Wednesday, June 4, 2014

Get ahead by Saving (keeping) Money

The first step to wealth is often resourcefulness(read it frugality) and actually saving some of that money that you make in your paycheck.  Its not sexy, but in many cases its true.  Here are a few tips on how to get ahead even when earning less then we could be.  Cut off any reoccurring costs that you don't need or you can't get somewhere else for less or for free.

Saving money, stretching the dollar

  1. Go rural.
    It is far, easier to make a living on minimum wage in a rural area. There are many small towns where you can find a room to rent for rent or an apartment for under $350.  Try sharing a room with a friend or splitting costs with a someone else.
  2. Don’t drive.
    A car is a giant money waster on low incomes. No ifs, ands, or buts about it, if you’re working minimum wage, your car isn’t going to be worth it over the long run. Ditch the car and get whatever cash you can for it. Choose a place to live where you can get to work by foot or by bicycle. Being able to get to work reliably and for free will  cut costs, and also will also ensure that you don't lose hours due to car problems, taxis, or missed buses.  
  3.  Buying stuff and sell it for more.   Craigslist is very useful and easier to use then ebay as people are local and seem more attached to the purchase when they come by to pick up the object.  All you need is a working camera to capture a shot of the object you are selling.
  4. Spend no more than $300 a month on household necessities (food, toiletries, etc). The only way to pull this off is to cook pretty much everything yourself, or get help from a friend or family member.  Plan your meals appropriately with the goal to save.
  5. Cut cellular and cable costs. Cellular plans usually cost about $30 a month if you find the best deal in town. If you don't use all the minutes in your cell plan, a prepaid or pay-as-you-go phone may save you a lot of money. Consider not getting a cell phone at all.  Do you have a friend who can answer or screen phone calls on their phone for you?  

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