How to Live Better on a Tight Budget

Whether you are buried in debt, have met with hard times or have a fixed income, living on a tight budget can be difficult. Yet, for many, the reality of frugal living is not as bad as it may seem. In fact, it is somewhat trendy and earth conscious. Tight budget life for low-income individuals poses additional challenges, but as long as you have enough money to meet essential costs of living, it is doable.

Difficulty: Moderately Challenging

Instructions

1. Determine your positive financial goals for living on a tight budget and write them down. As you cement the positive reasons for financial sacrifice this helps improve your perspective on material losses. Rather than focus on the negative (say to "Pay off the IRS") articulate goals in a positive way, such as "Gain freedom from financial worry."

2. 
    
   You don't have to be mechanically inclined to do small repairs.

   Learn basic do-it-yourself (DIY) maintenance. Many items can be fixed with a simple screwdriver or a bit of super glue and a dose of patience.

3. Rethink new uses for old items or experiment with craft work. Rather than live with ugly, worn-out materials, consider new paint or fabrics to improve an item's look.

4. Spend less on consumables. Clip coupons and look for sale items when shopping for groceries and toiletries, save on utilities by turning off unnecessary lights and appliances and watching your heating settings, and save on gasoline by walking more. Use the savings toward your budget goals.

5. Explore sources for nearly new clothing and household goods. Great bargains can be found at consignment shops, thrift stores, garage sales and online auctions. Some items you will never miss paying full price for. Note too that not all dollar stores are created equal.

6. 
    
   Nearly new designer shirt and hand-painted vintage brooch: Total cost $2

   Decorate your surroundings. Budget living does not need to be depressing. Add inexpensive decorations such as candles, throw rugs or new towels to uplift your home and spirits.

7. Reward yourself at least once a month with about 10 to 15 percent of the savings generated. This helps keep you motivated and breaks up long stretches of penny-pinching.

Tips & Warnings

• Examine your budget. If needed, keep track of all expenditures, even small ones, for 1 month. If budget living is somewhat foreign, you may be surprised at the accumulation of wasted expense.
• Eliminate or reduce unnecessary expenditures. Question if you really need the new car, fast food meals and new clothes. Find substitutes that are within your means or simply learn to do without.
• Rethink savings. Many well-funded people are tight-fisted with their money and know the value of saving a dollar. Let your dollars and change accumulate for best results on a tight budget and invest if possible.

[jenecequa]

on 10/4/2009 I saw an antique chair in the newspaper, that was made completely from sewing thread spools! It looked like a throne! We do need to get back to the basics. Back then, people were so inventive and creative with common household items. Thanks for your article!

[jenecequa]

on 10/4/2009 I saw an antique chair in the newspaper, that was made completely from sewing thread spools! It looked like a throne! We do need to get back to the basics. Back then, people were so inventive and creative with common household items. Thanks for your article!

[jyle]

on 9/17/2009 Good tips. Staying out of debt and living withing our personal means is another way to live on a tight budget.

[jpwhickson]

on 2/13/2008 A lot of things we buy are unnecessary. Good helpful information.

[ChantelAlise]

on 1/15/2008 Boy, do I know how to do this.