How to Scrimp on Spending

During this economic slump--a time when jobs are limited, money is tight and the price of everything is outrageously high--being frugal is a necessity. The idea of scrimping is to economize or to limit your spending severely, at a time when you have no choice but to make some life changes.

Instructions

1. Pay with cash. The first step to being frugal is to put away the credit cards and to limit your spending to a specific amount of cash. Especially during this credit crisis, you need to focus on not borrowing money but using only what you have. Withdraw, for example, $100 in cash for the week and budget around that.

2. Get creative with foods and cook at home. Limit the number of times you eat out or order in each week and only buy groceries that you will eat to prevent waste. Start by writing a two-week menu so you can plan ahead, transcribe that into a grocery list and at the store, make smart purchases. Only grocery shop every two weeks (besides small milk or fresh produce pick-ups mid-week) and make yourself stretch what you have until the next planned grocery visit. Each day you don't shop, saves you money. Also, when cooking large meals, double the recipe and freeze the other half. Some good choices are stuffed manicotti, breaded chicken breasts, soups and chilis and pies. Pull out this back-up meal for quick preparation on one of those nights when you normally you would've ordered take-out.

3. Buy used. Sometimes the best treasures can be found in a second-hand store. Shop for clothes and accessories in thrift stores, look for furniture and larger items at antique or upholstery shops, stop at yard sales and check online consignment or auction sites. "Like New" can be sweeter than "New" with a great price tag.

4. Borrow or rent things that you need/want instead of purchasing them to save yourself some money. Borrow movies, sleds, ladders and other household items from friends and neighbors. Check out books from the library. Rent children's toys, purses, jewelry and cleaning appliances from websites that allow you to keep items for as long as you need them, but also to swap them for new things once you return the old items.

5. The little things count. Change your light bulbs to compact flourescent lamps, skip the cappuccino, buy generic brands, use coupons, lower your thermostat a few degrees, fill up your gas tank in the evenings. There are many simple lifestyle changes that you can make to save money every day.

6. Write a budget and evaluate if your money is being spent wisely. Ask yourself if you can find a cheaper car insurance plan, consolidate your phone services to one bill, find a local car-share service that could minimize monthly auto expenses and even consider moving to a smaller house or apartment. It is important to save on a daily basis, but it is also important to make smart changes so you are living within your means. Be realistic and make sure your hard-earned money is worth every penny.