Quite Simply, The 5 Most Important Money Rules

1. Have you ever tracked your spending habits? Are you terrified to find out what you REALLY spend your money on?  I once tracked my money habits down to the last penny for two years. I found out I was spending most of my money on miscellaneous items. Itunes, Amazon books, nice clothes, car repairs, dinners out…etc.   It’s incredibly easy to spend money on fun or emergency items. Until you actually see the facts, you have no fucking clue! Facts will help you! Stop being scared and face reality. Track your spending.

2. Hide your money and hide it well. I have repeated this a million times. Out of sight out of mind. Have part of your pay check deposited into a 401k. Make it as difficult as possible for you to extract money from your bank account. Whenever I see my bank accounts with a little extra I say, “Hey, I deserve to spend that little extra”. Justifying spending that little extra is way too easy! You will never build up a nest egg thinking this way. Hide it!

3. Live within your means. The number one rule in money is to STOP spending more than you earn. Stop using easy credit. Stop buying houses you can’t afford. Stop keeping up with your friends, family or neighbours toys.  Your ego is your biggest enemy. Live simple, live free, and live happy!

4. Find out what money means to you. Is it just there to pay your bills every pay check? Is it a way to impress your friends? Or is it a convenient way to pay for items? Are you buying stuff or are you buying experiences. Experiences can last a lifetime while stuff never does. Find out what money means to you. Control it before it controls you!

5. Hang out with your friends and appreciate nature. Turn off the TV.  Avoid advertising. Money is only paper to pay for items in your life. Life is about living each and every day with joy, meaning and happiness. You don’t need money for this. Surprised? Don’t be. Go out and meet your friends and have a great time. Did that cost a lot? No. It’s a fact that your connection with your friends brings you the most happiness in life. Paper money doesn’t even come close. Love nature and love your friends.  They will love you back. Money doesn’t.

How to Weather the Storm of the Economic Collapse

As you may well know, we are currently still in the worst economic situation since the Great Depression. What exactly does this mean and how can you survive until the economy gets back on its feet?

The first thing to do is stay current on what’s happening with the economy. You need to have a basic understanding of it all and keep up with the changes that are happening as well. Without this information, you may make decisions that could be detrimental to your financial future.

It’s far too easy to panic and make rash decisions when the future is uncertain and frightening, so don’t dwell on the latest news, just keep yourself in the loop.

Here are a few things to remember that can help you survive the economic collapse:

1.      Markets. If you own stock invested in a long-term investment, leave it there. The markets will fluctuate up and down, and sometimes it will happen sharply. But over time, the market will recover; it’s a normal ebb and flow.

• If you’re concerned about your investments, ask a professional for their advice. Don’t pull it too soon in a knee-jerk reaction from a steep drop. This is the nature of the stock market and you should be prepared for this type of thing happening.

2.      Diversify. Simply put, don’t place all your eggs in one basket. If all your investments are in one place, spread them out. Look into CD’s, money markets and bonds. These types of investments are slow and steady and the principal is protected.

3.      Spend Less. This is pretty straightforward, but it’s an important reminder. If you went out to dinner 3 times a week before the economy dipped, try 2 times a month now. Put simply: if you don’t need to spend money on something, don’t. The money you save can help pay your bills.

• In this economy, survival requires sacrifice. You’ll have to cook at home more or maybe rent a movie instead of going to the theater. It could be worse, so make due with what you have!

4.      Spend Wisely. Where do you normally shop? If you answer high priced specialty stores, you may need to change your habits.

• Start heading to discount supermarkets and dollar stores. Believe it or not, dollar stores sell cleaning supplies for $1, as opposed to four or five dollars for the same thing in another store.
• Skip the Starbucks stop on your way to work and bring your morning coffee from home instead.

These times are tough. Unemployment is on the rise, jobs are harder to find, and businesses are closing down faster than ever before. Still, this is not something to fear. These things happen. It’s all part of a cycle and the economy will bounce back.

In the meantime, get creative and find new ways to make some extra money and save on expenses:

• Search through your garage, attic and basement for things you own that you don’t need anymore and sell them online.
• Look into home based Internet businesses and ways to generate passive income. Affiliate marketing is great for this. There are places all over the Internet with these types of programs.
• The worst thing you can do in this economy is ignore the fact that there’s a problem or think it won’t affect you. Consider everything expense you have and devise ways you can get it for less. You can make this recessionary economy work to your benefit by negotiating cheaper rates.

You may have to look a little harder for opportunities, but they’re still there. Take the skills you have, along with your passion, and find ways to generate some passive income from them. When you do these things, you’ll be able to weather the storm and come out ahead!

5 Things You Need to Know About Debt

I’m focusing on making life changes around the subjects of money and health. These are two of my most popular subjects from the traffic I’ve seen lately.

These days everyone is looking for ways to reduce debt and save money. It is possible to wipe out your existing debt and learn how to live your life within your means.

Here are five tips that will help you on your way to debt free living:

1. Stop using credit cards. One of the leading factors in the current economic crisis is people buying things on credit they cannot afford. The next thing they know, they find themselves unable to do anything more than make minimum monthly payments.

• Minimum payments will keep you in debt because every month interest continues to accrue on your original balance. A $1,000 balance on a typical credit card can take 22 years to pay off if you make only the minimum monthly payments!
• Don’t fall into the trap of credit card debt. Instead, avoid the hassle and expense by paying cash for the things you buy. If you want a big-ticket item, save the cash before you make the purchase. Only buy when you can afford to pay for the item in full before you bring it home.

2. Buy luxury items with cash. We all have extras and luxuries we want, but using credit to get them is a dangerous path to take. You’ll get much greater enjoyment from the extras in your life when you pay cash, rather than ongoing monthly payments.

• Nothing takes the excitement out of a new toy or nice vacation more than the large payments that strain your budget month after month.

3. Create a realistic budget that includes debt repayment. The first step in gaining control over your debt is creating a workable budget. Rather than stifling you, a budget can bring you freedom! You’ll know where your money goes and you’ll set a spending plan so you can continue buying the most important things in your life.

• Your budget should take into consideration all facets of your lifestyle, including housing, food and household items, utilities, savings, recreation and debt repayment.
• If your budget doesn’t include room for debt repayment, there will never be enough money to pay off your debt. Take control of your financial reality by working with a realistic budget every month. Before long, you’ll see your debt diminishing while your savings grow.

4. Seek the help of a professional credit counselor, accountant or financial planner. The best way to be sure you’re making sound financial decisions is to seek out the help of a financial professional.

• Credit counselors, financial planners and accountants are experts in the areas of savings, debt repayment, investments and tax deductions. Implement each of these areas into your finances to eliminate financial strain and secure a stable financial future.

5. Negotiate better rates with the banks or credit card companies. Many people assume they have no choice but to accept the interest and finance rates offered by their banks and credit card companies, but that isn’t always the case!

• Talk to the people at your financial institutions. You may be surprised at how willing they are to budge.
• If your credit is in good shape or you’ve made steady, progressive strides to improve it, you may be able to get lower interest rates on your debts.
• You might also receive higher interest rates on your savings, giving you a double shot at eliminating your debt entirely and moving forward with your finances in a positive direction.

You can repair your debt problems and learn to avoid creating them in the future. These five steps will point you in the right direction and get you started on a new path to financial freedom and prosperity!

How to Save Money During a Recession

Whether you want to admit it or not, there’s a global recession happening, and it’s affecting millions of families. People are being laid off, companies are going under, and even some state governments are completely broke.

Finding ways to cut back on your spending can help you during this difficult economic period. Saving money is always good, but it’s a skill that becomes especially important during a recession.

How can you save money during a recession? It’s all about planning, cutting frivolous costs, and changing the way you spend money.

Here are some handy tips you can use to help you save money:

1.      Pay important bills first. The mortgage, electricity, water and heat have to be paid no matter what.

2.      Save Money on groceries. Groceries are a huge, yet necessary, expense. After the bills are paid, most of the budget will fall into the groceries category.

• Buy generic rather than name brands. They usually taste just as good but cost less.

• Buy non-perishable foods in bulk. Many items can be bought in bulk such as rice, canned foods, and frozen foods.

• Never shop on an empty stomach. Eat before grocery shopping; otherwise, you’ll wind up buying more junk and convenience foods because you’re hungry.

• Make a list of what you need and stick to it. It really is that simple!

• Cut and use coupons. 10 for $10 deals and sale items are your friends. Combining coupons with sales can slash your grocery bill even more.

• Avoid shopping at expensive stores, even if they’re closer to home. Instead, go a few miles out of the way for the discount grocery stores. Most items in the store are exactly the same thing, other than the price tag.

3.      Rent movies instead of going out. Have a movie night once a week. Sit down with some popcorn (the kind you pop on the stove) and watch a movie. This is a great way to spend quality family time, without much expense.

4.      Put the credit card down. Credit purchases may get your “stuff” now, but you’ll pay double for it later. If you want something, save up and pay cash or wait.

5.      Cook at home. If you go out to eat two or three times a week, cut back to once every two weeks or once a month. Instead, learn to cook at home. If you plan ahead and cook in quantities, you’ll save time and money by popping the extra portions into the freezer.

6.      Unplug. If there are things in your house plugged into the wall and you aren’t using them, unplug them. Many items, like computers and phone chargers, draw electricity whether they’re on or not. Plug it in when you need it, then unplug it when you’re done.

7.      Lower your thermostat. Set your thermostat at a specific temperature and leave it there. 68 to 70 is an energy-saving setting in the winter. If you get chilly, put on a sweater or grab a blanket. You’ll save more than you realize on your heating bills.

These are just some of the many ways to save money and stretch your dollar a bit further during these challenging times. These tips require a change to your habits, which can take some getting used to. In time, however, you’ll adjust and the money you save can make a big difference in your budget.

It’s important to stick with your plan to save money. Making a change for a week won’t do the trick. Committing to changing bad habits for good will reap the greatest benefits in the long run.