The Control Journal saved me!

The week before Christmas, my DH Randy became deathly ill. What started out as a cold-like flu morphed horribly into a very bad case of pneumonia, though I didn't know it at the time. When Randy asked to see a doctor, I knew then he was very sick. I took him to Solantic and they called an ambulance!

I had minutes to make the necessary phone calls, grab up our roomie, and drive to the hospital. I knew better than to break speed laws, much as I wanted to. While at the house picking up our roomie, I also quickly packed a few necessities for my husband's comfort. Then, I remembered one thing I'd need-- my Control Journal.

In my Control Journal was many of the things that kept me organized and --as the name implied-- in control. While our roomie drove us to the hospital, I updated the journal and made a few notes to myself as to who to call. The emergency section wasn't as filled out as I'd like, but you live and learn. That minor problem has been corrected.

As my husband was transferred from the ER of one hospital to a bed in another hospital and finally the ICU, my Control Journal and my FlyLady routines kept me from chaos both at home and while sitting at my DH's side. Now my DH is recovering, yet my house is clean and my sink is shiny.

I highly recommend the Control Journals. There's one for almost everyone and every need-- the housewife, the student, the teacher, the working woman, the financial problems, losing weight (called Body Clutter), and even one just for keeping control during the holidays.

www.flylady.net/images/OCJ.pdf is my personal control journal choice because I work at home, but if you Google "FlyLady Control Journal" you'll find a nice selection. You can also go to http://www.flylady.net/ to see and learn how to finally love yourself (FLY) and gain control over CHAOS (Can't Have Anyone Over Syndrome.) You'll be glad you did.

Lena Austin
http://www.lenaaustin.com/
http://depravedduchess.blogspot.com/

A great gift idea for the holidays--Stick it Right on the Money Stickers

http://www.stickitrightonthemoney.com/

This has to be the most innovative way to give a plain old monetary gift some pizzazz to show you really did think about  what gift would suit the recipient.

My mother in law used to say that giving money, gift certificates, and gift cards were in a way a cop out and borderline rude. They require very little thought, and while "one size does fit all" it does show a certain casual disregard for the likes and dislikes of the recipient or even little more than a nod to the occasion.

However in today's busy world, sometimes giving cash can mean a whole lot more, especially when friends and family can be many miles apart. Cash spends well without having to worry.  

Now, with Stick It Right On the Money stickers, you can do more than give a nod to the occasion! Each frame and sticker are "Post-it" sticky, so the money isn't damaged. (That's illegal.) See the video at the website. What a great gift idea.

Lena Austin
http://www.lenaaustin.com/

Do you love my work? Then don't download from pirates.
When you steal what I've earned, you're hurting me.

The Get Out of Debt Audiobook-- Me Likey!

I found this audiobook today, and I like it already!

http://www.thegetoutofdebtbook.org/

Similar to iTunes, this audiobook can be played on your computer or MP3 device, chapter by chapter.

Because it contains in part the FlyLady FACE book (a financial management system I've used myself), I'm already impressed.

My debts didn't disappear like magic, but they were and are shrinking, even now with my DH out of work and money tighter than a Victorian corset.

Confessions of a Butcher-- Eating Well for Cheap

Confessions of a Butcher: Eating Steak on a Hamburger Budget
Posted: 14 Feb 2009 05:00 AM PST

Every week, I receive a couple of books in the mail from authors and publishers. (This week there were six!) They’re hoping that I’ll find time to review their work at Get Rich Slowly. I do my best, but it’s impossible to read everything. When John Smith offered to send me his book, Confessions of a Butcher, I wasn’t expecting much. I’ve read a few niche books like this, and they’re usually uninspiring. As a full-fledged carnivore, I’m please to report this one is different. Smith spent more than 30 years in the meat industry, and he’s used his experience to produce a short book packed with information. Confessions of a Butcher contains: 60 pages describing different cuts of meat and offering suggestions for cheaper alternatives. A glossary of meat-related terms. An appendix containing 30 pages of short articles, such as “What to do with leftover turkey”. The book has sections on beef (steaks, quality steaks, roasts, ribs, ground beef), pork (chops and steaks, roasts, ribs), lamb, veal, and chicken. Smith lists about 100 cuts of meat (most of which are beef). He briefly describes each cut, and then suggests cheaper (or higher-quality) alternatives. Smith granted me permission to reprint some examples from the book. Here are his entries for stew meat, ground beef, and lamb. Beef for stew Money-saving alternatives: chuck roast, rump roast, cross rib roast, round steak, brisket, flatiron, chuck flat strip. Stew meat is made from the trim that is left over from the day’s cuttings. Even when stew meat is on sale, it may not be as cheap as many other cuts. Boneless chuck roasts and round steaks on sale will be cheaper, sometimes a lot cheaper. Find the cheapest and leanest cut of meat and cut into cubes for stew or ask the butcher for his assistance. I did this! Best darn stew meat for $1 per pound less!! Shocking, but true. Now having said all that, the best meat for stew, in my humble opinion, comes from the brisket, flatiron, or the chuck flat strip. These three cuts should cost you less than the stew meat in the counter but may not be the best deal you can find. They will however be the best stew meat you can find. Regular ground beef Money-saving alternative: boneless chuck roasts. Regular ground beef is 27 to 30 percent fat and usually priced to sell. However, you should be able to find boneless chuck roasts on sale for about the same price. Have the butcher grind some up for you. You may not save much, if any, money, but you will get a lot better product. Just about any cut of beef in the counter, when ground, will definitely make leaner and nicer ground beef than regular hamburger. LambMoney-saving alternative: see below. The best thing you can do to save money on lamb purchases is either watch the ads or shop for lamb in a store that is part of a major supermarket chain but located in a blue-collar neighborhood. Most major supermarkets have a meat counter schematic that is the same throughout the chain. In a blue-collar meat and potatoes kind of neighborhood, lamb is not a regular part of the diet, but the local supermarket still has to carry a lamb lineup. In these types of stores, you may find legs of lamb and the like reduced to sell. I have worked in several stores just like this and have been eating lamb (and saving lots of money) ever since. Ask the butcher if the store ever reduces lamb and when to look for it. Another alternative is to buy lamb from the farmer and have it processed at a local custom meat plant. Be ware that you will lose more than 50 percent from the processing. I think this is great information. Kris and I have always been puzzled why our friend AJ produces better stews than we do. It’s likely that she’s just a better cook, but maybe she uses a different cut of meat. Also, I had my first ground sirloin burger last month. I’m not sure I can go back to regular ground beef after that. (Yes, I realize ground sirloin is more expensive.) Note: Did you notice something about each of these three tips? They all involve speaking with your butcher. This is true of many of the book’s suggestions, and in a way it’s disconcerting. Kris and I discussed this, and we realized that we don’t “have a butcher”. We go to the supermarket to pick up meat. Sometimes we ask the person behind the counter for a particular steak. That’s it. We’ve never thought about asking to have meat ground. What about you? Do you have a butcher? Although I found the book interesting, Kris was less enthused. “If you had a recipe and were looking to save money, this would be handy book,” she told me. “But it assumes too much on the part of the reader. It uses a lot of meat-related terms, many of which aren’t in the glossary. Plus, I would have liked more detail on what recipes each bargain cut would be good for.” “Would you pay $11.95 for this book?” I asked. “No,” she said. “But I might if it were beefier — with charts and hints and recipes.” (Note: Kris didn’t really say “beefier”. That’s just me being funny.) I, however, would pay $11.95 for Confessions of a Butcher. We buy a lot of meat, and if the book saved us even a few bucks, it would have paid for itself. I do agree, however, that it’s a bit jargony and could benefit from some diagrams and recipes. (Rumor has it there’s a sequel in the works that will address some of these concerns. I’d rather see a revised edition that lumped everything together.) I’ll leave you with my favorite piece of advice from John Smith. In the chapter about butcher etiquette, he writes: To really butter up your butcher, always leave a nice comment on his helpfulness and professionalism as you go through the checkstand…Some homemade cookies once in a while won’t hurt either. Come to think of it, bloggers like homemade cookies too! For more on this subject, check out these articles from the archives: Making the most of cheap cuts of beef and How to buy a side of beef. ---Related Articles at Get Rich Slowly: Is Eating Out Cheaper Than Eating In? Learning to Eat More Meals at Home Just Say No (to Patronizing Ads) How to Buy a Side of Beef Making the Most of Cheap Cuts of Beef

Bankrate's 2009 Tax Guide

I get nervous at this time of year, and I procrastinate about doing the taxes. Yep, I hate that the math and the headache. This helped.


Bankrate’s 2009 Tax Guide
Posted: 18 Feb 2009 05:00 AM PST

It’s tax season! I’m a little lategetting around to my own taxes this year — I’ve had other things to worry about. One of my goals for this weekend is to begin rounding up all of the necessary documents. And, as usual, one of my first stops for information will be the Bankrate Tax Guide. Every year, they offer the following resources:
Tax calendar — “April 15 isn’t the only important day for taxes. Our tax calendar provides you with many others to circle.”
Daily tax tip — “The daily tax tip plus an array of tax tools, terms and training will help you through filing and beyond.”
Filing and refunds — “Get it done right the first time with this advice on free filing, e-filing, documentation and refunds.”
Forms and charts — “Search here for all the new tax rates, exemption and deduction amounts, plus estate and gift tax exclusions.”
Realty/capital gains — “Home, sweet home. Your home is likely your biggest investment and it affords you some great tax breaks to boot.”
Family — “You care for your children and dependents all year. At tax time Uncle Sam may take care of you.”
Work — “Take advantage of benefits at work and you may find your job even more rewarding at tax time.”
Investments — “Investing wisely is a critical part of your wealth-building strategy. Keeping it away from the IRS should be another.”
Education — “Take some of the sting out of the ever-increasing cost of college by applying these tax-favored options.”
Retirement — “Whether you’re self-employed or work for others, many tax-advantaged retirement vehicles are at your disposal.”
Philanthropy — “Even the IRS has a heart. Giving to charity can be a wise tax move, as long as you follow the rules.”
Calculators — “We’ve added 11 new tax calculators to help make your tax preparations easier than ever!”
Videos — “Bankrate helps you picture how to get the most out of your tax filing.”
Get Rich Slowly doesn’t have a huge body of tax information. Still, there are a few useful articles kicking around in the archives:

Common red flags that lead to IRS audits
Free File: A fast, easy way to file your federal income taxes
A contrarian view: Why I love a huge tax refund (note that I no longer aim for a refund, but I still understand the motive to do so)
Ask the readers: Should I prepare my own taxes or go to an accountant?
The first-time homebuyer tax credit
The saver’s tax credit for retirement savings contributions

Have you started your taxes yet? Already filed? (Already received a refund?!) Are there tax subjects you’d like to see covered at Get Rich Slowly? Great resources you’ve found on the web? Tax stuff usually bores me, but I’m willing to write about the things that you find useful.

---Related Articles at Get Rich Slowly:
Bankrate’s 2008 Tax Guide
Bankrate’s 2007 Tax Guide
Daily Links: 20th Anniversary Edition
Free Downloadable Suze Orman Book from Oprah
Free Book Chapter: ‘Money Day’

How I Cut My TV Bill in Half

How I Cut My Television Bill in Half
Posted: 19 Feb 2009 05:00 AM PST

I’ve had several requests lately to update my two-year quest to find cheap alternatives to cable television. In March of 2007, Kris and I were paying $65.82 for a deluxe digital cable package that we rarely used. “$65.82 a month isn’t a fortune,” I wrote at the time, “but it’s a lot of money to pay for something that doesn’t get used. If we were big TV watchers maybe the cost could be justified. But we aren’t. And it can’t.” To save money, we cut our cable to just the basic channels, which reduced our bill to $11.30/month. We also began to use the iTunes Music Store to subscribe to the shows that we wanted to watch. And over the past year, I’ve become a fan of Hulu, an online service that allows users to watch many past and current shows for free. Here’s an overview of the tools we use, and how much money we’ve managed to save. The iTunes StoreWhen we cut our cable bill from $65.82 per month to $11.30, I knew we would save over $50 per month. I also knew that we’d miss a couple of shows we really like. We don’t watch a lot of television, but we do like our Battlestar Galactica. So, I made a deal with Kris. “If you’ll let me cut back to basic cable,” I said, “then I’ll purchase any shows you want from the iTunes Store.” She was reluctant at the time, but over the past two years, we’ve found that there really aren’t that many shows we want to watch. Since we started, we’ve purchased eleven “seasons” from iTunes, totaling $398.42 (or about $36.22 per season). This works out to about $16.60 per month. When added to our $11.30 basic cable bill, we’re paying $27.90 each month for television. That’s less than half of what we were paying before. Note: Kris and I also use Netflix to watch television. Over the past year, we’ve consumed seasons of MASH, The Mary Tyler Moore Show, and Foyle’s War. I’m not including that $16.99/month in these calculations, however, because we were already using Netflix to do the same thing before we cut our cable. Just be aware that we’re spending another $200/year for DVDs by mail. (And, yes, we do get our money’s worth.) HuluWe’ve also found a way to watch certain shows for free. For a short time last year, NBC/Universal and Apple got cranky with each other. NBC/Universal pulled its shows (including Battlestar!) from the iTunes Music Store. What’s a geek to do? Answer: watch the shows for free through Hulu, which features content from NBC, Fox, and many other sources. Crisis averted. Over the past year, I’ve come to love Hulu. It took some GRS reader encouragement for me to actually explore the site’s potential, but now that I know how it works, I’m hooked. Here’s the basic premise: Hulu allows viewers to watch new and classic television programs for free. (The site also includes a small selection of feature films.) Each program includes the normal commercial breaks, just as on television. However, instead of being bombarded by two minutes (or more) of commercials at each break, you’re subjected to a single 15- to 60-second ad (that you cannot interrupt). To me, that’s a fair trade for free programs. Most current NBC and Fox programs are available on Hulu, though each show seems to have its own schedule. Older shows offer full seasons. Some shows, like 30 Rock, only offer the “trailing 5 episodes”. That is, you can only watch the most recent 5 episodes from the series. Others, like The Biggest Loser (which I’m now addicted to thanks to readers at Get Fit Slowly) only allow one episode to appear at a time — and it’s last week’s episode. (So, please — no spoilers about what happened Tuesday night!) Although Hulu doesn’t directly host content from ABC or CBS, it does index these shows, and link to their source pages. So, for example, if you want to use Hulu to watch Lost, you can do so. When you look for the latest episode of Lost, Hulu will redirect you to the ABC website. This is a nice touch. Hulu offers a nice library of classic television, including Adam-12 For me, though, the best part of Hulu is its library of classic television. When I was sick with the flu in early December, I spent two days plowing through old episodes of Adam-12. (Which was much better than I had remembered.) Hulu also includes shows like: Battlestar Galactica (new and classic) Arrested Development The Bob Newhart Show Miami Vice Hill Street Blues And even The Dave Ramsey Show! Actually, I just noticed that Gary Vaynerchuk’s video wine blog, The Thunder Show, is available on Hulu, too! My biggest complaint with the site is that navigation is clumsy. It’s sometimes difficult for me to find what I’m looking for. (The “browse TV shows alphabetically” view is most useful for me.) Disclaimer: I know I sound like I’m shilling for Hulu, but I promise you: I’m not being paid to write this. I just think it’s a great service, and it’s one I would never have fully explored if Get Rich Slowly readers hadn’t encouraged me to do so. Other optionsThough these are the tools that Kris and I use for our television consumption, there are other options available. For example, I’m a big fan of the public library for books, but I haven’t used it for TV on DVD, though I’m sure that’s possible. I’m also aware of Veoh and Joost, though I haven’t tried either of them. Those of you in Western Europe may want to explore Zattoo, a free downloadable app that lets you watch certain television content on your computer. (And, via the comments, Jeremiah Bell notes that Canadian readers can find streaming television at CTV and GlobalTV.) None of these is going to satisfy those who truly enjoy television. If you must see your show right now, or if you are a fan of live sports, you may have to fork over the dough for a deluxe cable package. I’m content to wait. It saves me money, and it lets me watch shows on my terms. Footnote: After I finished composing this article, I learned that GRS reader Mike Panic has drafted a fantastic list of websites that stream full TV shows and movies. This is a colossal list, and well-worth bookmarking. ---Related Articles at Get Rich Slowly: links for 2007-03-23 How 15 Minutes Saved Me 15% on My Television Bill The 9 Strangest Tax Write-Offs Tip: Pay Your Bills as They Arrive The New Math: Cheap Alternatives to Cable Television

Prioritize Your Savings from Get Rich Slowly

Ask the Readers: How to Prioritize Savings Goals?

Once you’ve paid off your debt, it’s time to save. But for many of us, it’s difficult to know where to start. Via Twitter (and edited slightly), @funkyknitwit asks:
How do you set priorities with savings? I have so many things I want to save for, but I don’t know where to start! What I mean is, how can I decide which thing I should work towards first? My budgeting is already in order.

This is a tough one for me. I find it difficult to decide which things to save for and when. I use multiple accounts at ING Direct, but there’s no real rhyme or reason as to how I fund them. For example, here’s a glimpse at my saving progress from last summer: (see above picture)

Since July, I’ve added two additional accounts for other goals. How do I choose which accounts to fund with my savings and how much to put in them? It’s all pretty much instinct, I’m afraid. Maybe I should have a plan.

Other folks are more methodical than I am. Several personal finance blogs — including No Debt Plan, Poorer Than You, and Blunt Money — advocate a “savings snowball”, which is based on the popular debt snowball method. When using this system, you don’t have to choose just one thing to save for at a time.

Note from Lena: I use the debt snowball method, and have for years. It works.

Here’s how it works:

Make a list. Write down all of the things — large and small — that you’d like to save for. You might include a trip to Mexico, a new car, your summer wardrobe — and even your Roth IRA.
Prioritize. After drafting your wishlist, choose just a few items to save for first. Organize them from most important to least important. (By “most important” I mean the item you’d like to see completed first.) I think this step is key to answering funkyknitwit’s question.

Pay the minimum. For each item in your savings list, assign a minimum monthly payment.

When working a debt snowball, these minimums are assigned by your bank. Here, however, you set the minimums. For each item in your savings snowball, save the minimum every month.
Snowball! For the “most important” item on your list, pay more than the minimum each month. For this item, save as much as possible. When you’ve completed saving for it, move on to save as much as possible for the next item.

There are a couple of ways to replenish the list. You might opt to add a new item at the bottom every time you finish saving for the top item. Or you might finish saving for every item in the list before making a new list of savings goals.

Note: Some GRS readers have told me that SmartyPig is an excellent way to save for specific goals. SmartyPig accounts currently offer 3.25% APY, which is a great rate. Read more here.

How do you prioritize your savings? Do you save for only one thing at a time? Do you use some sort of “savings snowball”? Or do you simply set aside one large savings account from which to make all of your purchases? and how do you choose what to save for first?

---Related Articles at Get Rich Slowly:
Use Purpose-Driven Investing to Achieve Your Goals
Ask the Readers: How Do Children Affect Financial Priorities?
Ask the Readers: When Is It Okay to Spend Your Savings?
SmartyPig: A Goal-Oriented Savings Account
Retirement Savings or Debt Reduction: Which is the Top Priority?

Overcoming Underearning

Book Review: Overcoming Underearning
Posted: 22 Feb 2009 05:00 AM PST

This is a guest post from Jeremy M, who writes about experiencing a full life at Lucid Living. When I asked GRS readers recently which books they’d like to see revieweed here, Overcoming Underearning was near the top of the list. Jeremy volunteered to review it, so I sent him a copy!
Barbara Stanny’s Overcoming Underearning is not what I expected it to be. When I read the title, I expected a book about how to stretch your dollars and how get more from what you do earn. In retrospect, that’s already been done well in More Wealth Without Risk by Charles Givens. This book is about asking for more, creating more, and working your way through the psychological pitfalls that lead to being satisfied with less in the first place.

Secrets of six-figure womenAs a reporter, Barbara Stanny interviewed 150 high-income women and wrote a book about them, Secrets of Six-Figure Women. In the process, she learned that the big difference between highly successful women and less successful women was how they valued themselves and what they were willing to do to get what they wanted. They didn’t think of limits, and they surrounded themselves with people who also were successful.

Stanny started running workshops to teach people this message. She emphasized that success takes some Outer Work (the nuts and bolts of how to succeed, ask for more money, etc) and a lot of Inner Work (re-writing your thoughts on money and your value, conversations with your inner selves, etc). This is her core philosophy — that your inner reality, your thoughts and beliefs, create your outer reality. Or, as she quotes from A Course in Miracles, “A decision is a conclusion based on everything you believe about yourself.”

As a side benefit, Stanny says that many of her workshop attendees reported weight loss, more leisure time, improved health, and enhanced relationships. This comes naturally as you learn to value yourself more and expect more out of life. Like this example, the whole book has a somewhat New Age feel to it — I’ll let you decide if that’s a plus or a minus.

Stanny has done some work to apply this to men over time, but the tone of the book is mostly directed at women. I don’t pay much attention to this kind of duality, but women looking for a woman’s perspective will appreciate this — and some men might be put off by it. Mostly the feminine side comes through in the pronoun “she”, and that almost all the examples are of women.

Overcoming Underearning is also an activity book. There are worksheets to fill in, journaling assignments to do, “Conversations with myself” at the end of each chapter, and regular quizzes and checklists. It made the book more interactive and personal, but some readers won’t like the distractions. I did find that it stopped me occasionally, or interrupted my reading as I felt I should fill in a quiz before I went on.

A five-step processAt the core of Stanny’s plan is a five-step process of Inner and Outer Work. She devotes a chapter to each step, and restates them as follows:

Tell the truth about what’s not working for you, and what is.

Make a firm decision about what you truly want. (What is your Why?)

Look for opportunities to stretch by doing what think you can’t do.

Surround yourself with a supportive community.

Respect and appreciate money by taking good care of it.

The first three steps are your Inner Work.

As a building starts with an idea, grows into a blueprint, and finally becomes a real, concrete thing — so your reality starts as an idea, grows into a belief, and then starts to reflect back from the world around you.

Step four is about building a supportive environment. You don’t have to leave your negative friends; in fact, Stanny has a way to use their feedback as well. Finally, we apply the previous steps in how we treat ourselves and how we treat money.

Exercise: As an example of the last step, Stanny offers an exercise in the book. We say that “time is money”. Write down at least ten more things that money is. My favorite is, “Money is a metaphor of how we value ourselves.”

Overcoming Underearning is a good book, in line with Get Rich Slowly ideals. It focuses on the idea that wealth is thoughts, not things. It offers many practical examples of how to build your supportive community, and how to negotiate for more money.

However, the book contains few actionable steps that will help you make more money or invest well. If you need a “how-to” book, keep looking. If you need to get started, or are started, but have hit a wall and you don’t know why, this might be the book for you.

Barbara Stanny bills herself as “the leading authority on women and money”. You can read more at her website, which offers a quiz entitled “Are you an underearner?“

Proactively Protect Yourself from Credit Fraud

This came from my bank.


How can I proactively protect myself against fraudulent card activity?

VyStar Credit Union and Visa® are working closely together to catch any fraudulent
behavior and protect your account. And remember, your Visa Check Card and Credit Cards
are backed by Visa's Zero Liability policy, so even if your card or its number are ever lost or
stolen, you won't be responsible for unauthorized charges. There are also some simple
things you can do.

Protect your Personal Identification Number (PIN):

• Never write down your PIN. Memorize it as soon as you get it.

• Do not disclose your PIN to anyone. No one from any financial institution, the police
or a merchant should ever ask for your PIN.

• Beware of phishing emails. These are emails that appear to be from your credit
union or online merchant asking for account information. Do not reply to them or
click on any links. Visa, your credit union or any other legitimate online merchant will never ask for your PIN or other personal financial information via email.

Note from Lena: Never click on a link in an email purportedly from your bank. Open your browser and use your bank's regular URL. They almost got my mother with this trick!

• At an ATM or PIN pad, enter your PIN discreetly, shielding the key pad with your
hand.

Note from Lena-- Beware! Cell phones with cameras can capture a picture of your PIN. Shield your entry with your hand.

What do I do if I spot suspicious activity on my account?

1. Review your monthly statements to spot any unauthorized purchases. You can
also monitor your account activity online at any time within Internet Banking.

2. Review your credit scores for accuracy. Call any one of the three credit reporting
agencies to receive your free annual credit report.

Equifax 800.525.6285

Experian 888.397.3742

TransUnion 800.680.7289

3. If you spot any charges that you did not do using your credit card or check card,
please contact your bank ASAP.

4. You should also contact the three credit reporting agencies above to notify them of any
suspected fraud or identity theft.

5. Should you become a victim of identity theft, please contact your bank and their Theft Resolution group will help you through the necessary steps to resolve the
issues.

The Checkbook Sweep-- Brilliant!

This article came from Get Rich Slowly. It's brilliant!

Posted: 10 Feb 2009 12:00 PM PST
At dinner the other night, T.S. told me about a new trick she’s developed to force herself to save money. It used to be that she’d just spend whatever she had in her checkbook. She didn’t spend more than that, so she wasn’t accumulating debt. But like many people, she wasn’t saving either. She spent whatever she had on hand.

Because T.S. wants to save, she’s opened an account at ING Direct. She wants to build a balance so that she can earn interest.

But in order to save, she needs to stop spending. Over the past few months, she’s developed a system that let’s her do that. Here’s how it works:

When T.S. gets her first paycheck every month, she deposits it into her checking account. She uses this money to pay bills and to fund her lifestyle, as normal.

When she gets her second paycheck, she does the same thing.

At the end of the month, just before she receives her next paycheck, she sweeps whatever remains in her checkbook into her savings account.

“I make myself feel like I’m living paycheck-to-paycheck,” T.S. told me. “If I move the money over to savings, I almost forget that I have it. I know it’s there in the back of my head, but it’s not in my checkbook ready to be spent.”

This monthly checkbook sweep might seem too simple to some readers, and it might never work for others. But for T.S., it’s one way to meet her goals.

Because each of has different goals and different mindsets, we each have different approaches to money management. We develop our own tricks — or money hacks — to circumvent our personal weaknesses. The important thing is to keep trying new methods until you find a few that work for you.
***
I have a different system. I have debts and some very large expenses that aren't paid regularly and must be saved for over the long term. So, I keep cash "savings envelopes" on my desk in an envelope sorter. Here are their labels:

Gas and minor expenses: $20
Insurance: $20
Mortgage: $75
Natural Gas: $30
State Tax: $15
Groceries: $140

Every week, I deposit those amounts in cash into those envelopes. The rest of the paycheck is deposited into the bank account to cover my online bill paying. The money isn't in my purse in any form (cash, check, or debit card balance), so it's not available to spend foolishly. Some months have five Fridays, so I end up with an "extra payday" deposited into those envelopes. Sure. an extra $15 made toward my state tax bill isn't much, but that extra goes straight toward the principal owed. It's like making an extra payment directly toward debt reduction.

Also, by using cash to buy groceries, I have a hard limit on what I can spend. Needless to say, I'm paranoid about those treats anyway, so this cash limit really helps.

Note I simply said, "The rest of the paycheck" is deposited in the bank. It's not a hard and fast number deliberately. Sometimes my DH and/or Dante gets a bonus. I deposit the paychecks and don't even try to budget.

From now on, I'm doing a checkbook sweep at the end of the month. What a brilliant way to save!

Lena

My Frugal Valentine

There are just some days where someone else has already said it better. This is one of those times. The article from Get Rich Slowly entitled My Frugal Valentine covers all the bases I can think of, plus some. I can't add to this one. It's just too good.

Lena

Winner of my Frugality Contest-- Angie Stubbs

Angie said:


we cut out money off coupons and buy 2 for 1 bargins
we turning off lights and things off standby
we doing the shopping in one day instead of going out 2 or 3 times a week only buying the things we need and not the things we want Angie

Very smart things to do!

Just unplugging the appliances not in use and turning off the computers at night can save something, even if it's only a buck or two. Coupons can save you much more!

The one I was impressed with was the shopping suggestion. It works. I saved more when I was able to grocery shop less often, especially if I bought from a carefully written list.

Angie has won a free ebook from my currently available books. Congratulations, Angie!

Why I Drive an Older Car-- Get Rich Slowly

This article came from Get Rich Slowly. I cannot urge folks enough to subscribe to this site.

http://www.getrichslowly.org/blog


Why I Drive a 13-Year-Old Car
Wednesday, 21st January 2009 (by J.D.) — 35 comments
This article is about Cars, Choices, Frugality

If you're new here, you may want to learn what this site is about. I encourage you to subscribe to my RSS feed. Thanks for visiting!
This is a guest post from Joel Berry.

I recently had a talk with a friend about why I haven’t purchased a new car. He can’t understand why I still drive a 1995 Geo Prizm. I can afford to buy a new car, but I choose not to. The fact is, driving an older car saves me money!
To prove my point, I ran some numbers. I was surprised by how much money I’ve saved by driving this car for so long.
Used vs. newI bought my Geo Prizm in 1995 with 5,000 miles on it. It now has 140,000 miles on it and still runs fine. I paid off the car in 1999. It is now 2008. I haven’t had a car payment in nine years.
How much has this saved? Our payments for this car were $250 a month. Over nine years, I’ve gone 108 months without making a payment. At $250 a month, that’s a savings of $27,000.
Over the lifetime of the car, I’ve spent less than $2000 in repairs. Subtracting this from my savings still leaves me with $25,000 extra over buying a new car right after the Prizm was paid off.
Using past history as a guide, I can assume that my car will need more repair as time goes on. The most recent repair cost me $1,000. Let’s assume the worst and say I would spend $1,000 a year for every year that I keep the car from this point forward. Now, let’s compare that to the cost of buying a new car.
Assume that I could buy a newer car for about the same $250 payments I had on my Prizm. (I think that number is a little low, but let’s just assume.) That means my annual cost for a new car would be $3000. If we figure that I’ll spend $1000 a year repairing the Prizm, it still saves me $2000 a year over buying a new car. If I were able to keep the car for four more years, that would add $8000 to the $25,000 I’ve already saved.
I will have basically saved $33,000 by driving my old car for a total of 17 years.
Other savingsBut wait! That’s not all! I’ve also saved money in several other ways not accounted for in the numbers above. Some examples:
Cheaper insurance
No down payment
I’ve freed up money so that I didn’t have to take on as much debt for other expenses
I’ve also kept the Prizm long enough that the items I did have to replace early on for the car are now covered by a lifetime warranty. Any time my starter, alternator, struts, or brake pads wear out, I can get replacement parts for free from Autozone. I can fix the car for just the cost of labor, or fix them myself.
There are some drawbacks to having an older car. I once had to have the car towed, and then was without a vehicle for five days while it was being repaired. I also spent a few weekends doing work on the car myself in order to keep costs down. The car is starting to rust. And, of course, it no longer has that new car smell.
I didn’t include the cost of oil changes or tires in the numbers for repairs. I figured this was normal wear-and-tear that would have occurred no matter which car I drove.
My goal is to drive the Geo Prizm for another four years. I am going to put away $300 a month. (I’m putting away $300 instead of $250 because the price of cars has gone up since 1995.) I’m putting this money in an ING Direct account to use for car repairs and a down payment on another used car. If this works out, I should have $10,400 set aside for a down payment on my next car, and will have spent an additional $4000 in maintenance for my current car.
I realize this might not work for everybody. And who knows? My next car might not be as good as the Prizm has been. But numbers like these are why I have opted not to buy a new car yet. I have better things to do with my money than to keep up with the Joneses.

J.D.’s note: I think this is awesome. Though I complain incessantly about how much I want a new Mini Cooper, the fact is I’m following Joel’s plan, too. I’ll drive my Ford Focus into the ground. This story reminds me of Dave Ramsey’s Drive Free, Retire Rich. Photo by Jami Dwyer.

Lena's Note: I too drive an older vehicle. My little early 90's Suzuki Sidekick still runs like a champ and costs me very little in maintenance. I paid $265 a month when I bought it used and paid off the loan by 2002. I've saved over $19K by not replacing my little Sidekick. Should I have been putting that payment money in the bank instead of using it for other bills? Yes. Did I? No. Am I kicking myself? Yes. Can't be helped, now. So, being that I can't expect my car to last forever, it might behoove me to start sticking some money aside for the next downpayment. Somehow, I doubt I'll get such a deal again.

Lena

New Year Finances-- Assess the Situation Honestly

From Oprah:

http://www.oprah.com/slideshow/health/wellnessandprevention/pkgnewyear/slideshow1_ss_money_debt/2

Assess your money situation

To get rid of debt and get yourself on the road to repayment, Jean Chatzky, David Bach and Glinda Bridgforth all agree that it is crucial to know how much debt you're carrying and at what interest rates.

Pull out all your bills and write a list to determine how much debt you really have. Once you know your total debt, you can start paying it down!

It's very important to know your credit score. Once you start paying down your debt, your credit score will rise. A higher credit score means lower interest rates.You can get one free report each year from each of the three credit bureaus—so three total. The smart thing to do is to get one every four months, that way you can make sure (for free) that you haven't been a victim of ID theft.

To get a free report, go to the website set up by the Federal Trade Commission, http://www.annualcreditreport.com.

If you can't get a free report, buy one from one of the three credit-reporting agencies:
Equifax: 888-766-0008 or http://www.equifax.com
Experian: 888-397-3742 or http://www.experian.com
TransUnion: 800-680-7289 or http://www.transunion.com.

From Lena:

Knowledge is power! Unless you sit down and HONESTLY list every expense, you're only hurting yourself. Your credit report will give you an unflinchingly honest report of your credit. You need to know this to plan how you'll get out of debt. It's easier to use the "guess" of how much you owe, I know. No one wants to know how deeply they owe The Man. Look, and let your heart chill if it needs to. Use that impetus to propell you toward betterment of yourself and your situation. If you don't do it, who will?

Or are you seriously thinking you'll win the lottery?

Lena