If you are interested in living on less money, not just because you want to, but maybe even because you have to, there are many ways to cut down on spending and conserve what you do bring in. Everyone knows the economy is in rough shape these days. How can't you know when the news mentions it every second of the day? In fact, it's so over-discussed it's practically become white noise. It seems there is a lot of discussion about the world's financial problems, but little information offered about how to solve these issues. Don't become overwhelmed by the big picture, but rather focus on what you can do to improve your own personal financial situation. Follow these simple, yet effective tips to live a more frugal and peaceful life.



Budget – Everyone knows the word budget, but not everyone knows how to set one up. It's quite simple. On a peace of paper, or a spreadsheet on your computer, list all of your expenses. Add them up. If your expenses are more than your income, you'll have to cut the fat so to speak. For example, if you are spending $100 a month on something frivolous, like a daily soda from the drive-through, you'll have to start buying a case of cans from the supermarket instead at a much lower expense. If your expenses are still more than your income after you've pared down, you'll need to make more money. Selling unused belongings or getting a part-time job are good options. In dire situations, you may have to downsize your home, car, or other expensive possessions. Once you get the budget balanced, post it where you will see it and abide by it.

Pay Off Debt – Starting today, stop using credit cards and gaining even more debt. Credit cards are for emergency use only and buying a new flat-screen TV is never an emergency! Make sure you build paying off debt into your budget. List your credit cards and other loans from the lowest balance to the highest. Knock off the first one on the list and then work your way down until they are all at a zero balance. In the meantime, call the credit card companies/banks and try to negotiate a lower interest rate. Transferring balances to cards with lower interest rates can also be helpful, but make sure you don't hurt your credit rating with all of the inquiries into it that are required to get a new account.

Save – Benjamin Franklin is quoted as saying that, “A penny saved is a penny earned”. Truer words have never been spoken. In the literal sense, start a change jar. At the end of each day, put whatever coins you have in your pockets, wallet, or purse into this jar. Cash it out once a year and pay off a debt or deposit it into an interest-earning account. In a more abstract sense, you can save money countless ways. Buy less, consume less, expend less, conserve more, reduce/reuse/recycle more. Enjoy yourself in non-monetary ways like taking a walk in a park on a sunny day, or checking out the latest mystery novel from the library. Teach your kids how to be creative with what they already have or to have fun the old-fashioned way...playing outside! Money does not need to be spent in order to enjoy life.

Be A Smart Shopper – It's so easy to go to the supermarket without planning your excursion, but with a little research and coupon clipping, you can save a significant amount of money. Stock up on items that you would normally buy that are on sale and can be stored without spoiling. Many supermarkets offer a membership that will allow you to take advantage of additional savings simply for being loyal to their establishment. If possible, get the weekly store fliers in the mail or online before going out and plan your meals for the next week or two based on sales. Also it can be economical to go to more than one store to score the best deals at each place as long as they aren't so far away from each other that you are losing money on gas expenditure. Finally, buy generics when you can which are just as good, if not better, than the expensive name-brands.

Save On Clothing - When shopping for clothing, consider patronizing thrift or consignment stores, or buying from online auction sites. No one but you will know your clothes were once enjoyed by someone else. If you simply don't like the idea of wearing someone else's clothes, shop the clearance racks of your favorite stores. Buying at the end of a season for the following year is a wonderful way to save. If you have more than one child, try to take good care of the oldest child's clothing to hand-down to younger siblings. If you have the time and desire, making your own clothes can be a huge money saver. Buy basic shoes in neutral colors that match everything and can be worn in any season. Purchase classic winter coats that never go out of style and can be worn from year to year.

Cars And Houses – Cars and houses are two things that can definitely be bought used! Cars lose value as soon as you drive them off the lot so buying new is rarely necessary or sensible. Buying a pre-existing home is often much more economical than building new. In the case when one loses his or her job, downsizing a car or home may end up being an unfortunate last resort. Try to buy the minimum of what you need in the first place to avoid ending up in this sad situation.

Living on less money may not sound appealing in our consuming-obsessed society, but the peace of mind that being debt-free and having tight control over your finances can afford makes it all worth it in the end.