Many people live beyond their means and ultimately get into financial troubles. Personal saving rates have dropped for the past decade into negative territory; the reason is that household expenses are shooting upwards. This calls for new approaches to be made about household accounts. If you want to change your lifestyle approach so that you can live your life comfortably but cut the unnecessary expenditures at the same time, here is a frugal wives guide: 10 simple ways to live on means. Try to implement it in your household and you are sure to save some extra money.
10- Know how Much you Make:
This is the question. Be aware of your means, do the accounts, do the taxes and calculate the net income which appears on the paychecks. Also know how often you are paid. Is it a monthly system, weekly or does it take longer? Plan your expenses accordingly. It will give you a very fine idea of where your money is being spent unnecessarily and where can you be more conservative.
9- Spend less Than you Earn:
It is important to keep within the limits of your earning. Once you have calculated your income, make sure that you don’t get buried under credit card debts. Finely tune your expenditures to fall within the range of your income. More importantly, leave some room for the rainy days. Sometimes financial situations get very overwhelming and budgeting is not the easiest option. Take it slow. Drop your expenditures slowly. Subtract every bill and every purchase from your net income. If you are getting a negative value, then you are not living on means.
8- Boost your Income:
The most important thing about simple ways to live on means is that you should look for new way to earn some extra money. Employ every free passing minute for your own good. Try to make a new gig to spend your time, try to adjust the tax with holdings to squeeze in some extra money. These are baby steps, but they make a lot of difference once they add up. If you can’t bring the expensive down, then raise the net income to meet them.
7- Don’t Rely on Credit Cards:
One gets carried away with credit cards. It is often impossible to live within one’s means because of the credit cards. They must not be your way to make the ends meet. These are unreliable because the companies are constantly observing your record. They could decrease your limits, or even close the card. It will make matters worse for you. Living frugal does not necessarily mean cutting on all expenses. It means conserving smartly.
6- Don’t Fall under Peer Pressure:
This is the most important thing about living frugal and conserving in a smart way. You don’t have to buy designers’ robes to follow your neighbor’s example, nor do you have to invite other people to dinner in the fanciest restaurants. Trying to keep with peer families will make it practically impossible to make ends meet or to decrease the loans. A mad shopping spree can often push your finances off the charts. Be careful with your spending.
5- Save for Purchases:
The worst part of using credit cards is that people use them to buy things that they can’t afford. This leads to a loan which is almost impossible to get rid of. Here’s an alternative: save money for that big purchase. It may take a couple of months but this is a fool proof method which insures that you won’t fall under debt or that your finances won’t go negative. Living frugal in the modern world typically means being careful with expenses and avoiding risks.
4- Have an Emergency Fund:
An emergency fund is a necessity that goes underestimated or ignored altogether until a moment of crisis. A foolproof financial plan should include some household savings. They may come in handy in cases of emergencies or when making a big purchase. Save small a hundred dollars a month is a good number. Adding up, it makes a significant fund after just a year. An ideal fund should be enough to cover three to six months of basic household expenses.
3- Challenge Everything:
Bring negotiations back in business. Be a critique and judge your expenses. Review your bills, see if you can adjust at a lesser amount. Don’t let any bills escape; even the minimal insurance should be scrutinized. Look for possibilities of renegotiations in order to get yourself some room. Initially, it will be difficult to do but once you start doing it, you will happy at the favorable results.
2- Use What you Have:
Ladies can make a lot of difference by recycling. Don’t follow the cliché that every event asks for a new dress. Shop from your closet! There are surely some articles there that you are proud of. See if a prom dress can be used to attend weddings. This is surely one of the wise and simple ways to live on means. Sometimes, minor expenditures, especially expenditures prior to social events are prone to be the more extravagant times. Be conscious about that and try to control your expenditures.
1- Rent out your Space:
If you aren’t particularly a big family or if you have a bedroom or two to spare, maybe you should rent them to students or employees around you. It will earn some extra money for you without being much of a burden for yourself. People who have small families can benefit from their property in this way, see if you can make it possible.
Living frugal in a 21st century suburban society means that one has to make ends meet by being conservative at just the right occasions. Be conscious of your financial situation, how much you make, how much you spend, your outstanding loans and what do you spend the money on. Take small steps to make the financial situation more stable. In time, things will improve. Check out this frugal wives guide and the simple ways to live on means. These tips will help you a lot to improve your living standards.