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Ask an Expert – What are ways to save money now that we don’t have a second income?

Question

What are ways to save money now that we don’t have a second income?

Answer

First thing is to adjust your priorities. Remember this key point: It’s not what you make, it’s what you keep. Along with setting priorities comes one tough rule of life: You can’t have everything. You have to make conscious decisions about every purchase.

An important concept to understand is want vs. need:

• A need is something you have to have, something you can’t do without. You “need” food. You “need” shelter.
• A want is something you would like to have. You “want” ice cream. You “want” a bigger house.
You may have to make sacrifices for a period of time and go without some of your “wants.” It’s not that tough, but it is very, very important to your financial health.

Look for ways to reduce spending or eliminate expenses, freeing up more money to save. Some common areas to look at are auto and home insurance, cable and internet, club memberships, subscriptions, and eating out.