How to Live Extremely Inexpensively

In this guide I will outline how to live on less than $5,000 a year. I expect that most adults make more than that, so this guide is primarily for poor college students.

Difficulty: Moderately Challenging

Instructions

1. Share lodging. Although having an apartment all to yourself seems nice, it's often completely unaffordable. Find 1 or 2 people that you trust, and arrange to move in with them.

2. Use public transportation or alternative transportation. In Grand Rapids (where I live) a 1 year unlimited bus fare costs $480.00, which is less than the amount most people spend on gas in one year. In smaller cities where public transportation is not an option, consider alternative transportation such as electric bikes or mopeds.

3. Eat cheaply, but don't neglect nutrition. Drink water instead of soda. Eat staple foods, and supplement your meals with an appropriate amount of multivitamins.

4. Collect coupons, and use them for everything. I recommend using (http://www.valpak.com). Also, as you get coupons in the mail, you should put them in a special folder, so you'll always know where they are.

5. Avoid costly medical bills. Stay active, eat healthy, and you won't ever have to see the doctor.

6. Reform your entertainment. If you're favorite thing to do is hang out at a nightclub, and down $30.00 worth of alcohol several nights a week, you've got a problem. When living on less, you need to entertain yourself for less. Instead of getting smashed, just slowly enjoy a $6.00 drink, and have some fun.

7. Shop smarter. Buy bathing suits, shorts, and t-shirts in the dead of winter, while they're on sale. Buy winter coats, boots, and sweat pants in early spring, while they're heavily discounted.

[rickmac]

on 11/30/2009 Some good advice here. Living frugally and having more savings is smart.

[mentormeister]

on 11/26/2009 Pretty sharp advice, young man. I'm on fixed income and have used all those tips. Thanks for getting me back on track.