| |
|
I actually am just getting into amassing some credit card debt, but it's because I'm running a young company and credit is my best option right now.
However, from the ages of 18 to 25 I lived on pennies without ever having a credit card, so I can tell you how to live on less.
First, create a really simple monthly budget. Start by adding up the sum total of your income, factoring out the taxes.
Next, budget your expenses in order of priority, beginning with the things you must pay on time and on which you can't do much/any cutting back. So, rent. Heat bill. Electric bill. Transportation cost. Phone bill. Credit card bill, & student loans if any. Food. Entertainment. And then a cushion category, for any surprise needs (important!).
If you pay for your own heat and the company allows it, see if you can get on a payment plan that averages your heating bill based on last year's usage, so that your bill is the same every month all year long. Makes it easier to budget, and you won't spend the heat bill money in the summer that you'll need next winter.
Also call your credit card and student loan people - most will agree to let you pay whatever you can afford each month. They may want to see some paperwork on your income, but they may just take your word for it.
As someone said, the bus is really cheap and usually gets you everywhere. If possible, buy a monthly pass, you'll save more.
Be really cheap about food, because that's an easy area to cut costs. You'll have to cut restaurants out of your life, and takeout only once or twice a month. Also, stop getting coffee out, if you do - it adds up. When you're on a budget, a dollar fifty coffee each day is a precious $45 a month. I found that $400 a month on food, including beer, was generous. Make an initial investment in spices, and then stick to plain rice, frozen veggies (cheap but still nutritious),pasta, etc. Stay away from prepackaged meals, they're too expensive and less filling. Oh, and eggs! Eggs cost 8 cents apiece and can be thrown into many meals for protein. And remember you get charged extra for every "convenience" - so get a block of cheese, not the pre-shredded, get cans of tuna, not the freshpacks, etc. Never shop hungry, and always make a list beforehand.
You won't be able to go out as much - that's the sad reality of living on less. If you do go to the bar, drink the cheap draft. Two bucks a beer versus five is a big savings. But you just have to stay home more. Ask your friends to burn you CDs when you need music. By second hand books. No more new clothes for you, you'll have to wait till Christmas and your birthday to ask for clothing or gift cards. And when you need some item of clothing, head to Payless Shoes or some other Evil Corporate Discount Store. Because that's all you can afford now.
On days off, I usually would just stay home and read or something, because I knew if I left the house I'd wind up spending on something - a coffee, a juice, a book - and that adds up too. It's the money you spend when you're not looking that bites you in the ass. |
|
|
