third, set aside money for rent or mortgage payments . That may be difficult since many Americans, given all those come-on ads a few years ago, bought houses and went in debt well over their heads. There are many legitimate government-backed companies that specialize in helping refinance or reduce mortgage liabilities. But don't rush to those with all those ads on television and in the newspapers and on radio. Many of them are scams, just taking one's money.

Fourth, do some self-regulating in your home and what may once have been 'necessities' . Here are some suggestions: "Turn the thermostat back. Save as much as 10% a year on heating and cooling bills by simply turning the thermostat back 10-15% for 8 hours... Use ceiling fans. Decreasing the temperature of a house with a fan instead of air conditioner can save energy and money on monthly electricity bills.." ("Tips" 3869).The article also recommends reducing or eliminating buying bottled water. By using a reusable bottle one can easily save up to $600 a year. There may be a final simple way to live on a limited budget: Write down what you spend for items that are NOT really necessities- like video games and pay-per-voew TV, or the fancy gym or using premium gas, or doing nails. When one sees that these are luxuries and not necessities and that life can go on without spending for them, then living within a budget can work. Budgeting to reduce wasteful spending doesn't mean having liimited choices. It merely means making wiser expenditure choices. And that can put much needed money in the bank!

References:

Commons, Shannon: "Living with what I Have" Waterloo IA :

Countryside and Small Stock Journal , Jul/Aug 2009 .

Vol. 93, Iss. 4; pg. 57,

"Tips for Living a Healthy Lifestyle on a Budget" Atlanta GA :

Science Letter Apr 21, 2009 . pg. 3869