10 Budgeting Tips...

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For Those Living Paycheck To Paycheck

When you're living on a strict budget, your hope is to pay for the essentials and have some left over in the bank by the time the next paycheck comes in. This is a situation many of us are all too familiar with. We may be coasting along just fine, until the car breaks down, the dog needs an operation, or we need to travel to a wedding on the other side of the country.

Saving for emergencies and special events is difficult for most of us. Through our jobs we may have access to retirement savings plans like 401Ks, to college funds, and to life insurance. But after those essentials, meant for use "later down the road" are taken out of our paychecks, we wonder why we shouldn't just use the "later" money now, when the bills are only being partially paid and the kids are outgrowing their clothes faster than we can replace them.

Contrary to popular belief, it may not be necessary to take on a second job or work more hours. There are some very simple changes we can make in our daily lives which can add up to significant savings in the long term.

Here are some tips on learning to save, live more simply, appreciate what you already have, and avoid buying things that essentially have no value.

1.) When you come across an item you "must have", consider your motivation.

Did you come out in search of this item specifically? Are you interested in it because it is something you can use as an accessory to define your personality? Is your motivation simply to treat yourself? Often you will realize that you do not actually need the particular item, and that you've been getting along just fine for years now without it.

2.) Multiply the cost of additional luxuries until it makes an impact on you.

For example, you may want to upgrade to a faster internet connection at home. Unless you work out of your home and can be more productive with this change, think about how much of your wages will go into this upgrade. Could that same money be applied to something else which would improve your standard of living more than a faster connection? Is the upgrade worth cutting back on other luxuries, or worse, necessities?

Take the extra monthly amount you'll be paying and consider it. Perhaps it's $20 a month. This may seem like nothing. But now multiply that by twelve months. That extra $240 at the end of the year could buy lots of groceries, a new wardrobe, or help you pay for a nice driving-distance weekend away. After considering these points, you might realize your current internet connection is just fine.

3.) Become more open-minded about food.

Many people grow up with specific brands, and as adults they continue to purchase them. They walk blindly to their familiar section of the supermarket aisle, blocking out other options. In reality, you often won't notice much difference between the best-selling product and the second-best-selling product. Some great examples are breads, cheeses, pasta, beans, canned or frozen vegetables, sugar, flour, rice, and many other common staples. Try out other brands. As you start to feel safer trying out new things, make the big leap to generics and see if they measure up. You may often wind up paying forty cents for a box of pasta rather than, say, $1.19.

Simple changes like this can add up significantly. Keep in mind that many generic brands use the same ingredients, and sometimes the same source, as the name brands. For example, the name brand cheese may be made with the same milk from the same company as the generic brand. Sometimes, you really are just paying for the label.

Learn to freeze things you may normally throw out. Any time you have left over vegetables, rice, pasta, etc, put it into a container in the freezer. You will accumulate the ingredients for a very flavorful soup over a week or two. Just add some broth and heat!

You can also freeze bread. If you see a great sale on bread, but you know you won't go through several loaves before they go moldy, simply throw some of them in the freezer. The best way to eat them later on is to toast them. You won't notice any difference, and they'll usually toast in the same amount of time as a piece that hasn't been frozen.

4.) Bring your own coffee to work.

Invest in a durable travel mug. Buy the largest container of coffee (as long as it's the best value). Once you open the container, refrigerate it to maintain freshness. Buy the largest, again, best value package of sweetener. Taking a few extra minutes in the morning to make yourself that on-the-go coffee can save you time on your commute and from waiting in line at the coffee shop. You'll save time and money and have a more relaxing ride to work.

5.) Make a game out of couponing.

It really can be fun to go into a store and come out with $20 worth of food for $6.50. This can happen if you catch sales on your favorite items and have coupons as well. A particularly good tactic is to buy things on clearance with coupons, when possible. Ask your grocery store customer service person if they double coupons, to what limit they double them, and if they accept competitor's coupons and expired coupons. Each store may have its own slightly different policy. If you come across a better price in a circular for a store that's out of your way, it's worth it to bring the competitor's circular to your local store and ask if they can match the competitor's price.

In the past, the most popular source for coupons was the Sunday paper. But if you're on a tight budget, it doesn't make much sense to pay for regular paper delivery just for the potential to find coupons that may or may not pay for themselves. The best way - and the free way - to get coupons you know you will use is to go online. Some coupon sites are started by stay-at-home moms, who really know how to stretch a dollar.

6.) Make sure you do not fall into the trap of buying items you don't need or would never normally buy simply because they are on sale or because you have a coupon.

Remember, you're not getting a bargain unless you are going to use the product. Stock up on non-perishable items, or those that can be frozen, when beneficial, but make sure, again, you can actually use the products in a reasonable amount of time. Even canned foods expire after a few years.

7.) Teach your kids to save money and to appreciate that it comes from hard work.

A great way to do this, besides the standard chores-for-allowance routine, is to have them help you redeem bottles and cans for cash. When going to a fair, going on vacation, or doing any other activity that is going to cost you, bring them with you to the redemption center. Let them know that you are turning the cans and bottles in in order to have extra money for the trip or event.

Going through the motions of unloading all the cans with you and seeing how little you actually get from them will teach them the important lesson that money is not always readily available and easy to come by. Also, teach them to turn off lights and other electronics when not in use, and lead by example.

8.) Don't immediately up your expenses just because you got a higher-paying job, a promotion, a raise, or an unexpected chunk of money through inheritance, gifts, or gambling.

Many of us live paycheck-to-paycheck and have loans and credit cards we just assume we will be able to pay off later. This is usually very unrealistic. Ask yourself, when you have extra money, is this going to last? Can you count on this extra income for the rest of your life? Focus on using any extra money you might come upon to pay off unpaid bills first, then any repairs you might need to your house or car. Once these former underlying causes of worry have disappeared from your mind, you may find you do not need the distraction of shopping or those little unneeded extras you normally buy to make yourself feel somehow wealthier. You will be more relaxed and content.

It is fine to make needed purchases, paying in cash outright. But avoid at all costs buying more expensive things on credit just because you think you can afford higher payments. For example, if you currently put $500 a month toward debt just to cover minimum monthly payments, you're already struggling.

Don't keep yourself in the same boat by trading in your car, for example, for a more expensive one because you now think you can swing the higher monthly payment. Again, take the monthly payments you have and multiply them by twelve. Do you expect to make enough this year to cover what your car is costing you in payments and interest? If not, you may find you'll be paying off the more expensive, more stylish car for a few years after you stop driving it. When you consider this, your current vehicle might look much more attractive.

9.) Think green.

Question your use of heat and air conditioning around the house. See if you can tolerate less of each, and how long you can go into the winter or summer before starting to tamper with the thermostat.

A general rule of thumb is to pay attention to how many resources you use. Gas, oil, and other commodities are expensive because they are in limited supply and are, in the large scheme of things, difficult to obtain and may come from other parts of the world.. Apply the same thinking to your use of water. Do you take a bath every day instead of a shower? Do you keep the water running when you're brushing your teeth? Do you run the dishwasher when it's only half full? Do you use paper towels and plates when you could easily use durable, reusable versions of these? The more aware you become of your use of non-renewable resources, the more you'll save, and you'll also help the environment.

10.) Finally, appreciate what you have.

Look through old books for the first time in years rather than buying new ones. Appreciate your slightly-worn couch rather than immediately running out to buy a new one. Ask yourself if you really need to be doing so many home improvement projects. One weekend a month, refuse to shop for anything. This includes groceries. Get creative and empty the shelves. Use the leftovers. Spend time at a park or with friends or family. Do not make extra stops when doing necessary errands. Often you'll find you are more relaxed when you are doling out less money.


These tips should help you save little by little in your daily life. As you learn to appreciate what you have, live with less and avoid buying things on a whim, you will be happier living within your means, you'll create a more sustainable lifestyle, and you might just learn new things about yourself in the process.

By Lindsey Feldman