My Story
For 14 years I was married and then our marriage ended and my income was reduced to a little less than half. Payments from alimony are still coming in. The income I found myself with was a bit less than half I was used to working with. It was very unclear how I was going to survive and pay the bills. Credit card bills and payday loans were not the answer to the mess I was in. There must have been another way that I could survive without racking up more debts. These loans could have helped me in a bind, but I needed a better way.
Reduce housing costs
During the time I split from my spouse, I was also involved with someone else for a short time that lived in a small town in Middle America. I moved my kids and myself to Small Town USA because of this. The big house in the city was four times more expensive than the nice little three bedroom house on three acres costs me now. My living expenses were brought down considerably from this, and I was able to manage it well. On a reduced income, you need to reduce your housing costs.
Cut back on 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. The car needed to go back, as the payments stopped. Though I managed to get another vehicle, it is old and ready to die. I only paid $ 500 for it. The only car costs that I pay for now is gas once per month. How can I manage to do this? I just use the car once a week to get groceries and do laundry, while working at home as a freelance writer. I do not have to travel far to complete these activities. Not driving much reduces the amount of payday loans needed for gas.
Cut back on utilities
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 used plastic to cover the drafty windows. An unused door was covered with a thick blanket. I sealed the drafts under my kitchen counter with a special foam made for this purpose. In addition, I have a couple space heaters warming the cold parts of the house. The thermostat is not as high now, and I save over $ 100 per month.
Decrease Food Costs
One of the biggest items in a budget, besides housing, is the food budget. It used to be that going out to eat was preferred to cooking at home. This happened while I was married, anyway. I cook much more than I ever have before, since things have drastically changed. When we eat out now, it is a treat that we usually save for special occasions. My food budget decreased because I stopped buying junk food. We were able to save money as well as get healthier. I did not want to buy pre made food any longer, so I was able to trim the budget further by cooking from scratch.
The end result
To effectively get my budget under control, I had to bring down my expenses to meet my income. It has helped me be able to put money away every month to buy a decent car. I will tell you how much I am really getting, since you are probably curious about it. The total amount I get from my ex, and my work online, is $ 2,800 per month. The best part about this, however, is that my monthly expenses come to about $ 1,700 to $ 1,800. It seems unfeasible that someone who earns more than me should go into debt. If you have to survive on credit cards and payday loans just to get by, then something does not add up. You need to look at where you can slash your expenses.
