Making ends meet can be a daunting task when your funds are limited. Finding innovative ways to make your dollar stretch further is crucial for keeping your financial train on the rails.
The first thing you will want to do is create a budget. You’ll need to know exactly how much money is coming in and out on a monthly basis.
Once you know where your money is going, you have two options. Increase your income or reduce your expenses. By evaluating that handy budget you just created, you will know exactly what expenses, if any, can be reduced. Here are a few ways to reduce some of the major expenses families incur on a monthly basis.
Keeping a roof over your head is typically the single most expensive item for people.
• Can you refinance your home?
• If you’re a renter, can you move to an area where the rent is less expensive (keep in mind things like moving costs and the amenities of the area where you would potentially live when making that decision)
• Does it make sense to get a roommate?
We all like to eat, but perhaps you can find less expensive ways to keep your belly full.
• If you head for the nearest deli at lunchtime, consider bringing lunch from home.
• Grab your Sunday paper. These are typically full of coupons which you can use on your next trip to the grocery store. The savings on your grocery bill will more than make up for the cost of the paper.
Do you own your car? Do you have a large car payment each month? (more than 10% when car insurance is included) Consider some of the following options:
• Refinance your loan to reduce your interest rate and/or payment
• Sell your vehicle and think about purchasing something less expensive
INCREASE YOUR INCOME
Once you’ve gone through the process of reducing your expenses as much as possible, consider ways of increasing your income:
• Sell items you no longer want or need
• Consider a part-time job
• Get a loan to help pay for some of the larger purchases you make. Companies like Crest Financial work with clients whose budgets are limited.
These are just a few ways you can work within a limited budget. Implementing just a few of these can make a big difference in your financial life.