The first step to thriving in difficult times involves cutting expenses. When your income shrinks, lightening your overhead is the first priority. Every dollar you save is one less you’ll have to scramble to find at the end of the month. Lets start with the recurring monthly expenses.
1) Cut the cord. If you have cable or satellite, end it. Most metropolitan areas have a large number of broadcast channels that can be received through an inexpensive antenna. If you still need a movie fix, a subscription to Netflix is only $8 a month. Do you have a gaming console or newer Blue Ray player? Chances are you can use them to view Netlfix and other online material on your big screen. If not, you can buy an internet media player from Roku for less than an month’s cable bill.
2) Kill the land line. If you need backup to your mobile phone, try Skype. Skype will give you a regular telephone number and unlimited outbound calls for around $6 a month.
3) Go prepaid vs postpaid. Switching your mobile phone service from AT&T or Verizon to a prepaid carrier like Virgin or Metro PCS could net you big savings.
4) Quit the gym. Take a walk, buy a bicycle or take up running instead. If you’re unemployed, take a physically demanding part time job and get paid to stay in shape.
5) Switch power providers. If you live in an area with competitive electric, chances are you haven’t shopped rates in a while.
6) Cut insurance costs. If you have whole life insurance, cash it out and buy term. Shop your homeowners and auto policies and raise the deductables.
7) Raise or lower the thermostat. Anyone can adjust to a couple of degrees difference.
Lower the temperature on you water heater. Most are set higher than necessary. Lowering the temp by 10 degrees will probably go unnoticed until you receive your power bill.
9) Drive less and combine trips. Gasoline isn’t very cheap these days. Plan in advance to combine trips and take a walk to nearby destinations.
10) Fire the gardener. Even if you don’t own the tools, a lawnmower and trimmers can be bought for less than the typical sot of a month’s yard service.
Making cuts can be painful at first. Over time, you’ll adjust. Even after hard times pass, you’ll likely find that frugal living frees you from slavery to high overhead.