How do I keep the cost of living down? How do I save?

It feels like I'm in a trap - every time I pay off a bill another one is around the corner. I'm not moving backwards but I'm not moving forwards.

First of all, go to your bank and set up a savings account. A passbook account is good for this. Then, get your employer to put at least 10% of what you earn into that account. That way, it doesn't go into your normal account, and you don't see it. Your spending will adjust when you have less to spend. This becomes your emergency money. When you have enough in the account to live off for a few months, you can start investing the surplus in a mutual or managed fund. That will eventually earn you more money.

A lot of people try to save what's left over after expenses. This is the wrong way to go about it. You need to treat saving as a 'bill' and pay it regularly. Otherwise, you'll never get ahead and you'll just live your life stagnating financially. By paying yourself first like this, you can't forget to do it, because it comes out of your wage. It also prevents you going into debt in an emergency.

Next, always pay a little off your bills every week. If you pay even $10 a week on each bill, when they finally arrive in the mail, you'll have already got a head start on them. I do this and it really helps me budget. If you're in debt, look at the interest rates of all your debts and pay the highest interest rate debt off first, while making minimum repayments on the others. When the highest rate debt is clear, move onto the second highest rate debt. That is the fastest way to clear your debts and will cost you the least amount of money.

Always take your lunch to work with you. I do this and it saves me between $700 and $1000 a year. I make sandwiches and freeze them, and I make pasta and curries and freeze them too. That way, I can take one out the night before, defrost it in the fridge partially, and then reheat it at work for lunch. I get a nice hot meal while everyone else is running around trying to buy a sandwich. It's a great way to use leftovers.

Cut back on phone and internet. Consider going from broadband to cheaper dial up. Inflate your car tyres to the highest safe inflation so you use less fuel. Try to do multiple errands on the same car trip, parking centrally and walking to your destinations. This saves money.

Consider getting a flatmate or housemate to split your expenses.

Look at what you spend your money on. There is always something you can go without. Do you buy chocolate biscuits? Stop. Do you smoke? Quit? Do you drink alcohol? Consider quitting or at least having a couple of 'alcohol free days' to help your budget. You can live without pay television, a computer, video games, pubbing, fast food, and junk food from the supermarket. These things can cost you a packet, so limit or exclude them from your lifestyle.

Stop eating meat every day. Vegetarian options are a lot cheaper and better for you.

Walk rather than drive, if you can.

Shop at factory sales outlets for food and other groceries. I get washing powder and toilet paper when the discount stores where I live have their 15% off sale. I buy a 12 kilo pack and only spend $3.50 a kilo instead of $6 a kilo in the supermarket.

Have shorter showers and use energy wisely. Use energy saving light globes and block draughts in your home with draught blocking foam sealer for doors and windows. You can get it at the hardware store.

You need to look at your lifestyle and identify what you can live without. Then give those things up. The trick is to only pay money for stuff you actually want. Don't impulse shop. Plan shopping trips and don't get tempted by sales. Give things a rating out of 10 (1 being you don't care, 10 being it is your reason for being) for how much you actually want them. If it's a small expense, like a coffee from Starbucks, and isn't above a 7 on your scale, do without and spend your money on something you love, like a holiday or a new car. When you prioritise things, you'll find there's a lot of things in life you don't really give a damn about. Why spend money on stuff you don't really want, when you can save your money and spend it on stuff that you will really enjoy? Don't you deserve to be happy?

Best wishes

Car pooling will save you half of your total gas expense.

If you have moer than one credit card bill. dont pay a little extra on each one. Find out which one has the highest rate. pay what ever extra you have on that one card. focus on it til its paid off. when done with that one move on to the next. once paid allof them.... dont ever use them again.

be aware of unnecessary spending. Like buying a soda you really dont want. or eating another candy bar you may really not deeply want.

watch for grocery sales. if you dont stay on top of things you could be paying more than necessary buying things one at a time. when they may have had it on sale 2 for 1.

keep in mind that even the littlest savings add up... it takes pennies to make dollars

If you're not watching T.V., then turn it off. If you dont need to use the fan, then turn it off. If they tv is on, but no one is watching it, then turn it off. Use less water, don't let the water run when you're brushing your teeth. As for gas, only go to places you need to go, like work. Try to eliminate driving around because that will only waste gas, which therefore, waste money. Buy only the things you need. I hope this help you somewhat =)

There are alot of things you could to bring down the cost of living, eating less, not using the air conditioning, less electrical appliances, shower less, move into a smaller place.

flick off your lights when you dont need to use them
take shorter showers
get a tv/internet package (all-in-one bill that comes in the same envelope every month)
good luck with that

My bf is so good at saving money. He knows the best places to eat that are inexpensive, He found a great resale shop that sells designer clothes, and another shop for home furnishings. We live as inexpensively as possible but we still have nice things. You just have to take the time to explore the places you might normally pass up.

You have to cut out things that you now consider essential. A good place to start would be, do you have cable tv? ... or a cell phone? Track your spending and cut out unnecessary purchases... don't eat out, always look for sales when you buy anything from groceries to clothes etc. While you do this, work towards paying off credit cards (but cut them up now) if you have any and look to either improve your education, find a better paying job or both. Oh, and read a book called The Secret too.

* Budget the amount of $$ you need every week and stick to it.
* Don't take your credit card out with you when shopping
* Avoid shopping with Girlfriends...because when you do..you're expected to get something to be 'in' with it.
* Cut down on Coffee. Instead make your own
* Bring packed lunches to work/school every day
* Distinguish needs from wants.
* Shop in no brand shopping centres and look for discounts
* Try to buy things on sale or at a reduced price.

Well, I recently just took a financial math class and I learned a lot. One of the people that our teacher used to teach us was Dave Ramsey. Look him up on yahoo, and i'm sure that will help.

put in energy saving lights. also turn off appliances at the wall not the standby button. only water in the late afternoon or early night

You could cut down on luxury items. And, before buying anything, ask yourself first. is that a want or just simply a need. that way you'll be more thrifty. you could also sell item that you dont want. but, they must still be in good condition. so, even if you give it away, you still get to make some money out of it .
Reduce the use of tissue paper, toliet paper, water and if you really want to save alot of money, buy food that would be able to just fill your stomach and not satisfy your tatsebuts.

turn off all lights when not in use, ride a bike 2 and from work, start eating just bologna sandwhiches instead of meals, and instead of buying fruit loops buy some tuity frooties : )

and if u have 2 sell ur computer : )

Use items like showers and phones for a short while only. Try to decrease computer and television usage. Playing in the open is better than screens I think.
Hope this helps. Also, buy nescessary things like tables or chairs. Don't buy items like vases a lot.

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