When you need to save money you should think about what you need to spend versus what you want to spend. Live below your means.
I’m out of work as I type this, so saving money is near and dear to my heart. I’ve found myself budgeting out every penny I spend, literally down to the last dime. You could call me something of a frugal living expert, since I’ve been out of steady work for a couple of years and have managed to get along just fine.
When you need to save money, due to being laid off or having to pay a large bill or any other reason, there are a few things you can do to tighten your belt without feeling too much of a crunch. Here are my four best money-saving tips, ideas that have gotten me through the leanest of lean times.
1. Shrink Your Utility Bills
When you’re trying to save money, it is easy to avoid some expenses. You don’t need to go out to the movies on a Friday night; just stay in and watch a classic from your video library. But certain expenses can’t be avoided. You’ll have to pay your utility bills no matter what. Saving money on utility bills is surprisingly easy. If it’s cold outside, save money by wearing more clothes around the house and stacking more blankets on the bed at night. If you’re saving money in the summer, open windows, run fans, and drink cool water instead of running the air conditioner. Saving on utility bills is an easy way to save a big chunk of your budget for other expenses.
2. Buy Generic
Groceries are another necessary expense. Thankfully, you have some wiggle room when it comes to the choices you make at the grocery store. Buying generic or store brands instead of name brands can cut your grocery budget without much of a sacrifice. For the most part, the difference between name-brand foods and store brand items is marketing. You may even find that you prefer a store brand product to the name brand. Experiment with different products and different stores and you could find yourself cutting your grocery budget by a third or more.
3. Eat Meals Multiple Times
This old trick comes to me from my grandmother, who lived during the Great Depression. Her advice was to cook as many meals as possible that can be enjoyed at least three times. When I really need to save money, I’ll bake a chicken. That way I can eat the meat (as an entree or on sandwiches later) and use the bones and other parts I don’t eat to make soup or stock. When planning your grocery trip, try to think of foods you could cook that can be used more than once, to stretch your grocery dollar without restricting calories.
4. Give Up Bad Habits
When I first found myself unemployed, I was still a pack a day smoker. I did the math, and even after switching to a generic brand, I was spending $1,460 a year on cigarettes, a nasty habit that was just going to kill me anyway. It was clear that unemployment was the best possible time to quit. Now that I’ve given up smoking, I’ve got an extra $30 or $40 a week to spend on other necessities, money I wouldn’t have if I were still sucking down cigarettes.
