Get Control Your Money or How To Keep More!

Do you find it hard to get by each month and your spending is either out of control or starting to head that way? If you’re struggling with money then don’t despair, you can get back on top. If you’d like to have more money each month or want to get control of your finances here are a few tips to help you get on top of things and start getting your spending back under control.

When it comes to money we tend to fall into one of three main categories: spend less than we earn, spend what we earn, spend more than we earn.

Create some good financial habits by taking a look at where you are now. Where would you like to be? Follow these tips to help you get there.

· Keep a money diary for a week. It can be surprising where all the ‘cash’ goes. You probably don’t really think about it on a daily basis. After all you probably just go to the bank when you need more and if you’re lucky and your account is still in credit, you get what you request. But what exactly do you spend it on? Where does it all go?

Keeping a money diary can help you get an idea of the flow of your cash out of your bank account. Whether it’s cash, cheques, cards or just those monthly bills.

Get a small notebook, carry it with you and write down every single thing you spend, as soon as you spend it, every day for the next week. Every bill, standing order, newspaper, snack, bus fare, coffee …

· Your monthly expenditure. Work out what you spend monthly on everything: rent/mortgage, utility bills, food and essentials, meals out, entertaining, clothes, holidays, presents, credit card repayments etc. etc.

Gather together all your salary slips, receipts, bank statements, credit card statements, details of loan payments, mortgage, you money diary, etc… – anything which shows money coming in and money going out. Include any direct debits or standing orders from your bank accounts.

Including the basics, compare your total outgoings with your income. Where’s the fit? Are you overspending?

· Create an Emergency Survival Fund. How much do you need to pay for the basics like mortgage, rent, insurance, bills, food and car each month? Aim to save at least three times your basic monthly outgoing that you need to survive.

Should the worst happen and you lose your job, go sick for a period of time or decide to have a change of career, you will have a financial cushion to support you. Place it somewhere with easy access but with a good rate of interest.

· Reduce Your Debts. How much is your debt actually costing you? Decide that today is the day you’re going to take responsibility and you put yourself in a much better position to do something about it. What would you rather be spending that money on?

How many debts do you have – loans, outstanding credit cards etc? What interest are you paying on them and over how long? How many payments are outstanding and how much will you end up paying in total?

If you can create some spare income each month can you put it towards ‘busting’ some of your debt.

· Save 10% of your income. Pay yourself first. As a minimum put aside at least 10% of your monthly salary. Set up an automatic payment straight out of your bank account into a savings account.

Initially, place it somewhere with easy access, preferably earning the highest rate of interest available. Never under the mattress! You never know when you might need it and you’re starting to invest in your future. The only way to get rich is to save and invest! Start thinking long-term for your savings – five years or more, not just saving for the next holiday.

· Become a Savvy Buyer. Always take a little bit of time and effort to shop around for the best deals – don’t just buy the first thing that comes along. How often do you check out the best deals available for insurance, mortgage, fuel, credit cards? Check out all the brokers and online insurance companies for the best quote.

Use cost comparison sites such as http://www.kelkoo.com or http://www.dealtime.com. You can also save money by switching to a different energy supplier via sites such as http://www.uswitch.com.

· Get Sound Financial Advice. While you can discover a certain amount from newspapers, magazines and the Internet, it’s always worth discussing your financial requirements with someone who knows what they’re talking about.

Talk to a Financial Advisor. They usually offer a variety of products from different companies. Find someone by recommendation or have an informal chat with one or two, to find someone you feel comfortable with.

Make sure you are clear about what you want from your investments. Are you looking for growth, future security or an income? Your requirements may change over time.

Use these tips and you’re sure to get better control of your money.

More Money? My Cup Runneth Over…But I’m Still Thirsty

Most of us, especially those of us who have debtor’s disease (if you have it you know what it is!), have commented or at least thought, “If I could just win the lottery, or sweepstakes, everything would be better.” Unfortunately, even if that big dream did come true things probably would get worse instead of better.

It’s a strange phenomenon. It seems the more money you have, the more you need. It makes perfect sense. Given more money, most people would increase their standard of living. My question is, “If you haven’t properly managed the money you have now, how do you expect that you’ll be able to properly manage two, three, four, five or hundreds of thousands times more money?” A good question, huh? Food for thought. Maybe you need to start learning to properly manage what you have now while it’s on a much smaller scale. Then you’ll be prepared when that big lottery win, or sweepstakes, comes through!

Now you may think this is a crazy, nonsense theory. Surely a million is enough for anyone to be on easy street! I’m sure you have at some time heard rumor about people who fall into great wealth by some means or another, and just a short time later are back where they started or in even worse financial condition. Many of these instances end in bankruptcy.

Not convinced? Let me tell you about my own, smaller scale, experience with this strange phenomenon. Once upon a time, I was a single parent raising four children on an income of just under $20,000 per year. My children did not do without, and while I did begin my journey into debtors demise during this time, I had everything under control. Or so I thought.

By my understanding now, I certainly was not managing my money well. I was not properly preparing for variable expenses or emergency expenses that were sure to arise. Thank goodness for a great family infrastructure that gave help and support when needed! My monthly payments were well within my income, including debt payments. I monitored my debt to be sure I maintained a comfortable debt to income ratio. I felt that I had the proper perspective on my finances.

It was not until the household income increased due to marriage that I somehow lost that perspective and my real problems began. I blame a good deal of this accelerating financial ruin to “over confidence.” This “over confidence” lead to an arrogant disregard of proper money management. Looking back, you know hind sight is 20/20, if I knew then what I know now, I would be way ahead of the game!

Since my new husband earned more than twice the income I had, I quit work to become a stay at home mom. I’ve been working since I was fourteen years old (and I’m no spring chicken now) so when he expressed the desire for me to stay at home with the kids, I jumped on it! But, this was not a contributing factor to my financial demise. It was the mindset I acquired when the household income increased.

My mindset was this, “If I took care of a family of five on my near poverty level income, surely I have no financial worries now.” Life was good! At least for a while. Our standard of living changed of course. Typically, my cup runneth over……and I thirsted for more. Now we could afford to charge those things we “needed?” (I question it because, my definition of this word has greatly changed) and wanted without fear. I had that fear before. The fear of not being able to pay back the debt. I believe that’s why I kept it under strict control. With that fear now gone and a new sense of false security replacing it……..debtor’s demise set in quickly.

Before I knew it we were living paycheck to paycheck. Sometimes, I even found myself juggling funds around to make the budget balance. It didn’t seem like so much money any more. I can laugh at myself now that I understand exactly how it happened. That delusion of grandeur mindset I had let little ol’ me fall into. After all my research, I now know that I am not unlike millions of other people in this world. It’s an easy mindset to get into. This is why more money will never make everything better until you learn to manage first and then spend.

Your best preparation for that big winning day is to start planning now. Even if that big money dream never comes true, you may be surprised what a little forethought and planning can accomplish. A good debt free spending plan and monthly budget that encourage frugal living will, at the very least, provide you with more financial security and independence.

Why heck, if you’re young enough, you can plan your way into millionaire status. It can be done. It has been done! It’s the guy next door who you may not even be aware classifies as a millionaire. He or she probably doesn’t brag about it, and their lifestyle doesn’t hint of it. But I bet that’s one happy, stress free, millionaire who has everything he needs and wants. He’s probably just about the nicest person you ever want to meet. Simply because he manages his money and refuses to let his money manage him!

So what are you waiting for? Quit wishing for more money and make a plan to manage and take control of what money you have!

Good Luck and Success

Live Debt Free to Be Free. You Deserve It!

Save Money on your Clothing Budget – Tame the Closet Monster!

When I decided to take control of my finances, reducing the clothing budget was a serious challenge for me. Two pre-teen girls and a teenage girl certainly didn’t make life any easier.

Children grow out of their clothing before we can get it home and hang it in the closet it seems. O.K., maybe that’s an exaggeration, but not by much! It’s just as likely that the item you bought today will not be worn next month due to fashion “issues.” Taking this into consideration, it just doesn’t make sense to throw away so much of our hard earned dollars on clothing expenses.

It is also the reason that acquiring gently used and new items at budget saving resources is so satisfactory. Much of a child’s wardrobe is still in great condition when they grow out of, or no longer want to wear, the items. Many times their unwanted clothing is given away, donated to thrift stores, sold at yard sales, or offered at consignment shops.

When I decided to take advantage of these resources to save money on clothing and “tame the closet monster”, my girls were greatly disappointed. The new methods of clothing acquisition, freebies, thrift stores, yard sales, consignment shops, and clearance items weren’t exactly their style. My son wasn’t much of a challenge. Thank goodness, he’s not “fashion conscious”.

I found that changing the way I approached them on the subject made things a little easier. For instance we don’t buy “used” clothing. We buy “previously owned, unwanted, or gently worn” clothing. And, I was sure to point out the many benefits of shopping at these budget saving resources.

The thrift store where I shop is owned and operated by the National Children’s Center , a local organization that provides educational services, early intervention preschool, and child care to infants and young children with and without developmental delays. You will find that many of your local thrift stores are non-profit and support worthy charities.

I get a terrific value on name brand clothes popular with my girls peers, (Old Navy, Zana di, Paris Blues, Angel, Lei, Guess, Levi, Bubblegum, Mudd, Limited Too, Adidas). Well there’s not much I haven’t been lucky enough to find at this store. As a bonus, my purchase also supports a worthy cause. And let’s not forget that recycling these “unwanted” clothes is environmentally friendly. Everybody wins with these kinds of purchases.

These are important benefits that ease the embarrassment children sometimes experience when they shop at thrift stores. If your children are informed of all these benefits, they have the power to explain why they shop at thrift stores, if it ever comes up, and it doesn‘t have be for financial reasons. The wonderful part is, it will probably never come up in a conversation with their peers. My children have never had to explain themselves. Most items are of good quality and only gently used.

You would never know we are enjoying a frugal lifestyle with a wardrobe like this! In fact, with their closest friends the girls freely brag about the terrific deals we get on clothing. Some of their friends are even envious because of the wide selection of popular brand name jeans the girls are fortunate to own. They have come to the realization that five pairs of name brand jeans at the thrift store is a whole lot better than one at the department store price.

I have found many brand new items with tags still intact. No way for friends to know where these great clothes came from. They probably assume they shop at some expensive department store or specialty shop.

We actually have fun shopping at the thrift store now. I have even caught a hint of excitement in them from time to time. Maybe my excitement for saving money is rubbing off. Not! I think it’s just the fabulous clothes we find! I know the saving thing will kick in later. That’s what counts, teaching them how to be financially independent in life.

I strongly believe that knowledge is power. And, if you want to save money on anything, you must do your research! Informed consumer = More Savings, that’s my motto. It took some shopping around for me to locate the best clothing value for my money. I did eventually find the one place where I consistently find excellent values with a great variety of choices.

I find most of my clothing “treasures” at this charity owned thrift store. It’s about 15 miles from my home but well worth the drive considering the great values I come away with! My cost per item averages about $3. I rarely spend more than $5 and once in a great while I’ll splurge on a $6.95 item (usually new with tags still intact and a super value compared to the original price)

Besides visiting your local thrift stores you should check out these other great resources for low cost clothing. While shopping for your kids, you may just find some clothing treasures for yourself! These are also great resources for adult clothing, especially business attire that can be very costly.

Yard sales are a great resource for anything you might need. It may be a little more time consuming to go this route, but the rewards can be great. If you plan your yard sale trips correctly you can save a lot of time. As you become an experienced yard sale consumer, you will learn where yard sales are frequent in your area.
Combine this information with advertised yard sales in the local paper and on roadside signs and organize your trip to minimize your travel time. You will sometimes find bags of clothes for a great “take all” price. Even if everything isn’t usable you will usually get enough useful clothing to make the purchase a good value.

Make sure the clothes are in the right size range or are something they will grow into within a reasonable amount of time. If you have the time and purchasing items individually is an option, go through the bag. Purchase only what you know will be useful.

Consignment shops are rapidly becoming popular. Not only can you find some bargain purchases here they may be a valuable resource for you to turn your unwanted items into money. You let them do all the storing, selling, and paperwork, all you have to do is collect your money!
I have a friend who sells all of her unwanted “designer” clothing on the E-Bay auction site. I have not ventured to purchase clothing on ebay myself as of yet, but have purchased many other items such as books, movies, and gifts. Ebay is a great resource for new and pre-owned items, including clothing. Especially if you are geographically limited as far as shopping goes. Of course there are other auction sites where you might find clothing.
In conclusion, your best defense against overspending is information. In the end, the best value for you is what works best for you. And, what’s available to you in your area. Investigate all your options and determine where the best value is based on your own needs. Yes, I’m going to say it again…

Informed Consumers = More Savings

Happy Saving!

Live Debt Free to Be Free. You Deserve It!

Money Saving Tips. Maximize Savings on Everyday Items!

Frugal living is more than a lifestyle. It’s a passion.
Call Me Crazy! I love It!

Why, who wouldn’t love getting paid to buy products that they use everyday?

Here’s how I do it.

I purchase an item that has a rebate offer (either a store or manufacturer rebate) while it is on sale and use a coupon during purchase. That’s it!
Using this formula I almost always come out ahead. When all is done, I’ve gotten back more than I actually paid for the item.

Even when I do have to pay for the items like deodorant, shampoo, soap, toothpaste, and toothbrushes it’s about 50 cents for a item that would cost up to $2 -$4 originally.

Am I the only one out there that gets excited about this?
I doubt it! At least I hope not. That would make me “Crazy”, wouldn’t it? But a lot of folks just don’t know how to combine money saving measures to maximize savings.

My local drugstore (which by the way is a national chain) often advertises items free after rebate. Hey, that cuts down on a lot of work for me. Easy Money! I e an also lucky enough to have a grocery store in my area that offers rebates and offers double coupons (sometimes even doubling $1 coupons as a special promotion). Needless to say, with six mouths to feed (myself, my husband, and four kids) I’m lovin’ that idea!

As the editor of www.simpledebtfreeliving.com, I’m always looking for new ways to save money. Visit us and follow one of the e-mail links to share your ideas or just let us know how excited you get about frugal living! Let me know I’m not the only one. Then we can put my family’s worries to rest. They think I’m really crazy.

Here are a couple other ways that I save on items we use everyday:

1. Always use items that are reusable rather than throw away

For example: Reusable coffee filters, cups and plates, and my favorite pet peeve -

The great sandwich bag conspiracy

The major manufacturers of sandwich bags would lead us to believe that it takes rocket science to keep a sandwich fresh. Ask yourself this, How long do you need to keep that sandwich fresh anyway? It’s not like it’s going to the moon. It’s just going to the office or school for a few hours.

The most practical way to approach this is to purchase reusable sandwich size containers. This is also very environmentally friendly reducing a great deal of waste. If however, these have trouble finding there way back home ( which is likely if you have children), you can save substantially if you purchase the plain old pleated sandwich bag that cost a mere fraction of the razzle dazzle zipper kind. Your mother used these for years and years with great success. I have used both methods for years and have never received a complaint of a stale sandwich!

You’ll find that doing these little things like, using real cups and plates instead of paper or plastic throw away, and recycling containers for storage or even to use in craft projects, can save a lot of money. Each by itself may seem minor, but when put together amount to tremendous savings over time.

2. Don’t buy it if you won’t use it. Things like small kitchen appliances, repair tools, and gardening tools are good examples. We know they’ll make our life easier if we just had the opportunity to use them.

There are 101+ small countertop kitchen appliances available to chop it, grind it, mix it, open it, bake it, grill it..well you get the message.

Simplify your life and narrow it down to a couple you just can’t live without. For me it’s my blender and my food processor. Although, I’m seriously considering a bread maker. Not quite sure if it’s worth the money yet. Especially when I’m so close to a bread outlet. But, you can’t beat the taste of fresh baked bread. I’m not counting the coffer maker it’s kind of standard equipment these days. I wouldn?t dare ask you to give that up! What am I crazy? Well , maybe..

It’s little things like the example above that identify frugal living.

3. Always get the best value for your money. Shop around. If this is a major purchase you will want to know what to look for. Research and compare products on the internet or in sale flyers. There’s nothing more challenging to the retailer than an informed consumer. That’s what you want to be. An informed consumer knows when it’s a good value! Informed Consumer – More Savings

Cheryl Johnson mother of four helping myself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com – a self-help plan, ideas, and resources for personal budgeting, debt management, frugal living, and extra income opportunities. Money saving tips help balance your budget and maximize everyday savings.

Your Money Or Your Life

Have you stopped to realize that although you go to school to learn about important subjects, no one teaches you how to manage your money?

Money is an essential part of life in our pursuit of happiness, yet very rarely will a parent sit down and tech their child how to handle their money.

This is true in grade school, high school and worst college. So what happens? Many of us end up in an extremely large amount of debt. We can’t seem to get it together even if we make more money.

I found myself in this trap about 13 years ago. I had an okay job, a car, and an apartment. Nice I thought soon I would buy a house and live the “American dream”. Wrong! I could never save enough to buy a house. I had plenty of credit cards, so many that I never had enough money due to many payments to put aside for my dream home.

What was happening to my paychecks? Well, I was over extended in credit card debt for one. The buy now pay later syndrome was well embedded in my head. That mentality had to stop! Since, I wasn’t terribly behind in my payments I was able to get some help from the creditors. I simply asked for a lower interest rate and/or the ability to skip a payment. After that call, I had to cut up and dispose of the cards. No! I didn’t cancel my cards but I got rid of them just the same.

Next I bought a tablet just for my budget information and bills. I also purchased a software program to keep track of my expenses. I think it is important to keep something manual that you can carry as well as a computer software tool.

Next, as bills came in, I wrote them down with the name, address, phone number of the creditor, my total balance, interest rate, and minimum payment due, the due date, and if there were any annual fees acquired with the card.

Review the card with the highest interest rate and pay more then the minimum due. Always ask if they can reduce your rate or seek the possibility of debt consolidation buy applying for a low interest rate loan or credit card. If you haven’t cut up your credit cards do not get a consolidation loan. Because most likely once your payments are manageable you’ll start using your cards again.

Minimizing your spending is the key to financial freedom. Make sure to start a savings plan after you’ve gotten your debt under control.

What is money?

Money is anything that is generally accepted as payment for goods and services and repayment of debts.[1] The main uses of money are as a medium of exchange, a unit of account, and a store of value.[2] Some authors explicitly require money to be a standard of deferred payment.[3]

Money includes both currency, particularly the many circulating currencies with legal tender status, and various forms of financial deposit accounts, such as demand deposits, savings accounts, and certificates of deposit. In modern economies, currency is the smallest component of the money supply.

Money is not the same as Value (economics), the latter being the basic element in economics. Money is central to the study of economics and forms its most cogent link to finance. The absence of money causes a market economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a barter exchange can occur. The use of money is thought to encourage trade and the division of labour.

The word “money” is believed to originate from a temple located on Capitoline, one of Rome’s seven hills. On one of Capitoline’s peaks, the temple of Juno Moneta stood where the mint of Ancient Rome was located.[4]