saving
Different content. For those of you following, you notice that this website is a mirror of my blog . That will soon change and check back here for updates. The two sites will be different, and the blog will be geared mainly toward money saving and lifestyle changes that will help you to live a life in which there is less credit card debt.
Stay tuned…………
Tags: blog, credit card debt elimination, money, saving
Sometimes it is just how a phrase is considered that will begin to show a shift in your thinking about money, credit card debt elimination, … life. I knew that the shift had begun when the question on the way shifted from being “where are we having dinner?” to “what are we having for dinner?” Let me set one thing straight, I am not a sexist that asks that his wife cook his dinner and have it ready when I walk in the door, like those from a different era. Quite the opposite is true: I love to cook and I do not mind cooking dinner and have even gone as far as cooking the traditional holiday meals. But there was a problem. Because of poor planing convenience was chosen over practicality and frugality. The nightly evening meal would often be eaten at a restaurant (there is somwhat of an aversion to fast food), so there would be a meal most nearly every night charged to the credit card. Big mistake. Not only was this meal setting us back $25-$30 each evening (on average $150 per week. or roughly $7,500 per year) it was being put on a credit card on which the minimum monthly payment was aroun $100 per month. (You can see how the debt quickly grew by leaps and bounds because since the minimum payment was being made, it was was gaining interest at around 22%…OUCH!!).
A change had to be made. It is said that “if you fail to plan, you plan to fail”. True. Saving money and getting out of credit card debt is important to you, you will need to shift your thinking to do more planning. Plan out your meals in advance so that you will not have to run to the store or make a quick drive-through stop. Believe me when I tell you that stopping that mindset will free up money to pay down your credit card debt, or, if you are one of the few that have no credit card debt, it will free up money to invest for the future. Keep the faith!
Tags: frugality, money, saving
Sometimes, in your quest to live life without spending excessively, people may call you a cheapskate, a tightwad, or worse. Maybe I’ve developed a bit of tough skin over this, but it really doesn’t matter anymoe. What’s funny is that these values were embraced by those of different generations. Growing up, my parents were never rich in things, but were rich in values and friendships. The tried to pass these values down to their children. Being the prodigal son, I was not always willing to adopt the same values and lifestyles, but as I grow older, I realize that a lot that they were attempting to teach me were the right things. Looking back (while looking forward at the same time), here are some things that have been learned:
* If you truly want it, save for it - there is no better feeling than seeing something that you want and saving for it little by little. If you truly want it, you will still want it by the time that you have saved enough to pay for it. Instant gratification is nice, but things have a tenency not to mean as much if you see it, grab it, charge it, and pay for it for a long time.
* Don’t spend too much for things you need - mom was a great budgeter and she always kept her eye open for a good value. She had a budget and stuck to it.
* Waste not, want not - items were purchased for a reason and waste was not an option
* Buy quality, not quantity - mom and dad were not “brand buyers”. I was not brought up to “need” to wear
Nike shoes or
Levi’s jeans. Mom always bought quality clothes that lasted and didn’t look too bad.
* Save for a rainy day - As I get older, it makes more sense, because sometimes life has a way of happening: your car may need shocks and struts (especially if you purchase a used car), the plumbing may stop up (and you cannot fix it yourself), your glasses may get broken, or something may need to be done that you don’t normally expect. I now have a
savings account online that pays a decent rate and the money is accessible if I truly need it.
Be wise, or as Spock would say, “Live long and prosper.”
Tags: credit card debt elimination, financial independence, frugality, money, saving
Knowledge is power, and it isn’t that we don’t thirst for knowledge, it is just that knowledge oftentimes comes with a little bit of work. A book that I highly recommend is “
The Millionaire Next Door” by Thomas J. Stanley. I was brought up believing that being a millionaire is a life of lighting cigars with rolled up $100 bills, Rolex watches, and a Mercedes 450 SL. This book largely dispells that myth. Just as I mentioned yesterday, little things add up. You don’t think about the pennies and nickels that fall down between the cushions of the couch (until you wake up from your Sunday afternoon nap to find yourself on a mountain of money). In order to pay down your mounting credit card debt, oftentimes is begins with minute changes that free up a quarter here, a dime there, a buck somewhere else. After a while, you find that you have been piddling away a fortune without realizing it.
The premise of the book is that many of today’s millionaires are not those that are living in the biggest houses, driving the fanciest cars, are doctors, and take luxury vacations. Truth be told, there are some that are. One example of the great spending ability of some of those “excess hounds” is the television show from the 1980’s that Robin Leach hosted called “Lifestyles of the Rich and Famous”. People got their misguidance from this show and believed that you had to live the extravagant lifestyle to be rich. That simply is not so. One big key is not to live by the credit card, but to unendingy live beneath your means and save what you don’t spend.
Tags: money, saving, wealth creation
I can still remember 25 years ago when I was poor and in college (as opposed to being an adult and being poor). I was living in the dorms, and the dorm did not feed students on Sunday night. Several local establishments made profit on this as they offered all-you-can eat buffets on Sunday evening. Dominos Pizza did a booming business on Sundays. But soon the summer lawn-mowing money ran out and we were forced to find a low-cost alternative. To the rescue came Ramen noodles. Back then you could buy fifteen packs for a buck (now it is more like 8 packs a buck on sale). We were in heaven. We could fill our bellies with cheap food and life was good. But we grew up. We shuddered at the thought of buying Ramen noodles just to save some cash. But now, the analytical mind kicks in. Even if you only had it one night a week, there’s money to be saved there. Let’s say that a meal costs on average five dollars to fix. If you were to fix just a bowl of Ramen noodles, you could save $4.75 (that’s when you purchse them not on sale). If you were to be able to save that at 10% for twenty years, you will have saved $14,364.57. Not bac for one meal a week. For some delicious noodle recipes, you could always go here.
The point is this: sometimes making a small change can build up to big results. The key is to looking long term and keep in mind that the “expensive” dreams are really achievable with just a few moderate changes in everyday habits. It can help you to eliminate your credit card debt.
Tags: credit card debt elimination, money, saving
Have you ever seen a penny on the ground and left it there thinking “it’s only a penny, it isn’t worth it”? You may want to think again. The little things quickly add up to be big things, especially when there is compound interest involved. If you were to save one dollar per week (which is a mere $0.14 a day), over a twenty year period, that would add up to be $3,276.14 (with a 10% compounded interest). Divide that amount by 14 and it works out to be $234.01. I can only imagine that if you were doing laundry and found $234 in a pocket, you wouldn’t throw it away. Saving those pennies is actually worth it. In reverse, if you were to charge a dollar or two a day on coffee and snacks, with the interest charged, it could end up costing you even more. I found the calculator at David Bach’s site to be a real eye-opener. Now I know why people use coupons, attempt to find the lowest price on things — it all adds up!
Let’s just use a simple example. Where I work during the day, we have vending machines that offer candy bars, soda, and the like. If someone find themselves hungry for a snack (or skipped breakfast or lunch), they can always find refuge in the vending machine. A candy bar costs $0.85 and a soda costs $1.10 (your findings may differ slightly). $1.95 a day for five days equals $9.75 a week (let’s round it to $10 for simplicity sake. If you were to take that $10 a week, invest it at 10% and compound it for twenty years, that candy bar and soda habit adds up to $32,761.30. Now that is one expensive habit (and you though it was trivial). We will explore little things that you can do to free up cash to help pay down your credit card debt.
More at my website.
Tags: Add new tag, credit card debt elimination, money, saving, wealth creation
