It is possible to have the things you want and live cheaply.
Leaving cheaply means spending the least amount possible on the things you need and want. To live cheaply, you can cut major costs, like getting rid of your car or cutting your rent in half, or you can cut lots of minor expenses like bringing your lunch to work, cutting your cable, reducing your cell phone plan. Living well is having the things that are important to you. You want to build a life for yourself where you can have the things that are important to you while spending the least amount of money.
Instructions
1. Establish your priorities. Decide where you can cut costs. Establishing priorities will help you decide how you plan to spend the money you do have. For example, if living well to you means living in a home with two floors, plan for that, knowing you may have to sacrifice something you don't care much about, like weekly manicures.
2. Manage your credit wisely. Avoid consumer debt. Consumer debt is debt for goods that do not appreciate -- that includes credit card debt, as well as automobile debt. Pay for things with cash. If you use a credit card to earn miles, or cash back, pay it off within the grace period to avoid monthly interest. Managing your credit will keep you from paying a monthly credit card payment. In addition, a higher credit score will help you get a low interest rate on home loans, and education loans.
3. Choose a city with a low cost of living. You can get farther in some cities with a dollar than others. Choose a city with a lower cost of living. Use a cost of living calculator to determine whether the city you are moving to has a higher or lower cost of living that you are moving from.
4. Cut your housing expenses. Whether you are looking for a house or apartment, do your research on the housing market, waiting for the most opportune time to purchase. Make sure you have an adequate down payment saved to keep the mortgage low.
5. Cut mandatory expenses. To cut food expenses, cut coupons, visit the farmers market or get a store loyalty card. You can even plant your own garden to save on produce. Manage electricity by turning off the lights when you are not using them. Unplug appliances when leaving the house. Cut transportation costs by carpooling, using public transportation, or telecommuting.
6. Use free resources. The library is a free source of books, periodicals, internet access and air conditioning.
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