Trust me: you are in good company when it comes to living on a shoestring. More and more people are looking for ways to extend their monthly salary like never before. It is an easily achievable goal with methods that, at times, you will barely notice. Not only will you survive, but you will actually live enjoying life. Take it as a challenge!
Steps
Part 1 of 3: Part 1: Establish your budget
Step 1. Estimate your income
This is the first step in establishing any type of budget. To understand how much money you can spend, you must first understand how much money you "produce", taxes aside incidentally. It will be easier to calculate by month, so take a look at your paycheck: how much money have you brought home in the last 4 weeks or so?
- If you are a freelancer or freelancer, make sure how much you will pay for your VAT number. This incoming hit won't hurt you that much if you count it for a year.
- If you are a regular employee, do not calculate the taxes that can be refunded. That will be the time to party, but it's nothing big enough to be counted now.
Step 2. Create an expense list
These are fixed expenses that are easy to calculate (rent, loans, public transport, etc.) and non-standard things: food, entertainment, utilities, etc. Try to be realistic, don't make too high estimates. Squeeze your brains out and try to remember: are you giving money to Save the Children? Do you drink a cappuccino at the bar every other day as well? Have you set up an automatic payment for the yoga class you never take? Make sure you take all expenses into consideration!
Evaluate the report and count the extras. The greatest advantage of being part of a materialistic society is to log into a site and literally see where you have spent your money. But this doesn't mean forgetting about your expenses
Step 3. Check where you can make cuts
As you look through the list, find a handful of items where you can cut down on those damn numbers. Can you forget about the landline phone? Can you opt out of the Premium Football package? Can you skip that cappuccino? The easiest items to cut are those nonsense you don't even realize you pay until you spend.
When it comes to technology, don't be afraid to make complaints. You can try to pick up the phone, call your phone / TV / Internet provider and say you can't afford to pay the current fee. You will be surprised at how much money you can save with your persistent complaints. So even if looking at the list you are thinking "I can't do any more cuts!" or "I really need this thing!" could just be assumptions
Step 4. Set yourself goals
Now that you know how much money you can plan to put aside, if you are conscientious, keep that amount in mind and set goals for saving it. You have two amounts to consider: 1) the amount you can spend monthly, 2) the amount you can set aside. The rest is for fun!
You can set yourself daily, weekly and monthly goals; it depends on your plans. You can allocate 15 euros a day to eat, 50 euros a week for food shopping, a monthly sum for whatever you like. Just make sure you know exactly what will save you money
Step 5. Leave a margin for emergencies
There will always be unexpected events to deal with. Whether it's a leak from the tap or sudden indigestion that hits you at work, there will be emergencies. Leave some money in your budget for this kind of events, if they don't happen you can relax more!
How often do you find yourself spending money you didn't plan to waste? If you are like 99% of people, then the answer is "too often". So, even if the emergency in question is the birthday of a friend of yours that you had completely forgotten, at least this time you have prepared yourself earlier
Step 6. Prioritize the extras
If everything goes well, you will have extra euros that you can spend as you please. Unfortunately this money doesn't come out of the sky and it's a very small amount, so it's important to prioritize. Do you want a house full of puppies or a manicure every two weeks? Well, what makes you happiest?
A house full of puppies or a bi-weekly manicure are certainly not a bad idea. Some people may not find them essential, but to you they are. This is what matters. So make room for anything that is critically important to you. Just try to be realistic. If you can save enough, you will make it
Part 2 of 3: Part 2: Change your Lifestyle
Step 1. Put the money aside right away
For most people, this is a distinct change in life. Many are used to taking their salary and partying until it's done. You can't afford it anymore, unfortunately. When Friday comes, set aside the magical sum you swore to yourself you could save. If you don't have that money on hand, you won't even be tempted to spend it.
If you can, put the money into your checking account or somewhere other than where you normally withdraw it. Put them in the linen drawer (if you resist the temptation) or, heck, ask your mom to keep them for you. In this way you will be forced to live with the sum you have budgeted
Step 2. Become independent
In this technological age it could be a great challenge: you are part of the culture of pre-cooked meals, constant fun and ephemeral gratifications. To live with little money, this lifestyle must change. You will have to do most of the things yourself.
- Start cooking. It is not only healthier, but it is also much cheaper. If you can also cook large quantities, you can freeze them and store them for lean days.
- Grow your own food. This takes your kitchen to the next level. Growing fruit and vegetables is really cheap. Not only will it keep you from paying those crazy prices at the grocery store, but it will give you the satisfaction of supporting yourself. How many people can tell?
- Sew. How many people throw away their clothes when they notice a hole? Come on, get to work. You know you can do it. Instead of being a waste, why not manufacture, remember and sew your clothes? Not only will your money stay in the bank, but you will also have the opportunity to create your own style. A look that no other person has? Magnificent.
Step 3. Find a second source of income
Of course, don't get into weird stuff like rocket building, okay? If you want more money you will need another job. But don't think you have to wear an apron or fill out worksheets, even a weekly chore as a babysitter can improve your lifestyle and make you feel more relieved (this is the main challenge). It is about being happy, not about being rich.
Newspaper ads. Seriously, there are really so many things you could do for a few dollars more, even if it meant helping a newly divorced woman move. Ask your friends too, they might know some available job that guarantees 50 euros more. You will never know until you ask
Step 4. Find a roommate
Another obvious step. Whether you live in a city or town with three houses and a bakery, finding a roommate will cut your rent in half. Don't forget the extra benefits too! They also share the expenses for toilet paper, for some common foods, to buy Sunday pastries. All this if your roommate is a cool guy.
You can either find a roommate and cut the rent in half or move to a larger house and pay the same amount (although the latter choice does not save you money). If you had to choose to stay in a studio apartment and cover the view on your bed with a screen, well do it. Life goes on, and you might as well end up sleeping in a corner on the floor anyway
Step 5. Eliminate bad habits
Vices can be expensive. The obvious ones are alcohol, cigarettes and drugs, but the list goes on. If a thing isn't the focus of your existence, then you don't really need it. Also, if it's not even healthy, then it's not really necessary. Sometimes you have to open your eyes and this is one of them.
Even if you're just a movie fanatic, it's time to make some progress. Do yourself an examination of conscience: what are the habits that cost you a lot of unnecessary money? Everyone has it and if you can't get rid of it, what would be the less expensive alternative? A subscription to Sky, for example
Step 6. Use cash
Having something concrete in hand can make a difference. The mind doesn't quite understand that when you use your credit card, the money actually vanishes from your bank account. Every time you swipe your card, imagine a little dwarf materializing in front of you, showing you the money that is no longer yours. You will probably not be so enticed to do it anymore! So use the cash, you will probably be more able to save it.
A good idea would be to give yourself enough money for a week. When they run out, you make do. It seems a bit extreme solution, but it will teach you how to ration money in no time
Step 7. Change your point of view
Of all these life change talk to save money, the most important is about your mindset. Do you feel miserable if you don't eat at a fancy restaurant? Then this change will be brutal for you. But if you can change your point of view and not feel like a poor fellow, all this savings planning will be almost straightforward. You will have less risk of fighting "compulsive buying syndrome" and going mad because of it. It's not even worth planning your savings if it drives you crazy!
Don't worry about the judgment of others. You don't have to maintain any public image, believe it or not. You can be happy with what you have, life is not just about material goods. It all depends on your mentality, if you accept your situation you will be a happy person, this is the really important thing
Part 3 of 3: Part 3: Get Smart With Money
Step 1. Get discount coupons
You don't have to be ashamed, it's in fashion now! There are TV programs (like "Crazy for Shopping") dedicated, it's a real phenomenon! Grab the scissors and start collecting points. Find weekly announcements about discounts in your favorite stores.
Remember that, depending on the period, if something is not currently on sale, it may be discounted the following week. Sometimes in the middle of the week or after the holidays there are cheaper prices
Step 2. Get a discount coupon on specialized sites
In addition to collecting points and checking out specific brand sites, you can get discount coupons on sites like Groupon, Groupalia, Glamoo and Letsbonus. Discounts aren't limited to supermarkets, you can get restaurant meals for half the price. With a little ingenuity, your party lifestyle can remain intact.
This is a good way to make your life more comfortable. Can't afford the gym? Look for an 80% discounted kick boxing course on Groupon. Do you have to make Christmas presents? Maybe you already have a discount coupon for some store! Think big to save not only on personal expenses, but also on gifts
Step 3. Visit thrift stores
They are becoming fashionable and you could buy second hand things, right? Vintage is in vogue now, while consumerism is out of fashion. Aside from actual thrift shops, buy at auctions and other social events (for example, neighborhood markets, charity sales, etc.). You will become a treasure hunter in no time.
Ask your family for what you need. In this society, most people find themselves with a lot of useless things, hoarded in vain. Think how senseless it is, but how many people do you know who really live in a minimalist way? So ask! They will probably (read for sure) have something they want to get rid of
Step 4. Use the internet to your advantage
You are already familiar with classifieds sites, but have you ever heard of a site called Freecycle.org? Visit your community page and find people who want to get rid of free stuff. There are also those who need something, of course. This is one of many such pages.
You really shouldn't have to pay full price for anything. Aside from the coupon sites mentioned earlier, there are also sites like Etsy and Ebay where you can find hand-made items, usually at much cheaper prices
Step 5. Consider a credit card with rewards
This is a risky choice if you are the type who loves expensive things; granting yourself a credit card might be the worst thing to do. But if you think you can handle the situation (and you have a decent credit score), consider applying for a credit card with a rewards program. Each time it is used, you accumulate points and from time to time you can exchange these points for material "things" or money. If you could control yourself, you would have found a second source of income!
Always read the terms of the contract. The last thing you want is to open a credit card with an insane interest rate, start using it and catapult yourself into a terrible debt-ridden life. This is the opposite of what you want to achieve
Step 6. Aim for experience, not ownership
It probably won't surprise you to know that experiences make people happier than things, that's a fact. Experiences last longer and don't pile up on the shelves when you stop using them. So if you feel any shortcomings in life, focus on experiences. Owning things won't make you really happy, and even if that were the case, the feeling wouldn't last long.
Is Christmas Coming? Ask for a paid gym class or membership, ask for travel credits, ask for things you can actually use. Sure, a 50 'television could be nice, but you'll still want to replace it with something else within a year. Enrich your life with experiences, not things
Advice
- Lower your electricity bill in just a few steps. Turn off the lights in all rooms and unplug any appliances not in use. Plugged-in appliances may use a small amount of power which could make your bill more expensive.
- Consider drinking mineral water instead of other beverages. Water is a healthy alternative to many other drinks, without considering that it is a little cheaper.
- Try to cut down on the cost of food by going grocery shopping once or twice a week and on other days use whatever you find lying around in the kitchen.
- Pay off any bills and loans you still have to pay. If you haven't paid your credit card bill yet, do it as soon as possible, because the interest will make it much higher.
Warnings
- Choose the roommate to live with carefully, as they may turn out to be the wrong person to live with. The problems are varied, he may have a dirty criminal record or habits that annoy you to the point of having to waste more time looking for a new roommate.
- Pay attention to the credit card, many people run up a lot of debt because they keep using it beyond the limits and then it takes months or even years to pay off the debt. It could lead you to bankruptcy, risking becoming homeless.
