Surviving on One Income: Creative Stretching
December 9th, 2008 | 
Author: When it comes to surviving on one income, we’ve talked about evaluating your situation and creative ways to add to your income. (See the bottom of this post for links to previous steps.)
The next step to creativity is figuring out how to stretch your income. Here are some ways I’ve stretched our income:
- Calling utilities and insurance companies. Are you getting the best rate or the best package deal? Calling your phone company, television service provider, or internet provider may yield you a small monthly savings.
Back in 2007 when I started my own business, we shopped around for new car insurance. We were very satisfied with the current company, but felt like we might be able to get a better rate. (When we signed on with that company, they were the best rate around.) We called every insurance company in our area and compared apples to apples (same deductibles, same coverage). We were able to save…are you ready?…over $50 per month! In fact, with the savings, we added life insurance policies (something we didn’t have before) and were still paying less than at the previous company.
Update 3/28/09 – Another example of savings happened recently on our phone/high speed internet/satellite TV bill. I noticed the amount of our monthly bill was changing by a few dollars here, a few there. Eventually those dollars added up. We were supposed to be part of a package deal (all three services combined) so I didn’t understand why our monthly amount kept changing. I called the company and after much discussion determined that the culprit was the satellite TV company. Their prices weren’t “locked in.” However, I found out we were eligible for another deal for the remainder of 2009. With this deal we’ll save $53 month! Add that with our insurance savings from above, and we’re know saving over $100 per month just by making phone calls and seeking the best rates. It definitely pays off!
- Growing vegetables. A summer garden is a great way to have fresh produce for an incredibly reasonable price. Initially the cost of putting in a garden won’t seem practical, but in the long run, the savings and delicious fresh vegetables are well worth it. If you eat organic vegetables, this is definitely the best alternative to paying the high prices in the grocery store. Is your space limited? Consider growing herbs and basic plants like tomato or pepper – all will do well in containers on a patio. For small garden ideas, visit the Garden Vines blog.
- Investing in meat. This option may not be possible for everyone, but consider supporting the local farming industry. Most farmers will offer half of a cow or pig for purchase. You’ll pay for the butchering cost and a price per pound to the farmer, but overall the investment of $300-$600 per year for delicious roasts, t-bones, lean ground beef and more is well worth it. The selection of prime meats (the ones that cost $8+ per pound in the store) will melt in your mouth. Many times the local farmer operates organically too.
Deer hunting is really big in our area, and venison is a great addition to our freezer. For an investment of time and the cost of a shotgun shell, we have a well-stocked freezer of roasts, tenderloin, steaks, and ground venison. This year to reduce our pet food cost, we’ve reserved about 60-70 lbs of venison as dog food. About two or three times a week, we’ll prepare a cooked meal of veggies and meat for the dogs – they love it!
- Reducing what you don’t need. When it comes to living on a low income, you need to evaluate what you do and don’t need for survival and happiness. Areas to consider are television channels, cell phone vs landline phone, magazine subscriptions, club memberships, and extra curricular activities. Don’t go overboard and discontinue everything. Just ask what is practical for your lifestyle and location.
In our area of the Appalachians, we have to have satellite TV service because there’s zero television reception. The satellite TV also provides our radio stations since we can’t pick up those either. However, we don’t have a monthly cell phone plan because coverage is very limited in our area. We use Tracfone mainly for emergencies and invest in minutes when necessary. We have unlimited long distance through our local phone company since many of our family and friends live out of state. It’s great to pick up a phone at any hour of the day and not have to worry about the minutes ticking away or if it’s after 7 or 9 p.m.
As far as magazine subscriptions, I get about 10 magazines a month. Two are professional magazines that I pay for, but the others are all free subscriptions to quality magazines like Hallmark, Rachael Ray, Kraft Food & Family, Country Living and others.
My husband maintains his NRA membership and receives the monthly American Hunter magazine as a benefit. Yes, we pay for his membership, and it has already reaped rewards on us when we had to take an unexpected trip to Florida earlier this year. His membership gave us discounts on car rental and hotel rooms saving us over $200 for our trip. When we had car trouble a few months ago, we were able to upgrade our rental car to a larger model that was more comfortable for my husband. The cost? Less than the smallest car at regular price. Definitely worth membership dues in my opinion.
When it comes to reducing the things around you, think practically. Don’t get rid of everything. You’ll only make yourself miserable. Allow yourself a few “luxuries.” These luxuries are possible by not only adding to your income, but also stretching it. While the above ideas will save money and stretch your hard earned dollars, the best stretching comes from shopping strategies.
In the next step, we’ll go over some great shopping strategies that will save you lots of money each month – I guarantee it.
Series posts: Introduction, Step One: Evaluation, Step Two: Creative Adding, Step Three: Creative Stretching, Step Four: Shopping Strategies
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