Money Problems Got You Down?
Strapped for Cash? Struggling to Make Ends Meet?
So many families are struggling to make ends meet in today's economy. Some will say that there is no where else to cut expenses. Even when you think that you are doomed, there are still so many changes that can be made to maintain the lifestyle that you may want to live. If you cannot maitain, then at least you will have it better than if you make no changes. It will take a little legwork but in the end you may find that you have made changes that truly stick. So what will you do with all that extra money? You may save enough to take a vacation, save for retirement or just keep money in the bank to earn interest.There are so many ways that you can sit down and really get an idea of what you are spending. Here are some options...
Start with a Budget
- Use a computer program like Microsoft Money or Quicken to track expenses accurately so that you know where you are spending too much
- Use your checkbook register to write down bills starting with the most important bills (i.e. Mortgage, Electric, Phone, Cable, Trash, Water, etc)
- Use a basic ledger book (can be purchased at WalMart or an office supply store) to track expenses
Distinguish Necessities from Luxuries
Once you know what you are spending, make a list of necessities and luxuries. Ask yourself these questions:
- Have I ever lived without this item or service?
- Can I live without it now?
- Which things can I sacrifice to have financial freedom?
Analyze Debt and Try to Dig Out
It is very important to for you to first see how much money you are spending on credit card and loan interest. It is best to only buy something if you have the cash to pay for it. Keep a card on hand for emergencies. If you find that you must use the card at some point, pay it off as quickly as possible. Take any extra money that you have or make and pay off your debts first. Start with the highest interest rate cards. Try to negotiate lower interest rates with the credit card companies. When you get them all paid off, start paying yourself.
Ways to Earn Extra Money
So how can you find the extra money to pay bills during hard economic times? Here are a few things you can do:
- Become a seller on eBay - Sell your unused or used valubles on eBay. You may also find items at yard sales that you can resell for more on eBay.
- Have a yard sale yourself - Go through items in your home. If you have not used it in six months, ask yourself if you really need it. If you have not used it in a year, sell it!
- Find odd jobs to do in your community such as cleaning houses, mowing lawns, consulting, or becoming a notary.
Ways to Save Extra Money
Do you have a lawn service but have a lawn mower in your garage? Do you rarely watch television but have all the premium channels on your cable? Do you look at the Sunday paper and toss the coupons? It is time to trim the fat. Simple changes can make a world of difference. Here are some ways to save money:
- Clip coupons
- Use websites like www.thegrocerygame.com to find local deals and to see which coupons to clip
- Mow the lawn yourself or have your kids do it (great exercise if you have a push mower)
- Clean the pool yourself
- Evaluate what food items you already have on hand. Minimize waste by using recipes that will use up the items before they expire
- Eat at home and skip the morning gourmet coffee or muffin
- Quit habits that cost money
- Give yourself a manicure or pedicure
- Buy items on auction wesites
- Drop the gym membership and work out at home. There are many websites that have exercises you can do at home with little to no equipment. Household chores also burn calories
- Carpool with a friend from work
These are just some of the small changes that you can make to get out of debt, make extra money and pay your bills. Before you spend any money, ask yourself if it is something that you really need or is it something that you do without. You will be surprised how much money that you might find!
Sources
"The Grocery Game." The Grocery Game. 31 May 2008 <www.thegrocerygame.com>.
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