How to Pinch Pennies When You Are Really Strapped for Cash

Sometimes you just have to squeeze every penny!

Long-range budget strategies are well-established and widely reported: cut down on credit card use, pay them off as quickly as possible, etc. For some people, however, those strategies are not adequate. Knowing how to manage debt to free up cash in the future offers no solution to the immediate problem of too little cash for too many expenses in the here and now. A few basic financial survival tactics might prove helpful.

Things You'll Need

• Piggy bank.
• Can/bottle recycling container
• Strong resolve to resist impulse buying.

Instructions

1. Establish what's absolutely necessary — transportation and groceries. Eliminate all discretionary spending. That includes the daily newspaper — especially if you purchase it at a rack or news stand rather than subscribing — as well as purchases of prepared meals and snacks, coffee, bottled water. Purchase ready-made nothing that you may prepare at home — or do without.

2. Search for the cheapest gasoline in town. Some Internet sites will point you to the lowest-priced local gas. Limit travel to only what is necessary. Plan and combine errands. Participate in a carpool.

3. Cut back on home heating or air conditioning, using only what is required. Wear extra clothing indoors during cold weather; open windows and use fans during warmer weather.

4. Purchase inexpensive foods. Examples include spaghetti, hotdogs, peanut butter and ramen noodles. Look for coupons and weekly savings. Purchase store brands rather than leading name brands.

5. Turn to the tap. Until you can afford to do otherwise, drink water — that which comes from your kitchen faucet. Spend money to purchase bottled water only when doing so is unavoidable.

Tips & Warnings

• If you have a piggy bank or container stuffed with pennies and random coins, now might be a good time to turn 'em in! Some of the larger grocery stores have machines that sort and count them, although they do take a small percentage of the proceeds. Otherwise, you'll probably need to get those paper rolls from your bank.

• Returning redeemable cans/bottles has gotten me through more than one lean cash flow week; so save 'em up if you live in a bottle bill state like mine (Massachusetts). Still, I see many local people throwing cans away. I'm often tempted to ask them if they throw their coins away as well.

• Bottled water is a total scam. As long as your tap water is reasonably potable it's virtually identical to the vast majority of what's sold as designer brand water.

References

• Bankrate.com;Does penny-pinching pay off?; Marcia Passos Duffy