These are all the things that we’ve done to make ends meet. Many people think we’re insane, that we don’t know what we’re doing, and they pity us. Doesn’t matter. When you’re drowning, you must do whatever you can to stay above water. The difference between us and everyone else we know is that we’re not hundreds of thousands of dollars in debt. If you believe in following your true path, then you will see living simplistically (and loving it) is the way to go. Believe me, our changes in mindset have improved our marriage and relieved a lot of stress on both sides. Get away from this system and the norms of society. It may make you unpopular, but maybe it will give you the chance to meet more like-minded people in the process.
Warning: Some of these rules are going to be a kick in the pants, but if you want to get away from paycheck-to-paycheck living, then you need to hear this.
Make your monthly bills shrink
It’s time to sit down with your partner, or yourself, or whoever, and hammer things out. See what bills you can stand to get rid of. See which ones you can make more affordable for yourselves. One thing we did was shop around for new car and home insurance. Bundling policies will of course save you money, and don’t be afraid to sign up for multiple quotes to find the best options available. Also, make a spreadsheet with every single bill and expense for each month. Make sure to write down the dates that each bill is due. Add up the total and subtract that from your monthly income to see how much you are left with at the end of the month. Use this as a guide to find ways to cut out the excess fat. Read the rest of the article for more ideas on how to do so.
Sell your cars and buy cheap ones
I went over this a little in a previous article, but I will say it again. There is absolutely no need for anyone to have a $400+ car payment each month for the next 6 to 7 years. Car manufacturers just keep jacking up the prices and people just keep buying them. If you investigate subprime loans (one thing that contributed to the housing crash of 2007-2008), you will see that car dealerships are beginning to lose their asses because they are giving out overpriced cars to people that cannot really afford them. My advice is to get rid of that debt and buy something for around $5,000 or less.
My husband’s car was recently totaled by the insurance company. They paid off the rest of what we owed on the car, and luckily, we were still able to get a few thousand on top of that. We made this into a great learning experience for ourselves and took full advantage of the gift. We were fortunate to have a family friend that was buying a new car and trading his old one in. He ended up selling us the old car for the trade-in value of $1,000! It’s been a reliable car. We will soon probably sell it for a profit and purchase something with fewer miles on it for $4,000 or less. We also plan to sell our other car for a small profit and purchase something else for around $5,000. Any money you make on the sale of a car really needs to go back into a new one (unless you need it for other bills or groceries). If you’re really drowning, consider going down to one car until you can pull yourselves back up. I know it sounds impossible, but many people make it work. This point will now lead me to my next one.
Think real hard about those college loans
This is another serious area of worse than subprime loans people should be paying attention to. The cost to get a 4-year, and even 2-year, degree has become astronomical and unattainable for most. That is why many must take out loans. There are sooooo many young people that have accrued more debt than their parents simply to graduate and realize that most of those entry-level, middle-class jobs have been moved overseas. It is truly heartbreaking. Even more heartbreaking, though, is the fact that these loans are being handed out to students that have no monthly income and little to no credit. These loans are worse than subprime, and many are currently being defaulted on. My suggestion, if you want your Bachelor’s, is to obtain all core credits at a low-cost community college and then transfer to a University to finish that 4-year degree, or stay at the community college if they offer 4-year programs. My real suggestion, though, is to find a job right out of high school and maybe look into a trade school or 2-year degree program. Remember to get into a field that will be needed for many years to come.
If you are currently drowning in student loans and cannot find a job in your field of expertise, widen your search. Take a job that you do not necessarily want, and that may not pay as well, to simply get your foot in the door and get some experience under your belt. Make contacts and network as best as possible. I am convinced that at least 90% of jobs are obtained through networking, not applying and interviewing.
Pay down that credit card debt when you can and stop using them
Every time you find yourself with an influx of cash put it towards your existing debt. When my husband and I had more of a spending problem, we did not heed this advice and are paying for it many years later. Sign up for an account on Credit Karma, or another free credit score monitoring system, and keep track of your scores as you pay down those balances. I absolutely hate the credit system, but it’s a necessary evil until you can become debt-free and start paying cash for everything (which may never come for many). You really need to forget you have those cards for the most part, as well. If you pay off those cards completely, I suggest only using them for gas and groceries and pay-off the balance every month. This will make your scores skyrocket quickly.
Get rid of half your crap
We have purged so much, and it feels SO GOOD! If you haven’t touched it in 6 months to a year, just get rid of it. Have a big garage sale. Try selling things online if you like (although I’ve stopped doing this because it’s just time-consuming and annoying). Donate it. Declutter your life. Everything should have a place, so if you have clutter piling up around you, lose it. Consider condensing your living space to force yourself into downsizing your crap. Everything we buy in this country is truly worth nothing. All clothing is made with terribly cheap fabric in factories in third-world countries (we won’t even get into those atrocities). All jewelry (even incredibly expensive pieces) may as well be made of cow pies! I sold my diamond engagement ring because I realized how unimportant it truly was. We lost money on it, too. Those things do not hold their value. Research how the diamond industry got started and how NOT rare they truly are. We’ve been brainwashed into thinking that diamonds are coveted and that we must have them. Believe me, take that unneeded stress off the table and put the money to better use. Look at the furniture available now. Before the 1940s, furniture was made by hand with real wood that everyone could purchase. Nowadays, you must spend THOUSANDS of dollars to receive the same quality. Everything is made with particle board and seriously deficient fabric. Who needs it? Nobody. Buy from garage sales, estate sales, and Craigslist and refurbish it yourself.
Get your hand off the thermostat
This seems like kind of an obvious one, but some people still need help here. When we go over to other homes, we are either freezing in summer or sweating our butts off in winter because we are no longer accustomed to being overly comfortable. I would probably weep if I had to glance at their electric bills. My husband, being in the HVAC business, knows a thing or two on how to save money in that area. Always keep the fan on just to have air circulating (the fan setting on your thermostat). It really does not add much to your bill. If you have an electric system, look at installing a heat pump to save yourself TONS in the winter months. Keep in mind that we are in Texas so your temperatures may vary compared to ours. In summer, we keep it around 78-80 degrees and just put shorts on. In the winter, it’s at about 69 degrees. Just throw on a sweater. You’ll thank yourself later for just sucking it up. Something we are looking into is alternative energy. Whenever we are no longer renting, we will begin to build our own generator. There are ways of obtaining free energy that companies do not want you to know about. Once we get started on this project, I will document it all for you.
Keep track of every penny that leaves your account
I used to have mini panic attacks every time I signed on to look at our bank account. Since learning to properly budget, that does not happen anymore. Look at your account every day if you must. Look over your bills and expenses spreadsheet and map out everything that comes and goes to make sure you will have enough for your housing payment and groceries. If you have a partner, make sure both of you are keeping each other in check daily. Go over what you can and cannot afford to buy each week.
Get rid of expenses you don’t need
Sorry weekend plans, I’ll see you later. Get over it. You can occasionally go out and do affordable things but learn to value the time you have with your family and keep busy carrying out productive ventures. Sorry smartphones. We don’t need to pay $120+ a month for your data plans anymore. We’re getting flip phones or (gasp) a landline. Sorry cable. We’ll see what Netflix has going on. Or maybe we’ll just cut down on our T.V. time altogether. It’s all terrible and brain-melting anyway. Bye-bye vacation. Who needs you? We’ve seen enough of the world. Time to focus on important things that actually matter. See you later mall. Who needs your overpriced crap that’s worth less than nothing? I’ll go to TJ Maxx and Goodwill if I really need something (like a new pair of shoes because the ones I wear every day are starting to fall apart).
I see so many people around me making huge mistakes when it comes to their finances (many are older and seemingly more knowledgeable than me). It’s very hard to watch, because many do not want to hear your advice. Then, they attempt to give you advice on what you should be doing with your money. Just sit there and say nothing, that seems to work best ha.
Pull out any excess funds and shove them in your mattress
You don’t literally need to keep money in your mattress, but I suggest any time you have extra funds in the bank, go ahead and pull them out and keep them in your house. Buy a small safe if you need to. Try not to touch this money unless you really need it. You will find that it is a great way of keeping your funds tangible and visible. It has truly helped me to see exactly how much we have and make sure we have a little cushion for any emergencies that should arise.
Stretch your kitchen something fierce
I’ve gone over this a little in a previous article but will state the importance of it again. You must find how you can cut costs on food. Stop going out to eat. If you hate being in the kitchen, or just don’t have the time, get a crockpot, make “dump” dishes, and set it and forget it. Strive to make several meals a month that last for more than one day. Take a note from your ancestors and make soups, stews, pastas, casseroles, and big salads. Eat all your leftovers and NEVER throw anything away. If it’s about to go bad, stick it in the freezer for later or feed it to the dog (better than throwing it away). If you have an item that you’ve bought and don’t know what to do with it, get on the internet (or look in a cookbook) and find something to do with it. You must get a little creative here. I am constantly throwing things together just to see if they work. They usually do. Once you’re in the kitchen a little more, you get a feeling for the flavors you love and what works well together. I am obsessed with lemon-Dijon, so I find ways to incorporate those flavors into a lot of my dishes. My husband and I love avocado and cilantro, so again that is why many of my recipes have a Mexican flare.
To really cut down your food expenses, you need to get away from the processed snacks. That is what is killing your wallet (and your health). Make most everything from scratch (it’s much more healthy and easier than you think). Most of your grocery budget should be going to produce. You should learn to snack on it and incorporate it into all your meals. I will be writing an article on how I have gotten our grocery budget down to about $300 a month that is mostly organic and feeds three. I could probably get it down even further, but sometimes I do buy that organic jar of pickles instead of making them myself and cannot help but get that large bag of NON-GMO pistachios to snack on. Here is an informative article on how to buy organic on a budget. Here is another great article on my favorite big pot meals that save money.
Consider living in something you never thought you would
My family and I are currently renting a mobile home. We never thought that we would live in one, but here we are. They’ve gotten surprisingly nice, too. There seems to be such a stigma placed on prefab homes, but if it helps you accomplish what you’re trying to do, who cares?!
If you want some land, consider buying a plot with a mobile home on it, or buy raw land, bring utilities (i.e. water, electric, septic), and move a mobile home to it. If you’re looking to buy a house, depending on your area, of course, consider buying something for no more than 2.5 times your annual income.
Think about a little longer commute. My husband, unfortunately, drives 50 minutes a day round-trip to work, but we can rent for $950 a month versus $1,600+ a month that is closer to his office. In this outrageously overpriced rental market, the average person is paying 1/3 to ½ of their entire monthly income on housing. That is deplorable and insane.
Build your own home on your own time
e hope to do this someday. The plan is to buy some land, contract a metal building to be built, and finish out the inside ourselves. We also plan on doing the utilities ourselves. It is something that takes time, especially if you’re hurting for money. But it can be accomplished piece by piece. Don’t be afraid to do the work. It doesn’t need to be big and fancy, either. It just needs to provide you with shelter. Start that garden
Do you know how much money you would save every month if you grew your own fruits and vegetables?? You do not need a lot of space either. I cannot wait to get started in our new backyard. We’ve already gotten started on our patio in pots. There are a lot of resources online on how to grow just about anything in containers. There are also many ways to naturally nourish your potting soil to yield better results with fertilizers that you can derive from your own kitchen. As we grow our garden, I will show you everything we do along the way.
Make your own products
I will be adding several articles and recipes for what I do to accomplish this. Pretty much every time I run out of something, I look at how to replace it with something natural. That is how I will slowly transition my household into a completely natural and organic one. It will save you so much money every year.
Consider getting rid of the utility companies
As I’ve stated above, there are ways around the electric companies. If you are really looking to be self-sufficient, get that generator going. Look online to find how to drill for groundwater. Become less dependent on your electrical appliances and start learning to do more by hand. Find out how to install your own septic system, or even consider a composting toilet. It's kind of near impossible to be "off-grid" in this country unless you can truly find a special situation, but there are ways of making yourself almost 100% independent of this system.
I hope everything I’ve said will resonate with you. Really think about exploring new areas you never knew existed. It feels truly rewarding and satisfying to revert to the old ways of living. We've gotten too comfortable and are handed all these luxuries we now have at our disposal. If one day those luxuries are gone, we must be familiar with living without in order to keep surviving.
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