As everyone is very much aware, we are in an economic slump. Actually, it’s more of an economic downfall right now and we all need to think about how we can live within our means. What does this mean? Simply put, it means we only buy the things we need and if you can’t pay cash for it, you don’t get it.

How can this be done when so many of us are used to buying things impulsively when we want them or going out to eat a few times a week? Think about this – how many times do you buy a candy bar or a soda from a convenience store? How often do you make impulse purchases at the checkout of a grocery store line? Do you run through a drive-thru for lunch several days a week?

These are all things, at the time, only cost a few dollars but a dollar here, a dollar there adds up quickly to being $20, $30 and even $50 a week on things you don’t need at all. These little purchases can quickly balloon out of control.

We also overspend without thinking when it comes to recreation and entertainment; things like renting a video game or going to the movies a lot. We get in the habit of spending money this way, without thinking and it becomes habit over time. Most of these expenses are things we don’t need and we can save a great deal of money by eliminating them. Let’s look at an example:

Jon makes $1000 a week at his job and his bills total $700 a week. He also has to put gas in his car, buy food for his family and feed his dogs. After the bills and his other expenses, he is left with about $50 a week. If Jon’s only thought was, “Hey, that’s dinner out for the family each week,” he would be considered to be living above his means.

If you are on a tight budget, you’ll have to sacrifice some things you used to spend money on regularly. Instead of paying $50 or more at the movies, rent one and watch it at home. Instead of going out to dinner, cook at home and save a lot of money.

If you can’t pay cash for something you want without sacrificing paying a bill or buying food, then don’t buy it. If there is something you really want, you’ll have to save up the money over time until you are able to make the purchase. If you only make $500 a week and you have bills to pay, you can’t afford a $200 a week car payment; you just might have to buy a cheaper car. It may not be what you want, but it is in your means to pay for it and it works. Living within your means involves sacrificing many wants in order to pay for the needs.

We all have limits to what we can afford to spend and despite that, many of us spend money on things we do not need or really can’t afford. If we identify the areas where we overspend, we can start living within our means and in the process become debt free.

Getting together with family and friends is a fun way to pass the time. Just because you find yourself on a tight budget doesn’t mean you have to forgo entertaining. With a small tweak here and there, you can learn to host a gathering without breaking the bank.

Start off by jotting down a game plan. If you know what, when and how many ahead of time, the odds are much greater you will be able to bargain shop and get better deals on what you need.

Consider hosting a potluck, or alternating hosting of an ongoing or regular event such as a dinner club. Don’t be shy about asking people to BYOB. Alcohol gets expensive quickly and it is not tacky or rude to ask guests to contribute.

Instead of store bought flowers, use flowers or other greenery from your own yard as centerpieces.

Consider watering down a party. If you normally like to host dinner parties, consider going the route of just dessert and coffee to cut costs. Don’t forget the mantra of keeping things simple. Don’t get too fussy or offer too many choices. Often too much is too much. When you overdo it, it is stressful and taxing on you in addition to being expensive. Simple done well is more than enough.

Check out dollar stores for paper goods, cutlery and thematic decorative and party items. Also, look for these same items at end of season clearance sales at big box retailers or discount stores. Stock up on solids or patterns you can use year round.

Make your own invites or simply send invites via email or with an online service to save on mailing expenses. On the other hand, pick up the phone and call people for a personal touch that costs nothing but a few minutes of your time.

Are you a drive thru junkie? Do you eat out more than 3 times a week? If the answer is yes, then you are a drive thru junkie. You probably think eating fast food is cheaper than dining out or even cheaper than buying groceries. Well, I’m here to enlighten you.

When you first make the decision to get on a budget, you will have to make some changes in your lifestyle, specifically better meal planning and eating from home more often. This takes discipline and planning.

The first thing to do is make up your mind to not eat out whenever possible. Many times, people get into the habit of running through the drive thru, whenever they are hungry even though they might be home in just a few minutes. There are times when you do have to eat out due to your schedule, but you can plan for those in your budget.

The next thing you need to do is begin planning meals ahead of time to make at home. This involves making a grocery list, using your grocer’s weekly ad for sales and clipping or printing coupons. Planning meals ahead helps save time and money because you won’t be scrambling last minute to figure out what to make for lunch or dinner and you won’t be tempted to run through the drive thruh or order pizza.

Another great thing you can start doing is using the crock pot a whole lot more! Crock pot meals are so easy and delicious and they help save lots of time. If a meal can be made in the crock pot, do it. Chicken, pork chops and roast are great proteins to make in the crock pot. Start them in the morning before you leave for the day and when you get home, dinner is ready! You can find many great tasting and easy to make crock pot recipes on line.

With a little planning, making a list and clipping coupons, you can really save a ton of money on your food bill-fast food and groceries!