[Image: grocery shopping]Many people feel fortunate that they managed to hold onto their jobs this year, but few were fortunate enough to see a pay increase. Some who work hourly or on commission are actually seeing a decrease in their pay check, which leaves many families trying to figure out how to live on less.
LSU AgCenter family economist Jeanette Tucker says cutting back requires good financial management, and that begins with examining your family’s current financial position or net worth.
“Net worth shows how much a family is worth in dollars and cents at a particular point,” Tucker said. “It equals the difference between what you own and what you owe.”
This will give individuals and families an idea of what sort of cuts in spending they must make to survive this tough financial time. According to Tucker, research has found that many families do not adjust their lifestyles for about six months after their income is reduced.
“Waiting can spell disaster,” Tucker said.
By taking charge of your financial situation immediately, you will make a positive contribution to your family’s well-being now and in the future, Tucker said.
Trimming your food budget
Food is a big expense for families. Good planning when it comes to meals is one way to save money. Using a plan and shopping weekly from a list can help you save. Here are some additional tips.
· Shop only when necessary and not more than once a week. Eliminate quick trips to the convenience store.
· Don’t grocery shop when hungry; there is a tendency to purchase more.
· Try generic or store brands instead of name brands.
· Make sure purchases are charged correctly.
· Compare unit prices. The cost per ounce or per pound determines the best value.
· Bring lunch from home instead of buying it.
· Avoid vending machines by bringing your own snacks and drinks.
· Use leftovers in soups, casseroles, stews and salads or make freezer TV dinners.
· Avoid most snack foods. They are expensive and have little nutritional value.
“Taking the time to review supermarket ads and clipping coupons could lower your food costs,” Tucker added.
Growing your own fruits and vegetables can be another way to save money, according to LSU AgCenter horticulturist Tom Koske, but it depends on what you plant and how successful you are.
Research shows that about one-third of Louisiana families garden regularly. Koske estimates that an average Louisiana garden is around 5,000 square feet. This size garden would have a value of around $3,000.
Read the LSU AgCenter’s comprehensive guide on how to grow vegetables. The cost is $20 plus tax. Shipping is free. Learn more.
Cuts around the house
Changing some habits could cut costs around the house. LSU AgCenter housing specialist Claudette Reichel says a few changes can add up to big savings.
“Set your thermostat at 78 degrees in the summer and 68 degrees in the winter,” Reichel said.
Other ways to decrease energy costs include:
· Close vents in seldom-used[Image: changing oil] rooms, except when this would cause moisture problems.
· Unplug appliances when not in use.
· Keep closets doors closed so that space isn’t fully heated or cooled.
· Check hot water usage.
· Run the washer and dishwasher only when full, and use a cold rinse on laundry.
· Wrap your water heater with an insulation kit.
· Switch to fluorescent lighting whenever possible. It uses less electricity and makes less heat than incandescent bulbs.
Lowering transportation costs
You don’t have to sell your car to cut transportation costs, but you could lower costs by following a “do-it-yourself” model.
Buying oil and other fluids from a discount center and adding or changing them yourself may cost time, but could save money.
Keeping your tires inflated properly. Under-inflation causes them to wear out sooner and lowers gas mileage.
If money is particularly tight, you could consider using public transportation, biking or walking as a means to save cash.
What can you live without?
Cable packages with hundreds of channels, caller ID and digital video recorders make our lives easier and more enjoyable. During tough financial times, you may have to cut some wants to fund your needs.
Look at your cable, telephone and cell phone plans, and see where cuts could be made. Cancel all special services, and go back to just the basics.
Also, evaluate your entertainment budget, which may include things such as movies, dining out and video rentals. Cut back on these extras while money is tight.
“Take advantage of free activities like public parks, playgrounds, museums, concerts, church and school events,” said Gloria Nye, LSU AgCenter family economist. “Use the public library for free, especially for books, music, movies and access to the Internet.”
The k[Image: cutting back]ey to survival during challenging financial times is to control spending. Restrict purchases to needed items and go without items that are just “wants.” Before buying something, ask yourself:
· Do we already own one?
· Can we do without it?
· Can we postpone its purchase?
· Can we substitute something else that costs less?
· Can we use our skills to make it?
Tobie Blanchard
The LSU AgCenter is one of 11 institutions of higher education in the Louisiana State University System. Headquartered in Baton Rouge, it provides educational services in every parish and conducts research that contributes to the economic development of the state. The LSU AgCenter does not grant degrees nor benefit from tuition increases. The LSU AgCenter plays an integral role in supporting agricultural industries, enhancing the environment, and improving the quality of life through its 4-H youth, family and community programs.