(Photo: Getty Images)
Looking for ways to cut back on spending without sacrificing
your quality of life? Tom Hsieh’s family has figured out how to do just that.
The technology executive,
his wife, and young daughter live on less than $40,000 a year in Pomona in Los Angeles county,
California, even though Hsieh’s annual salary exceeds $200,000. In some years, the family has lived on $38,000.
The family donates the rest of Hsieh’s salary (after paying
taxes) to various charities. Hsieh and his wife are committed to
giving back and have challenged themselves to live below the national median
household income, which is currently $50,740. A challenge they have
exceeded year in and year out.
How do they do it? They rent a modestly sized apartment in what
Hsieh calls a poor neighborhood that he has lived in for the past 15 years.
That’s a huge cost savings right there, says Hsieh, even if it’s not the
“American dream.” He drives a used 1998 Nissan Sentra that he paid $2,200 for.
And the family doesn’t buy much stuff.
The best part is that Hsieh and his family are happy and
don’t feel as if they are making any sacrifices. Which corners to cut is a
personal decision, but here are some more suggestions of how to live well
without spending a fortune.
Eat lower on the food
chain
You don’t have to give up meat entirely to save money on
your food bills. Simply cutting back on portion sizes or limiting the number of
times a week or day you eat meat will benefit your wallet and your health.
Preparing more meals from scratch, not
wasting food, and cutting back on packaged foods and meals at restaurants
will also save money. Here are some other tips for stretching
your food budget.
Want to do more? Consider starting a kitchen garden and
growing your own herbs, lettuce, and veggies.
Cut back on or cancel
cable TV service
Watch TV shows for free on Hulu or rent
movies on the cheap. While you’re at it, consider getting rid of your home
phone if you don’t use it much. Use your cell phone or Skype for keeping in
touch.
Avoid the airport
Skip an expensive plane ride and take a road
trip instead. If you have to travel to a far-flung location, then check out
these
tips for cutting your travel costs this year. Some favorites: Sign up for a
Twitter account so you can take advantage of exclusive deals that travel
companies are promoting or find the cheapest
dates to fly.
Buy only what you can
afford
Why get into debt to accumulate more stuff you probably
don’t need? Most of us have unused things piled up in closets, basements, and
attics. In fact, you can earn a little extra money by cleaning out your closets
and selling your castaways. When you do need something, consider buying used,
shopping at thrift stores, going to swap parties, renting,
or seeing if you can get
it for free.
Alternative
transportation
Save money on gas by walking, biking, and taking public
transportation when you can. Ask your boss if you can telecommute once a week.
If you don’t use your car very much, consider selling it and using a car
sharing service such as Zipcar so you’ll
have easy access to a vehicle when you need one, but you won’t need to pay for
insurance or maintenance.
Environmental journalist Lori Bongiorno shares green-living tips and product reviews with Yahoo! Green’s users. Send Lori a question or suggestion for potential use in a future column. Her book, Green Greener Greenest: A Practical Guide to Making Eco-smart Choices a Part of Your Life is available on Yahoo! Shopping and Amazon.com.