How to Economize On A Tight Budget

Economizing means reducing waste and expense. But it doesn't mean you have to sacrifice the basic pleasures in life. If you cut corners, you can reduce your cash outflow without greatly changing your lifestyle.

Difficulty: Moderately Easy

Instructions

First Moves

1. Invite friends over for a potluck bargain party. Each guest has to bring something that they bought at a discount or that can save you money at home.

2. Use the Internet to find the cheapest gasoline prices close to home. Several sites offer search results that list prices in your area by zip code.

3. Turn your heat down and put a sweater on, Pick a comfortable, medium temperature (about 65 degrees) and leave it there. Give yourself a "heat day" once a week and turn your thermostat up for 24 hours, but remember to turn it back to your regular day setting. You'll enjoy the treat, and you may even discover that you like the lower temperature.

4. Make the most of leftovers. Find creative ways to stretch your food budget with recipes on the Internet or in your favorite cookbook. Have a friendly competition with your family to see who can make the most of what you have in the cupboard for at least one weekly meal.

5. Get your kids involved while teaching them to manage money. When you go to the store, find an item that you want to buy, then give them a "mission" to find a cheaper substitute for a comparable purchase.

6. Clean out a closet and get rid of all your tattered items. Living with things that are old and worn out will only remind you of your reduced finances. You may also find things you can resurrect into service that you forgot about long ago.

7. Stop buying expensive cleaning items and explore the benefits of baking powder, vinegar, and natural cleaning agents you probably already have in your home.

8. Pull out your deck of cards, dice and board games and enjoy an evening of fun that doesn't include electronics or video. You will reduce energy use and the cost of renting or buying games, and you may have more fun as a bonus.

Long-term Solutions

9. Rid yourself of the myth that "bargain brands" are less desirable than more expensive choices. Read labels at your usual store without buying, then go to a discount store and check out labels again. You'll find items containing the same ingredients for lower prices.

10. Start a shopping circuit that makes it easy to get the best prices with the convenience you need. Research different stores and decide which offer your best price and location options for certain items. Then connect them in a route on a map. When you need to shop for the items, take out your list and map and plot your route for the day. You'll save time and gas money.

11. Watch out for the big spending traps. Don't let the stress of a spending crunch persuade you to spend money on alcohol, drugs or food you really don't need. Buying those items offers a false compensation and trims the size of your wallet.

12. Treat yourself to a regular reward. Make sure that for at least one meal or one entertainment a week, you don't have to practice self-restraint. Reward yourself with an elaborate meal or a night out doing something healthy.