How to Live Well on a Low Budget
If you are like many people, the word "budget" frightens you because it conjures an image of living a restricted existence. Yet, many people have proved that "budget" does not have to be a byword for "deprivation." By picking up certain skills, you can cut costs from everything to your clothes to your hobbies--at no decreased enjoyment to you.
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Instructions
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Take stock of what you spend on and how your expenditures rank on your scale of importance. For example, you may own or lease a car, yet live in a metropolitan area where public transportation is rampant. Consider selling your car in favor of using more public transportation. That would free up thousands of dollars from your budget.
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Re-purpose more and buy less. For example, most Americans have an overabundance of clothing. Go through your old clothing; learn how to sew it back together. You could even take apart a shirt; sew it into a tote bag. Re-purposing your clothing shows you can be fashionable and financially conservative at the same time.
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Eat out less; cook more. By honing your cooking skills, you can prepare delicious and nutritious foods at home at a fraction of what you would pay to eat out. You can also use coupons. Use a discount card at your grocery store to save money per grocery-store outing.
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See matinees or rent movies instead of going to an evening movie. Pop your own popcorn. Set up your own "home theater," or go see a cheaper matinee showing at your local theater.
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Exercise outside or at home rather than joining a pricey gym. Truth be told, many people who exercise outdoors or at home train just as well as those who work out at gyms--if not more so because they have fewer distractions.
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Work hard on building your credit report. Having a sky-high credit report will make you strongly eligible for good interest rates on your personal loans. Moreover, a high credit score can give you both merchandise and cash rewards.
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Read budget-oriented books such as the "Let's Go" travel guides when you travel. These books highlight budget-friendly lodgings, eateries and attractions that are often just as enjoyable as their luxury counterparts.
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Tips & Warnings
Make an effort to invest 5 to 10 percent of your earnings in a savings account. Having an emergency fund will see you through rocky financial periods.
Abiding by a low budget doesn't translate into never using your credit card. Remember, it is essential that you build an excellent credit rating so you can qualify for personal loans. On the other hand, you don't want to have too many credit cards; stick to one for all your charges.
