Sad to say, a lot of us seriously need to improve our finances so we can stop living from one salary to the other. That type of lifestyle can be really stressful. Trying to make sure that your income will last until the next is no easy feat. The anxiety and stress that comes with the worry that something might happen and you barely have $20 in your wallet.
It is possible to stop living from paycheck to paycheck but you know that it involves certain sacrifices from you. Getting out of the financial rut that you are in right now will involve changes to your current lifestyle. If you are having a hard time, that means there is something wrong with the way you are living your life.
For most people, the solution to their financial problems is spending less. When your budget always ends up with a deficit, this is the easiest thing to do as opposed to earning more. After all, it is easier to pull than to push. So you can expect that most people would want to pull back to help keep their expenses from going beyond their monthly income.
But here’s where another problem can be found: what if spending less is no longer enough? It can be because of too much debt or a higher medical expense brought about by an unexpected sickness. What can you do to help survive this crisis?
Well, we have three suggestions for you.
Look for freebies to avoid spending
If you have to spend less than what you used to, you can look for freebies or at the very least, the cheaper alternative of your usual expenses. If that means you have to start buying things in bulk so you can save more per piece – that is what you have to do. If you have to go to thrift stores to buy your clothes, then that is a sacrifice that you have to make.
Here are some ways for you to get free items.
Browse through online freebie sites.
There are many websites that you can look into to help you look for freebies. We have sites like MrFreeStuff.com, HeyItsFree.net and Hunt4Freebies.com. These sites constantly update their listings and you can find great ways to get products for free. Anything can help you with your efforts of spending less. Some of the things on the list include household products, pet food and accessories, beauty products, and even food. There are things that you need to do of course. In some cases, you will simply be asked to watch a video.
Join contests.
The social networking sites is a great place to start looking for these contests. You can be asked to upload photos or come up with ideas based on the mechanics of the contest. All you have to do is join and you have a chance of winning free items. This is a great way to have fun and bond with other clients while spending less on your budget.
Sign up to join focus groups.
If you like certains brands and you want to keep using them despite your current financial situation, sign up to join a couple of their focus groups. They can help get your comments on new products, get your opinion on surveys and other research data. In return, you can get a couple of products for free. This is a great way for you to get freebies and also contribute to the development of future products from your preferred brands.
Choose what you can financially downsize
Aside from looking for freebies or cheaper alternatives to assist you in spending less, you may want to consider downsizing your life. This is a bit like living frugally already. There are three ways that you can really lower your costs.
Move into a smaller home.
You know how people are moving into Tiny Houses? It is actually a great idea. You may think that it is over the top to live from a 1500 sq. ft. home into a 150-200 sq. ft. tiny house. Well you might think that it is the extreme but have you ever read anyone complain about it? Admittedly, even the Tiny House folks agree that they plan to live in a regular home someday but none of them are really complaining about the time they are spending in these small homes. In fact, they do not find it restricting at all. Most of them confess that being free of all the material possessions can be quite liberating. It is a huge adjustment but it is a practical one to help you get out of debt. And let’s face it. A smaller home means lower utility bills and maintenance costs. That will really make spending less easier to achieve.
Sell off your stuff.
If you look over your things, you will realize that you have so many “stuff” and that most of these are things that you do not really need. Obviously, if you will live on a smaller house, you will have to get rid of some of your stuff. As we mentioned, people find it really liberating when they let go of their material possessions. And you will too. Sell of your stuff to get some income out of it.
Get rid of your car.
Another way to downsize is to get rid of your car. This may seem difficult but if you think about it, you can actually make it work. There are public transportations and even a simple bike can be quite handy – and healthy too. Think about the money that you spend on gas, car maintenance and other expenses. You can free up a lot of money in your budget if you get rid of your car – especially if you got an auto loan to pay off.
ChicagoTribune.com published an article that mentions how downsizing is starting to become a way of life for some people – especially retired individuals. Given the financial benefits that it has, it can be a great idea to survive a financial crisis. Some of the people who used to spend 65% to 70% of their income on living expenses are now only spending 35% to 40%.
Here is a video of a guy who successfully downsized his life. He provides 5 ways that can help you downsize your life to help ease financial difficulties.
Increase your income to have more money to spend
The last tip that we have for you when you are spending less and still not meeting your needs is to just start earning more. If you used to survive on a one income household, you may have to start thinking about making it a dual income home.
The family budget ranges between $48,000 to $94,000 for a family of four according to the Economic Policy Institute (EPI.org). The amount will depend on where you live. Obviously, this budget is for those who live in a standard sized home. If you are convinced enough to downsize, this budget will get lower. But if it is still not enough because you have debts or something similar, then increasing your income will help your financial problems.
There are many ways for you to get a side job to help increase your income without killing yourself because of fatigue. Working an additional 2 hours on a freelancing job every day will not really hurt that much. Instead of watching TV, use the time to earn more. Or you can capitalize of your hobby to get that extra income going for you.
All three options will help you deal with the spending less problem because it will help you simplify your life – at least the first two will. Just remember that these sacrifices does not have to be forever. Cut yourself some slack every now and then but make sure that you learned from you mistakes. Be a wise spender and prioritize where you want to put your hard earned money.