Q.  What does it mean to live within your means?

A.  Simply put, it means to adjust your needs and wants to fit the amount of money you have to spend. If you do not spend more than you have or earn, then you are less likely to have bills or debts that you cannot pay.

Q.  How can I live within my means when I barely have enough money to put food on the table and a roof over our heads and clothe my family?

A.  While it is true that some families barely have enough to satisfy basic needs (food, clothing, and shelter), many times there are ways that everyone can reduce the costs of these routine expenses. The first step is to carefully examine your habits and look for ways to cut costs. Second, decide if you really want to make changes to cut cost or if you just want to talk about the idea. Third, if you want to change, make adjustments in wasteful habits. If you have identified several areas, consider making one change at a time until you are satisfied that the wasteful habit has been changed. In short, start slowly but be persistent and consistent. When several people are involved, the success of the attempt to cut costs will require their cooperation and commitment. As necessary, discuss the idea with them to get their ideas and cooperation.

Cost Cutting Example:
If you routinely buy carbonated drinks (sodas) from a vending machine, ways to cut this cost include (a) stop drinking the beverage, (b) buy six-packs from a discount or grocery store, (c) reduce the number of days you buy drinks, or (d) substitute a cheaper beverage that you can make at home.

Selecting alternative (a)--stop drinking the beverage could mean a savings of more than $150 (.65 x 5 = $3.25; $3.25 x 52 (weeks) = $169).

Telephone

• Use basic service.
  
• Buy telephones from a discount store rather than renting them from the phone company.
  
• Cancel special services (three-way calling, call forwarding, etc.).
  
• Dial long distance direct.
  
• Avoid shut-offs. Call the company IMMEDIATELY if you are unable to pay a bill by the due date. The company may be willing to accept partial payments until you have paid the bill in full.

Electricity

• Lower hot water heater settings.
  
• Ask your company about cost-savings programs.
  
• Turn off unused lights and appliances.
  
• Avoid shut-offs.

Clothing

• Shop at thrift stores and garage sales.
  
• Buy quality clothing you can afford.
  
• Care for clothes properly.
  
• Shop at "end of seasons".  Example: Buy summer clothes for the upcoming year when summer clothes are put on sale this year to make room for the winter clothes.
  
• Buy dark clothes for major items (pants, skirts, jackets). They will show less wear as they age.

Take care of what you own

• Keep major appliances and other household items clean. This will increase their life and reduce the need for replacements.
  
• Use basic or all-purpose cleaning supplies. This will reduce the need to buy products for specific cleaning purposes.
  
• Clean regularly. This will also reduce the need for specialty cleaning products that can be costly.
  
  

Prepared by Cathy Faulcon Bowen, assistant professor, Department of Agricultural and Extension Education