Living on less...

[rincaro]

Well in the spirit of life is better now that we're all caught up and nothing bill-wise is screaming at us.... We're making our new years saving plan. Tithes, college savings for the boys, retirement stuff for us... All told about 20% of our income will be going some other place than my bank account. So... where do you make the cuts? What's most important to you, entertainment, cable, eating out....

What are your best suggestions for living comfortably and happily for less?

[Gracie]

I use a system I got from a book--I can't remember the title, but I'll look for it when I get home. Basically, you save receipts from every single penny you spend for a month. Once a week, you use those receipts to categorize your spending. I used categories like utilities, rent, clothing, groceries, lunch out at work, dinner out with friends, etc. I made big cuts on things that I didn't get much pleasure from, such as lunch at work (it was usually fast food), and made sure I had a little money budgeted for things I truly enjoyed, such as a movie once a month.

Keeping up with your spending is an eye-opening experience. Even if you think you know how much you're spending on stuff, tracking every penny will really shake you up!

[rincaro]

We almost do that now with our quicken for tax purposes. I need to look at that sort of thing - what makes me happiest - that's a good place to start.

[beforewisdom]

This group can give you good ideas:
http://groups.google.com/groups?hl=en&lr=&group=misc.consumers.frugal-living

Beyond that I would say:

1. Find a way to reduce your rent/mortgage/property taxes

2. Reduce your transportation costs. Get rid of a car. Get a car that is cheaper to own/operate

3. Learn to like cooking from scratch. You will improve your health as well as save money. Buy
bulk ingredients. Join or start a co-op.

4. Lose cable. Turn to your local library for everyday entertainment. Most libraries these days have
a good selection of vhs tapes, cds, some even dvds as well as popular books. Use something like
netzero for your internet connection. $10 a month.

5. Use basic phone service or as close to it as you can get.

6. Turn off your lights and electrical appliances when you are not using them.

7. Turn down your heat/airconditioning when nobody is home

[zoebird]

we cut cable; we only eat out once a month (we went from once a week to once a month and saved a lot of $); make things from scratch (though i haven't figured out dry beans and sprouting all that great yet); switched our cleansers out to vinegar and baking soda, castile soap for dishes, hands, body, hair; i drive less; etc. :)

[prairie_girl]

the library probably saves me a couple hundred bucks a month on CD's, Videos, DVD's and books. They're fabulous things.

[sky73]

Whenever I eat out, which is rare, my friend & I always share a meal.

[kat]

I live on very little- and have no idea how! My friends that earn a lot more than me and some living at home are in debt, but I'm not. I think I am basically a tightwad and won't open my wallet unless I have too. I very rarely buy music or videos, don't have all the latest gadgets (just some). Don't smoke, don't drink excessively. I look for bargains but not obsessively. I do eat out, but not lots and not at expensive places. I hardly ever buy clothes.

I can't buy anything without questioning if I really need it, I usually don't I get this from my parents, they have always been very careful with their money,

Kat