When you can barely afford the necessities of life, it is extremely difficult to achieve financial independence and security. It is especially hard to enjoy life when you have the burdens of more bills than you can afford and cannot afford any type of vacation.

You may not believe this, but if you make only a few changes during the year, you will be able to have more money in your pocket and reap benefits of cost effective living. Also, if you learn how to save money, you will even be able to improve your condition of health, especially your stress level. With temperance and careful planning, you will be able to save a huge amount, possibly even in the thousands!  The following are a few ideas to help you be able to save money to get you that financial worry-free life your desire:

Transportation Costs

The costs of transportation can become very high (many families have to budget almost $1,000 each month for car payments, insurance, gas, car repairs, etc.)

Car Payments

1. It is usually unwise to buy a car that is less than two years old, since most cars decrease in value very quickly (almost as soon as you park the car in your driveway for the first time).
2. Make sure you pay one vehicle loan off before your finance a second one.
3. Stop the impulse vehicle buying!  Before buying, shop around to compare prices, read consumer reports, and locate a vehicle that has a good resale value.
4. Don’t buy a big vehicle if you don’t really need one. For example, if you only make two trips to haul things in a truck from Lowe’s or Home Depot each year, it is not beneficial to you to pay a huge amount for a truck with excellent hauling abilities. You can easily pay $20 per hour from a truck rental company to get your two trips a year done.
5. Before you finance a vehicle, you should set aside the monthly payments and insurance amounts for a few months ahead of time. If you are not able to do this, or you fall behind on your other obligatory expenses, you shouldn’t finance a vehicle at this time. However, if you are able to do this, and can keep up with all of your other expenses, the saved amount can be used as a down payment on the vehicle you finance.
6. If you are planning a vacation, and your current car is not trust-worthy on long trips, you could rent a vehicle rather than buying on. Buying a vehicle will cost you approximately $250 each month, totaling at least $3,000 a year only in payments. An already paid off older vehicle will cost you up to $1,000 each year in repairs. However, if you rent a car for a weekend trip, you may only have to pay $100. Moreover, if you only take two weekend trips each year, and pay for repairs on your current older vehicle, you will pay about $1,800 less than if you bought a new vehicle.

Insurance Costs

You should shop around to compare prices and get the best interest rates available. Submit various inquiries to Online Insurance Quotes and increase the deductible in order to try to decrease your monthly payment. If you possess an older vehicle that is already paid off, check with your state laws to determine if there is anything you can do to decrease your insurance payments. Your insurance company may offer lower rates for monthly payments that are made in full, or they may make other arrangements for you. Many insurance companies will quote you a very low rate if you pay six months up front rather than once per month.

Fuel Costs

1. Compare fuel prices before stopping to get gas. Do not let yourself run so low on fuel that you have no other option but to stop at the most expensive gas station.
2. Use public transportation whenever possible.
3. Complete all of your errands at one time, rather than taking multiple trips to do what you could have done in one day. During high traffic hours, it is unwise to do your errands, because you will waste gas by sitting in bumper-to-bumper traffic.
4. If possible, walk, run, or ride a bike to your location.
5. Car pool whenever possible.
6. Maintain your car’s tuning.
7. Choose your best vehicle for gas mileage for the majority of your driving.
8. Plan before you go anywhere. For example, it is not cost effective living to spend money on unnecessary snacks at the gas station and less money on gas. You will probably need gas more than you do the snacks.
9. Ask your boss if you are allowed to telecommute.
10. If one is available, buy your fuel from discount wholesalers, such as Sam’s Club or Costco.

Food Costs

It has been currently widespread in America for families to eat out at restaurants than eating at home. At many restaurants, you will pay more for one meal than you would for a whole day if you ate at home, maybe even for a whole week (depending on what restaurant you go to).

1. Everyone likes to eat out occasionally, but you should limit how often you do eat out. For example, instead of eating out once a day, you can decrease it to once a week, or maybe eat out on special occasions (it will be even more special to know that you have saved money).
2. Eat out around lunch time, since it is cheaper than the higher priced dinner options.
3. Use coupons whenever possible.
4. Shop around for restaurants with the best special deals.
5. Instead of buying high priced soft drinks or other beverages, simply order water with your meal (this will not only help you save money but will also help your health as well).
6. Share a meal if possible.
7. Only order what you really want. Don’t order plates that have extra sides that you know you won’t eat.
8. Don’t get too hungry. Keep on hand a few low calorie snacks in your desk at your work location, in your car, or in your handbag. This will hold you over until you get home or get to a low cost restaurant.

Home Costs

1. In order to prevent heat loss or gain, winterize your home or get it ready for summer. Your thermostat should be no higher than 65 degrees Fahrenheit in the winter and no lower than 75 degrees Fahrenheit in the summer.
2. Decrease your shower time, or wait and take one at your local gym.
3. When washing your clothes, use cold water when possible.
4. If you have good cell phone signal at your home, have your land-line telephone shut off.
5. If you have a room you don’t use, close the doors and vents in the unused areas of your home.
6. In the summer, use your grill and in the winter, use the oven.
7. Invest in a water-saving device, such as a shower head that has a low flow.
8. In your garden, choose plants that require less water and work.
9. Instead of using water or an electric leaf blower, simply sweep your driveway or sidewalk.

Entertainment Costs

1. Analyze if you actually need cable television, or whether it would be better cost effective living for you to just rent a movie occasionally.
2. For recreation, go for a walk, hike or picnic, rather than spending big bucks on some other form of leisure activities.
3. Set a budget for your entertainment needs. Plan your expenses and then track them to determine that your leisure expenses are not getting too much out of hand.
4. Use your local library to read books or magazines, rather than subscribing to them or purchasing them at a magazine stand.
5. Purchase a used book, and then sell it back when you are finished reading it.
6. Watch movies during the matinée hours (usually half-price that of evening hours). Don’t buy popcorn or soda, which can be very expensive. In the long run, it is actually less expensive to buy a home entertainment system than it is to go to the movie theater often.
7. Rent recreational items rather than buy them. You can rent bikes, hiking equipment, boats, etc., for much less than if you bought them at full price. An added benefit is that you don’t have to have the burden of trying to find a place to store them throughout the year.

Clothing Costs

1. If you are only going to wear something a few times or it will quickly go out of style, don’t spend a huge amount on trendy items.
2. Only buy items on sale, never at full price.
3. Shop for quality, not quantity. It is beneficial to find a few clothing items that you will get a lot of use of than buy a whole closet full of things that you will never wear.
4. Buy bulk items for the basics (if you locate a good deal), such as on underwear and socks.
5. At the end of the season, shop for the next year, because this is when there will usually be good sales going on.
6. Check care labels on clothing to make sure that it is machine washable; you don’t want to have to pay a lot for dry cleaning bills.
7. Watch your impulse shopping. Don’t shop to satisfy an emotion that you are experiencing.
8. Shopping should not be considered as part of your leisure entertainment.
9. Shop for bargains. There may be the same item at another store offered for a much lower cost. You can shop at yard sales, consignment shops, thrift stores, or online auction websites, such as on Ebay or Amazon.
10. When shopping for your kids, don’t waste your money on getting them something that you know they won’t wear. Just because you like it, doesn’t mean that your kids will wear it.

Windfalls Cost Effective Living

Plan how you will spend a windfall, so that the money won’t disappear into unnecessary expenses that you can’t see where all the money went to.

1. Returns on your Taxes:  Budget where you are going to put that “extra” cash you receive. Plan to pay off cash loans or credit cards that charge interest. The highest interest rates should be paid off first, and then with the money leftover, pay off other bills.
2. Gift Money:  Your children should learn that they should save half of the money they receive as gifts. Adults, who receive gift money, should put the money into emergency funds, for a vacation, or for paying off accounts that charge interest.
3. Do not Pre-Spend:  Don’t presume anything until you actually have the money in your pocket. If you expect a raise or bonus at work or a huge tax refund, don’t go out and buy an expensive vacation package, because you may not get the amount that you were hoping for, or anything for that matter.  You will get into a lot of financial troubles if you spend money you do not currently have.

Moreover, using cost effective living strategies will not alter your lifestyle that much. These are just a few tips you can try to increase your savings throughout the year. With just a little of temperance and correct planning, you will how much you are saving.