How to Save When You’re Broke
Welcome to Free Financial Aid Now.com Today’s post will surely help you manage your financial situation. Let’s face it, many financial advices you see on TV and on the internet are mostly targeted on those who can actually afford to cut on leisure spending. Many of them will tell you to spend much less time at the mall, or make your regular trip to your favorite restaurant on a weekly or monthly basis. Financial advices for those who could barely afford even basic spending and is left almost nothing of their monthly salary could not even go and spend dough on such places, let alone cut trips to them.
Even though the United States is the richest first-world country, 50% of American households earn well below the annual $48,000 and 22% of the population barely has money left to spend after paying for basic spending. To make figures worse, 10% of the American population is well below the Federal Poverty line, earning only an average of $16,000 annually. Also, 47 million Americans or 15% of the population have no health insurance.
The figures stated are really disturbing and we have to admit ourselves that many people will not benefit from those typical financial advices seen on TV. People could barely save money with such low income and high basic spending leaving them barely 20% of their annual income to spend clothes, gifts, clothing and household necessities. With only around $200 more or less left on their monthly income, many American families suffer from a very tight budget.
Being broke, however, doesn’t mean it’s a hopeless situation. A big factor that can help us rise from debt is our attitude towards our problems. If we think that things are really hopeless, then it truly is. If we think that we can’t do it, then we truly are stuck to being broke and miserable. We have to be determined in order rise up to the challenge. It’s a bit cliché of an advice but it really helps when you think positively.
Changing our attitude on facing problems is a big step on salvaging ourselves from poverty. The next step is to change that 80% annual expense on basic spending to near 50%. You can do this but cutting expenses on basic spending. Cutting expenses may not really be the best option you have, so cut costs only if you feel like you can risk it.
This can be tough though due to the risks and compromises that might happen. If you are trying to cut cost on health insurance, this might really compromise your family. You have to expand your choices: switch to cheaper doctors and pediatricians, generic pharmacies sell cheaper medicines for the same effects, . You can also cut cost on your car insurance. If it is possible for you to just commute from your home to your workplace, then you can consider selling your car.
For child care, it might sound shocking to cut cost on it but you can break down the expenses into specifics like diapers, school, day-care. We can cut cost by switching day-cares. There are testimonials of people who spend $110 monthly on a day-care and felt unhappy about their services. They switched to a $90 day-care but were very satisfied with the service. For school, look up for options on scholarships and athletic allowances for your child.
If cutting cost on your basic spending is still not enough for you to reach the 50% mark, then you might consider finding ways to increase your income. Ask for a wage increase, find sideline jobs, yard sales, e-Bay selling, auctions, there are lots of options to choose from.
Be really careful in choosing though, scams like multi-level marketing, pyramiding, and the likes that are more likely bring you to financial ruin and debt. Research more on your options and listen to experiences from other people who defeated poverty. Also, illegal activities are strictly out of your option. Though it might bring you quick and easy money, a day will come when it will turn around, bite, and drag you down.
Tags: April 2011 Financial Aid, Financial Help Tips, How To Save When You're Broke
