Hi, I am Edward Paulson.
Have you ever read those news stories about people downsizing radically (often living on $5000 or so a year) and wondered whether you could do it? Even if you have no intention of tossing out all your belongings and starting over, it’s a good question to consider for a number of reasons. If you are downing in multiple payday loans or personal loans, slashing your living expenses by 50% or more can mean getting out debt fast. If you are suddenly in a big financial emergency (such as debt or divorce), knowing how to drastically reduce your finances can help you survive financially. Thinking up ways to reduce your expenses drastically will also make you appreciate what you have and may give you some inspiration to cut back your spending even a little.
If you need help getting started, think back to your college days. You likely survived on a very small student loan or budget. What did you do to save money and spend less? Consider what you would do if your income was suddenly cut by 50%? Where would your income go? What changes in your life would you have to make?