Single Income Survival
Take Some Steps Now to Ensure You Can Survive in Today's Economy
Back in the good old days, dad was responsible for bringing in the bacon. By the seventies, mom and dad went to work while the kids assumed the role of latchkey kids. By the nineties it was often necessary for one or both parents to moonlight to pay the bills.
Today, shrinking savings, falling house prices, and a vanishing retirement nest egg mean people have to struggle to adjust to a new paradigm. The dual income family has disappeared. About the only recourse available is to find ways to cut down on unnecessary expenses and save what little remains after the necessary expenses of mortgage, car payments and credit cards have been addressed.
The first step is to make a full inventory of your expenses and compare that to your income. You need to do some serious thinking if your expenses outweigh your income. That calls for cutting back on unnecessary expenses, some of which are:
Entertainment
Movies are great holes in the pocketbook after the purchases of popcorn, candy bars, soda and other promotional items are factored in. Replace movie going by renting and make your own popcorn at home.
Dining Out
Unless you eat out as a means of making a business deal, frequent restaurant jaunts are unnecessary. Save them for special events. Your order isn't the only cost once you factor in the drinks and gratuities.
Transportation
If there are two cars and only one breadwinner, you may want to get rid of that second vehicle. And if you happen to live in suburbia that one car may not be necessary since carpooling and taking the bus may make more economic sense. A used car saves you more and if you live close to amenities, you can use a bicycle, Moped or Scooter.
Shopping
There really is no need to buy prepackaged, prepared food you can make yourself. So save on take-out pizza and prepare your own meals. Frugal shopping can save you up to 15% on your food budget. Here are some other suggestions:
- Buy in bulk, but only what you can use, unless you can barter which isn't a bad idea in a bad economy.
- Buy advertised specials. Use those coupons to save those extra nickels and dimes.
- Eat before you go shopping. Food always looks more tempting when you don't have any of it in your stomach.
- Don't stay in the store too long. The longer you stay, the more you'll buy.
- Shop at discount stores.
- Buy non-food items and non-brand items at dollar stores. Supermarkets raise the prices of toilet paper and other items to make up for lower priced food items.
Your Job Expenses
Pack your own lunch to work. The mobile canteen is just a disguise for a bank and those sandwiches can cost as much as a mortgage payment over the year. An expense of just five dollars a day can save you $1250 over a year.
Fashion
Of course it's the in thing to wear the latest trend. You do need to look presentable, and you can with a closet full of clothes that you likely haven't worn for some time. You can save up to 50% on clothes without having to raid the Salvation Army thrift store.
Your Habits
Cut out those pack-a-day smokes. They can cut deep into your pocketbook and your lungs. The same goes for the beer, wine and spirits. You don't have to drink your neighbor under the table as he likely can't afford to anyway.
Gifts, Etc.
Take a close look at decorations and gifts. You don't need to buy new tree ornaments, bows and wrapping paper every year. If you have some talent you can make your own gifts. Your kids will appreciate it unless they're old enough to want the latest iPod. In that case they're old enough to work for it.
Make a plan and stick to it. Adjusting to a new lifestyle is always hard, but the sacrifices won't be as bad as you think. The habits you form in these tough economic times will see you better off tomorrow when the good times roll again.
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