Losing a job is one of the more difficult things people face, especially when unemployment is so high and prospects for a new job can feel slim. Below is some old-fashioned, common sense advice that can help through a period of unemployment, or anytime you want or need to dramatically reduce monthly spending. I suspect it may seem radical to many these days. It’s the tough-love sort of advice that many need to hear right now during this difficult time in the face of life without an income, or at least without an income anywhere near what they are accustomed to.
So, here are some real changes that can save you real money each month and keep you from getting into financial trouble:
Move to a smaller, cheaper place. I understand you may not want to, but you can if you have to. You can even go farther and live in a shared living arrangement. Tens of millions of people do just that—and you’re not the only one who might be considering it right now.
Sell your car and buy a cheaper one. Make it a more gas-efficient one while you’re at it. If you have two cars you can often sell the second one and find a way to get by with one vehicle by using public transportation, carpooling, and the occasional car rental.
Eliminate eating out and buying prepared foods. Cook all your meals from basic natural ingredients. It’s surprising how little you can spend on food and still eat very well. There are endless free recipes and tips online to help you out.
Avoid buying anything new. Limit purchases to needed shoes, socks, and underwear. Wear and use what you have.
Going to the simplified lifestyle of a simpler time can have many rewards beyond what you find in your pocketbook and can be a very good idea even if your income is intact. The steps I offer here are a recipe for simplifying your life, which can be a positive change for most people whether they really need it or not. I encourage you to think big and consider taking some major steps to save big money while enjoying a simpler lifestyle.
More advice and saving tips can be found in Money Smart.
