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Your Money Tapes
The Dollar Stretcher Blog
by Gary Foreman
I’ve often heard it said that the longest distance is between the human head and the human heart. What is meant is that there are many things that we know intellectually. We understand them and have no doubt that they’re true. But, we still have trouble acting on them. In other words, our heart doesn’t know the same truth.

How many of us suffer the same thing in our financial affairs? We know we should budget or begin saving for retirement. But we can’t seem to do it. Intellectually we know what we should be doing. But we just can’t get going on it. Our heart isn’t in the program.

One way to identify when our minds and hearts aren’t in sync is to notice what financial decisions make us uncomfortable. What financial activities make our palms sweat? Our hearts beat faster? Make our stomach quesy? When we feel uneasy about a financial event that’s a clue that it’s an area that we need to examine.

So I invite you to keep a brief log. Notice those financial events that cause discomfort. Include the date, time and any circumstances that seem like they could be relevant. Don’t try to analyze it now. All we want to do now is capture the moment and make note of it and how we feel at the time.

Once you’ve assembled your journal (after a few days to a week) it’s time to study the entries.

First, were you able to recongize what tape was playing in your mind during the event that made you uneasy? For instance, I’ve often heard “You shouldn’t be spending this money. Not on some luxury.” Or “Go ahead and buy it. You’ll never find it again this cheap.” There are many messages that our minds play when we’re considering making a financial decision. Each of us has our own set of tapes. Almost like an Ipod full of messages that you frequently listen to.

Some of the messages are good. It’s true that I shouldn’t be spending money on unneeded luxuries. And I should look for bargains.

But we need to be careful about the application. For instance, if the ‘luxury’ is buying a steak to cook at home and I do it once a month is that a luxury? Sure, it’s more expensive than cooking a chicken. But, a steak with baked potato and veggie eaten at home isn’t an outrageous expense. And, perhaps that little luxury is enough to keep me from being tempted to eat at a restraurant that evening. So maybe the money tape shouldn’t apply to this situtation.

Or the bargain purchase. If the item I may buy is used and well worn, perhaps it’s not such a good purchase. Especially if it’s something that I’ll use often. Maybe it’s worn so that it is likely to break when I need it. Perhaps spending a few more dollars could buy something that’s dependable and will last much longer. In that case being the cheapest isn’t necessarily a good thing. Again, finding a bargain is good. But it isn’t always the only thing to consider.

So what does your money journal tell you? What tapes were playing when you were uncomfortable about a financial decision? Take a look at them in light of the choices you were facing. Was the tape appropriate to the situation? Or were you hearing something that could lead you to the wrong financial outcome?

Remember that these money tapes almost always have some truth in them.
But, it’s important for us to know whether the tape is true in this specific situation.

One final thought. Since these money messages have been in our heads for years and feel true to us we often accept them without any questions. We jump right to making a decision based on them. If we’re applying them to the wrong situation that can be bad. And, if we don’t stop to think before making the decision we won’t even recongize that we could be making a mistake. In fact, we’ll congratulate ourselves for making the ‘rational’ choice.

So the next time that a financial decision makes you queasy, stop for a moment. Listen to the tape in your head. Ask yourself if the message is true in this particular situation. And, only after you’ve completed these steps, then make a decision.

By doing so, you’ll move your head and your heart closer together. Close enough so that your heart will feel good about the logical decisions your head is making!
Keep on Stretchin’ those Dollars!

Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <http://www.stretcher.com/subscribe/subscribeFI.cfm> Financial Independence is designed to walk step-by-step with you as you take control of your finances and achieve financial freedom!

Frugal Fatigue
The Dollar Stretcher Blog
by Gary Foreman

Recently I was approached by a reporter. They were doing a story on people who were tired of the effort it takes to control their spending. What suggestions, she asked, did I have for people who were struggling and thinking of just giving up?

A little time brought to mind some of the things that I’ve seen people do who continue when the easiest course was to quit.

The first is to make a decision. Once you’ve decided to pursue a goal, do not question it. Unless you have significant new information, you have no reason to doubt your original decision. So don’t trouble yourself with questions. Just continue along the path you chose to follow.

The second involves breaking big goals into smaller pieces. They say that success breeds success. I believe that’s true. Dividing a big goal into smaller goals allows you to have some smaller successes along the way. Each one helps to motivate you to strive for the next small goal. Pretty soon you’ve accomplished the big goal.

Rewards are the third tool to accomplish financial goals. Most of us want to know “what’s in it for me?” That’s only natural. So put something in it for yourself. If you’re paying off a credit card, treat yourself to a small reward at predetermined points along the way (i.e. after $2,500 has been paid down or when the balance is reduced by 25%). Looking forward to the reward takes your mind off of the struggle.

Reminders can also be helpful. If you’re saving for a vacation, you’ll find that a picture of the campgrounds on the refrigerator can be a great motivation. Some people put a card in their wallet to remind them of their commitment to reduce debt. They see it every time they reach for cash or a credit card. It can help you resist needless purchases.

Finally, it’s helpful to have friends to encourage you and share experiences. Most long journeys are much easier if we have one or more people to walk with us. So find a frugal living partner at work or in your neighborhood. Or join an online discussion group. Not only will you find help, but you’ll become stronger when you encourage others. In fact, we have one specifically on Frugal Fatigue.

So don’t let the length of the journey discourage you. The total distance is not that important. All you have to do is to stay on track for today. And, that’s something that all of us can do.

Keep on Stretchin’ those Dollars!

Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <mailto:subscribe-fi@hub.thedollarstretcher.com>
To check out The Dollar Stretcher Forums, click here <http://community.stretcher.com/forums/> To join the discussion on Frugal Fatigue click here <http://community.stretcher.com/forums/t/15819.aspx>

Frugal living has become a very popular concept this past year. People are beginning to realize that the credit card crisis was mainly due to spending above our means.  For those of you that are new to frugal living, let’s go over some basic ideas.

       First, frugal living is not about going without.  It is simply being conscious of how you spend your money.  If you are going to spend it, spend it wisely.  Think of frugal living as stretching your money’s worth.

       Second, frugal living is not giving up all your extras.  It is chooses those extras that matter the most. If you are an avid movie lover, you still can enjoy your Friday night flick.  Just from  your living room instead of the theater.

       Let’s consider some very basic ways to start living more frugally:

       Food. This is probably the easiest way to stretch your dollar. Clip coupons and make a list when grocery shopping.  Pay attention to prices, you might even choose to shop at a cheaper store.  If you have the time, shop around for the best prices on your regular products. Cook your lunch at home and brown bag it to work.  Make a large meal and eat it throughout the week.  If you have a large family, plan out your meals a week in advance based on the deals at your local supermarket.

       Entertainment. Rent instead of going to the movies, use services like Netflix if you rent. As long as you actively use a service like Netflix, it is an amazing price saver. Other ideas for entertainment include having a couples night in.  Make a regular date night for couples you know.  Play fun games instead of hitting the town.  You will help your relationships while keeping your pocketbook full.

       Gas. Carpool, ride a bike, make a strategy about your errands.  Whatever keeps you in the car and spending gas the least is best.  If you need to go somewhere within walking distance, take a brisk walk instead of the car.  Your lungs, and the environment will thank you for it.

       Plan Ahead. Your car, your pets, your house all need yearly maintenance type items.  Plan ahead for things like flea control, a new car battery and the like.  You are going to buy them anyway, why not consider them early on and look for ways to save.  Research the best time of year to buy appliances, electronics or a new car.  Frugal living has been around for ages and there is plenty of information available for you.  Take advantage.

       Make it Yourself. The recipes and instructions are endless. Research online or at your local library how to make everything from your own cleaning products to furniture.

       The key to frugal living is to gain the support of those around you.  If you are a single person, find people in your neighborhood that are like minded.  If you are apart of a large family, grow a garden in the backyard.  Do whatever you can to incorporate frugal living into your everyday.  As you learn more and more about it, you will find the easier it becomes.  And remember, frugal living is not about going without.  It is about making the most of your money!

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

Christmas Without Cash
The Dollar Stretcher Blog
by Gary Foreman

According to Gallup polls, about 1/3 of Americans plan to spend less on the holidays this year than last. For some families who are really struggling there will be very little money available for holiday spending.

But, that doesn’t have to mean that the holidays will be ruined for your family. In fact, it may give you an opportunity to have an even happier holiday season.

Begin by focusing on what you have, not on what you don’t have. It’s true that you might not have much money. But perhaps your home is full of love. Just by thinking about what you have, you’ll lift your spirits.

Take some time to enjoy the season every day. Get a copy of Dicken’s “A Christmas Carol” or other holiday book and read a bit each night. Even if you don’t have children in your home. Books have a wonderful way of mentally transporting us to a different time and place.

Be honest with your family. There’s no shame in being short of money in this economy. Surviving tough times requires that all family members help. And, they can’t help if you don’t let them know the circumstances (obviously, you want to keep your conversation age appropriate).

Make gifts for others. Especially if you’re unemployed, this is an opportunity to substitute your time for cash. And, it also gives you a chance to make something unique specifically for the recipient.

Let your kids help you. By involving them in the baking, decorating, etc you’ll keep the children from focusing solely on what they hope to get. It’s also a good time to share your own holiday memories with them and build new ones.

Help those less fortunate. Deliver socks to a homeless shelter. Volunteer at a soup kitchen. Even if you’re really up against it, it’s mentally healthy to know that you are not alone. In fact, you might find hope in serving others.

Have some seasonal fun. Take the time to make a snowman or snow angel. Have a snowball fight. Walk around your neighborhood looking at the displays. Shared smiles make better memories than expensive gifts.

Give future gifts. Even childreen from poor families generally will have something to play with on Christmas morning. So it’s not critical they get everything on Christmas Day. A coupon from you to give that special toy in February will allow you to take advantage of price drops (especially on electronics). It will also give you time to save some money to pay for it.

Consider giving heirloom gifts. If your children are old enough, you might consider using this year to pass along that keepsake jewelry from Grandma or other family keepsakes.

Use old fashioned decorations. Generations before us had festove holiday homes even when they didn’t have money. Think paper chains, strung popcorn, pine cones and evergreen branches.

Substitute for that special gift. Ask yourself why does my child want that particular gift. There may be a better, less expensive way to accomplish what your child wants.

If you absolutely must have a specific toy or electronics item, there are a few ways to get it cheaper. Check stores for open box or return units. Surf the manufcaturer’s website for refurbished units.

Don’t charge Christmas. If you’re struggling financially you shouldn’t make it harder to survive January. Remember, it’s very easy to charge yourself into a corner.

You’ll notice a common thread among these ideas. Taking the emphasis off of gifts and putting it on the people that we love. As I understand it, the original goal of buying gifts was to bring happiness. This could be a marvelous opportunity to rediscover that happiness doesn’t always start with a dollar sign. And, that would be good in any economy.
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Gary Foreman is the editor of The Dollar Stretcher.com website and various enewsletters including Surviving Tough Times For ideas on inexpensive Christmas gifts visit or The Dollar Stretcher frugal Christmas section

(end Dollar Stretcher Blog)

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

The importance of personal finance is generally made more complicated than it really is, and a proper finance budgeting of self, to make money does not require you to be stressful. By following some very basic steps one can get his finances back on track and also start creating wealth for himself.

The values of a firm and positive wealth making system only need the basics constructed on the personal finance accounting. Firm and steady budgeting is one of the vital laws of personal finance. Not knowing about the whereabouts of your money and your assets are vital and the most common mistake.

When you are moving towards the personal finance accounting, the first thing you require is to eliminate all the emotions from the finances. This is the toughest and the most vital part of personal finance planning. If you see you reeked with the debt worries, besieged by the innumerable financial responsibilities, or just hate noting the expenses and income. It isn’t you alone in the world. By doing this you are actually measuring the map of success and the destination to your dream.

Now you would need to make a list of your assets, income, expenditures and the debts. This way you would be able to know your net value. By determining the following numbers in your personal finance budget you will have a proper idea of your financial value in a wider sense.

After you determine your net value, the next step to your personal finance budgeting is to know about the active finances. It is just a compilation of your monthly sources of income and how much do you get from these streams. Then a compilation of your monthly expenses should be done. Then subtract it from your monthly income. Proper budgeting and financing mean including all the expenses or income whether small, in your account. The complete account reveals, whether you are headed for financial freedom or breakdown.

You have completed your personal finance accounting very skillfully. You are now able to evaluate your real value, and have a complete and fair idea of your real financial goal. You also know the speed with which you are traveling towards goal each month. Your budget will give you a complete understanding of the whereabouts of your money and its flow. With these facts you can make better decisions and reorganize your funds, all with the help of the personal finance accounting every month.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

So, you’ve decided to start living frugal and begin saving more of your money. You may not know this but frugal living and having fun go hand in hand. Let me show you exactly what I mean in 10 simple ways:

1. Visit Your Local Library: An easy place to start when learning how to be frugal is to use your local library. Here’s the deal: Instead of purchasing books and buying DVD’s, consider taking advantage of your local library. You’ll have access to best selling books, and the latest movies all free of charge. Simply return them on their due date and you won’t owe one red cent.

2. Cut coupons: In no time flat you can cut your grocery bill almost in half. Nowadays, you can clip coupons for items you purchase regularly.

And if you pay close attention, your local grocery store will often offer to double and even triple your coupon savings. There are many sites online that will give you access to an even larger number of coupons for greater savings.

3. Eat At Home: No doubt eating out is fun and convenient. But the problem is that it really puts a dent in your wallet. A family of four could spend $30 or more eating at popular restaurants.

Living frugal means cooking meals at home and even taking left over’s for lunch. If you do decide to splurge and eat out, remember that many restaurants provide coupons for patrons. Double check to see if there’s a coupon that you can use for yourself and your family.

4. Use Online Bill Pay: Frugal living ideas like paying bills online can help you avoid late fees and save money on buying stamps every month. Plus it’s simple to set up.

5. Slash Gas Costs And Insurance Premiums: When learning how to live frugally, it’s a good idea to plan your errands and group them in a way that you are not driving unnecessarily. Map out where you need to go and then stick to it.

You may even want to start riding a bike or walking to places that are close to home. You can also enjoy the frugal life by contacting your insurance company and finding ways to lower your auto insurance premium. There may be discounts you’ve been missing out on.

6. Create Your Own Cleaners: If you are ready to learn how to live a frugal life, then you’ll be glad to know that you can save money on store-bought cleaners by making homemade cleaners.

Basic cleaning agents include vinegar and baking soda so make sure you stock up on these two items and you’ll be well on your way to frugal living. But that’s not all, there are frugal living recipes for powdered laundry detergent, dryer sheets, and homemade fabric softener.

7. Go Green: Anyone who is serious about how to live frugal must consider using green energy. By using solar energy to power your home, you will slash energy costs drastically.

Frugal living tips for harnessing the power of solar energy includes building your own solar cells to power your home and swapping out old appliances for energy efficient ones.

Time and time again, you can see that living frugal doesn’t mean you have to give up all the things you enjoy in life. In essence it means finding a way to have the things you want and do the things you love the most cheaply. Put just one of these tips into action and before you know it, your financial picture will look a heck of a lot better.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

Families are turning to frugal living as a way of surviving tough economic conditions. This article seeks to dispel the myth that frugal living means a life of deprivation, tinned food, and endless nights in front of the television, just to save a few dollars here and there? If you’re prepared to discover what a frugal life really could do for you and your family, then read on and find out.

First the good news….frugal living isn’t about depriving yourself of the things you enjoy or making massive sacrifices; it’s more about being smarter, so you have sufficient cash to fulfil the life you crave – the life that you imagine you’d live if you wealthy. Countless people who’ve elected to live frugally have made the choice to live debt free or at least to significantly cut down on their debt. By simply adjusting their spending behaviours they spend less than they make and have smaller debt balances and improved peace of mind. Think about it for a moment. How many days a week do you work just to pay off debt?

Frugal people shun the need to live in the “rat race” or “keep up with the Joneses” and they perceive no logic or rationale to purchase the latest “gimmicks” or “toys” that will only collect dust in the garage after being used only once. Frugal living for them means that life becomes easier and far less complex. They recognize that by living within their income levels they have a solid platform to one day be financially secure and in control of their retirement.

Living an uncomplicated frugal life, allows more freedom and choices to be had. Frugal living is after all a choice. And by living it, there are almost certainly many more opportunities on hand than to people who spend all their time earning their livelihood but never have time to spend it.

Choosing to live a more, simple, frugal life undeniably increases quality time with people that matter the most. It offers them more time to cultivate deep, meaningful relationships with their families and friends. I know people who have opted for this way of life to allow one parent to remain at home wit their children whilst the other parent works full-time; consequently providing more quality family time together.

Leading a frugal life keeps things simple and facilitates stress-free living. Stress is a killer and in today’s consumer driven world, more and more weight is placed on “living to work”. The frugal individual recognises this and “works to live”. So, now that you appreciate the advantages of frugal living and the relatively few sacrifices required, why wouldn’t you give it a go?

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

A few days ago I read an article which advocated a reduction in costs to a minimum – to get away from consumerism as humanly possible, renouncing any optional spending and essentially make a clean sweep and start from scratch.

Many people react negatively to such an idea, which is not surprising. I’ve seen comments like “I do not know whether I should be possible to waive the pay-TV and go around to bars, restaurants, etc.., At a time”. I needed to lean frugal living and save money.

In this modern society most of us function assumes that it is not possible to waive certain forms of non-essential spending. In other words, if you give up certain luxuries life ceases to be nice, so that ultimately resemble those essential luxuries.

Of course, I do not advocate a very frugal life to take you to renounce all the things you like. My vision is somewhat different. I think there are certain routines that we consider essential, and in reality we do not enjoy as much as we think.

For example, eating out. Many people do it because they think it is faster and more convenient to eat at home. They simply drive to the restaurant, sit, beg, chat with the people accompanying them, eat, pay and then go home. Easy and uncomplicated.

But when you start to add up the time you can invest in it, the thing does not seem so funny. Let’s say you took fifteen minutes driving (and parking) to a restaurant you like. Another five or ten minutes to ask. Ten or fifteen minutes to bring you food and half an hour or more to eat. Another five or ten minutes waiting until you bring the account, pay and leave. And another fifteen minutes until you get home. That is roughly one and a half just to eat.

If I’m home, you can improvise a meal in fifteen minutes. After about twenty minutes late and eat five or ten pick. The total is about three quarters of an hour – and of course, you can take longer if you want to prepare something delicious. Even so, do not spend so much time as you have to spend to eat out.

Considering that the cost of eating out is much higher and that the level of food quality that is comparable to prepare at home, you’re paying extra for eating out.

So this is an expense that can be reduced or eliminated. Personally, instead of going out to eat out several times a week, eat out four or five times a month – and just what we do when we plan to return home late.

Did you miss? Not really. I have not given up the part that I really liked, who was eating with my family. Once I gave him a chance to the idea of not eating out constantly, I started cooking more at home – and do better. Today, I prepare a tasty meal pretty quickly, and the quality of the food is excellent. Furthermore, we finished eating at least an hour earlier than when we eat out, so we have more time to do other things.

Where rio_bifurcacion to you? Our lives are like a river. They take a course shaped by priorities and assumptions that we set ourselves. If we begin to change these assumptions, if only slightly, sometimes the water will try to return to its old course, but most often simply be adapted to the new address and you may discover that everything flows serenely in this different manner .

Here’s another example: bookstores. I loved to buy books. I was going to a bookstore at least once a week to take a look, and it was not unusual to come out of it with one or two books under his arm.

At that time it seemed the most normal thing in the world, and I liked it. I could not imagine my life without having at hand a new book to read. When my finances hit rock bottom, even he could imagine eliminating this “habit”.

I had read on many lists of financial tricks that the ideal was to replace the library by the library, but still I do not see it. I imagined the library as a boring place full of dust, and thought he would hate. So I forced myself to try just because I was willing to try anything.

Surprisingly, I left the library with two books I really wanted to read … for free!

And that’s how the river changed for me. I started to use the library all the time and gradually my visits to the library declined. Today only buy one or two books a month at most.

What was the outcome? Do not quit what I liked, which was read books. I still have on hand a bunch of new books to read. What I have given up is to spend on them a lot of money, which was a big relief.

For me, the benefits of frugal living do not go through renouncing the things I love, but to understand what is really not like to do and find ways to continue enjoying these passions spending less money. When people say things like “could not waive the pay-TV, why do you say? Are you concerned about not seeing any particular program? Or they do not want is to give up an evening with your partner huddled on the couch watching something they both enjoy?

If what you really would miss the latter, why not waive the pay-TV and try out the options offered by the Internet, or the rent? Thus, keep the experience that they really like – watch TV comfortably in your home – without the inconvenience of having to pay the bill every month.

In addition, you may find that spending money on these things that you think you should worry about (mainly because others do), but inside you would not really bother you. Eliminate those behaviors in your life. Making things that really do not like to get the approval of others only leads to unhappiness and, incidentally, an empty bank account.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.