Frugal Living    Thrift     Saving Money     Penny Pinching       Home

Frugal Living Tips and Frugal Living Articles for
Frugal Happy Families

The Frugal Library

Search Frugal and Simple Living Sites by Keyword Below

 

 

Welcome to one of the thousands of pages on Frugal Happy Families.

How To Find Money When Your Income Is Tight by Alyice Edrich When the economic crisis first hit the United States I wrote a weekly column where parents could ask anything related to running the household. One question I was asked involved a family struggling to stay afloat. Their hours at work had been cut, their grocery and gasoline budget had nearly doubled, and now their electric company had informed them that their electricity was going up by 30%. The wife asked, "How can I help my family survive this economic downturn?" At first, I didn't want to answer the question. I was not a financial expert. I was not debt-free. My husband had just been laid off and my home based business was already feeling the effects of the crisis. But then I realized that though I didn't feel "qualified" to answer the question, my circumstances gave me a unique insight into her situation. After all, my husband and I were in the same boat. After my husband and I sat down to figure out our situation, we realized that there were at least nine things we could do to keep us afloat during these troubled times. Below is the advice I offered this wife, mother, and hardworking woman: 1. Sell The Large Stuff Sell big-ticket household items through Craigslist, flyers around town, and classified ads. Craigslist is free. Flyers only cost a few cents per copy. And classified ads run from free to a few dollars based upon the publication. The key to selling the large stuff is to sell stuff you don't need or anymore. Avoid selling items that you still have a use for until the very last resort. And remember, just because you won't buy a used mattress from someone else, doesn't mean that others won't buy one from you. When we moved into our new rental, it came with a refrigerator. Needless-to-say, ours sat in the garage either collecting dust or being used to store extras. When times got tough we sold that refrigerator for $300 to a couple that didn't have a refrigerator and couldn't afford one like ours- which ran about $1,000 new. When writing your advertisement, be truthful. State how many years you've owned the merchandise and how often you used it. State the condition of the merchandise, what you paid for it at retail (or what the retail price for it today is), and what you are willing to accept for the piece. 2. Sell The Small Stuff Sell small ticket items at garage sales, through social groups, through second hand shops, on your personal website, or through eBay. Again, the key is to really think about what you own from an objective point of view. If it's a collectible, or has been passed down from one generation to the next, you might want to hold onto the item. But if it's something that you've simply outgrown, it's time to let it go. I'm not fond of garage sales. I hate the haggling. But when pennies get tight, they can be a true blessing. Just remember that the key to selling your stuff in a garage sale is to think in terms of bargain hunters. The retail price of an item may be $100, but garage sale buyers are not going to give you $50 for the piece. They're looking to spend around $25 tops, usually less. When I heard my neighbor was hosting a garage sale, I asked if I could join her. That day I sold an old video game station to a grandmother and her grandson for $55. It came complete with 10 different games. The game system was outdated. You could no longer buy spare parts and the games were no longer being made. But the system itself, still worked like a charm. Selling through social groups, provided the group allows it, can be great because you already have a targeted audience. I once sold several writing related books that were collecting dust to an online writers' group for 1/3 the price I paid for the books. Being between paychecks, I couldn't give my son the spending money he needed to hang out with his friends. Determined to go, he visited a local second-hand shop where he sold several movies, books, and outdated video games for $100 cash. 3. Sell Your Services Get a business license and business insurance, then start selling some of those services you are so good at. - Are you good with your sewing machine? Open a mending and seamstress shop. - Have you been making jewelry for the past ten years as gifts? Start selling your goods. - Can't get enough time with your pets? Start a dog walking or poop clean-up business. - Always had a love for children? Consider an after-hours drop-in daycare center. - Love to shop? Offer to run errands for those who don't have the time shop for themselves. The possibilities are endless. All it takes is a little imagination, and lots of hard work. 4. Shop Second-hand Visit used book, video, and clothing stores. Stop by the local Habitat for Humanity's Re-Store for household renovation and repair projects. You'll be surprised what you can find with a little digging. Though I am not fond of wearing clothes that once belonged to a stranger, my daughter has no problem buying used jackets. So on one of our recent trips to the local thrift store, she scored a nice leather jacket for just $5. 5. Shop Discount Outlets Discount outlets, when used properly, can save you hundreds of dollars. I once got some really nice t-shirts for $5 a piece when another store was selling the exact same shirt for $25 each. 6. Cut Your Budget Cut corners in the household budget. For one month, keep track of every dollar you spend. Where does that money go? Is it being spent on "wants" or "necessities"? And is what you once considered a necessity really a want in disguise? Take snow removal, lawn care, or housekeeping services. When money was good, paying for these services freed up your time and allowed you more time for the fun stuff. But now that money is tight, it may be time to do these services yourself. Take a look at how much money you spend out on utilities. Then call up those companies to discuss lowering those monthly bills. Drop your telephone service to the bare minimum. Disconnect cable or at the very least go with the basic service. If you have a cell phone package with all the bells and whistles, cut back to the very basics and only use the phone for emergencies, not social networking. 7. Lower Your Grocery Bill Opt for eating more homemade items versus pre-packaged, pre-processed foods. Eat a vegetarian meal at least twice a week. Buy organic only if the food doesn't have a peel. Only buy meats that are on sale or purchase in bulk and separate into smaller servings yourself. And rethink those coupons. Often, we see a coupon or discount and we jump at the opportunity to "save" money only to discover later that it really wasn't that great of a deal or we just purchased something we never would've bought in the first place. If using a coupon will you actually come out cheaper in the long run, use it. If not, pass. 8. Seek Cheaper Insurance When we first got insurance, we spent hours comparing rates and services and then we forgot about it. We paid our monthly premiums without a second thought. Then money got tight. After belonging to Allstate Auto Insurance for nearly 15 years, and becoming increasing frustrated by the fact that our insurance went up every year though we had no accidents or traffic violations, we finally decided to shop around. To our surprise, we found an affordable, reliable company at nearly half the price. The key to switching insurance companies is to know what you're getting. Make sure you know what the regular rate will be after the introductory rate and when the new rate will take place. Then make sure you know what the fine print reads because it's easy for insurance companies to show you all the fluff, and forget to show you the nitty-gritty. 9. Stop Using Credit Cards I know this may sound like a double- edged sword, but using your credit cards can actually hurt you. On the one hand, you need your credit cards to survive with money being so tight, but on the other hand you cannot afford the monthly payments. The thing with credit cards is that the more you use them, the higher your balance becomes and the higher your monthly payment gets. And the higher your monthly payment, the harder it is to pay it. On the other hand, when you stop using your credit cards, more of the money you pay each month will go towards the balance of your bill, thus lowering your balance and eventually your monthly payments. And if you, like me, need to use your credit card between paychecks, make sure you don't charge more than you can pay off in any given month. 10. Stop Driving Your Vehicle With gas prices at an all-time high, you are probably paying an entire paycheck to car gas each month. Cutting back on how much you use your vehicle can save you a considerable amount of money. You can drastically reduce your monthly car gas bill by carpooling with others, taking the local transportation, or biking to work. If, however, that seems unreasonable, or not an option due to the distance between home and work, consider grouping your errands together. And whenever possible walk. Truth-be-told, I'm not sure there is much you can do during an economic crisis except hold steadfast, watch your pennies, and simply wait out this troubling time. Alyice Edrich is an affordable freelance writer specializing in how-to articles and Q&A interviews for the web. To view her freelance rates, or to hire her for your next writing project visit http://alyiceedrich.net To order one of her e-books, visit http://thedabblingmum.com/ebookstore.

 

 

 

The Frugal Network
Free Clipart	Frugal Happy Families	Mini Preppers	Scrappy Quilting	Simple Living Toolbox
Be warm, be safe;   save time and money.    Be frugal and be happy.

Home