How to Downsize Your Lifestyle
During a downturn in the economy, Americans in general, find that their paychecks -- or lack thereof -- are not adequate to cover their current lifestyles. Many have had to start making lifestyle changes to adjust to their current spending power or financial situation. If you are one of the many that needs to make some changes, there are a few tips to help you downsize your lifestyle.
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Instructions
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Start with an accurate account of your monthly spending. Most people think they know where the money is going, but many are shocked to see what has been spent on non-essential items, once a list has been made.
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Review your food and beverage expenses. Eating out can add up quickly. Dining out once a week at a restaurant means you're most likely spending $100 to $150 at a minimum per month -- and that's for a party of two. Stopping at the local Starbucks or a fast food drive-thru two to three times a week can equal $100 or more by the end of the month. Do you grab gum, candy, soda or snacks when you stop for gas? If so, you may be surprised at how quickly these incidentals can add up. Invest instead in a small cooler and a commuter mug or water bottle. If you can get in the habit of planning ahead and bringing drinks and snacks -- or lunch -- from home, you can drastically reduce the amount you spend each month.
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Take stock of your closet. Now is a good time to go through your clothes, shoes and accessories. If you are a frequent shopper at department or clothing stores, think twice before making a new purchase -- even if it's on sale. It's very likely that you may already have a similar item at home. A good rule of thumb is to remove items that have not been worn in a year, excluding special items. Most have plenty of items that have never been worn, or haven't been worn in a very long time. If the items are in style, consider taking them to a consignment store or having a yard sale. Donating to a local charity is always an option too.
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Review your entertainment expenses. How much money do you spend per month on going to the movies, buying new video games, dancing or clubbing, or crafts and hobbies? Consider stay-at-home options. Chances are, the people you normally go out with are experiencing similar downsizing in their own budgets. Hosting a movie or game night at home, and asking each person you invite to bring one food, snack or beverage can drastically reduce your monthly entertainment expenses.
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Review your cellphone, cable and Internet service plans. If you don't currently pay for the most basic or "no-frills" plans, it's likely there are a few add-ons you can do without to lower your monthly bills.
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References
- Photo Credit altergroup.com
