Many people live on one paycheck at some point in their life. Whether you have always lived on one paycheck or living on one paycheck is a new experience, one of the first steps to making life on one paycheck work involves reviewing your expenses so you know where you can make budget cuts. While living on one paycheck can be difficult at times, there are many creative ways to cut your expenses. Here are some great budget trimming suggestions.
Dining out is an expense most of us can cut, drastically or entirely, if necessary, as it not only saves money quickly but carries the added benefit of allowing us the opportunity to eat better. While dining out is a great American pastime, it soaks up money you probably don’t have to spend; it can also make living on a single paycheck nearly impossible. Instead, make eating out more of a special occasion treat as opposed to an everyday event.
Growing your own food is another great, creative method for cutting expenses. Gardens are a great way to grow your own vegetables and save money at the grocery store. If you are not into gardening, shopping your local produce market is a great money saver. Not only is the produce found at your local markets most likely cheaper and better for you, it’s also a great way to feed the local economy while cutting your grocery budget.
One of the most overlooked areas, when it comes to reviewing and cutting expenses, is your existing debt. Make a list of your existing debts including your house and cars. Pay off the smallest amount first, then apply that payment to the next smallest debt and so on, until your debts are paid off. For cars and your house, explore refinancing as a way to reduce your interest rates and/or payments as this can help you cut your expenses.
If you have two cars and you’re transitioning from a dual income household to a single income household, consider selling one car, especially if only one person in the house needs and uses a car during the day. Cutting the extra car payment out of your monthly expenses often makes living on one paycheck very doable. You might be surprised how easy it is to have one car.
Make use of your library to rent books and, in some locations, movies, too, to save yourself some money. When you’re not spending money buying books or going to the theatre, you have more money to put toward other important expenses. Using the library not only helps you cut those expenses, it allows you to enjoy books and movies for less.
You can get some great, often times brand new stuff you need for next to nothing by shopping second hand stores, thrift shops, garage sales, Goodwill and craigslist. You will not only save money by skipping retail outlets but in many cases you’re helping out charities by buying off-retail. Another great money saver involves understanding that most of us don’t need the newest gadget or appliance right now and we certainly need not pay retail price for it! For big purchases, save up the cash instead of buying on credit.
Sometimes discovering innovative ways to cut expenses may be difficult, especially when the habit is new to you, but doing so makes it possible to live on one paycheck. Reviewing your bank statements so that you know where your money has been going is not only a great idea but a necessary one. Consider cutting non-essential expenses. When shopping, pay attention to what you’re buying and whether you really need it. This is another one of many creative ways to make living on one paycheck very doable.
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Very good ideas, you can also cut off the hot water heater when its not used. {after bath time, when at work, at night, when on vacation, and ect.}