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Archive for the ‘frugal living’ Category

The Dollar Stretcher Blog
by Gary Foreman
gary @stretcher.com

Dear Dollar Stretcher,
Is there ever a good or creative way to save or budget for a new car?
My husband’s car is shot and I’ve been entering sweeps to help him
win a new hybrid car with no luck. Any ideas?
Brenda

Brenda asks a good question. According to the U.S. Dept. of Transportation the average lifespan of a vehicle is about 125,000 miles or 12 years. Recent estimates put the average car at a little over 10 years old with 100,000+ miles. Put those facts together and that means that many of the cars we drive are rolling into their sunset years.

So while we wish Brenda the best with her sweeps entries, it’s probably a good idea if she comes up with a backup plan. That plan plan should contain three elements. One, a plan to put money aside to cover repairs on their current car and ultimately buy a newer car. Two, a decision on how to save money for the car fund. Three, a desire to maintain their current vehicle to help it last longer and increase it’s value as a trade.

The first step is to create an auto account. Preferably one that makes it easy to deposit money, but a little harder to withdraw it. You’ll want to add money each month. The only withdrawals will be for maintainence and repairs to your current vehicle or to buy a newer car.

How much should you add each month? Ideally you’d save about as much as you’d be willing to spend on a car payment. In other words, begin making a car payment to yourself. This offers a big advantage. Instead of paying the loan company interest for the money you still owe them, you’ll be earning interest on the money that you’ve already saved.

Finding money to add to the account is Brenda’s next challenge. Remember, that if you take on a car payment you’ll have no choice but to come up with the money each month. So if a newer vehicle is important to you, be willing to make some sacrifices to save for your auto fund.

For many families the best source of savings is in the area of food. Feeding the average family costs between 10 and 20% of their income. Each day most of us have many opportunities to save without making significant lifestyle changes. These small savings add up during the month.

Wherever you find the savings, make a commitment to reach your goal each month. If you miss a month it’ll be tempting to shrug your shoulders and forget about it. It’s true, you don’t need to worry about your car being repossessed. But, each month you miss will only delay your auto shopping trip.

Next, expect to use your fund for routine maintainence and repairs. A common reason that people give for replacing their car is that it has become unreliable. The best way to keep a vehicle dependable is to perform the maintainence that’s specified in your owner’s manual. Even if that means catching up on things that you should have done earlier. Having money saved should make that easier.

Don’t feel bad about using money from your auto fund for repairs. Yes, it does mean that you’re further away from that new ride. But that’s what it’s there for. To keep a good set of wheels under you.

Finally, if Husband’s car is truly shot, how would they know when it’s not worth repairing? A general rule is that you don’t want to pay more for any single repair than the car is worth. You can find out what your car is worth at Kelly Blue Book (kbb.com). Until the repair is larger than the value, it’s almost always cheaper to repair your current vehicle than to replace it.

What should you do if you’re forced to buy before you saved the amount you planned to spend on your next car? If you can find reliable transportation for the amount saved, pay cash for this car and then keep saving for your next car.

If you don’t have enough saved for a dependable car, you’ll need to borrow this time. But once the car is paid off, keep making payments to yourself for it’s replacement. It’ll take a little longer until you can pay cash for your cars, but if you persist you will get to that point.

And, in the meantime, Brenda can keep entering sweepstakes. Who knows? She just might win some day.
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Gary Foreman is the editor of The Dollar Stretcher.com. For more info on how to find a Low Cost Car visit the site. Or sign up for their Financial Independence enewsletter.

The Dollar Stretcher Blog
by Gary Foreman
gary @stretcher.com

Sometimes we can take an idea from one field and apply it to another. For instance, there’s a concept that successful small business people know. That is that you need to cover your expenses before you begin to pay yourself. In some circles it’s known as covering your monthly nut.

It’s a key issue. Before you open your doors for business on the first of each month you know roughly how much you’ll be spending on rent, utilities, insurance, wages, licenses. You’ll have those expenses even if your sales are zero for the month.

This is your first monthly goal. To earn enough to cover the nut. After that you can worry about paying suppliers and still later about paying yourself.

The same concept applies to the average person. You have a monthly nut, too. There are a certain number of expenses that occur each month just like clockwork. Regardless of your activities that month, you’ll face those bills.

For most families the monthly nut includes rent/mortgage, utilities (electric, water, telephone), a car payment and insurance.

Many of us have added other things to that monthly nut. Missy’s ballet and Junior’s kung fu lessons. Not to mention Mom’s yoga class at the gym. And Dad’s monthly golf game.

Then there’s the minimum payment on the credit card accounts. And, the 26 months of boat payments still due. All those expenses pretty much happen automatically.

Ever wonder where your money goes? Take a few minutes now and list the commitments on a piece of paper. Total your monthly nut. It’s not uncommon for families to have $1,500 to $2,000 or more per month already spent before the month starts.

OK, so now that everyone’s depressed, what’s the advantage of knowing about a monthly nut? What can we do differently?

The first exercise is a ‘what if’ game. For instance, what if I lost my job and had to live on unemployment compensation? Would I be able to cover my current monthly nut and still have enough left over to feed myself? Or, what if my company went on a 30 hour work week? Create your own variations.

The next exercise asks the question: “is that still true?” Circumstances change. Sometimes the product or service that we needed yesterday is not necessary now. For instance, there’s a trend to dropping a home land-line as more people get cell phones. In this game you look at each item in your monthly nut and ask yourself do you still need it.

A third question for this game is “have my needs changed?” We still have a land-line at home but found that we don’t need a long distance carrier. Dropping them saves a few dollars each month. Or carrying collision insurance on an old car might be a mistake. Look at each monthly nut item and see if you would buy a different package today. If so, talk to the supplier about changing it.

The final question is “has the competition changed?” I may still need the product or service, but competition could mean that I’d save money by moving my business to another company. Insurance and some utilities are prime examples.

Remember that any savings will drop your nut each and every month. This is not a one time saving. Your effort will be repaid every month.

There’s one last tool that we can use because we understand the monthly nut. We’ve all seen it. The salesperson who says “it’s only so much per month.” And, the payment, taken alone, doesn’t seem big compared to your income.

But a more accurate evaluation would be to think of that amount added to your existing nut. You’ll have a much better perspective of the payment. And, probably be more resistant to it.

Evaluating your monthly nut is important today. Many families are running into trouble because their commitments are higher than their income can support. Reducing your nut before trouble occurs is the best way to avoid trouble later.

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Gary Foreman is the editor of The Dollar Stretcher.com. Check out their frugal living page and enewsletters including Financial Independence. Financial Independence is designed to walk step-by-step with you as you take control of your finances and achieve financial freedom!

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Facing Our Financial Problems
The Dollar Stretcher Blog
by Gary Foreman

Most of our ‘problems’ are really nothing more than undealt with discomforts. The moment we get up the resolve to look them in the face and do something about them, they vanish. Our real problems are the ones we are afraid to look in the face.
- Rabbi Shraga Silverstein

Everyone has problems. It seems to be part of the human experience. But, if you’ll look around you it’ll become obvious that not everyone handles their problems the same way. Some are crushed by troubles. Others are relatively unaffected.

Knowing what separates the two groups could make life much easier. So with that in mind, let’s examine Rabbi Silverstein’s comments.

The natural question is why are we so reluctant to face our problems? What is it about us or the problem that causes us to avoid any confrontation? Are there any clues on how to change our behavior?

What is it about certain problems that make us afraid to look at them? Based on my own experience I’d have to say that there are some problems that seem too big to solve. For instance, owning a home that’s worth tens of thousands of dollars less than the mortgage. A big, immovable mountain of a problem.

Then there are the problems that we know how to solve but don’t want to make the necessary changes in our life. I know of families that rarely cook at home because no one who lives there has learned to cook. Facing the problem means that someone is going to become responsible for learning how to cook and then providing a homecooked meal. If you just ignore the problem you don’t have to face making a decision about cooking.

There are other problems that truly scare us. Some baby boomers are afraid to face their retirement. They’ve neglected retirement savings and now they’re afraid that it’s too late to do anything about it.

College students have a similar problem. Many of them know that they shouldn’t be using student loans and credit cards for charging pizza. But, they tell themselves that since they’re still in school that they’re not required to be responsible yet. So they don’t face up to the problem that they’re creating.

Is there an answer? Well, we can take Rabbi Silverstein’s advice and force ourselves to confront our problems head on. One way to make that easier is to not try to solve the whole problem in one day. Take the ‘too big mortgage’ as an example. You don’t need to pay all of it off now. What’s needed is the money to make the next monthly payment. Breaking the problem into small tasks makes it much easier to face. You’re not facing the whole problem. Just the little piece that you need to handle today.

Or the family cook. They don’t need to commit to preparing every meal for the rest of their life. Maybe just prepare a home cooked meal two days a week. It’s not a complete answer, but it’s better than turning away from the problem and eating out every day.

I’m no psychologist, but it’s probably true that success breeds success. So for each day that you face a problem you make it easier to face it again tomorrow. After a few days the problem is vanquished (even if you might need to keep after it for years – as in paying off your mortgage).

What do you think of being afraid to face our financial problems? Do you have a story that would be instructive or inspiring? If so, please share it with us via email .

Keep on Stretching those Dollars!
Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website and enewsletters including Financial Independence. Financial Independence is designed to walk step-by-step with you as you take control of your finances and achieve financial freedom!

Articles on this site have been acquired from a variety of sources. No content on this site should be considered financial or legal advice.

During the present recession, many people across the nation had lost the job as a result the unemployment is on its peak ever before. To help people who are unemployed, US congress had cape up with unemployment benefits.

The condition of New Yorkers is worse as they hit pretty hard by the current economic climate as a result unemployment levels had raised. For this reason the New York state has been chosen under the 2009 stimulus package.

To help the unemployed New Yorkers, federal government came up with unemployment benefits as mentioned bellow:

First, there is regular unemployment benefits available which are available regardless of the economy for 26 weeks.

Second, 33 week unemployment benefits called Emergency Unemployment Compensation that is formatted for 20 weeks and then followed by 13 weeks segment. These benefits are also paid similar to regular unemployment benefits in the form of direct deposit or check.

In order to receive such unemployment benefits, workers must qualify for it and those are any worker must have worked at least for one year period and earned wages for that time and determined to be unemployed with no fault of your own. You may disqualify from the benefits if any one is the reason for you to become unemployed.

Fired for misconduct

• Involved in labour dispute
• Left to get married
• Resigned due to illness

If you do not meet any of the above mentioned then you can apply for the unemployment benefits if you are fired. The unemployment benefits are like:

One will receive regular benefits of unemployment for a maximum of 26 months in most of the states of US but in case if the nation is suffering from high unemployment levels then they may extend for few weeks. In any state the compensation may be half of your states average weekly earnings. One must remember that these benefits are subject to federal income tax. So, one must make sure to report these benefits in your federal income tax return.

But recent reports shows that, nearly 575,000 New Yorkers who have been out of work are about to run out of there 26 unemployment benefits. For this reason New York state department of labour appealing the U.S. congress to extend the benefit for workers.

They also said that, if they did not extend, nearly 5 million people across America will become lose their unemployment benefits. This will become worse when the job hole is still deep with unemployment rate is at 9 percent and without this extension more than 85,000 New Yorkers could lose their unemployment benefits by the end of March and 356,000 becoming ineligible by the end of June.

For this reason, the department of labour encourages workers who are about to lose their unemployment benefits keep checking at one stop centres, that help you in finding jobs. To check if you qualify for the unemployment benefits visit www.gouveneurtimes.com and apply for aid if you are unemployed.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Your Money Tapes
The Dollar Stretcher Blog
by Gary Foreman
I’ve often heard it said that the longest distance is between the human head and the human heart. What is meant is that there are many things that we know intellectually. We understand them and have no doubt that they’re true. But, we still have trouble acting on them. In other words, our heart doesn’t know the same truth.

How many of us suffer the same thing in our financial affairs? We know we should budget or begin saving for retirement. But we can’t seem to do it. Intellectually we know what we should be doing. But we just can’t get going on it. Our heart isn’t in the program.

One way to identify when our minds and hearts aren’t in sync is to notice what financial decisions make us uncomfortable. What financial activities make our palms sweat? Our hearts beat faster? Make our stomach quesy? When we feel uneasy about a financial event that’s a clue that it’s an area that we need to examine.

So I invite you to keep a brief log. Notice those financial events that cause discomfort. Include the date, time and any circumstances that seem like they could be relevant. Don’t try to analyze it now. All we want to do now is capture the moment and make note of it and how we feel at the time.

Once you’ve assembled your journal (after a few days to a week) it’s time to study the entries.

First, were you able to recongize what tape was playing in your mind during the event that made you uneasy? For instance, I’ve often heard “You shouldn’t be spending this money. Not on some luxury.” Or “Go ahead and buy it. You’ll never find it again this cheap.” There are many messages that our minds play when we’re considering making a financial decision. Each of us has our own set of tapes. Almost like an Ipod full of messages that you frequently listen to.

Some of the messages are good. It’s true that I shouldn’t be spending money on unneeded luxuries. And I should look for bargains.

But we need to be careful about the application. For instance, if the ‘luxury’ is buying a steak to cook at home and I do it once a month is that a luxury? Sure, it’s more expensive than cooking a chicken. But, a steak with baked potato and veggie eaten at home isn’t an outrageous expense. And, perhaps that little luxury is enough to keep me from being tempted to eat at a restraurant that evening. So maybe the money tape shouldn’t apply to this situtation.

Or the bargain purchase. If the item I may buy is used and well worn, perhaps it’s not such a good purchase. Especially if it’s something that I’ll use often. Maybe it’s worn so that it is likely to break when I need it. Perhaps spending a few more dollars could buy something that’s dependable and will last much longer. In that case being the cheapest isn’t necessarily a good thing. Again, finding a bargain is good. But it isn’t always the only thing to consider.

So what does your money journal tell you? What tapes were playing when you were uncomfortable about a financial decision? Take a look at them in light of the choices you were facing. Was the tape appropriate to the situation? Or were you hearing something that could lead you to the wrong financial outcome?

Remember that these money tapes almost always have some truth in them.
But, it’s important for us to know whether the tape is true in this specific situation.

One final thought. Since these money messages have been in our heads for years and feel true to us we often accept them without any questions. We jump right to making a decision based on them. If we’re applying them to the wrong situation that can be bad. And, if we don’t stop to think before making the decision we won’t even recongize that we could be making a mistake. In fact, we’ll congratulate ourselves for making the ‘rational’ choice.

So the next time that a financial decision makes you queasy, stop for a moment. Listen to the tape in your head. Ask yourself if the message is true in this particular situation. And, only after you’ve completed these steps, then make a decision.

By doing so, you’ll move your head and your heart closer together. Close enough so that your heart will feel good about the logical decisions your head is making!
Keep on Stretchin’ those Dollars!

Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <http://www.stretcher.com/subscribe/subscribeFI.cfm> Financial Independence is designed to walk step-by-step with you as you take control of your finances and achieve financial freedom!

Frugal Fatigue
The Dollar Stretcher Blog
by Gary Foreman

Recently I was approached by a reporter. They were doing a story on people who were tired of the effort it takes to control their spending. What suggestions, she asked, did I have for people who were struggling and thinking of just giving up?

A little time brought to mind some of the things that I’ve seen people do who continue when the easiest course was to quit.

The first is to make a decision. Once you’ve decided to pursue a goal, do not question it. Unless you have significant new information, you have no reason to doubt your original decision. So don’t trouble yourself with questions. Just continue along the path you chose to follow.

The second involves breaking big goals into smaller pieces. They say that success breeds success. I believe that’s true. Dividing a big goal into smaller goals allows you to have some smaller successes along the way. Each one helps to motivate you to strive for the next small goal. Pretty soon you’ve accomplished the big goal.

Rewards are the third tool to accomplish financial goals. Most of us want to know “what’s in it for me?” That’s only natural. So put something in it for yourself. If you’re paying off a credit card, treat yourself to a small reward at predetermined points along the way (i.e. after $2,500 has been paid down or when the balance is reduced by 25%). Looking forward to the reward takes your mind off of the struggle.

Reminders can also be helpful. If you’re saving for a vacation, you’ll find that a picture of the campgrounds on the refrigerator can be a great motivation. Some people put a card in their wallet to remind them of their commitment to reduce debt. They see it every time they reach for cash or a credit card. It can help you resist needless purchases.

Finally, it’s helpful to have friends to encourage you and share experiences. Most long journeys are much easier if we have one or more people to walk with us. So find a frugal living partner at work or in your neighborhood. Or join an online discussion group. Not only will you find help, but you’ll become stronger when you encourage others. In fact, we have one specifically on Frugal Fatigue.

So don’t let the length of the journey discourage you. The total distance is not that important. All you have to do is to stay on track for today. And, that’s something that all of us can do.

Keep on Stretchin’ those Dollars!

Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <mailto:subscribe-fi@hub.thedollarstretcher.com>
To check out The Dollar Stretcher Forums, click here <http://community.stretcher.com/forums/> To join the discussion on Frugal Fatigue click here <http://community.stretcher.com/forums/t/15819.aspx>

Frugal living has become a very popular concept this past year. People are beginning to realize that the credit card crisis was mainly due to spending above our means.  For those of you that are new to frugal living, let’s go over some basic ideas.

       First, frugal living is not about going without.  It is simply being conscious of how you spend your money.  If you are going to spend it, spend it wisely.  Think of frugal living as stretching your money’s worth.

       Second, frugal living is not giving up all your extras.  It is chooses those extras that matter the most. If you are an avid movie lover, you still can enjoy your Friday night flick.  Just from  your living room instead of the theater.

       Let’s consider some very basic ways to start living more frugally:

       Food. This is probably the easiest way to stretch your dollar. Clip coupons and make a list when grocery shopping.  Pay attention to prices, you might even choose to shop at a cheaper store.  If you have the time, shop around for the best prices on your regular products. Cook your lunch at home and brown bag it to work.  Make a large meal and eat it throughout the week.  If you have a large family, plan out your meals a week in advance based on the deals at your local supermarket.

       Entertainment. Rent instead of going to the movies, use services like Netflix if you rent. As long as you actively use a service like Netflix, it is an amazing price saver. Other ideas for entertainment include having a couples night in.  Make a regular date night for couples you know.  Play fun games instead of hitting the town.  You will help your relationships while keeping your pocketbook full.

       Gas. Carpool, ride a bike, make a strategy about your errands.  Whatever keeps you in the car and spending gas the least is best.  If you need to go somewhere within walking distance, take a brisk walk instead of the car.  Your lungs, and the environment will thank you for it.

       Plan Ahead. Your car, your pets, your house all need yearly maintenance type items.  Plan ahead for things like flea control, a new car battery and the like.  You are going to buy them anyway, why not consider them early on and look for ways to save.  Research the best time of year to buy appliances, electronics or a new car.  Frugal living has been around for ages and there is plenty of information available for you.  Take advantage.

       Make it Yourself. The recipes and instructions are endless. Research online or at your local library how to make everything from your own cleaning products to furniture.

       The key to frugal living is to gain the support of those around you.  If you are a single person, find people in your neighborhood that are like minded.  If you are apart of a large family, grow a garden in the backyard.  Do whatever you can to incorporate frugal living into your everyday.  As you learn more and more about it, you will find the easier it becomes.  And remember, frugal living is not about going without.  It is about making the most of your money!

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

Christmas Without Cash
The Dollar Stretcher Blog
by Gary Foreman

According to Gallup polls, about 1/3 of Americans plan to spend less on the holidays this year than last. For some families who are really struggling there will be very little money available for holiday spending.

But, that doesn’t have to mean that the holidays will be ruined for your family. In fact, it may give you an opportunity to have an even happier holiday season.

Begin by focusing on what you have, not on what you don’t have. It’s true that you might not have much money. But perhaps your home is full of love. Just by thinking about what you have, you’ll lift your spirits.

Take some time to enjoy the season every day. Get a copy of Dicken’s “A Christmas Carol” or other holiday book and read a bit each night. Even if you don’t have children in your home. Books have a wonderful way of mentally transporting us to a different time and place.

Be honest with your family. There’s no shame in being short of money in this economy. Surviving tough times requires that all family members help. And, they can’t help if you don’t let them know the circumstances (obviously, you want to keep your conversation age appropriate).

Make gifts for others. Especially if you’re unemployed, this is an opportunity to substitute your time for cash. And, it also gives you a chance to make something unique specifically for the recipient.

Let your kids help you. By involving them in the baking, decorating, etc you’ll keep the children from focusing solely on what they hope to get. It’s also a good time to share your own holiday memories with them and build new ones.

Help those less fortunate. Deliver socks to a homeless shelter. Volunteer at a soup kitchen. Even if you’re really up against it, it’s mentally healthy to know that you are not alone. In fact, you might find hope in serving others.

Have some seasonal fun. Take the time to make a snowman or snow angel. Have a snowball fight. Walk around your neighborhood looking at the displays. Shared smiles make better memories than expensive gifts.

Give future gifts. Even childreen from poor families generally will have something to play with on Christmas morning. So it’s not critical they get everything on Christmas Day. A coupon from you to give that special toy in February will allow you to take advantage of price drops (especially on electronics). It will also give you time to save some money to pay for it.

Consider giving heirloom gifts. If your children are old enough, you might consider using this year to pass along that keepsake jewelry from Grandma or other family keepsakes.

Use old fashioned decorations. Generations before us had festove holiday homes even when they didn’t have money. Think paper chains, strung popcorn, pine cones and evergreen branches.

Substitute for that special gift. Ask yourself why does my child want that particular gift. There may be a better, less expensive way to accomplish what your child wants.

If you absolutely must have a specific toy or electronics item, there are a few ways to get it cheaper. Check stores for open box or return units. Surf the manufcaturer’s website for refurbished units.

Don’t charge Christmas. If you’re struggling financially you shouldn’t make it harder to survive January. Remember, it’s very easy to charge yourself into a corner.

You’ll notice a common thread among these ideas. Taking the emphasis off of gifts and putting it on the people that we love. As I understand it, the original goal of buying gifts was to bring happiness. This could be a marvelous opportunity to rediscover that happiness doesn’t always start with a dollar sign. And, that would be good in any economy.
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Gary Foreman is the editor of The Dollar Stretcher.com website and various enewsletters including Surviving Tough Times For ideas on inexpensive Christmas gifts visit or The Dollar Stretcher frugal Christmas section

(end Dollar Stretcher Blog)

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

The importance of personal finance is generally made more complicated than it really is, and a proper finance budgeting of self, to make money does not require you to be stressful. By following some very basic steps one can get his finances back on track and also start creating wealth for himself.

The values of a firm and positive wealth making system only need the basics constructed on the personal finance accounting. Firm and steady budgeting is one of the vital laws of personal finance. Not knowing about the whereabouts of your money and your assets are vital and the most common mistake.

When you are moving towards the personal finance accounting, the first thing you require is to eliminate all the emotions from the finances. This is the toughest and the most vital part of personal finance planning. If you see you reeked with the debt worries, besieged by the innumerable financial responsibilities, or just hate noting the expenses and income. It isn’t you alone in the world. By doing this you are actually measuring the map of success and the destination to your dream.

Now you would need to make a list of your assets, income, expenditures and the debts. This way you would be able to know your net value. By determining the following numbers in your personal finance budget you will have a proper idea of your financial value in a wider sense.

After you determine your net value, the next step to your personal finance budgeting is to know about the active finances. It is just a compilation of your monthly sources of income and how much do you get from these streams. Then a compilation of your monthly expenses should be done. Then subtract it from your monthly income. Proper budgeting and financing mean including all the expenses or income whether small, in your account. The complete account reveals, whether you are headed for financial freedom or breakdown.

You have completed your personal finance accounting very skillfully. You are now able to evaluate your real value, and have a complete and fair idea of your real financial goal. You also know the speed with which you are traveling towards goal each month. Your budget will give you a complete understanding of the whereabouts of your money and its flow. With these facts you can make better decisions and reorganize your funds, all with the help of the personal finance accounting every month.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

So, you’ve decided to start living frugal and begin saving more of your money. You may not know this but frugal living and having fun go hand in hand. Let me show you exactly what I mean in 10 simple ways:

1. Visit Your Local Library: An easy place to start when learning how to be frugal is to use your local library. Here’s the deal: Instead of purchasing books and buying DVD’s, consider taking advantage of your local library. You’ll have access to best selling books, and the latest movies all free of charge. Simply return them on their due date and you won’t owe one red cent.

2. Cut coupons: In no time flat you can cut your grocery bill almost in half. Nowadays, you can clip coupons for items you purchase regularly.

And if you pay close attention, your local grocery store will often offer to double and even triple your coupon savings. There are many sites online that will give you access to an even larger number of coupons for greater savings.

3. Eat At Home: No doubt eating out is fun and convenient. But the problem is that it really puts a dent in your wallet. A family of four could spend $30 or more eating at popular restaurants.

Living frugal means cooking meals at home and even taking left over’s for lunch. If you do decide to splurge and eat out, remember that many restaurants provide coupons for patrons. Double check to see if there’s a coupon that you can use for yourself and your family.

4. Use Online Bill Pay: Frugal living ideas like paying bills online can help you avoid late fees and save money on buying stamps every month. Plus it’s simple to set up.

5. Slash Gas Costs And Insurance Premiums: When learning how to live frugally, it’s a good idea to plan your errands and group them in a way that you are not driving unnecessarily. Map out where you need to go and then stick to it.

You may even want to start riding a bike or walking to places that are close to home. You can also enjoy the frugal life by contacting your insurance company and finding ways to lower your auto insurance premium. There may be discounts you’ve been missing out on.

6. Create Your Own Cleaners: If you are ready to learn how to live a frugal life, then you’ll be glad to know that you can save money on store-bought cleaners by making homemade cleaners.

Basic cleaning agents include vinegar and baking soda so make sure you stock up on these two items and you’ll be well on your way to frugal living. But that’s not all, there are frugal living recipes for powdered laundry detergent, dryer sheets, and homemade fabric softener.

7. Go Green: Anyone who is serious about how to live frugal must consider using green energy. By using solar energy to power your home, you will slash energy costs drastically.

Frugal living tips for harnessing the power of solar energy includes building your own solar cells to power your home and swapping out old appliances for energy efficient ones.

Time and time again, you can see that living frugal doesn’t mean you have to give up all the things you enjoy in life. In essence it means finding a way to have the things you want and do the things you love the most cheaply. Put just one of these tips into action and before you know it, your financial picture will look a heck of a lot better.

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