How to Live Off of 50 Percent of your Income
The economic downturn has left people looking for ways to increase their incomes and reduce their expenses all over the world. Many have succeeded in the task while others have had faced a harsher time and have been unable to maintain a reasonable life style.
One can be doing well in life yet be stuck in a situation that a decent income may not be enough. Getting sick and having large medical bills, paying out an out of control debt or even a divorce can leave one with a lot of financial trouble even if one is earning well enough.
Consider a scenario where someone has one of the above or another similar circumstance where spending half the income is the only option, many things can be done to achieve that goal. All it needs is patience, curbing one’s desire to spend freely and a smart plan of action to achieve the goal.
Instructions
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1
Cut Basic Costs
The first thing to do is to cut basic costs. If you drive to the office, consider car pooling. Do not drive a gas guzzler and if you own one, sell it off and get a cheap fuel efficient used car. Also if you are living in a house or apartment alone, you can consider adding someone who can share the rent or moving out with someone who is looking for someone to share their apartment. If you want to live alone, then move to a cheaper vicinity.
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2
Cut the Luxuries
These may not be luxuries at all under normal circumstances but your condition is not well enough to afford them. Get a basic package on your cell, and if you do not need it on the go, cut off the data package. Also get rid of the cable, local TV channels are good enough and will provide you with enough entertainment. If you mainly use your cell phone, get rid of the land-line as well.
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3
Cook at Home
A great amount is spent on eating fast food by an average person. Cook at home and take your lunch to the office. Not only will it be healthier but you will also have to spend about a quarter of the price you were spending on unhealthy fast food.
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4
Cut on Insurance
This one is a little tough but you are in a hole and you need to get out of it as soon as possible. So get a reduced price plan that offers less coverage. Also you can downgrade the insurance on the car and other assets that may be insured. This will significantly reduce your expenses and you should be able to fit in the budget.
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