One of the most often heard criticisms seems to come from people who honestly believe that personal financial problems are the doing of the “sufferer”.If there is any way to get the hair up on the back of my neck, using such statements is sure to do it.Unfortunately all too often those making such charges have no real grasp of lower and low to mid middle class reality.They have no concept of being “working poor”.This writer knows better.
First, the costs of living day to day are not indexed to wages and not everyone receives high wages.It makes living a struggle.Rents or mortgages don’t stop when the pink slip appears any more than the utilities do.Food bills don’t suddenly drop, and if you have children, you know the medical bills will continue.It is a fact and a reality of life.
Still, it is possible for most people to make some improvements.Most people are surprised at how much money they truly do waste.So, if you are reading this then you do have a computer.Start tracking every cent you spend.You will be surprised at how much you can cut back.
For instance, instead of the morning coffee at the coffee shop or drive thru, try making your own and taking it with you.A pot of coffee (12 cups) costs less to make than a large coffee picked up on your way to work and you will have lots left for when you get home.
Meals can also be a major problem and one of the largest mistakes made is to cut back on the quality of food.For instance, buying cheaper foods that have adverse health effects are in the long run more expensive.Still, looking for bargains on nutritional foods can save you money.Prepare your meals at home and brown bag it.You can even take a hot meal.Most companies have a microwave oven in their cafeteria just for this purpose.
Stop buying junk food, alcohol and quit smoking.These “sins” are very expensive.
Driving or public transit?Only you can assess this but if you are paying ten dollars a day for parking, you need to rethink your approach.Car pool if public transit wont work for you.
Now, make a budget.If you have identified where your expenses are then now you can develop a plan to save your money.You have to understand that wherever possible, you need to fix your costs.This of course assumes your job is secure.Get yourself on to a budget plan where your costs are a constant or very close to constant throughout the year.Instead of paying utilities like gas and hydro on a usage basis, try spreading out your yearly billing over a ten month or one year plan.This will remove those extremely high winter bills that can cripple you.If it means changing supplier then it is in your best interest to do so.
Get your family on a long distance plan so that these calls are “free”.Is your cellular phone an essential or can you do without it?Think about this.Will the world stop if it can't reach you to bring home a quart of milk?If one of the kids gets hurt at school is there some reason you can't be reached at work?
Insurance.Oh what a quagmire this one is.Carry as much deductible as you can afford and don’t carry more insurance than you need.If you do, and you have to make a claim, you may find the insurance company difficult to deal with.Review your insurance needs annually.Do it with your agent and if you have an accountant, get him or her to assist you.
Credit Cards.Pay them off first then lock them away so they can't be used.The interest rates are exorbitant.
Renegotiate your mortgage if you can.Try to get a lower interest rate and better repayment terms that will fit your budget.The banks would rather keep getting your money than take a loss on foreclosure.If you have a good credit history they are likely to be receptive.
Finally, save.Save a percentage of your income.It doesn’t have to be big dollars but it will add up.Look for the best deal on secure investments.Ask your banker to do an automatic withdrawal from your account.This way you wont miss it.
Most people can trim their finances.Doing so in difficult times makes life easy in the good times.