Half the income: My story
I was married for 14 years before my income was reduced to a little less than half because the marriage ended and we separated. Money still comes in from the alimony payments, thankfully. My working budget suddenly was split in half. I did not know how I was going to survive and pay the bills. I was in a mess, but racking up credit card bills and payday loans were not the answer. Without turning to debts on a full time basis, I knew there had to be some way I could survive. While these loans may help in a pinch, I knew I needed to find a better way.
Decrease Housing Costs
During the split, I was involved with another for a small period of time, which lived in Middle America. I was not about to stay where I was, so I packed up my family and moved to Small Town USA. We managed to get a nice little three bedroom house on a three acre property for about one fourth the price that we were paying for a house in the big city. My living expenses were finally at a manageable level. Should your income be reduced, so should your housing costs.
Decrease your transportation expenses
Around the same time that we split, we had a huge car payment on a new vehicle that we were struggling to keep up with. Long story short on that car is that it had to go away. My vehicle that I got to replace the other car is ready to give up the ghost. I did not pay a lot for the car, luckily. I just buy gas once per month now, without any other transportation costs. How did I do this? Since I work from home as a freelance writer, I only use the car about once a week to get groceries and do laundry. The small town does not make these places very far from my home, so my errands take less time and gas. If I do not drive very far, there is no need to take out payday loans.
Cut back on utilities
Moving to a smaller house automatically lowered my utility costs; I was able to increase my cable and internet. It became possible to decrease my heating bill because of the things I did to the house. I winterized the drafty windows with plastic. An unused door was covered with a thick blanket. The cracks under the kitchen counter were covered with foam. I have a couple space heaters to warm the colder parts of the house. Now, I do not have to turn up the thermostat as high and I save over $ 100 per month just in heating costs.
Cut back on food costs
One of the biggest items in a budget, besides housing, is the food budget. Many times, we use to go out to eat instead of cooking at home. While I was married, this happened at least. Less money means that I now cook much more than I ever have before. When we eat out now, it is a treat that we usually save for special occasions. Because I stopped buying junk food, my budget for food left me with more money at the end of the month. Being healthy and saving money was a direct result of doing this. I started thinking in terms of cooking from scratch, rather than buying pre made food.
The end result
In the effort to bring down my expenses to meet my income, I have effectively come way under budget. Because of this, I have been able to save money every month to buy a decent car. My monthly income is not a secret, so I will tell you. I am getting $ 2,000 per month from my ex, and another $ 800 from my work online. However, my monthly expenses are only $ 1,700 to $ 1,800. It seems unfeasible that someone who earns more than me should go into debt. It just does not add up if you have to get by on credit cards and payday loans if your income is slashed in half. Slashing your expenses is critical to living on half an income.
