Practical tips for finding extra cash

In the book The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas J. Stanley and William D. Danko, the main points discussed by these authors are: Being "prugal": prudent and frugal. and avoid buying status objects or leading a status lifestyle.

Living within your budget may seem like an overwhelming task. Yet as the spectre of economic uncertainty continues to loom over the world, more people than ever before are subscribing to the "new frugality" and taking proactive steps to control their spending. The major keys to success are: reduce your expenses and recognize that every dollar saved goes directly to the cash-flow margin. Below are some practical steps to cutting cost, spending sensibly and making ends meet.

1. Trim your utility bill. Set your thermostat 5 degrees higher in summer and five degrees lower when winter comes. Get your utility firm to install a load controller, which automatically shuts down or lowers power on certain appliances to conserve electricity. You can also get programmable thermostats at most hardware or home-repair shops; these devices raise or lower the temperature of your house according to your individual lifestyle needs.

2. Learn to do your own repairs. Check out the do-it-yourself books available at most home-supply centres for everything from maintenance tips to building and repair guides. Be careful with electrical maintenance, make sure you switch of the mains first, and if in doubt call the repair man.

3. Consider relocating as a last resort to reducing housing costs, you may want to move to another house or even another city. Even a short move has a dramatic impact on costs, from housing prices to taxes. According to the authors mentioned earlier, living in a status neighbourhood is not only poor value, but you will feel the need to keep buying status objects to keep up with your neighbours.

4. Rent rather than buy. Some things you just don't need to own: vacation homes or cabins, time-sharing arrangements, boats, major tools, high ticket sporting equipment, etc. It's comparatively inexpensive to rent state-of-the-art equipment, return it when you're done, and avoid maintenance, depreciation, property taxes, and so on.

5. Buy used goods. Contrary to popular belief, buying used goods is not risky and does not take a lot of expertise. If you know you will need a major appliance or car, begin shopping three or four months before replacement becomes necessary. Consider buying used automobiles, televisions, stereo equipment, refrigerators, freezers, furniture, children's clothing, etc. It is said that the cheapest car you will ever own is the one you presently own.

6. Go public on education expenses. Pick a highly rated public school over a private school and save thousands of dollars. Find scholarships that match your child's needs and talents.

7. Stockpile on anticipated needs. If possible, buy products for reduced prices in quantity - canned dried foods, paper goods, etc. Shop at clearance sales, membership warehouses, or other special sales. Do comparison shopping and seek out the best deals.

8. Plant a garden. This healthy idea can help trim food bills by as much as 30 percent, even on a relatively small plot of land. Many gardening tips are now available on the internet.

The Bible does show many ways to overcome any financial difficulty. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

Today's Bottom Line

The cost-cutting list could go on and on. Most needs can be found at deeply discounted prices if you are willing to do the research. Cutting costs and controlling spending will obviously have an immediately and positive impact on your cash-flow margin.

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

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