MONEY-SAVING

Tips

BUDGET

We live in a culture that is obsessed with spending. Everywhere we go, advertising messages are telling us to buy, buy, buy, and we do. We've been taught to feel good about ourselves when we have nice things--fashionable clothes, a great car--but those who made money selling us the stuff feel even better. They're getting wealthier while we fall into debt.

The more our indebtedness grows, the more it costs us in interest, until pretty soon we're overwhelmed by how much we owe.

Advertisers and the media work hard to get us to believe that expensive luxuries like cell phones and cable TV are normal services that we all should be able to afford.

The truth is that more than half the people in the U.S. make less than $25,000 a year. Most of us cannot pay for these expenses without overspending.

Not only do we make ourselves poorer when we spend more than we can afford, but we are contributing to our own oppression by turning over our hard-earned cash to the very companies that are hurting us by influencing government to act in their favor and against the best interests of regular people.

To avoid getting into debt, we have to spend less than we make. To get out of debt, we have to cut expenditures even further. Sometimes debt is unavoidable, if we have no income or make too little to survive.

However, if we have a small income, as little as $7000 a year, we can budget our lives to live within our resources.

Saving money can be as hard as sticking to a weight-loss diet. Like a diet, it requires changing one's habits and one's thinking about what it's possible to do without.

KEEP A BUDGET:
for one month, write down what you spend every day and on what. At the end of the month, look it over to see where your money is going and what you could possibly cut out the following month. Do not feel guilty about what you may have already spent! That is just as defeatist as worrying about having cheated on a diet. Look forward to what you can save in the future by planning ahead.

An Example of an Extreme Money-Saving Budget

Rent: $300/month (half of a $600 apartment, split with a roommate)
Phone: $18/month (half of $36)
-no optional services
-no long distance
-about four calls a day
Electric: $13/month (half of $26)
Gas: $60/month Nov. to March
$15/month Apr. to Oct.
(half of total)
Average: $34/month
Food: $4 a day or $124/month
Soap, toothpaste, shampoo:
$48 a year or $4 a month
Clothes: (from a thrift store)
$36 a year or $3/month
Miscellaneous; $5/month
----------------------------
Total: $515/month

An Example of a Typical Budget

Rent: $600/month
Phone (local): $58/month
Long distance: $40/month
Cell phone: $40/month
Electric: $26/month
Gas: $68/month
Food: $15 a day or $460/month
Eating out with friends: $80/month
Movies: $40/month
Cable TV (basic only): $40/month
Minimum payments on credit card bills: $125/month
Going out: $130/month
Toiletries: $10/month
Clothes: $25/month
Video rentals: $20/month
Magazines: $15/month
New purchases: $35/month
Internet provider $24/month
Car (used): $200/month on gas,
insurance, and maintenance
Miscellaneous: $20/month
----------------------------
Total: $2056/month

Consider eliminating some of these items from your monthly budget:
Cable TV * premium cable * pay-per-view * cell phone * pager * optional phone services * gym membership * magazine subscriptions * video and DVD rentals * movies * new clothes (buy used or wear what you have) * taxi rides * lottery tickets * air conditioning * ATM fees * CD’s (try taping music off the radio) * video games * expensive toiletries and cosmetics * fast food * sit-down restaurants (except as an occasional treat) * frozen dinners * prepared foods * sodas * snacks * gimmicky candies (that come with prizes, etc.) * going out to bars and clubs (entertain at home or have shared parties) * tickets to sports and concerts (look for free events, especially in the summer)

NEW STUFF in general: CD players, game systems, DVD players, trendy outfits and bags, jewelry, accessories, decorations for the home; even small stuff like a key chain, a cosmetics bag, a cool watch, a new wallet, a cigar, etc. can add up to big bucks over time.

OWNING A CAR is the single biggest expense for many of us when you add up insurance, gas, repairs, maintenance, and car payments. If saving money is a priority, consider selling the car.

It's your money. Don't make it their money.

The Common Wheel
P.O. Box 371
St. George Station
Staten Island, NY 10301