Top Ten Ways to Save Money Living On One Income

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Top Ten Ways to Save Money While Living On One Income

 We are a one income family. Our rent is very high, we are paying off student loans and we are traveling more due to the remote location of our home. We've had to get creative to make every last dollar stretch. While we work hard to scrimp and save, we still manage to have fun, travel and live comfortably. Here are some of the ways to gain financial confidence while living in a one income household:

 

6th Latte of the day? Let's re-evaluate...

                                                 

1. Identify what your spending issues are.

 If you are wasting money on lattes, your goals will be different from someone trying to kick a Reeses Pieces addiction. Before you make sweeping changes, study your finances from month to month. Where do you waste money? Are you blowing $50 a month on gum? International phone calls to Thailand? Maybe you're still being charged for that gym membership you thought you canceled? You won't know until you sit down and look. In order to accurately judge your spending, you'll need to do the following:

     a.  Save your receipts

Your credit card statement will only show you how much you spent at a given location. I used to think I had a good grip on what I bought and why... until I actually started looking. That $20 ironic Christmas sweater featuring light up reindeer noses you bought last week looks like:  "POS GLADMKR RD CAUS" on your statement.Vendor descriptions can be vague. Do yourself a favor and save the receipt. That way you can return it later when you realize what you've done.

   b. Look at more than one month of spending

In July we took a roadtrip to North Dakota. We stayed in hotels, ate out and filled up our gas tank way more than usual. In September, we barely left the house. Make sure to look at each month in context. I suggest looking at similar months and averaging them out. Discard the month where you opened your own crochet business and failed to break even. Likewise don't count the month you started a raw food diet and slashed your grocery bill in half. You want to change consistent spending problems, not outliers.

2. Make a Game Plan and Stick To It

 I haven't had fast food in 2 months!

 Once you've identified where you are wasting money, it will be a lot easier to start saving. Maybe your plan is to live off of tuna fish and protein shakes. Maybe you are going to ween yourself off of Diet Coke "Trainspotting style" and board yourself up in a room for a week. Whatever it is, stick with it!

a.  Be Tough With Yourself

Have you ever found yourself in the Target parking lot sobbing next to your car because you just spent your life savings on a cart full of shower curtains, bubble bath  and ice cream? Guess what? You don't get to go to Target. Its ok, I'm not allowed in there either. Have you ever looked at your cell phone bill at the end of the month and balked at just how many texts you supposedly sent? Guess what? Stop texting. Your friends will just have to without your hourly "lol"s or "fml"s.

It was all on sale!

b. ...but Keep Expectations Realistic

You may be setting yourself up for failure. Just like with dieting or any other major life change, you're going to be inviting a whole host of butthurt feelings into your life. If canceling your subscription to Cat Fancy is causing you emotional and physical distress, find something else to let go of.

3.Re-evaluate Your TV/Entertainment Budget.

While you definitely need to cut out frivolous spending, you also need a way to wind down at the end of the day. If your favorite thing to do is fall asleep to the Food Channel, don't necessarily take that away from yourself. Simply find ways to watch what you love, without paying too much for it. And I guarantee that you are paying too much for it.

a. Identify Your Favorite Shows

 

There are two kinds of lists when it comes to tv. Your "all time favorite tv shows" and the more often used "all time favorite tv shows you're willing to admit to watching". Do you know all the names of the characters on "Here Comes Honey Boo Boo" ? Then I hate to break it to you, but thats your favorite tv show.

b. Find Better Ways to Watch

Honestly, the only thing you should be paying for is an internet connection. Everything you have seen, or have ever wanted to see is on the internet, its simply a matter of finding it. I recommend starting with established sites like Hulu where you can watch new episodes of quite a few shows for free. I dislike the amount of ads on Hulu, but its a great place to start. If the show you want to watch is not on Hulu, try going directly to the channel's website. If you want to have nightmares about cat skeletons I suggest trying A&E's website, where they have episodes of Hoarders available for your viewing pleasure. 

If you are still having trouble, visit Sidereel, Tv-Links, or Tehcake. These sites feature links to shows that people have personally uploaded to file sharing sites. If you're not exactly "good" at the internet, or if you feel uncomfortable about file sharing, you may want to skip doing this. Head on over to Crackle, where they  have a great selection of movies  you can watch, guilt free. 

Don't forget: PBS, tons of free and amazing documentaries and videos.

                     Netlix, still the best bang for your buck despite the rate increase

                     Youtube, if you don't mind your films in "parts" or with Russian subtitles.
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Romy and Michelle's High School Reunion part 1. You're welcome.

4. Spend Less For the Same Thing

This may seem like a no-brainer, but its harder than it looks. It requires time and effort. Maybe your crockpot just gave out and its the only way you know how to cook. Get yourself a new one, but make sure you shop around. Start with a basic internet search for coupons or sales at your favorite stores. It doesn't hurt to look at consumer reports, or simply research the brand you want to get. The basic idea is to avoid paying full price for anything and to buy something that will last longer than a year.

a. Consider Buying Secondhand

Sometimes I get frustrated with thrift stores. Whenever I move (which is often) I find myself inexplicably losing household items along the way. I usually hop on over to Value Village or the Goodwill to replace them. Yet sometimes its cheaper to get it new! Spending 1.99 at WalMart for a new soap dispenser as opposed to spending 3.99 for a used one may seem like a no brainer. But price isn't the only factor. Oftentimes the thrift store will have an older, better quality item that is going to last you longer than the brand new, poorly made one. Also, make sure you go to a thrift store in an affluent neighborhood. The quality of the items inside will only be as good as the quality of the donations.

5. Stop Deriving Happiness From Consuming

Shouldn't this be number one? Oh well. But seriously, we are conditioned from a very young age to experience a type of euphoria when we purchase new things. Women especially. We are taught to think that "treating ourselves" means spending a day at the spa or buying a new pair of shoes.   If I am completely honest with myself, my happiest leisure hours are spent at home, on the couch with a good book and cheap bottle of wine. Make a list of ten things you like to do that require little to no money. Focus on what you can do as opposed to what you can't afford to do.

6. Get a Library Card

Did you know that in addition to homeless people looking at porn, these places have books, dvds, cds and most also have a large collection of E-books to download? If you really want to save money, cancel all your subscriptions and get all of your entertainment at the library for free. A lot of libraries also have an interlibrary loan system, if they don't have what you are looking for, they can order it for you from other libraries!

Wow this makes me feel old.

7. Analyze  your Utility Bills

Lots of electricity companies actually offer this feature for free. Go to your utility companies website and search around to see if they can analyze your bill. Where does most of your energy go? Almost any household can save money by unplugging appliances when they are not in use, choosing a temp for the thermostat and leaving it there, keeping doors and windows shut, and investing in energy saving light bulbs. 

8. Switch From A Bank to a Credit Union

In college I opened a bank account for the first time. My whole life I had used a credit union, but that credit union did not have a branch anywhere near my college. For awhile it was fine and I liked the added convenience of more atms and branches to use. When I was overseas two years ago, my bank changed their free checking policy. If my account went under a certain amount of money, I would be charged a fee. I couldn't close the account or switch banks because I was overseas. The minute I got back, I switched over to a credit union that had true free checking and they actually offer interest on both my checking and savings accounts. I don't have a ton of money, but I get interest payments once a month now, something my previous  bank did not offer. Its not a lot, but every little bit helps. 

9. If You Usually Buy It, See If You Can Make It For Less

Here is a short list of household items you can make yourself:

Cleaning Products

Dog Treats

Fast Food Hacks

Bath and Body Products

Keep track of the special purchases your family makes each month. Then do a quick online search. You'd be amazed what you can make at home! Don't deprive yourself of things you need or realistic things you want. This will keep you from binging on frivolous purchases two weeks in. For a lot of people, spending is an addiction in itself and deprivation will lead to problems down the road.

10. Sell Your Stuff

Craigslist, want ads, garage sale etc. Get rid of things you're not using. This is actually the last item on the list because it won't necessarily make you a ton of extra cash. It also has to be the perfect storm of the right item, buyer and often being in the right place at the right time. I had an old Papasan chair on Craigslist for weeks before I decided to tell people at work. Turns out a girl at work has been wanting one for a while and bought it for $75. If it sits in a closet and gathers dust, there may be someone out there who would be willing to pay money for it and actually use it! This also goes for small things like clothes or books. If you normally donate it, see if someone will buy it first. Take your books to the used book store, you clothes to the consignment shop, try listing a few items on Ebay.


Have you ever faced a financial crisis and had to do make drastic lifestyle changes? Have any advice or tips to share? Let me know in the comments!