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March Madness

March 29, 2010 By Leave a Comment

In the spirit of the pinnacle of college basketball season, I’ve compiled a few tips that we can try to incorporate in our spending behavior so we can save in the long run! Get in on the madness…give them a try.

Selection Sunday and Monday has past and now let the madness begin!  64 teams prepare to take on their respected opponent in hopes to move on and reach the summit of college basketball and be crowned “National Champions.” In most cases sports have the most clichés to draw upon and to tie in sports and finances, I’m going to incorporate the “5 P’s”: Proper Preparation Prevents Poor Performance. Right now every coach in the nation that has a team that’s participating in postseason play are emphasizing on this and as consumers we can  apply these principles to our lives and make us better with our finances.

So in the spirit of March madness, I came up with the “3 P’s” of finances and they are:

Plan

Pay

Patience

Let’s start with the first:

Plan. A plan of action is always a good start. Having a blueprint of how you want to save is vital. The blueprint is going to be your budget. Now when creating the budget, be realistic about your goals. Make your goals attainable and build upon them for benchmarks. Keep your eye focused on a goal and where you want to be financially in 5, 10, or 15 years from now.

Pay is as simple as its is. I would suggest starting with paying the lower debts off first so you can concentrate on the larger ones. Also pay yourself! Take 10% of your earnings and pay yourself. Put it in a money market account or an account that can’t be easily accessed.

Last but not least, be patient. Reducing or eliminating debt on your own is a long process. Depending on the method you use, you may see no significant progress at first but progress will appear in due time.

Filed Under: Entertainment, Money Saving Tips

How to prioritize your expenses

March 29, 2010 By Leave a Comment

It can be extremely beneficial to your financial situation if you know how to direct your resources to the necessities in your life. Without a plan it can be easy to lose track of where your money is going. Here are some tips to help you make those priorities stay front and center.

Most families consider food, shelter, utility services, medical expenses (like prescriptions) and transportation to be basic essentials. These should rank the highest and be prioritized first. Once your routine monthly expenses are paid, with the money left over (also known as your cash flow), you can then pay towards your debts.

Here are some suggestions to help you get started:

Always make your rent or mortgage payments. These payments can be vital for keeping you in safe and secure housing. Remember, that you cannot live out of a credit card if your home goes into foreclosure or if you’re evicted from your apartment.

If you are unable to pay the full amount of any utility bill, make the minimum payment necessary to avoid disconnection of service. Again, a credit card cannot provide you with water or electricity.  Just remember that without water your toilet won’t flush, you won’t be able to bathe, etc and without electricity, of course, you won’t have lighting and none of your appliances will work. There are some appliances that I’m sure you can live without but there are others that you need

A credit card cannot drive you back and forth to work so if you use your car specifically for employment purposes, make sure to always make your car payment. If your car is repossessed, not only will it be difficult for you to get back and forth to work but you will also have a hard time getting to doctor’s appointment, to the grocery store, etc.

Types of Debt

Now that we have covered all of your basic essentials, let’s talk about what comes next: Court ordered child support payments, back taxes and student loans. The government has many collection rights that other creditors do not have. If any of these go unpaid, they are going to get their money by any means necessary, so you might as well voluntarily pay them. If they have to withhold your tax returns, freeze your bank account or garnish your wages, they will do it. Don’t take yourself through any unnecessary turmoil.  Paying credit card balances before taking care of these types of debt may get you into a world of trouble.

Unsecured Debt

Now we can discuss the unsecured debt. Most credit card debts, attorney bills, doctor and hospital bills, store accounts, and similar debts are a lower priority than the items we discussed above. You typically do not pledge collateral for these loans, and there is rarely anything that the creditors can do to harm you in the short term. If you’re asking should you even bother paying these types of debts due to you having so many other priority expenses, then the answer is YES, you should! I’m not telling you NOT to pay them, all I’m saying is to make sure your priorities are in the correct order. You accumulated the credit card debt, so you are fully responsible for paying them back; even if you can’t do so right away, at the end of the day, they will need to be paid.

One thing that I want to clarify is when I refer to unsecured debt being “low priority”. I’m only talking about if you are on a fixed income and you’re receiving social security, disability, retirement or a limited income where you are working part-time or receiving unemployment benefits. If you have the money, by all means, pay the debts. One major consequence of not paying your debt is that it has a negative impact on your credit rating. If you ever want to be approved or considered for anything in the future (i.e. qualifying for a home loan, financing a vehicle, renting an apartment, getting a personal loan to take care of an unexpected emergency, etc), this is the one thing that will make or break your chances. It’s not worth it to not pay the debt if you have the funds because you will definitely pay for it in the long run in more than one way.

To avoid having to figure out which expenses you have enough to pay this month, if you don’t think you can afford to pay back debt, don’t accrue it.

Filed Under: Budgeting, Financial Tips and Tricks

Best Times of the Year For You To Save The Most

March 25, 2010 By Leave a Comment

Did you know that you can save money just by making your purchases at strategic times? There are good and bad times to make purchases – here’s the scoop on how to time it for the best savings.

I ran across this article on Kiplinger.com, a great website for all things finance. The article breaks down the best buys on merchandise during different seasons of the year.

Let the prices Fall

For example, the site suggests that during the Fall, you can find great deals on cars, travel, and appliances. Cars and appliances are usually cheaper in the September/October time frame, mainly because new models are rolled out around that time and stores and dealers are looking to clear out the old inventory. You are also reminded to make sure that if you qualify, you should enroll in the Medicare prescription drug program during the November-December open enrollment period.

Productive Summer

In the summer, you can load up on produce since fruits and vegetables are in such large supply, holding their cost down. Interestingly enough, furniture stores usually restock their inventory in August. So, July is apparently the best time to shop for that new couch.

Wired Up Winter

Winter seems to be the time to buy if you’re in the market for electronics. January and February is normally the time when new models of TVs, computers, digital cameras and other electronics start hitting the shelves. So looking out for deals on the outgoing models during winter is a great way to save on those items.

Spring On Sales

As for Spring, most things winter related are going to be on sale. Coats, hats, gloves, sweaters are all going to be cheap and available starting in March. There were other surprises I ran across reading this article. I actually grabbed a calendar and marked it up with the best times to buy those bigger ticket items that I might need during the year. Check out the link below and make your own seasonal purchase list.

 

http://www.kiplinger.com/features/archives/2009/07/best-time-to-buy-text.html

Filed Under: Money Saving Tips, Saving

3 steps to dig yourself out of financial strain

March 25, 2010 By Leave a Comment

We all know that financial burdens are a heavy task that puts a great deal of pressure on many areas of your life. Here is a 3 step process to attack it, and nip it in the bud.

Many Americans, despite living with a steady income, are living paycheck to paycheck or are burdened by credit card debt. Additionally, many also ignore their credit records and fail to to put money aside for retirement savings. Some even put off fixing financial situations  that can lead to bankruptcies or settlements.

Be honest with yourself

Often, people  are in denial  -  looking for a quick fix like a lottery ticket or an additional debt to pay off old debt  thinking this will satisfy their financial circumstances. Some even believe that there is no light at the end of the tunnel and simply…give up.

If this sounds like you, then its time for you to take the first step – believing that all this has a end and that you can take control.

I have a saying: “strivers achieve what dreamers believe. ” This is something I remind myself of when I need to find something positive and it starts with a single word  “Self-Motivation.” Below are three steps to get you started.

1. Coming up with the right Financial Strategy for you.

The first thing that you want to keep in mind is that you don’t have to have $1000′s of dollars in the bank – but you have to save something.The amount that you save is something that you would have to factor in based on your monthly income vs expenses, but the “pay yourself first” mindset can make a big difference. Even if it’s $10, $15, $20 a paycheck, that’s a move in the right direction. Having it automatically taken out of your paycheck and placed in a saving account so you don’t ever touch it helps.

2. Keep at least $500 in the bank.

Trim your monthly expenses where cut backs are needed. This will only work if it’s realistic and achievable. Pay off debt and don’t look back.

3. No New Debt.

Make a promise to yourself to get rid of the old debt before taking on any new debt. That means no taking out loans to pay off the old debt. this is not helpful, you are only exchanging old debt for new debt.

Try these 3 basic steps: think long term, plan big, and be firm but fair with yourself.

Filed Under: Financial Education, Financial Tips and Tricks

Bank of America will no longer have overdraft fees on checking accounts.

March 23, 2010 By Leave a Comment

Bank of America one of the biggest financial intuitions, steps up and will eliminate checking account overdraft fees. It’s a surprising move that has many talking in the financial world. What does this mean for you?

Bank of America sent out notices that they are no longer charging overdraft fees effective June 2010. This means if you are a Bank of America customer and if you don’t have the funds in your account to cover a purchase, the charge will no longer be processed. Susan Faulkner – Vice President of  Consumer Banking for the Charlotte NC Headquarters of Bank Of America says that most customers don’t realize that they are overdrawing their accounts.This step may help customers discipline their spending habits, and become more proactive when it comes to managing their accounts.

Some practical steps you can take to keep tabs on your account:

Contacting the automated lines to check balances

Check balances online

Getting account balances from the ATM

Although the new Credit Card law  regulates the ability of banks to charge consumers overdraft fees without permission of the customer on credit card accounts, Bank of America mentions that they will get rid of the fees altogether for debit or checking accounts.

The New regulations will take effect on new accounts on June 19th 2010, and sometime early August for existing accounts. So when you go to your local Bank of America branch don’t be surprised if it starts to look like Blockbuster’s – after they started displaying banners that they were eliminating late fees. This is going to be a selling point to bring more customers either back to Bank of America, and also new customers.

Now that Bank of America has stepped up with this change I’m sure there will be other banking intuitions that will also follow suit.

I’m expecting that what this could do is eliminate free checking accounts to recoup for money lost for eliminating the overdraft fees. At this time anything is possible.

Filed Under: News and Press

Saving for Big Wins

March 23, 2010 By Leave a Comment

What is your wildest, craziest dream?  Is there something totally awesome that you never thought you would be able to accomplish?  Savings goals are not only for the responsible, boring things in life, but also for the fun and exciting.  Learn how to change your perspective on savings and save for big wins.

Why do you think you should have a savings goal?  Well, having savings goals are part of being financially responsible.  BORING!  Saving sounds very boring, but it can actually be quite exciting.  Is there a special trip you want to take or something you want to do?  You can make that dream a reality with a savings goal.  Two of my biggest dreams are taking a trip to Paris and taking my mom, sister, and best friend on a shopping spree.

Dream Big

Your savings goals should not only be about being “responsible,” but also making memories.  We all want to leave this earth feeling as if we have made the most of the time and resources that have been allotted to us.  Why shouldn’t our craziest dreams and desires be part of that time on earth?  So, today, make a resolve to start saving.  Write out your dream, determine the cost, and divide this amount by the number of months between now and your deadline for this dream.  Then, write the monthly savings goal on a note card and post it in a place that you will see every day. Every time you make a financial decision or choice, think about this note card.  This will not only motivate you to make better decisions financially, but provide you with a more positive attitude when it comes to saving.  Do it for a dream.  Do it for a memory of a lifetime.  Whatever the reason, start saving today!

Filed Under: Money Saving Tips, Saving

New Credit Card Laws – Know and Use Them

March 19, 2010 By Leave a Comment

You’ve probably started to see some changes to your credit card accounts and statements. Here is a link to a detailed breakdown of the new credit card laws and some tips on what to do if you think your credit card company has violated the law.

The Credit Card Accountability Responsibility and Disclosure Act (the Congressional act that protects consumers against unexpected rate hikes, gives consumers options if their rates are increased, and stops many misleading billing practices, among other things) took effect on February 22. The major provisions of this new bill can be found at http://banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=721389f5-62b0-46b5-b855-85621d0a8d69. You should go to that site and familiarize yourself with all the ways the new law can help you in relation to your credit cards.

If you suspect your credit card company

What do you do if you suspect your credit card company is violating the new law? The first thing you should do is call the customer service department at your credit card company. You should be able to find the customer service phone number on the back of your card. Be sure you’re familiar with the new law and be prepared to detail for your card company the ways you feel they’ve violated the new law. If you can spell it out for them, they should rectify the situation for you. You should always start with your bank’s customer service department.

If you don’t get satisfaction from your company’s customer service department and still feel you’ve been wronged, you can always contact the regulator for your bank. Nationally chartered banks are regulated by the Office of the Comptroller of the Currency (OCC). The OCC can be reached at 1-800-613-6743. State chartered banks are regulated by a state regulatory agency. If you’re not sure who your bank is regulated by, just ask them. They will provide you with the information. You can also file a complaint  to your state attorney general if you feel it is necessary.

There is a link below to an article on smartmoney.com that fills in some of the blanks on the steps you can take to protect yourself with the help of the new credit card laws. Hopefully you won’t have to deal with your credit card company over any of their practices. But if you do, it’s important that you know the new law and know your options in dealing with any potential violations.

 

http://www.smartmoney.com/personal-finance/debt/what-the-new-credit-card-rules-dont-do/

Filed Under: Collections, Credit, Credit Counseling, Credit Reports and Scores

Spring Money Saving Tips

March 19, 2010 By Leave a Comment

Here are a few ideas on how to get extra money this spring. Some of the things may save you money over the course of time and some may gain instant savings – it’s worth a try!

Listed below are some ways you can save a little bit of money this spring, I hope it helps.

Book a vacation: If you would still like to get some skiing in before the season is over then this is your lucky year. Because Easter comes early this year (April 4) that is what marks the start of bargain vacation packages. What you should do is sign up for all the airfare and hotel loyalty newsletters you can to take advantage of discounts such as free meals and also check out www.kayak.com.

Stop giving so much to Taxes: With the average tax refund of $2700 you could actually have less taken out or about $50 extra a week in your bank account. Just go to www.irs.gov with your tax returns and pay stubs in hand and use the withholdings calculator to see what you should at least be having deducted and if you have more than that taken out adjust your W-4 form with your payroll department.

Start spending at the drugstore: If you didn’t cash out your flexible spending account then you still may have time. One third of employers that offer this kind of account will allow you to use last year’s account until March 15. Did you know that qualifying expenses can also include contact lens solution, botox (if you have migraines), acupuncture, and also home pregnancy tests?

These are just some simple ways to start saving yourself some money this year. Do you have anything else to add?

 

Source: http://money.cnn.com/2010/03/08/pf/save_money.moneymag/index.htm

Filed Under: Money Saving Tips

42 Money Lessons from 19 Very Frugal Bloggers!

March 19, 2010 By Leave a Comment

scrabble frugal

We asked 19 of the web’s most thrifty bloggers to discuss the ups and downs of the frugal lifestyle they chose, and to share their wisdom with those just discovering the frugality mindset. We asked them to share how they became frugal, the habits they found hardest to adopt and their strategies for resisting the temptation to spend money. Be sure to bookmark this post for later – or grab a cup of coffee now, a notepad for ideas and get ready to start living the life you want!

Here’s what you’ll find below:

  • 19 Frugal Bloggers, 19 Crucial Frugality Lessons
  • 11 Lessons on Resisting the Temptation to Spend
  • 12 Lessons on Taking Frugality too Far – When Frugal Becomes “Cheap”
  • 49 Expert-Recommended Frugality Resources for Beginners

19 Frugal Bloggers, 19 Crucial Frugality Lessons

You’re probably asking “who are these so-called frugality experts?” We’ll let them speak for themselves, with their most inspiring lessons for those just discovering the frugality mindset.

Lesson 1: Frugality is About More than Saving Money
Frugality is about more than saving money. It is about making the best use of the resources at your disposal. That includes spending less, but also reducing waste, reusing items around the house, and recycling items you can no longer use.
Patrick – CashMoneyLife.com

Lesson 2: Frugality Does Not Have to Be Extreme
Frugality does not have to be extreme. It can be different things for different people- that’s one of the messages I’m trying to get across with my series “This is What Frugal Looks Like” in which different frugal people describe how they are frugal, by answering the same four questions.
Kelly Rigotti – AlmostFrugal.com

Lesson 3: You Can Be Frugal… AND Normal
The common idea associated to frugality is scrimping, reduction, sacrifice. I take the stance that you can be frugal, as in not wasteful, and still live normally and build wealth at the same time.
Kevin – RichCreditDebtLoan.com

Lesson 4: Do What Feels Right For You
Everyone has a different budget, different bills, and unique circumstances. A frugality to a family is probably different than frugality to a single professional. So don’t worry about how other people view and handle frugality — do what feels right for you and your budget.
Emily Gerson – CreditCards.com

Lesson 5: Dining Out Regularly Kills Your Budget
The first huge frugality hurdle for us was dining out. After realizing that we had spent around $5,500 dining out in 2008 we knew it was time to remedy that situation… so we did. Now we eat out for special occasions only, and we actually enjoy the process much more because of it – not to mention the thousands of dollars it saves us annually.
Matt Jabs – DebtFreeAdventure.com

Lesson 6: Find Meaning in Your Frugality
I think it’s important to consider why we want to be frugal. If our end goal is just so we can have more stuff later, then you might say it’s just another form of consumerism or materialism. Read more on the message of meaningful frugality: For Such a time as This. http://frugalhacks.com/2010/01/15/time/
Kim C – FrugalHacks.com

Lesson 7: Teach Frugality by Demonstration, Not Preaching
Take on your new frugality as a personal challenge, and not as a point of judgement for other people. You will suddenly find that our society is hideously wasteful. You will not change this by spouting your point of view at every possible gathering of friends. Take it upon yourself to tighten up your act, and if friends and family are interested, they will start asking questions. Teach by demonstration, not by rhetoric.
Sergio – PainlessFrugality.com

Lesson 8: Take Control of Your Money
This is for women (but especially young ones): Please understand and take control of your money situation early on. Ignoring your money situation is just a recipe for disaster. It isn’t as bad as you think and there is ALWAYS a solution.
Ms. Fab – FabulouslyBroke.com

Lesson 9: Anyone Can Learn Frugality
Frugality and smart spending is not just for other people. There are no special skills to be learned or classes you have to take. Anyone can start making wiser decisions in their financial lives with a little research and soul searching. By soul searching I mean taking the time to get real with yourself and decide what your goal in life really are and how your spending can be tweaked to get you closer to that goal.
Ashley Baxter – SpendOnLife.com

Lesson 10: Frugality Can Help You Achieve Your Dreams
The only reason why I had the guts to quit my day job and venture into my business was because my wife and I were quite frugal and we had our expenses under control. Without a small overhead, I was always tied to my job, whether I like it or not. Frugal living allowed me to take the leap, and as luck would have it, I’m living quite the dream. Frugal living is a major reason why this was possible. Without knowing it at the time, my habits changed my life, and it could change yours too.
David Ning – MoneyNing.com

Lesson 11: Start With Small Steps Towards Savings
Most people feel very overwhelmed when it comes to learning how to shop smart, but if you take small steps you really can do it. I always tell people, the best way to start is to use printable coupons. You can print them from your home. If you just print coupons for items you are gong to buy, you will save money right there. Then once you get comfortable, start to match those up with sales and stock up a little bit if your budget allows. If you only do that for a few months, you are guaranteed to save money and really it wasn’t that hard. So start slow!
Karen – KouponKaren.com

Lesson 12: The Time to Start Being Frugal is BEFORE an Emergency
There is no quick fix for a downsized income. The time to think about cutting expenses is not when the bills have piled up faster than the paycheck. You need to start money-saving steps as soon as you have even a hint that there will be a drop in income for any reason. As a practical detail, it can take anywhere from a few weeks to more than a year to notice improved cash flow from the money-saving tricks that middle-class and working-class families will find most effective.
Paula Wethington – Monroe on a Budget

Lesson 13: Frugality is a Habit
Going from spending $200 every time we walked into Walmart, to spending only when necessary allowed us to become debt free in just 20 months. Frugality is a habit every household should work towards. We now have $5,000 in our Emergency Fund, and are debt free except for our house. Frugality played a major role in accomplishing this, and will play an even more important role for the rest of our lives.
Brad Chaffee – Enemy Of Debt

Lesson 14: Find a Balance + Remember to Increase Income Too!
It’s important to find balance. Frugality is an important part of personal finance, but it’s not *all* of personal finance. Yes, be frugal, but also look to save money on the Big Stuff. Saving on big things (your mortgage, your car, etc.) will save you tons. Plus, look to boost your income. So many people look at clipping coupons, but never think to negotiate their salary. Do both. Don’t just focus on frugality.
J.D. Roth – Get Rich Slowly

Lesson 15: Spend Less on Necessities, More on What You Love
I have a lot of nice things because I hardly spend any money at all on necessities (food, toiletries, etc). Most people spend at least $800 to $600 a month on these items, which ads up to be a lot! If you start to think like me, then you can have almost all of that money at the end of each month for yourself and/or your family. Can you imagine what you could do with all that extra money?!!?
Natasha Washlick – OneFrugalChick.com

Lesson 16: Frugality Helps You Value People More Than Things
Frugality has gotten a bad rap over the years, and I think that people picture a spartan lifestyle with few pleasures. This couldn’t be further from the truth – my family is happy, healthy, and fulfilled, and we lead a pretty low-stress lifestyle. Being frugal – and sticking with it for the long term – gives us a lot of peace of mind (ie, built up savings means you don’t have to worry as much about unexpected expenses or financial curve balls), and it also allows us to focus on things that matter, like relationships with the people we love. A lot of lip service gets paid to the notion that people are more important than things, but living a frugal life allows us to really live by that notion.
Frugal Babe – FrugalBabe.com

Lesson 17: Small Frugal Actions Can Change the World!
By limiting the amount of new resources you consume, by avoiding big box stores in favor of community based organizations, you can make a difference voting with your dollar. By eliminating meat or animal products or just reducing them you can make huge steps in reducing your carbon foot print. It may not feel like much, but even small actions add up. If you want to know more about responsible consumerism, check out Corporate Watch Dog or KnowMore.Org.
Elizabeth Byrne – QueerCents.com

Lesson 18: Frugality is NOT a Personality Trait!
Frugality is not a personality trait. You really need to train yourself and educate yourself about how to be a frugal person. Also, don’t be annoying with your frugality, and know when to loosen up the purse strings a little bit. If you let frugality control your life, it will destroy relationships and you’ll miss out on a lot of great opportunities and activities.
Erik Folgate – MoneyCrashers.com

Lesson 19: Starting is EASY
If you’re looking to become more frugal, start by looking to reduce your bills and don’t pay regular price for anything.
Tom – CanadianFinanceBlog.com

11 Lessons on Resisting the Temptation to Spend

The temptation to spend never stops. Ever. We asked our experts to discuss what causes them the greatest temptation to spend – and how they resist the urge!

Lesson 1: Budget for Temptations
Several of our experts offered similar advice regarding temptations – they exist, they always will, so build them into your budget!

Ikea. I *love* Ikea. So I just don’t go there. If I do, I go with a list and a budget!
Kelly Rigotti – AlmostFrugal.com

Gadgets and sports memorabilia… I budget for them so when I spend the money I don’t feel bad about it.
Kevin – RichCreditDebtLoan.com

Save For Your Vices: My vices are gadgets. I love new electronics, and they tempt me all the time. But I don’t think I’m alone, as I think a lot of us are addicted to consumer electronics. As a solution to my vice, I set up a specific savings fund to put extra money aside for gadgets, and then I would put any potential gadget purchase to the “do I really need this” test. Most of the time I don’t, or I find that I can go a step down to a cheaper model and be fine with that.
Erik Folgate – MoneyCrashers.com

Lesson 2: Remove the Temptation
I’m a typical girl — my weaknesses are clothes, shoes, and bags! I used to be on the email list for bargain designer outlet websites like RueLaLa, HauteList, and ideeli. I also got email newsletters from sites like BlueFly.com and ShopBop.com. Yes, you’re saving money — you can buy a $250 wallet for $120 — but that’s still a lot of money! The “deal” can sometimes be deceiving if it’s something you don’t need in the first place. When I started to find myself buying too many unnecessary things because I just couldn’t pass up a “deal,” I unsubscribed myself from every one of those email newsletters. It has really helped take away that temptation.
Emily Gerson – CreditCards.com

Lesson 3: Put it in Perspective
If I am ever feeling like I need to go spend I think back to the one wish my grandmother had and that helps me to put things back into perspective. She raised seven kids and never once in her life went out to eat at a restaurant – her one wish was to go do just that – she never was able to before dying of cancer in the middle years of her life. Thinking of her makes sacrificing my wants a lot easier.
Matt Jabs – DebtFreeAdventure.com

Lesson 4: Buy for Need, Not for Price
Thrift stores, where the price seems almost negligible. Sometimes I go home wishing I had bought something, and other times I take it home just in case, then realize I really didn’t need it. It’s a hard balance to strike, and can become a mind game of sorts: should I buy it because it’s the frugal thing to do, or should I not because it’s the frugal thing to do?
Kim C – FrugalHacks.com

Lesson 5: Prepare Meals for the Week in Advance
Going out to dinner when you aren’t enjoying yourself can be REALLY expensive. I really enjoy dining out. If you enjoy it, it’s not a big deal to go out once in awhile and drop a pile of cash on a great meal, great drinks, and great company. The problem comes when you take the family out to eat, and drop forty or fifty dollars on a generic restaurant because you are too tired or burned out to cook. You don’t get any enjoyment from it, and you lose some hard earned money. To resist this, I try to have an entire week of meals planned out. I then like to buy all the ingredients for the week at once. Shopping and planning are a big part of cooking. If those parts are already done, it’s not such a big chore to cook up a meal. Keep a stocked pantry and refrigerator, and you will be less tempted to go out later in the week.
Sergio – PainlessFrugality.com

Lesson 6: Use Spending Rules, Questions and Delays
Many experts use spending rules, lists, questions at the cash register and deliberate delays to help them resist temptation. Here are some examples.

30 Day Rule + Put it on a List
I have a couple of tools I use to resist. First, I try to avoid stores that feature these products. If I don’t go into a comic book store, I can’t be tempted to buy. If I don’t watch Steve Jobs’ keynote address, I can avoid the lure of new Apple toys. Also, I make a lot of lists. For some reason, I find it just as satisfying to put an iPad on my Amazon list as I do to buy it. I’ll come back weeks (or months) later and wonder why I even wanted half this stuff. I use the 30-day rule a lot: If I still want something after 30 days, well then okay, I give myself permission to buy it.
J.D. Roth – Get Rich Slowly

Ask: “Do I Have the Space for It?”
I fall back more on minimalism now, I just ask myself: Do I have the space for it? And do I want to carry and pack it into my suitcase when I move? If the answer is no, I put it back. It works 99% of the time. Another question I’ll ask is: Can I get this for cheaper, borrow it, or find it for free? If the answer is yes, I won’t purchase it, and I’d rather wait for a deal or a sale. I’m pretty patient unless I REALLY need it. But to be honest, I don’t really need anything.
Ms. Fab – FabulouslyBroke.com

Sleep On It
I’m a little embarrassed to admit this, but anything that is on a really really good sale (80% off or more) tempts me to overspend because I end up buying things I don’t even need. Through the years I’ve used the method of sleep, sleep, and more sleep to curb my urge to buy just because something is cheap. I sleep on it and if I wake up still thinking about the item the next day, then I’ll get it. If I’ve forgotten it… well then I didn’t really need it anyways.
Ashley Baxter – SpendOnLife.com

The 30 Day Rule
Since I own a business, I’m tempted to overspend not by a certain product, but actually whenever my business does well. It’s much easier to justify (irrationally btw) to spend more whenever there’s a big influx of income coming in. It’s the same phenomenon when people get a big tax refund, or an annual bonus. Whenever I feel the urge to spend, I find that the 30 day rule works best. Once I wait 30 days, most products or services aren’t nearly as important to me.
David Ning – MoneyNing.com

Ask 3 Questions at the Register
Eating out, electronics, video games, and BOOKS are my big weakness. Eating out is a monthly struggle, and we are trying to be better planners to deal with the time contraints that cause us to eat out so often. I sold my XBOX 360 before we got out of debt so that helps in that area. We basically ask ourselves these questions before we make it to the register: 1) Do we need it? 2) What will buying it keep us from accomplishing? 3) Can we find it cheaper somewhere else?
Brad Chaffee – Enemy Of Debt

Lesson 7: Stretch Your Budget and Know Why You Save!
The challenge we have is in trying to maintain what we consider to be a “normal,” although frugal, lifestyle even with a downsized income. That is why I tell my readers to stretch their available funds in every household budget category. What money-saving steps could provide your family with an additional $30, $60 or $100 a month cash flow? Is that enough cushion to get through a layoff, a pay cut, a furlough? Is that enough cash flow to help pay down debt? Is that enough to help your family maintain some of the routines and fun that help keep their sanity?
Paula Wethington – Monroe on a Budget

Lesson 8: Limit Yourself + Rewards Programs
I love shoes and handbags, and not just any kind, very high-end ones. I limit myself to 2 bags a year, and shoes I try to go to discount warehouses like DSW. Plus, DSW has a rewards program, so at least I get back a little back from what I spend.
Natasha Washlick – OneFrugalChick.com

Lesson 9: Set Aggressive Goals and Stick to Them!
Knowing that we have to save more than half of our gross income if we want to accomplish all of our goals each year is a pretty strong motivator to stay frugal! It also helps that both my husband and I are strongly on board with the savings goals.
Frugal Babe – FrugalBabe.com

Lesson 10: Apply the 80/20 Rule to Things You Love
I don’t deny myself going out for a meal but I like to reserve it for a special occasion, rather than when I’m too tired to make food. When I cook, I make cheaper recipes but recipes that don’t scarifice flavor. Spending a tiny bit more to spruce up a recipe can make a big difference. It’s totally the 80/20 rule. Behave 80% of the time, but let yourself indulge in moderation 20% of the time. That way you won’t go overboard.
Elizabeth Byrne – QueerCents.com

Lesson 11: Accept and Move On
Costco. When I buy things there, I rationalize that I’m saving because I can’t get it cheaper anywhere else. However, I may occasionally buy something I didn’t need in the first place due to the “Costco Effect”. I don’t resist well, Costco is my frugal weakness.
Tom – CanadianFinanceBlog.com

12 Lessons on Taking Frugality too Far – When Frugal Becomes “Cheap”

When starting out, many newly-frugal folks take their experiments a little too far. Remember though – frugality is HIGHLY subjective. One person’s frugal could be another person’s luxury!

Lesson 1: Being Frugal is Different from Being Cheap

I’ve gone through periods where I thought being frugal meant being cheap, and I cut back on spending to the point it was silly. Now I realize being frugal isn’t defined by how much you spend, but by your actions. Now I prefer to research items and buy quality, instead of buying cheap.
Patrick – CashMoneyLife.com

Nickeled and Dimed to the Poor House
You mean have I ever reused toilet paper or anything like that? No. I do draw the line. Do I think others need to avoid nickel and diming their way to the poorhouse and learn how to make a budget? Yes.
Kevin – RichCreditDebtLoan.com

Lesson 2: Used Shoes is Too Far
At one point a little after college I wanted some nice shoes for work but didn’t have the money, so I bought a few pairs of gently used shoes on eBay. Some were great and seemed as good as new, but some were worn down and had peoples’ feet marks in it. Gross! There have been several other instances like that in my life when I realized that sometimes it is worth spending a little extra money on certain items (or waiting until you can afford something nicer).
Emily Gerson – CreditCards.com

Lesson 3: Too Much “Frugal Enthusiasm” Can Make You Annoying
Have I taken frugality too far – Perhaps at first, when we were initially making the change – but I believe the growing pains were necessary. Being the Frugal Nazi can be annoying but it is good for people in our culture to be exposed to this “tight-wad” way of living.
Matt Jabs – DebtFreeAdventure.com

Lesson 4: Others Might Find Me Excessive… But I Don’t Care
I use handkerchiefs exclusively, I don’t use laundry detergent 99% of the time, I use everything to the last drop, even milk in a bag or squeezing out toothpaste to its last squeeze. I turn off taps everywhere I go, I turn off lights in every room, and I wear sweaters with long pants and thick boots inside to keep warm in the winter instead of cranking the heat, and I’ll even walk 5km instead of spending $3.00 on public transit.
Ms. Fab – FabulouslyBroke.com

Lesson 5: On A 20$ Food Budget… For a Month
Well I’ve already admitted to microwaving mascara to get that last little bit-o-usage out of the tube. The only thing that may come close to being that bad was the month in college I refused to spend more than $20 on food for the entire 4 weeks. I lived off of a shoe box sized care package from my mom, an economy size crate of ramen, and meal trades at campus dining facilities from my loving and generous friends.
Ashley Baxter – SpendOnLife.com

Lesson 6: The $34.01 Week Experiment
I once tried to live on as little as possible and see what ideas I came up with and how my life would be. The experiment was fun and took about a week where I spent $34.01.
David Ning – MoneyNing.com

Lesson 7: Others Might Find Us Overly Frugal…
Other families would find some of our routines to be annoying. I have been couponing for more than 20 years. We’ve had one traditional out-of-town family vacation in the past five years. We keep one older car as the “go to work” car rather than make payments on two newer cars. I am willing to shop at multiple stores throughout the week. I bake my own cupcakes for the potluck dinners, handcraft the birthday cards, and go home for lunch. My husband packs a lunch box for work.
Paula Wethington – Monroe on a Budget

Lesson 8: Drinking Watered-Down Hot Chocolate
During the summer of 2008, I blogged about how expensive movies, milk, and cocoa were. This post is infamous at Get Rich Slowly. Basically, I saved 29 cents by drinking watered-down hot chocolate. My readers rightfully told me I was being cheap, not frugal.
J.D. Roth – Get Rich Slowly

Lesson 9: Driving a Mile to Save a Nickel
I have to admit, sometimes I will drive a little too much out of the way just for a good deal.
Natasha Washlick – OneFrugalChick.com

Lesson 10: Buying Cheap Instead of Buying Quality
I remember being younger and buying clothes at Marshalls because they were on sale and I needed pants. Unfortunately those clothes didn’t fit well or didn’t last long and I wound up not wearing them often and then eventually donating. Most of my frugality stories are like this: I could have saved money by being a little more patient or being willing to pay a little more up front and save time and money later.
Elizabeth Byrne – QueerCents.com

Lesson 11: Being Cheap… While on Vacation
Yes, early on when I was on my frugality kick, I would keep me and my wife from doing certain things while on vacation. But I realized that vacation should be fun, and if you can’t afford to splurge on vacation, then you probably can’t afford to take a vacation. Even so, there are always those times where we just need a vacation so take a look at this article on how to save on vacations.
Erik Folgate – MoneyCrashers.com

Lesson 12: Be Careful with DIY Property Surveys
My children would tell you that getting rid of the dryer and line drying all our laundry was taking it too far, but we’ve done worse. I could tell you about the time we decided to save money on a survey of our new piece of land and ended up building our house right on the property line…
Kim C – FrugalHacks.com

49 Expert Recommended Resources for Beginners

We asked our experts to recommend resources to newbies. Here’s a treasure trove of frugality resources, just waiting to help you take that first step towards a happier, healthier and WEALTHIER lifestyle!

25 Frugality Blogs

Please note – some of the blogs recommended here are the blogs of our experts. These are coincidental, earned recommendations, as we never shared our expert list.

4 HUGE Frugal Blog Lists

4 Influential Frugality Books

  • The Tightwad Gazette (mentioned by 3 experts)
  • YOUR MONEY OR YOUR LIFE (mentioned by 2 experts)
  • The Millionaire Next Door
  • Total Money Makeover

10 Expert-Recommended Coupon Sites

6 More Frugality Resources

Filed Under: Cheap Living, Credit, Debt, Financial Tips and Tricks, Money Management, Money Saving Tips Tagged With: , ,

The 7 “Debtly” Sins… and the 7 Financial Virtues that Will Save You

March 19, 2010 By Leave a Comment

pic of deadly sins
If you believe in sin – either against God, Self, a Higher Power or Humanity – then read this article to see if any of the “Debtly Sins” resonates with you. Next, save ALL your receipts for a week. After saving your receipts, set aside 30 minutes for quiet self reflection and analyze each purchase through the lens of the Seven Debtly Sins.

Regardless of your religious affiliations, the Seven Deadly Sins, as viewed through your spending decisions, have a great deal to teach about living happily and reaching your fullest potential as a human being. They may even be digging you deeper into unwanted, destructive debt.

1st Debtly Sin ==>> Pride

Pride, considered the deadliest of sins, is the desire to be perceived as more important or attractive than others. It also occurs at the unacknowledged, unrecognized and *unfounded* belief that you are better than others, making this a very tricky sin to determine on your own.

What pride-driven spending looks like:

  • Spending to “BE the Joneses,” the ones that everyone else tries to keep up with.
  • Spending that puts your WANTS before the needs of your household or your own longterm financial freedom.
  • Failure to recognize how your psychological need to be most important or most attractive drives your spending.
  • Spending – to the point of destructive debt – to acquire “flauntable” houses, cars, clothing and other lifestyle indicators.
  • Confusing self-love with self-spending.

Penance: Cultivate the Virtue of Humility

Humility is the practice of being humble – that is, modest and self-abasing. Do be cautious of taking humility too far though. Here are some ways to develop your humility, which will in turn help you change your pride-driven spending habits.

  • Compliment others for virtues and talents that surpass your own.
  • Focus on and discuss the virtues and talents of others rather than their possessions.
  • Spend less than you earn.

2nd Debtly Sin ==>> Wrath

Wrath is the harboring of anger, hatred and resentment towards others, towards institutions and towards yourself. When pointed outwards, wrath can drive people towards reckless revenge. When wrath is pointed inwards towards your self it can drive you towards self loathing and even suicide.

Here’s what wrath-driven spending looks like:

  • Making purchases to prove a point or win an argument.
  • Making purchases that result in resentment, either towards yourself or towards the recipient of those purchases.
  • Spending heavily on a rage-driven lawsuit.
  • Spending on addictions that distract you from your self-loathing.
  • Going shopping to “cool off” when you’re feeling angry.

Penance: Cultivate the Virtue of Patience
Patience is the ability to endure difficult, anger-provoking situations that show no signs of stopping. It’s also the ability to express your anger and frustration in non-destructive ways. Here are some ways to develop your patience, which should help you reduce your wrath-driven spending.

  • Decide to endure and manage your own anger, without the help of purchases.
  • Decide to endure strain and provocation rather than lash out with non-constructive anger.
  • Determine what it will take for you to forgive – yourself or others – completely and move forward.

3rd Debtly Sin ==>> Sloth

Sloth is the decision to be lazy and indifferent to your circumstances, despite having talents and gifts that could help you improve your life. Often you will find slothful people likely to complain but not to act.

Here’s what sloth-driven spending looks like:

  • Consolidating debt only to maintain spending habits.
  • Indifference to debt, and what it means to your future financial circumstances.
  • Avoiding simple tasks by consistently spending money on eating out, dry cleaning, yard work, simple repairs, etcetera.
  • Education debt incurred to avoid joining the work force.

Penance: Cultivate Diligence and Zeal
Diligence exhibits itself in your work ethic, how you budget your time and how well you self-monitor for laziness and working to the best of your abilities. You will find that increasing your diligence in one area of life will have a bountiful cascading affect on other areas. Here are some suggestions for addressing sloth (which can in turn increase your earning potential…).

  • Personally accept the responsibility for your own boredom – in all aspects of your life.
  • Continually monitor your actions to make sure you’re using your time effectively
  • Remember to relax and “recreate” too! If you’re not making time for yourself, you will “steal” this time from tasks that need your full concentration.

4th Debtly Sin ==>> Greed

Greed is the consuming desire for wealth, status and power. Pursuing wealth at the expense of the ones you love can leave you emotionally, and even financially bankrupt.

Here’s what greed-driven spending looks like:

  • Spending on any get-rich-quick schemes, books, website systems, ebooks, etcetera.
  • Investing money in things you believe will lead to wealth and status, but not investing your effort.
  • Consistently buying books about starting businesses and making money but never reading them.
  • Making guilt-driven purchases that you hope will make up for your absence from your loved-ones lives.
  • Confusing income with financial freedom; confusing financial freedom with happiness.

Penance: Cultivate Charity and Generosity
Charity and generosity exhibit themselves through the act of donating money, time or goods to people in need. For the greedy, charity work or donations will feel like “pulling teeth” at first. Here are some ways to grow your spirit of charity, and reduce your greed-driven spending.

  • Look beyond your own pursuits and contribute to something you believe in, that’s beyond yourself.
  • Reflect on what makes you genuinely happy.
  • Put non-retirement, “get-rich-quick” expenses aside for charity.

5th Debtly Sin ==>> Lust

Though the word lust is most-often associated with sex, the sin itself has a broader meaning. Lust is the excessive, destructive pursuit of the love of others, whether platonic, familial or sexual.

What lust-driven spending looks like:

  • Spending on gifts intended to buy the love of family and friends.
  • Spending on gifts intended to earn affection within a relationship.
  • Spending on items for yourself intended to earn love or acceptance of others.
  • Secret spending on “adult entertainment.”

Penance: Cultivate Chastity and Self Control
Chastity is the pursuit of mental and moral purity. This will require ongoing meditations on all forms of love, and within all of your relationships. …Especially those that involve spending money. Here are some thoughts on growing your chastity and self control.

  • Devote yourself to learning how your family and friends *receive* love – what is meaningful to them?
  • Learn how YOU receive love, and learn how to ask for it from others.
  • If you suspect you are addicted to an “adult behavior,” seek professional help immediately.

6th Debtly Sin ==>> Gluttony

Gluttony is the over-indulgence and over-consumption of ANYTHING to the point of waste. This includes any resource, from water to food to electricity.

Here’s what gluttony-driven spending looks like:

  • Any spending decision that, in hindsight, makes you feel sick with yourself.
  • Buying too much of anything and having it go to waste – food, heat, water, etcetera.
  • Spending on things that make you feel “insulated” from the world, your own anguish, or the opinions of others.

Penance: Cultivate Temperance
Control your desires. Identify areas of waste in your budget. Financial gluttony takes many forms, but it’s always fueled by a willful ignorance of wasteful behavior.

  • Restrain yourself. Decide to control yourself, know why you control yourself, and DO IT.
  • Eat leftovers, insulate your home, turn the heat down, take shorter showers
  • Mediate on your need to overindulge – is there something else you’ve been denying yourself?

7th Debtly Sin ==>> Envy

Envy is the resentful wish – spoken or unspoken – to deprive others of things you desire. It’s also described as the “sorrow for another’s good.” This same resentment of what others have can lead to destructive debt.

Here’s what envy-driven spending looks like:

  • Buying things based on what others have, regardless of quality, your personal tastes or if you can afford it.
  • Shopping binges started with feelings of anger and resentment at others for what they own.
  • Decision to NOT spend money or time on gifts for family members you resent.
  • Insatiable spending on items you resent others for having.

Penance: Cultivate Kindness
To reduce your envious behaviors, be nicer to people in your words, thoughts and deeds. Start with the people you love the most and work out from there. Here are some ways to start exercising your kindness.

  • All that resentment takes its toll on you – reconnect with yourself by doing an activity you love.
  • Volunteer your time at a charity you’re passionate about.
  • Call someone you’ve been resentful towards and ask how their day is going.
  • Call someone you love and ask how their day is going.
  • Decide to give the gift of joy to someone random, once a day.
  • Say nice things instead of buying nice things.

Others who have meditated on the connection between the seven deadly sins and personal finance:

Filed Under: Debt, Financial Education, Financial Tips and Tricks Tagged With: , ,
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