Posts Tagged ‘Saving’

« Older Entries

Revisiting Credit Card Debt

Friday, May 1st, 2009

A lot of what we talk about here has to do with debt and in particular, credit card debt. This is because it is a huge issue that deserves to have as much time spent on it as possible, without sounding like a completely broken record.

Today I want to focus specifically on how to avoid getting into credit card debt, and if you are in credit card debt how to start getting yourself out of it. I have written a lot about this in the past, so you will see references to previous articles here on our site.

We will first start with getting out of debt and then hone in on how to stay out of credit card debt.

The Snowball Effect

I have read numerous articles, books, and heard people speak on where to start paying down on your debt. There are many “theories” out there but when you really get down to it, they are just one persons idea up against another person’s. Here is what I have filtered out to be the best way to eliminate your debt:

On a piece of paper or in an Excel spreadsheet, list all of your debts (consumer and credit) starting with the lowest BALANCE (lowest to highest). Then, next to those amounts write who it is owed to and their minimum payments. That is your game plan on paper. You are going to, in the word’s of Dave Ramsey, get “gazelle intent” on eliminating the lowest balance while making minimum payments on all the rest. Once you knock out the smallest balance you roll the cash you were throwing at that right into the next balance. Defeat that one, roll that cash right on to the next. This is why they call it the “snow ball effect”.

Why pay the lowest first? Because you will get it done quick which will accomplish two things: 1) boost your ego. You now KNOW that you can do this. If you tried to tackle the highest first you would most likely fail and not finish it. This ensures that you will stick with it and move on to the next one, because you did the lowest one!! 2) it frees up cash quicker which can be thrown into the next debt. If you tried to tackle the big one first you would not free up cash for a VERY long time, which would keep your debt around longer. You want to free up as much cash as possible (and as quick as possible) and a very good way to do this is to get rid of the ankle biters, the little balances that are a nuisances.

[source]

What to do to stay out of credit card debt

This article states that some 7.3 million consumers use credit cards to take cash advances. It also states that these interest rates can be as high as 29.97% for cash withdraws. This, my friends, is not a good way to stay out of debt and is not a good way to use a credit card. Period. I personally do not use a credit card for anything. I am a cash man and I intend to stay this way. You should too. Especially when you get out of debt. Cut up the credit cards and start to depend on cold, hard, cash. There is no better way to spend (and save!).

From the same article quoted above:

Once you have eliminated your credit card debt start SAVING your money. If you don’t have one already, get an emergency fund with no less than $1,000 in it. From there move onto getting 3-6 months of what it takes to meet your budget each month into savings. The idea here is to GET RID of debt and BUILD UP SOME CUSHION. Because here is the problem, an emergency is going to happen (I will personally guarantee this) and in order to stay out of debt, you need to have the CASH to meet the financial needs of that emergency.

Without the cash saved guess where you go…right back into debt.

Reblog this post [with Zemanta]

Tags: , , , , , ,
Posted in Debt | 7 Comments »

A Glimmer of Hope

Thursday, April 2nd, 2009

While banks, insurance companies, and automakers, are all failing, a company in the UK that provides debt advice and support is growing. Debt Free Direct bought consumer debt advice group Clear Start UK. While banks are failing, a debt management company is growing. I love that.

This is encouraging to me!! This provides me with a glimmer of hope that we are not all lost, that not everyone out there is giving up and settling with the MYTH that debt is a part of life.

We all know that debt has become a fact of every day life. Some people believe that debt is inevitable and there is no other way to do things. But on the flip side of this coin, there are some of us who know that there is another way and a better way to handle money  and life. For me, CASH is the name of the game. Paying with cash and having a lot of money piled up in my money market account incase of emergencies is what helps me sleep at night. It could be different for you, but as long as you know that debt is not a way to do anything, you are good.

For some, this realization may not come as easy. For most debt has not only been a part of their lives, but their parents lives as well. Some families are absolutely torn apart by debt. It is at this point, at the point where DEBT starts to control their life, that people start to think. They think about everything they have but don’t own and they think of all of the arguments they have had with their spouses or significant others over money. The thought process may take some time, but eventually they will get to the point where they know what they need to do. They need to change and they need to learn how to manage the debt they have, get rid of it, and start over.

This is where a company like Debt Free Direct comes in, and thankfully they are going to be sticking around. They offer free advice to their clients and provide them with debt solutions to help them get out of debt. With people slowly coming to the realization that living with debt does not have to be them, I see companies like this doing nothing but growing. And this makes me happy!

If you have been buried with debt and can not imagine where to start, do some research and find a debt solution company that can truly help you. Be careful, some will be nothing but a scam, but not every debt solution company is. Do your research, call a lot of people, and make an informed decision.

Asking for help is not a bad thing.

Reblog this post [with Zemanta]

Tags: , , , , , , , , , , , , ,
Posted in Debt, Featured, Service Reviews | 1 Comment »

Working Together for a common goal

Friday, February 27th, 2009

The other week my husband and I went out for dinner with another married couple. We hadn’t gotten together since the holidays so it was really great to see each other and catch up on what was going on in our lives. At some point during our meal we got on the subject of finances. The wife was saying how she had so much fun saving up for a big vacation they went on. She went on to say that she normally doesn’t help out much when it comes to saving for their vacations. But for whatever reason, this year she decided she wanted to save up their spending money for the trip. She got a little jar and would put any extra money she had in this jar. By the time their trip came up, she had saved a significant amount of money; more than enough to cover any special souvenirs they wanted to buy. She also stated that she wished she would have started saving a lot sooner. She never realized just how much money she could save, just by putting a few dollars here and there into the jar. She told us that she was so happy about the money she had saved, that now her and her husband have a “savings meeting” every month and they are helping each other save for different items that they want.
I thought this was a great testimonial about how powerful it is to really take the time and effort to save up for something that you really want. She could have just done what she did every year and not have thought twice about saving up the money. But instead she worked hard and probably enjoyed the trip even more knowing that she took a part in getting them there. Not only did it save them money in the long run (not having to put the extra costs on a credit card) but it encouraged her to look elsewhere on their financial map and see what else she could save for. I think it’s wonderful when a couple can come together with their finances and really work as a team to make their financial dreams a reality.
What financial dreams are you striving for? How can you and your spouse make them a reality?

Tags: , , ,
Posted in Strategy | No Comments »

Ways I save money while attending school

Friday, February 20th, 2009
As most of you are well aware, I made the decision back in the summer to go back to school. The choice was made rather last minute and I just squeezed in for admission. Because of that we really had to be on our A-game when it came to our finances and spending wisely. God thankfully provided a great job for me that has worked out beautifully with my class schedule. This job has provided more than enough money for me to pay for school month to month to save me from taking out a large loan. When I am done with school I will have about 80% of my school payed for and the other 20% will hopefully be saved by the time the bill is due. This allows me to be able to skip all the interest payments on the loan both during school and when I’m finished with school.
Besides interest payments there are a few smaller, but still significant ways that I keep costs down. All the ways that I mention will seem small, but keep in mind that it would really add up over the course of a year. The first way is with dinner. My classes are right over the dinner hour so we are given a break to eat. Instead of leaving campus and grabbing a quick bite to eat, I take my own food. I was surprised to find out that everyone in my class is doing the same thing. Every once in a while people will leave for food but a majority of the time we just hang out and eat together. We all can sit together and we always have a blast socializing and talking about our days. So not only am I saving myself from the cost of gas and food to go out, I am getting to know the people in my classes and have built some wonderful relationships with them.
Another way is save is on gas. The campus is right in between my home and work. More times than not, I get out of work two hours before my classes are set to begin. But, instead of driving all the way and then driving back out in the same direction, I opt to go to school early. It saves a significant amount in gas and it gives me ample time to study where I may not otherwise get it done. It has actually worked out quite well for me.

The next way I save is with what I take to drink. Instead of buying bottled water for me to take to class (water is required) I actually take a water bottle from work. I’m a huge fan of vitamin water and it is at work for me to drink. So during the day I will drink a bottle of the Vitamin water like I always do, then I’ll throw that empty bottle in my purse. When I get to school, I’ll fill it up at the water fountain and use that instead. Then before I leave I just toss it in the recyclable bin. It saves me money, ensures the bottle will be recycled, and saves me from having to wash out a reusable bottle every day.

Tags: , , , ,
Posted in Strategy | 9 Comments »

New Page, Our Goals and Debts Live

Sunday, February 8th, 2009

On our weekly podcast we have a segment of the show that we have titled the “Coffee Break”. In this segment

Coffee Break

Coffee Break

we update you on our exciting lives and give you the dirty details of our debt payments and other goals that we are trying to reach.

And now we have a page on our website dedicated to these topics! Not the boring stuff that we do, but the progress towards reaching our goals! All contained in one page!! Three easy to read spreadsheets embedded right on our website with actual numbers. And a cool part is that you can comment on each one.

We want you to encourage us, tell us to kick it into high gear, and share your stories of reaching your goals! We are excited about sharing our progress with you and we look forward to the conversations that it will spark!

Head over and tell us what you think!

Reblog this post [with Zemanta]

Tags: , , , ,
Posted in Newsy News | No Comments »

WYAN Radio Podcast Ep. #7 – Obama Will Not Pay Your Debt

Friday, January 9th, 2009

WYAN Radio Podcast Episode #7 – Obama Will Not Pay Your Debt

Show Notes below: Subscribe in iTunes, grab the RSS feed, vote for us at Podcast Pup and Podcast Alley!!

Intro
We had a great radio show on Saturday. 5 callers will all receive Strands.com t-shirts. If you want to hear the archive show go to our website, links to RSS and iTunes on the sidebar. You can also stream from our blog.

Today’s show: Lindsay can read, Aaron got his gmail stickers, big progress on debt, and simple things you can do to have a better 2009 with your money.

Coffee Break
Starbucks – Cafe Verona french press
Lindsay – Nice break. Started reading (gasp!) a book. Packed up Christmas things. Put extra cash towards secret saving goal. Still getting little gifts, even after Christmas.
Aaron – Gmail Stickers arrived :-)

Our Debt
Aaron – made payment of $771.68 bringing balance due to $1,751.07.

7 things you can do to have a better 2009 with your money:

  1. Spend less than you earn
  2. Avoid impulse spending
  3. Budget your money
  4. Use cash instead of plastic
  5. Save money each month
  6. Have goals
  7. Pay off debt

Outro Music
“To Be An Angel” – Uncle Seth
http://www.musicface.com/uncleseth

Tags: , , , , , , , , , , , , ,
Posted in Podcast | 2 Comments »

5 Easy Ways to Recover From Christmas

Monday, January 5th, 2009
Spend Spend Spend
Image via Wikipedia

November and December are crazy months and a crazy way to end a year. Lots of food, family, and money being spent. Lots of money being spent is where I want to focus this, obviously.

For me, December was a ridiculously hard month to keep up with. Money in and money out. I had a budget for my Christmas gift shopping, but as the saying goes sometimes, “Budgets are meant to break”. And I am ashamed to say that I broke my Christmas shopping budget.

Let me tell you what happened and how it can ruin you in the new year if you don’t recognize the danger. December is a busy month. Busy busy busy and you need to shop. So you shop shop shop. You are also working full-time and bringing in money. But you are so busy that you don’t sit down and put the money where it needs to go. You don’t do your budget the way you normally do it (organized) and all of the income just stays in your checking account. While you are shopping. Dangerous.

So you are shopping from your checking account and not really keeping track of things because you are too busy to do so. Then, the season is so happy and joyous that you don’t even think twice about going out to eat more than usual or going to the theater one too many times, or just spending money on things you normally would not spend money on. But the time of year is so happy you don’t want to ruin it (the feeling) for you or the people you are with. So you spend spend spend and don’t keep track.

If you are like me, this will drive you crazy and can really only last for one month. Not more and definitely not into the new year.

As you may have guessed, in the above “example” you can replace all of the “you”s with “me” and you have my December and Christmas season. It drove me nuts but I was too busy to do anything about it. I hope this was not what your December looked like, but if it is, here is how you can get back to the real world of making money and budgeting that money.

Paper and Pencil

No. I’m serious. Get back to the basics. Write your budget out on paper and use a pen or pencil. Do not use the computer or whatever method you were using. Get back to the basics. Write out how much you normally budget for a month. Write out all of your bills, categories, and saving goals that you are going to throw money at. Write it all out on paper and track it on paper. Sometimes using the computer just makes it too complicated and things just need to go back to the basics. Don’t think this is a bad thing. Do what you have to do to get your spending under control and your budget back on track.

Use Cash

Most Christmas shopping for me was done online and therefore I used my debit card A LOT. Get back to cash. Don’t use your card except for for paying bills online. Everything else, use cash. It may be inconvenient, but you need to take it back to the basics. Get back to using cash as quickly as you can. The card can become a habit and a REALLY bad one if you don’t get it under control. Make a stop to the ATM or bank today and take out the cash you will need for the month and organize it. No card in January!! Are you with me?

Revisit your Goals

Lindsay and I sat down last week and took a look at our goals. Where were we at? How far have we come, how far did we need to go? What could we do to speed things up? The point is to revisit your goals. Re-energize yourself to meet your goals in the new year. It is easy to forget what you want to accomplish, so a quick visit is a very good thing to do. If you have not done so already, this fund raiser is a great way to reach your goals in the new year.

Don’t Lie to Yourself

This is the worst thing you could do and exactly what most people do. They say it will be okay, things have been going good and easy this way so I’ll just keep on this path. Don’t do it. Do not lie to yourself and talk yourself into thinking that you can continue this way and keep above water for any length of time. You must change. And now is the perfect time to do so.

Restarts Are Good

The second worst thing you could do is think that starting fresh is bad. Rewrite your budget, rework your spending and revisit your goals. These are all good things and do not need to be frowned upon by you or your inner critic. Be afraid of quitting but not of starting over. I encourage you to do so.

Reblog this post [with Zemanta]

Tags: , , , , , , , ,
Posted in Budgeting | 2 Comments »

It Is Going to Rain – Get an Umbrella and Save

Tuesday, December 30th, 2008
Rain on an umbrella from passing showers
Image via Wikipedia

Plan on worst case everything and never think that you are immune from the unexpected in life just because you are you. IT is going to happen (your car is going to break down, and you are going to need life saving procedures done that are not covered). Plan for it.

This horse has been dead for sometime now, but I must beat it again. I’m sorry, but this is simply a VERY important factor to your future financial success. Who wants to have money problems? NO ONE! Who wants to avoid money problems? EVERYONE!

Here is how:

PLAN AHEAD! Expect the rain to come and pack your umbrella. And you know what, while you are packing, you should bring that poncho too. Because sometimes, when it rains, it pours!

We own two cars. They both are registered vehicles and must be inspected once every year. Before and after their inspections something is most likely going to go wrong with the car that will need fixed. I am going to say this slowly, not because I doubt your ability to understand, but so it sounds better: IF YOU OWN A CAR, YOU SHOULD BE SAVING MONEY EVERY SINGLE MONTH FOR WHEN IT BREAKS DOWN. Even if you have a fairly new car, save up. When it rains it pours, and I can promise atleast a shower.

I planned for a hurricane this past year with my car and am so thankful that I did. I mentioned a while ago that I knew my car needed to have some pretty expensive work done to it when it came time for inspection. I planned for this and then some, because YOU NEVER KNOW! So I was planning on certain amount X but was also covered if XY happened. Guess what, XY happened and I’m glad I was prepared for it!

If you don’t plan for car problems, you will end up sliding the credit card and paying interest on something that was going to happen sooner or later. Don’t ever pay interest on car problems; save cash and pay cash.

Another area that can bite you without warning is medical bills. All I can say is know what is covered and what is not covered, and plan that your body is going to breakdown (just like a car). And even though certain things may not be covered with your medical plan, you can’t avoid everything. Recently we had some medical bills show up, unexpectedly, but they were legitimate bills. The procedures that were done were not covered but they needed to be done. So what did we do? We paid them ofcourse, and thankfully had money set aside to do so. Otherwise…credit card or wait for the collection calls to start coming in.

So, all of that to say plan ahead. Plan on worst case everything and never think that you are immune from the unexpected in life just because you are you. IT is going to happen (your car is going to break down, and you are going to need life saving procedures done that are not covered). Plan for it.

Reblog this post [with Zemanta]

Tags: , , , , , , ,
Posted in Saving | 2 Comments »

WYAN Radio Ep #4 – Visualize Your Savings

Friday, December 19th, 2008

WOW! This is one heck of a great show today! Not only do we get a chance to take a coffee break, but we talk about visual ways to track your savings, Rev Run’s investing advice, and a great Podsafe Christmas song brought to you by Eoin Harrington.

Show Notes:

How to VISUALLY Track Your Progress (our version)
Download your own fund raiser
Email your pictures to us at wyanradio [at] gmail [dot] com
Feedthepig.org
Revrun.com
Info on our LIVE Radio Show on January 3rd, 2009 1pm EST
Eoin Harrington (website and Myspace)

Click here to subscribe in iTunes

Click here to grab the Podcast RSS Feed

Not sure what RSS is?

Reblog this post [with Zemanta]

Tags: , , , , , , ,
Posted in Podcast | 2 Comments »

« Older Entries