* You should have at least 6 months to one year of living expenses if you plan to quit a regular or salaried job.
* Adjust your monthly and annual budgets. You must reduce your expenses if you don’t have any income from freelance work or your entrepreneurial ventures. You can have a spouse or partner to review your finances and create a personal and joint financial plan. If you are living alone and can’t afford to move to your current home, find a roommate, or search for a more affordable place to live. Then create a new financial plan.
* If you receive income from self-employment, such as inheritance, retirement pensions or disability payments, Prioritize mortgage/rental payments as well as utility bills, insurance, food bills and insurance. You should save any money left to avoid spending it.
* Pay your rent or mortgage a year ahead of time if you can. You will have at least a roof over you head if finances get tight. If you are looking for smaller, more affordable homes, apartments or townhouses, consider renting.
Renter insurance is a good option. You can replace any items that are damaged by fire, theft, or flood.
Cut unnecessary costs such as extra cellphones, cable/ satellite TV, landline telephone service, extra cellphones, and subscriptions to magazines, if you haven’t done so already. If you do need these services, you should assess your needs and choose the best brands or packages.
* Don’t waste electricity, gas, oil or water. It is important to be responsible about how you use your utilities.
If possible, sell your vehicle. Take public transport, bike or walk to get to your destination.
* You must have a credit card. Please make sure it has a low credit limit. Only use the credit card to pay large expenses such as hotel/motel reservations. Pay your monthly balances on time and in full every month.
* Pay cash (preferred), or use debit cards to pay for groceries, entertainment, and clothing. Your items will be paid in full without interest or other charges. You can also save money by buying bulk items such as toilet paper and paper towels, and reduce commute time. You can either buy what you need now or store them for later.
* Don’t buy things impulsively. Make a shopping list and budget before you go. Avoid buying lottery tickets, raffle tickets, vending machines, fundraising items, and fast food at gas stations and convenience stores. These items are more expensive than the items you can make at home or in regular grocery stores. You don’t want to gamble your money on games of chance.
*If you’re married or live with a spouse, a joint checking account is used to pay your utility bills as well as other household expenses. You can use a separate checking account to pay bills and expenses if you’re single. You want to make sure your bills are paid on time and in full.
* You can use separate personal savings and checking accounts for purchases if you’re married or live with a domestic partner. You can pool funds in any way you like, for business expenses or to leave money to a spouse/partner. Please get all relevant information in writing and have legal counsel notarize. It is important that you get what you deserve in case of separation or divorce.
Don’t lend money to people unless you know for certain that they will repay you. When you loan money to someone, it is important to be clear that it is not a gift.
* Take any change that you find in the shops, on streets, at bus stops or under your couch. Place them in rolls, and you can either cash them out or put them into your savings account.
* Keep track of small denomination bills, such as $1.00 or $5.00, and accumulate them until they are absolutely necessary.
* If you have a significant amount of savings (> 10,000) and are between 20-55 years of age, you might want to invest this money in mutual funds to grow passive income. This will help you build your retirement.
To have people buy items that you don’t need anymore, hold a yard or garage sale. People will be able to give you stuff they might need/want, and you’ll make extra money.
* You can sell memorabilia and collectors’ items either in person or online.
Borrow library materials rather than buying new books from bookstores. You can also find information on the internet by searching for blogs.
* Keep your health in good shape and get regular physicals. Affordable self-employed insurance options are available.
Limit your outings to eating and/or drinking to no more than 1-2 times per week or every other weekend. Making your own snacks and meals is cheaper than hiring someone to prepare them.
* Challenge yourself. You can see how many days, weeks or months you can go without spending money except for essentials. You can even eliminate shopping at the mall and online.
