In today’s economy scaling back may be the way to survive. Most people have to take steps to they are not accustomed to. There are many ways you can scale back on your salary and still live a comfortable life. You can take steps to live below your means such as cutting back on expenses, selling extra things online, pool finances etc.
Live below your means
When living on 80% of your income you shouldn’t cringe at the idea you will be better off financially. Most people do not realize the benefits of living below your means. The best benefit is the cushion between paychecks and peace of mind. Living below your means on 80% income means your are not making less money, but spending less money. If you feel the urge to splurge you will have the means to do so and return back to living below your means.
Cut back on expenses
Cutting back on expenses is by far the easiest way to stretch your income. Most people have expenses which are underutilized such memberships, subscriptions, services, insurance and etc. It is important to all always adjust expenses in accordance to your lifestyle. I.E if you stopped using your cell phone as much then there is no need for an unlimited plan. Small changes in your daily expenses make a huge difference. The biggest culprit to your bank account usually come from the cheapest expenses like coffee.
Sell extra things online
Sell things around the house helps supplement living on 80% of your income. If you feel your items around the house is no longer of any use and found a better alternative solution then you should sell. Sell things are easy with use of sites like Craigslist, Ebay, Amazon or any other online market place.
Financial pools
If you like to do things with your friends although you are cutting back then you should come with a solution. Most people have friends who usually account for their personal budget. If you decided to get rid of your friends you will save a lot of money. Instead eating out at a fancy restaurant you can have a get together at someone house. Shopping for groceries should be done in a group effort in order to minimize going over budget.
There are many ways you can live of 80% of your income. You have to get your creative juices going and make smart decisions. Good luck!