Kelly Robertson
It is said (and proven) that money can’t buy happiness. It could help, no doubt about it, but shopping alone won’t do it. You’ll get some sort of instant satisfaction, and that’s about it. In contrast, living without a debt — or with a limited and well-controlled debt — will give you freedom. And so what if you will have to stop buying and paying for the stuff you seldom, if ever, use.
Learning and practicing to live within your means is the road to that freedom. Here’s how to do it…
1. Start with recurring expenses
These would be various subscriptions and memberships you rarely use (or don’t need whatsoever). Come up with the list of monthly, quarterly and annual expenses and go through it. Item by item, ask yourself — what would happen if you stop paying it? If it’s not a loan, credit card or mortgage payment, chances are — nothing.
If you want to keep some of the expenses, try making them smaller. Perhaps you need to negotiate your rates, perhaps you need a different plan, or perhaps you just need to make a phone call and ask for a lower payment.
Alternatively, if we are talking about a credit card payments, you can switch to the card that offers an introductory period of 0% APR. If you qualify, one of these cards could be your ticket to get out of credit card debt.
2. Become a savvy shopper
There are four things savvy shoppers use:
- Comparison shopping portals such as Nextag, PriceGrabber, Shopping.com, Shopzilla and Become.
- Coupons – from more sites and mobile apps than I can list here.
- Cash back portals – which get you a percentage of your spending back. Swagbucks is one of the sites offering cash back with a number of retailers (among other things).
- Rewards credit cards – that offer either valuable points or cash back. But make sure to make regular, on-time payments with no balance to carry from one month to the other.
Also, savvy shoppers know that the brand new stuff usually comes with a premium and seldom deliver extra benefits. So don’t buy the latest gizmo (or whatever you want to buy), but the earlier model.
Finally, if that’s possible, you’ll want to ask for a discount.
Also read: 12 Things Americans Waste Their Money On
3. Rethink the frequency of costs
You want to dine out from time to time. Nothing wrong with that. Make sure to save even while dining out.
You may also like to visit theater every now and then. And that massage feels so good, right? Again, no problem.
Put all of these occasional costs on paper, and think it through. What you can avoid every month? What about every week?
If you want to save money, you will have to make some cuts from that list. Don’t feel bad about it though — you will have more money at the end of the year. That’s a goal worth striving to.
4. Start budgeting from zero
Start from the clean sheet of paper and write down the things you *must* pay every month. These would include the rent and/or mortgage, loan and credit card payments, food, gas/transportation, utilities, internet access and other stuff you can’t live without.
Now, write down all other costs, such as cable TV (you don’t necessarily need that – get Sling TV, instead), dining out, various memberships and other optional stuff.
Those other costs are where you should look for cuts. Set a limit on those expenses and try your best to stick to it. Not the easiest of tasks, but the one worth pursuing.
5. Need more? Go for more!
You can either ask for a raise at your current job or get a second one. Or explore other money-making opportunities. We have prepared a comprehensive list of things you could try to get an extra $500 every month. Some of them require special skills, but most will work for just about anyone. Check it out.
Conclusion
The main idea of living within your means is NOT to take an extra debt — rather, it is freedom. To that end you — all of us, actually — should practice gratitude for the things you/we already have. This, I believe, is the road to happiness which is the ultimate pursuit of every human being on the planet.
So give it a try. Cut here and there, only to enjoy the true freedom at the end of the journey. Good luck! 😉
