today’s credit based society it’s far too easy to spend money that hasn’t been earned for things that appeal to the senses, but aren’t really necessary. Credit cards are so easy to get that even teenagers soon find themselves in a credit crunch unable to pay the bills when they come due.
It takes an economic crisis to force everyone to rethink their spending habits and their priorities on what it is they really need to survive through the chaos.
Being frugal does not mean going without necessities. It does mean putting to use every dollar more effectively. Large ticket items such as cars, furniture and appliances are a large drain on the pocketbook. A new car every three years is the going trend, but with proper maintenance the family car can last three times as long. Used cars can be a better bargain as new cars depreciate up to half their value within the first year they are bought.
While food, clothing and shelter are necessary, there are methods that can be employed in all three areas without affecting your standard of living. So what can be done to stretch a dollar to make it go further when it comes to grocery shopping? Here are a few tips:
* Budget your grocery shopping. You should set aside a certain amount to spend on food. Create a shopping list of all necessary items. If there’s money left over in the budget, then you can include some of those wanted items.
* Don’t buy at convenience stores. Prices are more expenses than in the supermarket. You pay for the 24 hour a day convenience.
* A big home is a status symbol for many people but a great drain on resources. With electricity, fuel costs, taxes and insurance, a big home can take a great chunk of income. Considering that home prices have plummeted recently, a smaller home is a better fit for your needs if the family isn’t particularly large. If selling your big home is out of the question, consider cordoning off a separate part and renting it. According to Retire Early, buying a big home was a sound investment back in the seventies and eighties at a time when inflation was running high. A large home today is a liability.
* Buy a new car every ten years. Over a working lifetime, the average person could save enough to retire five years sooner by not buying new so frequently.
* Buy generic. Many products are made with the same ingredients. They just don’t have a brand name on the label.
* Buy non-food items such as toothpaste and soap at dollar stores as they are cheaper than at the supermarket where the markups are higher to allow the store to make more profit than on the food items. When it comes to furniture and appliances, look for liquidation sales.
* Lunch is a large expense item. That sandwich and coffee at the deli add up over the month. When it comes to lunch, bring your own to work.
There are many more ways to save on household expenses. Your financial future will succeed or fail based on how frugal you are today. In this time of trouble, being careful with spending will help develop the habits that will carry on when the economy makes a turnaround.
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Source: Bookfinance.com