Part of living a more simple life involves not being stressed out about finances. Not everyone comes to minimalism or living simply on a level playing field. Some start out in lots of debt and need to figure out how to get out of it. The average person comes with some debt, not too much, typically with a car payment, some credit card debt, maybe a loan or two. In some rare cases, a few manage to get here when they are already debt-free. No matter where you're starting, there's things you can do to simplify your life and reduce anxiety.
Here's some money-saving ideas:
1. Work. If you've got mounds of debt, you need full-time work, or possibly a second part-time job if you can't make ends meet with one. There's the possibility of moving to a better-paying job for some, but I realize that's not always the case.
2. Living Expenses. Are you in a position to downsize? Take in a roommate (even temporarily) in a spare room? Would it be cheaper to buy instead of rent, or vice versa, in your area?
3. Monthly Expenses. What can you do to limit your water, electric, phone, and other utility bills? Maybe taking shorter showers would reduce water bills? Turning the thermostat down in winter/up in summer while everyone's gone during the day would save on your electricity/gas/oil bill. If you're not under contract, you could switch phone plans, for example, we use Straight Talk through WalMart. They have plans from $35 to about $55/month depending on how much data you do/don't use. No contracts, and they use the same towers as Verizon, Sprint, T-Mobile, and other big name companies, it just depends on the phone usually, and often you can bring whatever phone you already have to the program. You renew each month either automatically on a regular schedule or call in or do it online. It's very easy. You could cut back on your cable/satellite stations. With so much available online and on Netflix/Hulu/Amazon Prime, etc., sports is the only thing you can't find. Local stuff is usually available easily enough through the channel's website and apps.
4. Cooking/Baking. Making meals at home saves lots of money compared to eating out, even if it's not every day. Every meal in a restaurant will include a percentage of the cost in taxes, drinks are usually $2.50 for non-alcoholic drinks and no limit on those with alcohol. You are expected to tip 15-20% to your server. Desserts are usually at least $5 and ranging up over $10 sometimes, and that's for the average-priced places. A family of 4 could save $50 just in the above mentioned things!
5. Cleaning Products. You probably have many "free" ones in your home already: baking soda, vinegar, bleach, etc. Another alternative is to purchase them from a dollar store. Usually you can save on things like bowl cleaner, bathroom cleaner, glass cleaner, etc. because the brand name ones are often double or even triple the price.
6. Groupon. If you want to go out to dinner or to do an activity for a special occasion, try searching places like Groupon.com for deals in your area. Many times you can save quite a bit on something you were going to do anyway.
7. Work from home. Can you do or learn to do something that you can make money with from home? No extra commuting, no extra lunches, no new outfit for it. Can you bake? decorate cakes? Babysit? Coach? Sew? Do hair for friends and family? Run errands? Walk dogs? Help a friend's business as a part-time bookkeeper? Do taxes for a friend? Give music lessons? Freelance writer or photographer? Clean homes? Plan events? Tutoring? Fitness Coach? Be creative. Whatever you can do or are trained to do, even if you haven't done it in a while, you can use to your advantage and help someone pay a little less for it too.
Once you get the extra money coming in, pay off your smallest debt first. Once that's gone, apply whatever you WERE paying to it, plus a new payment to the next smallest debt. For example, if you used to pay $50/month for a credit card with $500 on it, pay it with every extra penny until it's gone. Then do the same with the next debt, say another card with $1000 on it where you've been paying $75/month but also add the $50 you no longer need to pay the first one. Now your payment isn't just $75, it's $125/month, and will get paid off much faster. Once that's gone, maybe you want to pay off a car or loan. If your payment on it is $200/month, still make that but add the $50 and the $75 from the other 2 that you paid off. Now your payment is up to $325/month until it's paid off. This is call the debt snowball paying off method. You can do this.
