My story of living on half an income
For 14 years I was married and then our marriage ended and my income was reduced to a little less than half. Money still comes in from the alimony payments, thankfully. My working budget suddenly was split in half. Paying the bills were going to be tough, as I pondered how we were going to survive. Payday loans or huge credit card bills would not solve the financial mess I was in. There had to be some way I could survive without turning to debts full time. A loan could have helped me in a pinch, but I wanted and needed to find a better way.
Cut back on housing costs
During the split, I was involved with another for a small period of time, who lived in Middle America. I moved my family, without the ex, to Small Town USA because of this. Getting a little house on a three acre property costs me about a fourth of the cost of the house in the big city. Living expenses were brought down considerably and I was able to manage my budget much better. Housing is a major cost in anyone’s budget, and should be one of the first things to be decreased when income is reduced.
Decrease Transportation Costs
About the time that we split up, we were also struggling to keep up with a huge car payment on a brand new vehicle that we bought in 2004. A lack of payments made the car have to go back. Even though I found a 1995 vehicle, it is ready to die. But the good thing is that I only paid $ 500 for it. By doing this, I managed to cut down my transportation costs to just paying for gas about once per month. How did I manage this? The car does not get used much, since I work at home as a freelance writer. Because of being in a small town, I do not travel far to complete these activities. Since I do not drive much, there is no need for payday loans to buy gas.
Decrease your utility costs
Moving to a smaller house automatically lowered my utility costs; I was able to increase my cable and internet. By doing a few things to the house, I decreased my heating bill. I covered the drafty windows with plastic. The drafty, unused door is covered with a thick heavy blanket. Special foam was used to cover the drafts under the kitchen counter. Then I bought a couple space heaters to warm the colder areas of the house. By doing this, I have effectively lowered my heating costs by over $ 100 per month.
Cut back on food costs
One of the biggest items in a budget, besides housing, is the food budget. Many times, we use to go out to eat instead of cooking at home. We mostly did that while I was still married. Times have changed now, and I cook at home more than I ever did in the past. It has become a treat for special occasions to go out to eat now. I stopped buying junk food, which helped to decrease my food budget. This saved us money, as well as contributed to our overall health. By cooking from scratch, I trimmed the budget even further.
The Result
In the effort to bring down my expenses to meet my income, I have effectively come way under budget. Buying a decent car is now in my future, because I have been able to put money away every month now. If you have been wondering how much money I am really getting, I will tell you. My monthly total income from both my sources adds up to $ 2,800. I have been able to slash my monthly expenses to less than $ 2,000. Learning from my experience, there should be no reason why someone making more than me should go into debt. It makes no sense when people must survive on payday loans or credit cards to get by. Your expenses need to be slashed, so you need to take the time to look at where this can happen.
