All of us want to have a living space that is attractive, comfortable and functional. We love to have friends over and hear them “ooh” and “aah” when they see what we have created in our space.

For many people, this pursuit of a living space that provides us with a pleasant retreat and also earns the admiration and envy of our friends is a costly mission. Society has taught us that getting what we want today is not only a privilege, but an inherent right. After all, we work hard for our money, right? We should have all those little gadgets that make life easier, as well as plush inviting furnishings in every room.

Nice thought; but the problem with this picture is that it often leads to money problems that long term will prevent you from being financially secure. Our approach of having to have the newest, the biggest, and the best, coupled with the pressure to put it all on credit, makes that few moments of pleasure turn into years of financial purgatory.

Yet, there is a grain of truth in the basic proposition. Certainly, when we work hard, we should have the pleasure of coming home at the end of the day and enjoy what our efforts have allowed us to possess. The secret to balancing your desire for a lovely and comfortable home with the income stream you have lies in learning and applying a few simple guidelines to your spending habits.

Get Real with the Finances

First, you must assess your current financial situation. List the fixed monthly commitments, such as rent or mortgage. Next, list the variable expenses necessary to keep your home operational, such as utilities. If at all possible, review your variable expenses item by item and affix a budget amount equal to the highest monthly payment you made for each item in the last calendar year. Third, allow budgeted amounts for other essentials, such as food, clothing, and automobile maintenance and operation. Lastly, consider monthly items that are not necessary, such as meals out and other forms of entertainment.

Be brutally hones with yourself. Divide all your monthly expenses into two basic categories: basic living needs, and wants. If you have to rationalize an expense in order to make it a basic living need, then it does not belong in that category. List it as a want.

If you are like most people, this simple exercise will be a sobering experience. Very quickly, you will identify instances where your money is flowing out of your bank account like water through a coffee maker. Plug those leaks immediately, and you are on the road to creating a monthly source of funds that can be used to enhance your living space.

Be Creative with your Disposable Income

Once you have a handle on your monthly financial obligations, you can then look at what is left and utilize that amount to enhance your living space. Your disposable income may not be very large, especially at first, but by utilizing a measure of creativity and buying savvy, you can make a little progress each month.

Be proactive in determining what you need to purchase for the home. Are there appliances that may need to be replaced within the next three to six months? If so, give them priority on your wish list. Begin the process of searching for a bargain on those items by checking local stores. This will give you an idea of what the replacement cost could be. Broaden your search to include repair shops that offer warranties on refurbished items. If the appliance is a small one, a thrift shop or a yard sale may yield a bargain.

When it comes to furnishings, yard sales and thrift shops often are great sources for a quality piece of furniture at a fraction of the cost of buying new. You may need to do little or no repair to the piece in order for it to fit right into your ideas for your home. Make sure to consider both the cost and the value of your time when evaluating whether the furniture is a good buy. If you will need to spend a weekend refurbishing a piece before placing it in your home and you do not have the desire or the skills to do so, then it is not a bargain at any price.

Improvise a Solution

Creativity can also be interpreted as improvising. As an example, you may need to replace a tea kettle. Before rushing off in search of one, consider the fact that you can easily brew your tea by using a small boiler or by using your automatic drip coffee maker. Do you really need a tea kettle too?

If you need an item for an upcoming event, such as a tent for a camping trip, stop and consider how often each year you go camping. If this is a one time thing, then don’t run out in search of a bargain purchase. Ask around your circle of friends and relatives. Someone may have a tent they are willing to loan you on a one time basis. To make sure your “credit” remains good with your benefactor, make sure you return the item in at least as good a condition as you borrowed it.

Should you determine that you will use the item regularly, consider swapping something you do not use often for what you will use. Bartering with neighbors and friends is a great way for everyone to clean out items that are doing nothing more than collecting dust, and makes everyone happy for free.

When You Have Done Your Homework, Then Buy

Always evaluate your options before making any purchase for your home. Ensure that you really do need it or that you really will want to live with it for a long time. Make sure the item will provide you with the satisfaction you crave. Once you have an affirmative to these three criteria, you are ready to acquire the item.

Unfortunately, there are those items that do not find their way to yard sales, thrift shops, and rarely are bartered. When you have exhausted all alternative avenues of securing what you are seeking, then do not beat yourself up if you have to pay full price. Enjoy it, safe in the knowledge that you did so as a fully informed and competent purchaser who knows how to get the most for your money.