Do you believe that it is possible to live on twenty percent of the income that you make right now?
If your boss suddenly took away 80 percent of your current salary, how would you feel?
Would you and your family be able to survive?
Well, the truth is that with the right planning it is not only possible, but you can actually enjoy a better life on a drastically reduced income. One inspiring couple we read about recently went from living on $42,000 a year to only $6,500 a year and they not only lived to tell about it - they are thriving.
How is that possible?
It is only possible if you are willing to dramatically reduce your expenses.
Considering the state of the economy and the incredibly bleak economic outlook in 2009, perhaps we can all learn some lessons from them.
If you want to live on such a drastically reduced income, here are some key tips.....
#1) Move to the country.
Living in the city is exceedingly expensive. Land and housing are much cheaper out in the country (and the air is much cleaner out there as well).
#2) Reduce the number of vehicles you own.
Most families need at least one vehicle. But does your family really need two or three or four? Think about how much money you could save by eliminating even one vehicle. The truth is that vehicles are huge money pits. Each vehicle that you eliminate from your lifestyle will save you a significant amount of money.
#3) Pay off your debt and throw away your credit cards.
Those little pieces of plastic are financial black holes that will enslave you forever if you are not careful. There is a tremendous sense of freedom to being debt free.
#4) Grow your own food and eat healthy.
Food costs are soaring, and by growing your own food you will save a ton of money and will eat better at the same time. Also, by choosing a healthier diet you will greatly reduce your healthcare costs.
#5) Get rid of extra devices like cell phones that you don't actually need.
Now, some people need cell phones for work, but if you don't really need them get rid of them. Personally, we are saving significant money each month by switching our cell phone from a monthly plan to prepaid "pay as you go" service that we only use for emergencies.
The reality is this.....
Minimizing Your Monthly Expenses = More Freedom
In an economy that is quickly falling apart, it would be wise for all of us to figure out how to make more out of our limited resources.
If any of you have other ideas about how to live a thriftier lifestyle, please feel free to leave a comment below....
A few more tips…
1.) Brown bag it to work: Instead of eating our for lunch, bring your own.
2.) Use the Library: Instead of buying books, check them out. The library often also has DVDs (depending on your area), saving you even more.
3.) Stay home: Being a homebody may not sound like a lot of fun, but it certainly can be. Staying home can save tons in eating out expenses, shopping expenses, gas and incidentals.
4.) Cancel your subscriptions: With the wealth of information and entertainment online, do you really need magazine subscriptions? With all the news online, do you really need a newspaper subscription? If you can get DVDs for free or cheap, do you really need a Netflix subscription? Don’t flame me if you think you do need any of these — I’m just asking you to consider whether they’re really essential — the answer might be yes. Also consider other subscriptions you might be paying for — I’m not saying you should cancel everything, but seriously consider whether they can be canceled without much loss of value.
5.) Cut your own hair: This one isn’t for everybody. Personally, I use electric clippers to shave my head. It’s easy, it’s cheap, it’s minimalist, it’s care-free. I don’t worry about my hair getting messed up, or having to fix it in the morning. However, I’m not saying you should shave your head. Many people cut their own hair, in many simple but nice hairstyles, long or short. Saves money, and time.
Just thought I would throw a few more suggestions out there for your readers. Thanks!