How to Survive on a Reduced Income

Being able to make ends meet has been a feat the past few years. Many people have had to accept lower wages in order to find work. How then, can anyone survive on a reduced income?

*Plan

Planning how to spend the specific wages one earns is always an excellent place to begin. This will take care of the basic needs (food, transport and accommodation expenses) and will grant a better perspective of what can be done about those out of the blue emergencies that often crop up.

a)  In a notebook, and for this purpose, write out the monthly wages in one column and in another column write out all the monthly expenses (gas or electricity, telephone, estimated amount to be spent on food, etc.).

b)  Subtract the expenses from the wages and that will yield the money left to be set aside for emergencies.

c)  In the case that no money is left to be set aside or even worse if one needs to borrow to meet those basic expenses then do read on for solutions.

*Too many unnecessary expenses

Once there is a clear picture of the financial situation, there should be a careful assessment of unnecessary expenditures. For example, if one has cable television and internet, it would be wise to examine doing without one. An idea would be to do without the cable TV or whichever is deemed less urgent. Filter through any expenses other than the basics necessary.

*Low cost provisions

1~Food

Research and locate discount supermarkets in the vicinity of residence. Take care however, to always check the ingredients that go into the food products to be consumed and methods of productivity. Quality products at low cost can be found, simply take the time to read the back of the product package.

Always prefer fresh products sold by the pound/kilo rather than packaged items.  Apart from being able to pick out the freshest it is usually cheaper. Look out for daily specials (coupons help where available), 2-for-1 deals. Another good idea is to enrich the diet with legumes which cost less and supply the body with minerals and iron and so spend less on processed foods, meat or fish.

There is also the alternative to purchase perishable foods before they are no longer in a state where they can be sold. During the day, supermarkets place them at quite low prices. Many such items are quite safe and a great value, but scrutinize them carefully before going to the checkout counter.

In many states there are food stamp programs available as well as food pantries and free or low-cost meal programs. Simply go to google.com and type in: food stamp programs and your state. It will provide a multitude of sites such as for the cities of New York, San Francisco, and the state of Texas, etc.

Go by the rule ‘nothing going to waste’. This means when the food cooked is left over, put it in the refrigerator and consume it in two days as a side dish. It may sound like it is something understood and practiced by all, but one would be surprised how many people throw out leftovers.

2~Examine gas and electricity providers and changing house

If renting, look into a residence with lower rent. This may sound futile but in large cities opportunities may arise. In the case that one is single, consider sharing housing with a sibling or good friend. Someone trustworthy and whom one feels comfortable with. Sharing can spare money as well as worries.

If one is a home owner, then look into your mortgage and investigate into a cheaper alternative if possible. Another good idea to save money is to look into the company that is lighting up one’s life. Those living in Texas, for instance, may log onto a site where they can compare prices among a variety of power companies and can, therefore, decide if they are getting a good deal.

3~Make lists

Keeping lists is a practical way not to spend beyond the set budget. Never go into a supermarket without a list. Supermarkets are not set up at random. There is an entire study that lies behind how any shop is set up so that consumers linger on inside to spend as much money as possible; that includes the relaxing music, scents and how many carts are provided in relation to baskets. Some supermarkets, Lidl for example (German supermarket chain in Europe), have got only carts and no baskets as well as a charge for the grocery bags used.

4~Clothes

Another problem is shopping all too often for new clothes, shoes and accessories. Open up that closet and take out the clothes inside. If there are clothes there that had been forgotten soon after purchase, it testifies to how money has literally been going out the window. Nevertheless, now is the opportunity to re-examine what the money is spent on and how often. Disregard any old clothes, shoes or accessories that are no longer worn. If in good condition, take them to the Salvation Army or anywhere else they can be donated.

Otherwise, send them to the dumpster. The next purchase should be made when it is absolutely necessary.

5~Transportation

Use public transportation where possible. In the case where this is not a choice, try pooling to work with colleagues. Also worth considering is a more fuel efficient car when and if this is possible.

*Financial Assistance

If the income is such that one can barely feed the family or meet the basic expenses then it may be time to explore the possibility of government financial assistance programs. There may be a program which can benefit one’s case.

*A second job

It goes without saying that when one salary cannot make ends meet, most people look for a second to fill the void. This is a solution when an appropriate part time job can be found. One way to do this is to look for jobs in the want ads of local news papers, walk around neighborhoods in the vicinity of residence, in shopping malls or the internet.

As long as one does not remain idle and is willing to seek out a solution, careful planning and wise spending can usually remedy a financially difficult situation such as living on reduced income.