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Written by J.P. Wicklein
If money is tight and you are struggling to make ends meet you may be in a situation that requires drastic change. Perhaps you’ve made small improvements such as eating out less, getting rid of cable television, or clipping coupons. In the end, though, if little steps aren’t enough you may want to consider taking more serious measures. Here are a few suggestions that may not be for the faint of heart:
1. Move back in with your parents. Just think how much more money you would have each month if you didn’t have to pay your rent or mortgage. It probably wouldn’t be a bad idea to limit the burden on your folks, though. So consider throwing them a little bit of cash to offset using their utilities and eating their food.
2. Get a second job. Admittedly for some hard working Americans this isn’t an extreme idea at all. For those of us that can’t fathom working beyond a 40 hour week, though, a second job can seem daunting. If, however, you were able to work another 20 hours a week at a job making $10 an hour you could increase your gross annual income by $10,000.
3. Turn off the heat and air conditioning. This may be a bit too extreme for really cold winters but, it may be more bearable in a hot summer. Just open the windows and run a couple big fans. Hey, prior to the 20th century people didn’t even have the option to use air conditioning.
4. Sell your stuff. Okay, you may want to keep your mattress and bedding (especially if you’ve turned off your heat). That said selling your furniture, stereo, television, and computer could provide you with a decent sum of money. Also, if you own a car and public transportation is an option consider selling your car along with everything else.
5. Become a carpool driver. If you live in an urban area you may be able to take advantage of a carpooling program. One such example is Pace’s Vanpool Incentive Program (VIP) in Chicago. Pace provides carpool drivers with a van and covers all of the costs (gas, maintenance, tolls, insurance, roadside assistance, and even car washes.) Riders in the carpool pay a monthly fee to Pace. The driver, however, gets to commute for free.
6. Ask for help. For many people admitting you are in financial trouble and being humble enough to ask someone for financial assistance can be an extreme step. If you have family or friends consider reaching out to them. Also, consider contacting a church. Many churches have charitable programs designed to help people that need help the most. Perhaps you are one of them.
7. Declare bankruptcy. Although U.S. bankruptcy laws aren’t as forgiving as they were several years ago, bankruptcy can still be the best option for people who are hopelessly saddled with crushing amounts of debt and no viable way to repay creditors.
For those that feel like they desperately need to improve their bottom line hopefully one of the above ideas is palatable. Even for those that are doing okay financially, but want to do some serious penny pinching, one of the above options may be appealing. Regardless of your situation, if you are looking to cut expenses, increase your income, or generate some cash I hope that I’ve given you some ideas worth thinking about.
10 responses so far ↓
1 Seth // Nov 22, 2008 at 12:35 pm
Great article! I’m considering adopting the idea of selling my stuff. I just have too much of it that I don’t really need/use. If I can stomach it I may move back in with my parents, too. It really is a great way to save a lotta dough.
2 Financial Fellow // Nov 22, 2008 at 2:16 pm
I’d say of the 7 ideas I provided living with your parents (at least for a while) may be the most palatable. Thanks for the comment, Seth!
John
3 Robin // Nov 23, 2008 at 12:43 pm
My oldest daughter must have listen to you. After one and a half years of having five more people added to my home you need new advice to go with it. I have done most of that. Sometimes it still leaves a bit to be desired!
4 Financial Fellow // Nov 23, 2008 at 4:24 pm
Robin -
You sound like one great mother to be so kind to allow your daughter and the others back into your home. If you have any additional suggestions I’m all ears. Thank you for the comment.
John
5 B. Estey // Nov 24, 2008 at 8:35 am
John,
I had a friend call me this past weekend for some financial advice. He’s considering filing for bankruptcy and wanted to know the consequenses of doing so. I wasn’t sure of the answers, but his questions were pretty important considerations. What condidtion do his finances have to be in to be eligible? What will it do to his credit? How long will it take him to regain his credit? Will he be able to borrow in the future? Will he be able to keep his home? Will he be able to keep his car? I don’t know. If anyone who reads this blog knows from personal experience, please advise. I’ve never had to look into it, so I’m really not certain on the answers.
6 Financial Fellow // Nov 24, 2008 at 10:17 am
B. Estey -
By no means am I an expert on bankruptcy. That said here are my thoughts:
1) Bankrupcty will stay on your friend’s credit report for 7-8 years. During which time it would completely ruin their credit rating. This would mean significant deposits would be required to obtain a cell phone, cable service, an apartment, etc…
2) If he’s able to borrow during the 7-8 year period it would be at exhorbitant interest rates and/or require significant up front payment from him.
3) Don’t know about the home and car… I know that if he had a very nice - high end car he would probably be required to unload it.
4) Under the new bankruptcy laws passed a few years ago he may still be required to payback a good portion of his debt. Not sure to what extent.
5) My overall thought is that he/she would need to be in extreme financial straits to declare bankruptcy. Large amounts of debt with no hope of ever being able to pay it back…
6) If they are seriously considering it I would refer them to a bankruptcy attorney. I’d imagine a good attorney could quickly size up their situation and let them know if it is a prudent decision or not.
John
7 B. Estey // Nov 24, 2008 at 10:31 am
Thanks John. I basically told him that he should strongly consider not doing it. He’s current right now, but he does owe a lot of money to a lot of people. He currently has excellent credit I don’t think he realizes how hard life can be for those who don’t. I know I’m spoiled by the fact that when I say I want to borrow money or when I want a service like a cell phone or to turn on a utility, no one questions me. Credit is one of the finer things in life that you don’t really think about or appreciate till you don’t have it anymore.
8 Financial Fellow // Nov 24, 2008 at 10:42 am
Amen to that. Another consideration is that many employers will run credit checks on perspective employees prior to hiring them. The idea being that statistically speaking people with bad credit scores are more likely to make poorer employees.
John
9 B. Estey // Nov 24, 2008 at 1:08 pm
Excellent point. Less likely to be good employees and more likely to help themselves to company assets.
10 Job // Feb 27, 2009 at 8:55 pm
That is why some companies lock up the pencils… For god sake.. pencils… how much are they worth… Can’t believe people would take them home.
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