Break Away to Debt Freedom

The bumps in the path on our move towards debt freedom jostled our resolve. We had no debt but the mortgage and an equity loan that had allowed us to enlarge the home to three bedrooms for our growing family. When he left his job in 2007, our income fell squarely on my freelance writing resources. It was NOT pretty. Each year the income tax refund ran out a little sooner until we were living off the credit cards.

Our struggles stem from a lack of communication that grew out of an anger issue. My husband would freak out when negative finances were discussed, so I kept our problems to myself. By the time he was handling issues better and I was bold enough to bring things up – we were in a huge debt hole again.

Find Ways to Boost Debt Freedom

• Sell it off – if you have no need for it, or you have no love for it, or if it is just in the way then let go. My husband had a Mustang GT that had been a part of his life since 1985. He “treasured” the car, but because we had no extra finances the car sat out in the yard undriveable and deteriorating with each passing year. I had already released most of my stuff (like stuffed animals and silver) and seeing him sign the title away for that Mustang gave me hope that together we would defeat debt in our lives!

• Save it up – Start with a little emergency money. The income tax refund boosts this step by allowing you to set aside a portion (in a separate account preferably at a separate back so that there is no easy access). We opened up an emergency account and stashed a little in the account for the “I did NOT see that coming” moments of life.

• Set the resolve – our income tax refund landed in the checking account and one of the last things we wanted to think about was debt freedom. There was money in the account for the first time in a long time and the urge to spend was almost uncontrollable. The way we were able to use the income tax refund to boost debt freedom was with a plan. We knew how we were going to spend almost all of the money and some of it did include a little free spending money for all of the family. Sticking to the plan has helped us maintain money in the account AND allowed us to pay down the debt we had grown over the past several years.

• See the possibility – there are a lot of fingers that could be pointed at who or what is to blame for our troubles. Pointing will not make things different. We have to choose to focus on the possibilities and NOT the problems in order to make a change. I am seeing new ways to earn more money as a writer and my husband has found a new job that allows me that time to write. We are seeing the income level rise and with each wave the hope grows stronger.

The income tax refund may not be the answer to everything, but with the right plan and preparation the income tax refund boosts debt freedom and helps push finances back into the black.

Start Saving Now

1. Make a menu. Knowing what will be fixed for each meal and what needs to be done to prep that meal will make buying groceries easier and much less expensive. Easy, quick meals will also keep you from giving in to the need to get fast food or eat out.

2. Wash the rags. Today I was putting one of the last rolls of paper towels up when it dawned on me that we go through one roll every two days. Choosing to use towels that can be washed to do most of the work will save us quite a few dollars in the end.

3. Turn down the heat. The colder it gets the lower the thermostat needs to go as well. Heat pumps in particular will use up much more energy when they are set to a temperature that is over 40 degrees above the outside temperature. Use the fire place during these times if at all possible.

The little things can make a big difference. Cutting down or cutting back can give you the extra money you need to begin building up your savings. What are the little tricks and tips that you use to save?

It is important to save money in this economy. Experts have been saying that everyone should have three to six months of expenses saved up but recently I heard that the number should be EIGHT months.

Our household lives off a freelance income. That means that the paychecks come when the paychecks come and there really is not guarantees when (or if) they will arrive. We have been living off last month’s income for a couple of years now and it has made us more aware of our spending habits. Last week I decided to push our finances to the limits and begin to save aggressively. We are aiming to save $3000 in just 10 weeks.

Tips for Saving More Money

1. Eating out is one of the quickest ways to eat up discretionary spending. Over the next ten weeks we will eat all of our meals in home or we will pack sandwiches and a picnic if we must eat at the ball field or other outing.

2. Turn off extra lights and equipment around the house and turn the air up to 74 degrees. I can save any of the overage from the budget for the electricity.

3. Sell something I don’t need, use or love. It may be something big like a piece of jewelry or something small like a toy or collectible that could go in auction.

4. Work one extra job each week – as a freelance writer I can take on as many jobs as time allows. One extra job each week could be dedicated to savings.

Saving $3000 in ten weeks is not an impossible task. It only takes finding ways to save just $300 each week or around $60 each day. Putting back that extra money will get me well on the way to a comfortable emergency fund and it will help me become even more aware of how we spend money as a family.

It seems that ever day in our home there is always something that is needed, wanted or just desired by someone in the family. Just yesterday I was telling my husband about a great deal that I found on a laptop. His only response was to ask if I NEEDED another laptop.

We have a perfectly good laptop right now. It’s not the fastest in the world and it doesn’t really have the greatest keyboard for my personal taste, but it works fine and is fast enough to watch things online (which helps with my husband’s work). It was the first one that I ever bought and I now know so much more than I did when I bought it. But I don’t NEED a new laptop. I do want one – one with more power to make it easier for me to work when I’m on the road. And since my working on the road is essential for the family being able to travel I guess I sort of do NEED a new laptop.

He had a great compromise and as soon as the words were out of his mouth I knew it was the key to saving thousands of dollars in our home each year.

1. Set aside the money (even if that means doing it a payment at a time) that you will need to purchase item that is needed, wanted or desired.

2. Wait a full month from the day your first set aside all of the money. During this time you can be reviewing the item and its place in your home or life, researching where to buy and what to buy and just thinking in general about the purchase.

3. One month later revisit the idea of the purchase. If you still must have it then you have the money to get it.

4. IF you choose not to make the purchase then take that money and roll it into a savings account (instead of using it for other purchases). After all, you wouldn’t have had the money if you had spent it so you shouldn’t miss it now.

The key to saving money is to find a way to sort through the needs, wants and desires in order to uncover the things that are a necessity for the betterment of your family and your life. Saving the money that you don’t spend along the way will make it easier for you to do even more in the long run.

Wait and then save. A two step process that will get you to that place of financial freedom that you have been dreaming about all this time.

The times are tough for most people these days. Unemployment is on the rise, prices are on the rise and income seems to be the only thing that is going down. It is important that during these times we pull together and help each other out.

1. Make an extra casserole to take to your neighbor. It will usually only cost a little more to double your recipe and having a quick and easy meal might end up saving your neighbor a small fortune.

2. Share cloths. Hand-me-downs may not be your cup of tea under normal circumstances, but they can give your kids a while new wardrobe without costing you a dime. An added bonus is that if you pass on your family’s out grown clothes you will help reduce the clutter in your home.

3. Buy a little extra. Buying in bulk saves you big money – pass that savings on to your friends or family by sharing some of the bulk merchandise with those that need it the most.

4. Have company over. Inviting a family to spend the day with you means that they don’t have to worry about cooking (or cleaning) for the whole day. It is a great way to clean out your pantry by cooking a multitude of crock pot meals.

There may not be a lot of extra money in your wallet these days but that doesn’t mean you have to stop giving. There are plenty of ways that you can give a helping hand with out spending any (or at least only a little) money.

It’s not every day that corporate America takes the little people into account, particularly with the squeeze on so many companies. It is refreshing to know that Denny’s is treating us all to such a nice surprise.

This is not the only thing that Denny’s does for its customers. Children can eat free (from the kid’s menu) with the purchase of an adult meal. My boys are too big for the kid’s meals – pretty much outgrew them when they were three – but I eat the kids meal and let them eat my adult meal so it all works out.

If you are near a Denny’s from 6 am until 2 pm you might want to consider stopping in for a bite of breakfast (or have breakfast for lunch). No matter when you stop in, a free meal is a great treat for any time of the day.

The economy is tightening and it is important to start planning for that eventual squeeze right now so that it won’t get too tight. Following a few simple tips to save more money is the best way to protect your family from the trying times ahead.

1. Always shop around. The internet has made this much easier to do, but you may still want to visit some of the top stores as well. You may be able to get a discount because the same product is available somewhere else for less. The sales associates in one store may be more knowledgeable or helpful in one store. Or you may find that some stores will offer better delivery or warranty options.
2. Pay with cash. Using credit is the easiest way to get into financial trouble. Choosing to purchase with cash means you will only spend what you actually have in your wallet. It also means that you will have to save up for what you want to buy giving you more time to think about the purchase.
3. Make do with what you have by repurposing. It may not be exactly what you want but it can get you through until you can save up to buy what you want (or until you don’t have that need any more). The key to repurposing is finding a way to make what you want out of what you already have.
a. Use the brackets from an old ceiling fan to create curtain holders (to pin back your curtains).

b. Make a candle holder a pen holder for your office – it displays the gift you got for your birthday and helps you keep your working pens together.

c. Worn out furniture indoors can become temporary outdoor furniture. If there are cushions then you may want to remove them during rain or bad weather. The furniture may not last long in the elements, but if you were going to toss it anyway then you get a little more use and it gets a second life.

d. Old windows can become part of a playhouse for the kids or even a green house for the gardener in your family. They can also make great hot boxes for starting plants and seeds earlier in the season.

4. Plan ahead for purchases. You know well before the stove, frig or washer goes out that the end is near. Start planning for your purchases now and even the unexpected will be expected (and easier to pay for).

Saving money does always have to be about the big things or even about difficult choices. By doing the little things you can end up saving big bucks that can help balance your budget during these tough economic times.

It’s connected to everything else I haven’t done. Because I haven’t washed the dishes, the counters are cluttered. Because the counters are cluttered, everyone piles things on my desk. Because things are piled on my desk, I can’t find the space to get my work done. Because I can’t find the space, the work gets moved over into a different pile until later. My piles are proof positive that later almost never comes.

What am I going to do to fix this mess and not fall behind every where else? I’m going to eat this elephant one bite at a time!

1. Clean off my desk (and keep it that way – even if it means putting things in a box next to the desk until I can find it a home).

2. Utilize the entire day and all weekend to catch up from my sick days – one more reason mom should never get sick.

3. Stay focused on one task at a time. It’s easy to get overwhelmed when I pile up everything I have to do in front of me all at once. The discouragement usually causes me to walk away. Instead, just focus on writing my articles for write now (and refuse to look at the sink).

4. Plan rewards (short but meaningful). When I finish this task, I will have breakfast with my family. When I finish the next task, I will go outside and play for a little while. When I finish the next task, I will soak in a hot tub.

5. Get right back to it. The rewards (timeouts, breaks, or whatever you want to call them) have to be short or I’ll lose myself in NOT doing what I need to be doing. It’ll be easier to get back to it with the reminder that another reward is just around the corner.

It may not seem that my chaos is related to me not being able to stay on budget, but I know it is. I can’t know what I’m spending if I don’t keep a record of it. If I don’t know what I’m spending, then there is no way to control my spending.

By eliminating the chaos and clutter, I will be able to get right back on track to my savings plan for the upcoming year.

1. Turn off the cable. Even if you just do it for one year, you will be able to save around $50 per month (more for most people). If you HAVE to watch the game or that special show, make it a night with friends or family. Other wise, find some new interests besides the television. Totals saved in our family will be $600.

2. Stop eating out. Take the time to pack your lunch or pack a picnic if you have late practices or games. Fast food for a family adds up quickly. Doing it every week (or twice a week for most of us) will break your bank. Savings for our family will be $1000.

3. Make your own coffee. Stopping at the local coffee shop is more expensive than you might realize. At $3 a day, you could save $750 just drinking home brew.

4. Cut the cars – especially if you don’t need them. There was a time when having more than one car was important for our family, but not anymore. If we can bite the bullet and only have one car we will be able to save $1000 in insurance and $350 in car expenses.

5. Ditch the clothes. If you’ve never purchased clothes at a thrift store then you are truly missing our on an adventure. Even in our small town, the second hand shops offer great selections of quality cloths at incredible prices. Instead of spending $50 on a pair of jeans, stop by the second hand shop and get some for $5. The savings for our family is $550.

6. Make it from scratch. If you don’t know your way around the kitchen then it is high time you learned. Pre-made meals will cost you 10 times what a scratch meal would cost. Another benefit of scratch cooking means you can double the recipe and give some away (instead of buying expensive gifts). Savings for our family is around $1200.

7. Shop in bulk – when you need it. I even buy children’s gifts in bulk through Oriental Trader. It means that I have gifts for unexpected parties or last minute projects (limit your self to one bin or shelf). I also use these gifts for treats when the kids are extra helpful. Savings for bulk buying is about $300.

8. Learn to freeze. IF you package food right you will be able to buy large quantities and use them through out the year. This is great when you stumble on a meat sale at your grocery store (or your neighbor, who hunts, offers you some of his kill). I have also discovered that many vegetables freeze great – for use in cooking. So does cheese and butter. I even freeze sandwich fillings (meat and cheese together) when I can find good deals on those items. Savings for our family is $500.

9. Turn down the heat/ turn up the air. These bills alone (especially during extreme weather) can be overwhelming. Saving just $10 per week (by adjusting by two degrees) will make a HUGE long term difference. Savings for our family $520.

10. Give the gift of creativity. When our money was so tight we couldn’t afford an idea, much less actual items, we gave our son a rope for his birthday. It was to be used to make a rope swing for him on his playground. Something we did together. Five years later, it is still being used. He has also used pieces to make several other swings in the same tree. All the great remote control cars and gadgets have been broken or discarded, but this $10 rope has lived a long and joyful life! Savings for out family is $300.

Saving money doesn’t have to be something you do during a crisis. If it becomes a way of life then you can do things that you would never have dreamed possible. What would you be able to do with $7,000 each year? Odds are pretty good that you already have that money available; you are just choosing to spend it in different ways.

Start today making choices that will give you and your family the life you have been dreaming about.