With the post-pandemic economy still ailing, many people around the country are struggling to make ends meet and are living on a tight budget. If you fall into this category, how can you make the most of your limited financial resources?
- Create a budget and simplify your financial life.
- Cut back on discretionary spending.
- Try to eliminate some recurring bills and save money on others.
- Get rid of credit card debt.
Cutting back on spending starts with your budget.
Cut Your Expenses
Make the most of the income you have by looking for opportunities to cut your expenses. One way to achieve that is to simplify your life as much as possible.
- Look for free entertainment opportunities such as going for a walk or playing board games.
- Cook your own meals with simple, fresh, inexpensive ingredients.
- Plan ahead and save up for bills you know are coming down the line.
- Avoid the temptation to use credit cards to compensate for cash you lack. Living on a tight budget is sometimes uncomfortable, but going into debt can be disastrous.
Review Recurring Bills and Trim Where You Can
Your recurring bills, such as your cable, phone, and insurance bills siphon away a hefty chunk of your monthly income. You barely notice it since you consider such services necessities. The good news is that you can often cut back on these bills without ditching the services.
Shop around. See if you find insurance agencies that offer you a product similar to your current one for a lower price. Insurance companies come up with new products and deals all the time to attract new clients. You might be able to take advantage of such a deal.
Try to negotiate your cable bill. Find a better deal and tell your cable provider that you will take your business elsewhere if it doesn’t match or exceed the other deal you’ve found. Consider dropping cable altogether and going for a less expensive streaming service instead.
Take a long look at your non-essential recurring expenses, such as gym memberships and music streaming services. You may find that you can live without these expenses. You can get your exercise at home with a little bit of creativity and you can listen to the radio instead of your music streaming service.
Get rid of all non-essential spending.
Save Money on Utilities
Although you likely cannot do away completely with utility expenses, you can adopt a thrifty stance toward energy consumption, which can have a real impact on your utility expenses.
- Open your windows in the evening when the air is cooler and close them during the day. Set your thermostat a few degrees higher to save electricity on air conditioning.
- Insulate your home well and make sure your windows close snugly to save on heating costs in the winter.
- Unplug your appliances when you are not using them.
- Change your light bulbs to low-wattage LED ones.
Settle Your Credit Card Debt
Credit card debt is one of the most expensive types of consumer debt.
Try to eliminate your credit card debt. If you are not sure how to approach the problem, contact a ClearOne Certified Debt Specialist at 866-481-1597 to learn what your credit card relief options are.
Unlike some other debt relief options, debt settlement is an option that can potentially help you get out of credit card debt without having to pay the entire amount you currently owe. That can be extremely helpful when you are on a tight budget.
The Content is for informational purposes only, you should not construe any information on this website as legal, tax, investment, financial, or other advice. All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on the Site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed. Please consult a professional financial advisor for your personal financial advice.