Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts

Sunday, November 11, 2018

Is It Time For A Financial Reset? 15 Tips For You To Reset Your Finances


Sometimes you go through life like you own it. You have your priorities right, your life in order, and everything going well.

Then, wham! You get hit with a medical emergency. You lose your spouse. You get divorced or separated. You have to suddenly move. You are faced with bills you did not realize you owed and now are in collections.

Life happens. You can control a lot of what happens in your life, but there is a lot you cannot control. You always hope you have enough in savings and/or insurance to cover whatever can happen, but sometimes you just don't have enough.

So what do you do? You can do several things to scale back and correct your finances. Below are some tips to get your financial life back in order and do what you can to get back on your feet again. None of these are quick fixes. Some of these tips will look like they are from Dave Ramsey and they are. He is definitely worth listening to when it comes to finances!

15 Tips For You To Reset Your Finances

1. Start a spending freeze or at least stop all unnecessary spending. This is one tip you can implement right away. No unnecessary spending for at least a week, but a month would be more ideal. You should sit down and make a list of necessary purchases. Be severe and strict about the spending freeze.

2. Start a budget or rework the budget you have. Sometimes our budgets work until they don't. Sometimes our finances change so much that we just need to rework the budget or start over with a new budget. That happens. You need to sit down and write down all income and expenses and make a workable budget. You might have to tweak the budget for a few months until you get it right. You also need to remember to plan for future expenses so you are saving for them.

3. Say no to yourself and your kids. The budget doesn't work if you do not practice self-control and self-discipline. Sit down with your family and discuss what is going on with your finances. You will not need to tell your kids all the details. Just let them know that you will not be spending money on anything unnecessary. However, you also need to tell them that they can come to you with any requests or concerns because they may need something necessary and you don't want them to be scared to ask.

4. Watch and read anything and everything you can find on extreme frugality. You are going to need the tips from it. There may be some things you don't think you can do, but you can save a lot of money if you need to.

5. Take inventory of what food you have. If you are finding your finances to be really tight, now is the time to dip into your food storage. One area of your budget you can really skimp and save on is your grocery budget. Start using your food storage, eating more from the garden, cooking from scratch and stretch your food as far as possible.

6. Comb over your bills. Where exactly is your money going? Are you paying for multiple same or like things? Do you really need satellite/cable television along with streaming services? Are you paying for things you are not using? Are you paying for unlimited data on your phones and internet at home? Make the necessary eliminations and move forward with the saved money.

7. Buy used before new. Your kid needs black pants for a school event? Go to the thrift store first or ask friends. There is no reason for you to run out and buy a new pair when you can buy used. You need to develop that mentality for this financial reset. Be sure you borrow or buy used anything you can in order to save or not spend money at all.

8. Sell what you don't need. You need the money back into your budget. You probably have debts that need to disappear. What do you have that you don't need? A lot of people have more vehicles than they do drivers. Sell the extra vehicles or, if you can, reduce down to one vehicle. You will save money on insurance and maintenance that way. What do you have that you can sell otherwise? This would be a good time to declutter and sell off the excess.

9. Shop around for insurance and other services. More often than not, you are paying for more insurance than you need. You are also probably paying higher premiums. Insurance companies rarely reward customers for loyalty anymore. Shop around for a cheaper rate. You can do this yourself or use an experienced independent agent to get the job for you. If you are driving a vehicle older than ten years, consider dropping down to minimum insurance.

10. Are you renting or purchasing your home? Are you paying for way more space than you need? Sometimes we do want the nicer things in life and our housing situations are no different. However, by moving to a less expensive place, you could be saving a lot of money and helping your budget significantly. There is no reason to be impressing the Jones at this point in the game. Don't think your home will sell or you can get out of your lease? You could move and rent your home for the cost of your mortgage payment or sublease your rental for the same cost. Just a thought.

11. Now is a good time to re-examine what gives you joy in life. Many people have expensive hobbies which cost money to do and to maintain. If you can't hardly afford your bills and groceries, the motorcycles, boats, trips, and more need to go. Selling them would help to pay more debt and build up your savings. You also need to think about how much you drink, smoke, gamble, and other addictions. They all cost a lot of money over time and your budget (and you!) would be better off without them.

12. Unsubscribe and delete anything that will derail your restructured budget. I do mean anything that will tempt you. You think you can look and resist. Then comes the rabbit hole. Throw away any flyers that aren't grocery flyers. If you really need to look at them, you can always look them up on the internet. Immediately delete and unsubscribe from all the sites that tempt you to look. Your budget will thank you!

13. Even though you have set a strict budget, it is hard to stick to it for a while. Many people have success with the cash envelope system. You put a set amount of money into the cash envelopes and you stick to that amount. When the cash is gone, you are done. If you find yourself absolutely needing more cash, you probably need to re-examine how much money you have put away for that category. Your budget probably needs to be adjusted.

14. Use the 7-day rule. If you really think you need to purchase something, commit to waiting seven days. After seven days, ask yourself if you really need that item especially if it will derail your budget. Most often than not, you do not need the item. Some people take this further and wait 14 or 30 days before deciding to make the purchase.

15. Do not let your lifestyle define your budget and your finances. Too many people think they need to keep up appearances or maintain a certain lifestyle. This doesn't work when you are trying to reset your finances. More than likely, your "lifestyle" is what got you into the mess you are in, but you are blaming it on other things. Now is the time to let go of the life you thought you had to live so you can get right with your finances.

Resetting your finances can be hard. You may have to make some hard decisions to keep the wolves away from the door. However, you can do it!

Thanks for reading,
Erica

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Friday, November 2, 2018

55 Ways To Save Money on Your Utility and Water Bills


The single biggest expense most households have are their utility and water bills. Sometimes those two bills combined are more expensive than the mortgage. Sometimes those two bills are the same as the mortgage and monthly groceries. In other words, they are just expensive.

In the twenty plus years of paying for a utility bill and growing up in a house that was very conscious of its water and electrical use, I have learned some tips and tricks to drive down the costs of those bills. Some of these tips will not cost you a thing and will provide immediate results. Some results will not be immediately seen. For some of these tips, you will need to pay to save. You will need to purchase items will that will pay for themselves in the future.

I realize some towns/cities/companies have minimum usages for utilities and water. If you are above the minimum usages, you want to get down to those if you can. You can also call and try to negotiate the minimum usage amount, but most places do not allow that.

55 Ways To Save Money on Your Utility and Water Bills

1. Shut off the lights. Most houses are lit up like they are a light show. If you are not in the room, shut off the lights. Use lamps, oil lamps, or candles instead of overhead lights to save money. During the day, use natural lighting.

2. Unplug the small appliance especially the ones with lights or a display. They draw power even though they are not in use.

3. Hang your laundry instead of using the clothes dryer. You can hang inside or outside depending on your weather. Hanging inside during the winter also provides some needed humidity too if you live where it is cold.

4. Plant trees to shade your home. Tree shade keeps a home cooler and is better for the environment.

5. Fix your leaking faucets. You lose a lot of water with a leaking faucet. If you have well water, you are losing electricity too by keeping the well pump running.

6. Use low flow showerheads. These also help save money and you still have good water pressure for a great shower.

7. Clean or replace the faucet aerators (screen on the end of your faucet) to use less water.

8. Replace old dying appliances with new (or newer) energy efficient ones.

9. Use your grill or firepit to cook a meal instead of the stove.

10. Have a no television, no electronic times of the day. Extend this further by having a no television week every month. Not having the television on will save money and using electronics less will save on charging times.

11. Plastic on the windows during the winter to cut down on drafts and keep the house warmer.

12. Set the thermostat lower in the winter and higher in the summer when you are gone from the home.

13. Set the thermostat two degrees lower than usual in the winter and two degrees higher than usual in the summer to save money.

14. Get an energy audit done by your local utility company. They will tell you where you can make changes and often you get a free kit for the having the audit done. The audit isn't always free though.

15. Turn down the water heater to 120 degrees or lower yet. You can still take a hot shower with 120-degree water.

16. Set a timer for showers. Most people do not need more than ten minutes for a shower. Teenagers seem to forget this so set a timer.

17. Only flush your toilet every 2-3 trips. You know the saying, "If it is yellow, let it mellow. If it is brown, flush it down." You do not need to flush the toilet every time you pee. Worried about pets or toddlers? Use a toilet lid lock so they can not get into the toilet.

18. Put a brick covered in plastic wrap in the toilet tank to reduce the amount of water needed to flush.

19. Have a leaky toilet? Replace the seal, replace the float, and/or replace the toilet. If you are replacing the toilet, definitely spend the money for the low flow toilets. Most of those toilets use less than two gallons of water per flush.

20. Save the warm-up water from your showers. You can use this normally wasted water for flushing toilets (shut off the water to the toilet first) or watering plants.

21. Check your water heater. Have the water heater serviced or learn how to service it yourself. Flush the water heater out once a year to remove sentiment. If it is over 20 years old, consider replacing it with a tankless water heater or something much more energy efficient.

22. Warm your water heater with an insulated blanket if it is in an unheated basement or room to reduce heat loss from the tank. You can also wrap the pipes coming from the water heater to prevent heat loss further which causes your water heater to work harder.

23. Set up a rain catchment system. Catching rainwater to use for watering lawns and plants is certainly going to save you a lot of money. Some cities/townships/counties/states do not allow for this practice so check your local laws. You may need to have it flow into hidden tanks if you want to do this.

24. Check the seals on your doors. You can lose a lot of hear/air from doors that are not properly sealed. Replace the seals if you can. If they are doors you do not use, seal them off completely.

25. Close off rooms you do not use. Unless there are pipes in those rooms, you can shut off those rooms. Close off the heat vents and close the door. You can always open them back up and turn the vent on again if you need to use those rooms.

26. Switch out any old electrical plug-ins and light switches. Most of them become weak over time and do not securely hold the plugs in right.

27. Use thermal lined or insulated curtains to keep rooms cool or warm depending on the season.

28. Use solar power whenever possible. You may not be able to purchase a large system, but you can take advantage of solar chargers or small solar panels to run small appliances.

29. Use a wood stove or a wood cookstove instead of electric or gas to keep your home warm and cook your meals. Some insurances do not allow wood stoves so you will need to check into this and maybe switch insurance companies.

30. Fill your sink with water when washing dishes. Fill one side or a tub with wash water and the other side with rinse water. You waste more water by running the faucet than you do with just filling the sink.

31. Use draft stoppers on doors. If you do have a bad seal on a door or an inside door leading to an unheated area, you can make or purchase a draft stopper to seal off the door better.

32. Wear more clothes in the winter and fewer clothes in the summer. Most people do not want to be uncomfortable. However, you can add layers of clothes in the winter to keep the heat bill down. There is also nothing wrong with wearing a fleece jacket, stocking cap, and fingerless gloves inside the house in the winter.

33. Add more blankets to beds in the winter to keep the heat down overnight.

34. Only shower every other day if you can. A good deal of people do not need to shower every day. Most kids under the age of twelve only need to shower or bath 2-3 times a week. Most people just do not get dirty enough or gross enough to shower every day. However, if you do get really dirty and/or sweaty every day, shower. If you have an illness in the house, please shower or bath as often as possible.

35. You do not need to wash your bedding every week. Save your water bill and wash your bedding every 2-3 weeks. If you are worried about the sheets being gross, shower before bedtime or sleep on a towel.

36. Only run full loads of dishes in the dishwasher and full loads of laundry in the washing machine. With most washing machines, you can at least adjust the level load to keep the water usage down. However, you will save money on your electrical bill by only running these machines with full loads.

37. Kids do not need a full bathtub to get cleaned. Save your water bill some more by only using no more than five inches of water in the bathtub. If they are toddlers or preschoolers, you can use even less water.

38. Keep rooms clean and uncluttered. If the rooms are dirty and cluttered, they will take more energy to heat because they are trying to heat your stuff too.

39. If you are using the oven, try cooking multiple things in the oven at the same time to conserve power. If you are baking a casserole, plan to bake bread or bars at the same time. You can also put potatoes or vegetables into roast for another meal.

40. Have blankets available to use and cover-up. You can keep the heat lower while everyone is just sitting in the living room watching television.

41. Wear clothes more than once to keep your laundry down and use less water. Most of our clothing can be worn more than once (yes, undergarments are the exception). Unless you get gross and dirty, you can wear clothes at least twice if not more. You can wear the same pair of pajamas all week.

42. Open your windows instead of using the air conditioner. Most people need to air out their homes on a regular basis anyway. Unless you live in a really dirty area or have severe allergies, you should be opening your windows to save money.

43. Look for opportunities to shut off your heat or air conditioning. Unless it is really humid or hot (over 85 degrees), I keep the air conditioner shut off and will open the windows if I can. The heater gets shut off if the outside temp is over 60 degrees during the fall, winter, and spring. Most of the time, the heater will not run anyway because the inside temp will stay over 65 degrees during the day, but I like to shut it off and see how long we can go before turning it on. Once the inside temp drops below 58 degrees, I will turn it back on.

44. Are you using a small appliance for something you can do easily by hand? You can really nit-pick here, but you could use a manual can opener inside of an electric one. You can use a whisk instead of an electric mixer. The list goes on, but you are trying to save money. The little savings add up too.

45. If it is winter, keep moving. In the winter, we tend to get colder because we sit more. We naturally want to hibernate or do as little as possible. However, to keep your body heat up and the thermostat turned down, you need to keep moving. You can deep clean a room, clean house daily, and more. Just keep moving around.

46. If it is summer, consider energy conservation for yourself. In the summer, we tend to do things that make us hot and sweaty which causes us to turn the thermostat lower to stay cooler. Keep the heavy work for morning or late afternoon/evening. If you feel the need to heavy, sweaty work during the day, consider a cool shower or even an outdoor solar shower bag to cool off instead.

47. In the summer, cook outside or eat cool meals. Heating up the house will make us want to adjust the thermostat. Keep the cooking outside if you can. If you are a canner or caterer, consider installing an outdoor kitchen to keep the heat outside.

48. Unplug electronic devices after they are done charging. Most chargers still keep drawing power after they are done charging. Unplug them or put them on a power strip you can shut off so they are not drawing power anymore.

49. Use slow cookers, toaster ovens, and electric skillets instead of using your stovetop or oven. They use considerably less energy than a stovetop or oven.

50. Replace your standard light bulbs with a CFL or a LED bulb. Some bulbs are better than others, but all of them will save you money over the incandescent bulbs. I will say this: from experience, it is far better to invest money in the LED bulbs and get a better quality for better lighting. Going with cheap bulbs will more than likely result in less quality lighting.

51. Consider changing your outdoor lighting to LED or solar lights. We also use dusk to dawn lights and motion sensor lights. We replaced and added a good deal of our outdoor lights last year with no impact on the utility bill because we choose LED and solar lights.

52. If your furnace or central unit is over 20-25 years old, consider replacing it. The newer systems use considerably less energy and have many more options to make them a better fit for your home.

53. Insulate your attic. A contractor friend told me one time that most people could save a lot of money if they would just insulate their attics. A lot of homes have uninsulated attics and lose a lot of heat through those attics. Make sure you have at least 8-12 inches of insulation on your attic floor to keep the heat escaping through your roof. Be sure to check your insulation every few years because it can settle and collapse.

54. Borrow and use a kill a watt monitor and find out if you have any appliance or electronics that are sucking power without you being aware of how much. You would be surprised how much aquariums and dishwashers use.

55. Consider replacing your thermostats. After a time, they become unreliable and could be heating your house or rooms warmer than they should be. We replaced one a year ago after realizing that the room seemed very warm. Using a thermometer, we discovered the room was really almost 80 degrees instead of the 65 degrees the thermostat was set at. Every year, you should be checking to see if they are accurate by using a thermometer and checking the temperature.

This is just some of the ways you can save money on your utility and water bills. Some of these may be too extreme for some of you and that is okay. Some of these may cost too much money for you now to implement them. That is okay too. Just take care of them when you have some money saved up.

There are many, many more ways to save money on your utility and water bills too. I plan to have a part 2 coming, but I would love to hear your ideas! Please leave them in the comments below!

Thanks for reading,
Erica

Related Posts:
Start Saving Money by Having A Poverty Mindset: Learn 25 Ways To Extreme Living and Saving! 
What Place Does Extreme Frugality Have In Your Life? Can You Live In Extreme Frugality?


Wednesday, August 29, 2018

Start Saving Money By Having A Poverty Mindset! Learn 25 Ways to Extreme Living and Saving!


We all want to save money, but sometimes we just don't know how to save more money than we already are. We don't want to take the next step in frugal living because we know that we will be looked upon as crazy. However, sometimes you need to save an extreme amount of money in a very short period of time. You might be suddenly faced with only having half of your normal income. You might find yourself with a lot of medical bills or a large repair bill.

You might also desire a different kind of life. You may want to prepare, to homestead, or just live a simpler and less stressful life. Most people don't think they can afford to do those things because they are so tied down with debt or other obligations. However, most people can if they would re-examine their spending.

In other words, you will need to practice a level of frugality that most of us don't want to think about. I call this poverty living. We are all living (or should be living) at a level of frugality that seems a little tight, but sometimes we need to get a lot tighter.

What does poverty living entail? Basically, living as broke as you can while still covering the necessities. Some of you, like me, already have done this before and never really had a name for it. While some of you already may live like this and do not have any other way to save more money, some of you may feel the need to do this just to get your budget and finances back under control. You may also feel the need to do this because you are facing an uncertain financial future. And, like I mentioned before, you may have some large bills you need to pay.

How does poverty living and saving work? How can you start living this way?

1. Take a long, hard look at your finances. You need to take a notebook and write down every single bill, expense, and spending you do now. You also need to look at any future expenses you know you will need to pay for. This is the time to get really tough with yourself and/or each other as a couple. What items in your budget can be eliminated, paused, or reduced? Do you have expensive habits? Are you extravagant gift givers? Are you kids in too many activities or have expensive hobbies? This is the time to examine everything including your lives. If you need or want to live as frugally as possible, sacrifices need to be made short term and possibly long term.

2. Get your grocery spending under control. Some of you will say that you don't spend a lot of money on groceries or at least as much as your friend spends on her groceries. You need to change your thinking. You are practicing a whole new level of saving so you need to focus on you. You need to carefully look over your receipts. You need to start making a list and sticking to the list and the budget. You need to plan meals around basic foods, what you are growing, and what is on sale. Going without a list and with no plan will make for a miserable time for you and your budget. You need to make the time to do this. You can also start a price book so you can get an idea of when an item is the cheapest, where the best price is, and how often it is on sale.

3. Meal plan and plan your meals around cheap, basic foods. If you are trying to save money, having fancy meals of salmon, steak, and lobster is not going to be possible. You need to keep your meals as frugal as possible. You may not be able to have meat as much as you like either. Casseroles, one pot meals, and soups will feed a lot of people cheaply. Make sure you also plan for breakfasts and lunches. If you think you will get sick of the same foods all the time, you may just need to suck it up. You are trying to save money. You can find a lot of ways to jazz up your meals with getting bored, but you will need to be creative about it.

4. Sell what you don't need. If you have four vehicles, only two are in working condition, and you only have two drivers, sell the two non-running vehicles. You can sell vehicles as is as long as you are honest about what is wrong with them. The same with the stuff you have in the garage, house, shed, and anywhere you are stashing things. Now is the time to make a little extra money! If you don't need it, get rid of it. Some things will only have a purpose once or twice a year and that is okay. However, your kids' outgrown toys, clothes, and equipment are not doing you any good sitting in a closet. Neither is the sporting equipment that you used ten years ago but think you will use again someday.

5. What are the necessities for you and your family? What do you really need? We all think we need things, but most of the time we can live without them. Sacrifices will need to be made in order for this to work. A good deal of the things we think of as necessary we find out is not necessary after living without them for a few months. You just need to really examine everything you purchase or use and ask yourself if you can live without them.

6. Unless you are getting it for free, no eating out, no going out on dates/nights out, no alcohol, and no other bad habits. They aren't necessary no matter how much you think they are so now is a good time to get rid of the bad and expensive habits and any other costly fun things. You may suffer some withdrawals, but the suffering will be worth the money saved and possibly improved health. You can also add soda pop, candy, and other "treats" that we think we need for ourselves. We don't need them and we would be better off without them.

7. Write down every penny spent, earned, and examine every purchase. This is a learning process. You will make mistakes, but in order to know where your money is going, you need to be on top of the spending. Ideally, you do not want to spend any money, but life is never ideal. However, by writing down every purchase and expense, you can easily see where your money is going and where it shouldn't be going. From there, you can make the necessary corrections to save even more money. And sometimes, just the thought of having to write down the expense will stop you from purchasing the item. No one wants to write down that they spent $1.29 on a candy bar.

8. Figure out what the true cost of things is. You may think your child needs to be in activities like basketball, dance, and other sports. You may think it is only costing you $40 for the registration fee. However, you are also spending money on additional vehicle gas, vehicle wear and tear, your time, possibly fast food to feed the family, special clothing and shoes, and more. That $40 is more like $400 before the season is over. While I believe kids should be involved in a few things, sometimes parents get kids involved in things they don't want to do. The same can be said about our hobbies and past times.

You need to examine the reasons to be involved in things and decide if the cost is worth it. Most of the time, it is not. This can apply to any area of your life. Maybe you have a home business, but that business is costing you as much money as you earn. You might have a hobby that is costly. You might like to do crafts, but the supplies are costly. You need to look at everything involved with those things and ask yourself what the real cost is for the hobby or past times.

9. No more food waste. When you are living below the poverty level, you do not have the luxury of wasting food ever. If you are raising food, you better find a way to preserve it somehow if you cannot eat it all. If you have leftovers, you should be eating them until they are gone. If you cannot eat all the leftovers, you need to freeze them or offer them to friends. If you do not like leftovers, you either need to get over yourself or make just enough food for the meal. You do not have the money to be throwing away food. If you have little bits of food or vegetables in your fridge you don't know what to do with, make a refrigerator clean out casserole or soup.

10. Clean and take care of your things. Neglect and disrepair will only cost you more money. You need to make sure your things are clean and in good repair. Most of the time keeping your items clean will cost you almost nothing. If something breaks, have it fixed or fix it yourself. Most of the time, the repair will be cheaper than buying the item again.

11. Save money any way you can. You need to always look for the savings in almost all of your decisions. This doesn't mean you should buy cheap goods that will break quickly instead of quality. This means you should always examine everything to see if you can save money. Saving items like rubber bands, twist ties, bread sacks, scrap paper, and more will save you money and extend the life of your purchase. Turn on a lamp instead of the overhead light because the lamp will take less electricity. Use grocery sacks for trash bags instead of using the real thing. Put on a sweatshirt and drop the thermostat by two degrees in the winter. Ask yourself constantly how you can save money and do it.

12. See how far you can stretch a tank of gas. Buying gas for your vehicles can be a budget killer. If you are driving to work every day, ask yourself if you can carpool with someone. Maybe you can walk or ride a bike to work. If you do have to drive, drive the speed limit. You need to also combine your errands. Try to limit your trips you are making. Ask yourself if it is really necessary to make the trip if not for work or family. Reduce your grocery trips to once a week or twice a month. If you need to go to the library, where else do you need to go?

13. Have a no spend week, month, or even longer. If you really want to curtail your spending, this is a great way to do. You need to set your limits and allowable purchases (gas, groceries, prescriptions) before you start. You also need to write down anticipated expenses and what you will do if unanticipated expenses do come up. However, this works best if everyone is on board with it. If you live with others, you need to talk to them. You can still practice a no spend month yourself, but it just might be more difficult.

14. Never turn down free items if you need or want them. Some people will turn down free items offered to them just because of their pride or they think someone else will need it more. If you can use it or need it, by all means, accept the free items. Accepting and using free items is the number two way to save money (number one is not spending money).

15. Learn to trade and barter. Trading goods and services is a win-win for everyone involved. If you have eggs and your neighbor has apples, trading those things with each other helps everyone involved. Bartering is a similar concept. You can offer to clean for someone in exchange for a haircut or another service. Whether trading or bartering, you are saving yourself a great deal of money.

16. If you have some expensive habits or friends, this is a good time to put them on hold. We can have the best intentions when we are trying to save money, but our habits and our friends can ruin those intentions in seconds. Habits like a drink after work, daily coffee runs, ribeyes on Friday nights, and expensive night outs can be the ruin of a good budget. You might think that these things will ruin the budget at the time, but over time these things can really add up and take away from the money you are desperately trying to save. Friends can be just as bad. Some friends may not feel like they can have a good time without an expensive meal out, lots of drinks, and/or a day of shopping. You can deal with them by leveling with them about the fact that you are saving money and cannot do those things anymore. You can maybe find other things to do with them that are free or inexpensive, but you may just have to stay away from them for a while.

17. If you have a credit card problem, you need to deal with them. I know a lot of people who are completely responsible with credit cards and pay them off every month. They are very conscious about what they spend and use them responsibly. I am not talking to those people. If you have problems with credit cards, you need to get rid of them as quickly as possible. You may need to cut them up or put them in a safe deposit box away from you. If the interest is very high, look at switching or transferring to a low/no interest card in order to save money on interest. Then you need to pay them as quickly as possible. You need to learn to live on cash or within a budget if credit cards are a problem.

18. Buy used before you buy new. Almost everything you consume can be purchased used except for food, personal items, and maybe undergarments. Most of the time, you can find what you need to purchase used on Craigslist, Facebook Marketplace, garage sales, resale shops, thrift stores, and sidewalk curbs. If you can anticipate needing the item and you find it before you need it, purchase it. This would be in cases like winter coats, clothes for growing children, school items, and more. You will save so much money this way and you will also stop the cycle of consumerism.

19. Shop from home first. Most people will go out and buy something new instead of using what they have at home. Back to school shopping is a prime example of this. Your kids probably came home with items they used last school year that is in perfectly good condition. However, we have been trained to think they need everything new when school starts again. We need to ditch that thinking. Look over their last year's items and reuse what you can. The same goes for gifts. Most of the time we have a brand new item at home that will work for a wedding or baby shower gift. Yes, this is regifting and make sure you do it right. Remove the card and make sure you don't give it back to the person who gave it to you. You may also be able to make a present with items you have on hand already.

20. Reuse, reuse, reuse. Most items are not disposable, but we treat them as such. It is easier to throw something away and purchase new again. However, a person living at poverty levels do not have that luxury. Wash, fix, repair, mend, and reuse items again. If something like a towel (for example) is no longer sufficient for the shower or bath, it can be used as a cleaning rag. Plastic bags can be washed out and reused again and again unless you use them for raw meat. Ask yourself if you can reuse this item or find another use for it before throwing it away.

21. Buy non-disposable items. On the flipside of reuse, reuse, reuse is making sure to purchase non-disposable items. This may seem like you are spending more money, but you are spending money on an item you hopefully never have to purchase again. Using handkerchiefs or a washcloth instead of facial tissues will save a lot of money. Using rags or cleaning cloths instead of paper towels will save a lot of money. Using plastic or glasses food containers instead of plastic food bags will save money. Look for the items you can use again and again instead of disposable items.

22. Realize saving money is in the little things as well as the big things. Many people have this idea that you cannot save money unless you are saving money on big purchases. This is simply not true. With a poverty mindset, you need to look for the savings in everything and often times the real savings in the little things. By not buying the coffee every day, you are saving $1-4 a day which adds up to $7-28 a week. In addition to those savings, you aren't tempted to buy the donut or bagel which is $2-4 a day or $14-28 a week. Already you have saved $21-56 in a week which is $84-$224 a month which is very nice payment on a bill. This is the mindset you need to create - little savings add up to big savings over time.

23. You may not be able to buy organic, non-GMO food or special ingredients. Back to the good old grocery budget. Most impoverished people can not afford this kind of food unless they are growing it themselves. While I mentioned before that you need to convert to cheap, basic foods, that doesn't mean you need to eat junk or eat unhealthily. You need to keep food to rice, beans, vegetables, fruits, and eat well but cheap. You just may not be able to afford organic food, hemp seeds, or anything that is marked up due to being the new health food cure-all.

24. Use everything until it is gone and do not purchase new unless you need it. When you are poor, you do not have the luxury of throwing away a half-used bottle of shampoo. You suck it up and use it up. You add a little water to the bottle to get the last bit out after tipping the bottle upside down for several days. The same should go for almost everything else that you use. You do everything you can to use up the last little bit of everything. Then you need to ask yourself if you need to buy another one or do you have something else on hand that will work. Most people do have something that will work instead of buying new. However, if you need it, by all means, buy another one and try to make it last longer (unless it has a short shelf life!).

25. Work as much as you can (within reason). If you are truly needing to get out of debt, pay off big bills, or just trying to save a large amount of money, you need to work as much as you can. Most people are not willing to do this. However, if you are offered more hours at work, take them. If you have the opportunity to work a part-time job in addition to your full-time job, do it. The only caveat to this would be if you have to pay more to work more. Having kids in daycare longer is usually not beneficial for the budget or family life. Sometimes you can work from home or telecommute which will help you save money as well as make more money. I would just steer clear of multi-level marketing jobs that ask you to spend money in hopes of making more money. Yes, they do work for some people, but often they don't work for others.

Some of you are thinking you already do most of these things, but can you take it further? I know I can and should. If you are stuck for ideas, the internet is a wonderful place full of good ideas. If you think you can't live without a smartphone, satellite television, and more, research other cultures and extreme savers. They will teach you quickly that you can and you would be spending your time much more productively without them.

Do you think you can live like this? Do you think you could make the sacrifices for the bigger goal?

Thanks for reading,
Erica

Related Posts:
What Place Does Extreme Frugality Have In Your Life? How Can You Live In Extreme Frugality?
The Budget Is Getting Tighter! 15 Ways We Are Making Lincoln Scream And You Can Too! 


Sunday, April 15, 2018

What Place Does Extreme Frugality Have In Your Life? How Can You Live In Extreme Frugality?


One of the ideas that have been on my mind has been extreme frugality. I am currently in saving money mode (which is normal) while trying to amp up my frugality game. I am back to using paper coupons, digital coupons, Ibotta, SavingStar, and much more. I'm paying a lot more attention to sale flyers and really deciding if I need any of that which, by the way, is in direct conflict with the stockpiler in me!

However, along with being frugal, I want to have a bigger impact on my savings and my spending game. To save more money and spend less money, you have to make more meaningful decisions about where your money goes and how your money is being spent. In short, you have to become more extreme in your frugal living game.

Frugal living has several aspects. One of the biggest aspects of frugal living and practicing extreme frugality is daily living. You have to examine every decision you make every day. Because being frugal is not just saving money on just big purchases, but being consciously aware of the money being spent on small daily purchases and how you are using the items you already have or purchased.

For whatever reason you decide to practice extreme frugality, you need to know and understand your reasons. Those reasons will be your motivation. The reasons can be many, but not limited to:


  • To rein in your spending
  • To pay down debt
  • To purchase a car or home
  • To save money for college
  • To save money for retirement
  • To save money for emergencies
  • To make a conscious effort to not spend money
  • To make frugality a part of your life

Whatever reason(s) you decide to practice extreme frugality, you need to know why you are doing it. Write down those reasons and place them everywhere you need to see them (office, computer, wallet, kitchen, etc.).

Now, that you know your reason for being extreme in your frugality, you need to find ways to tighten your spending. Some ideas to tighten up your frugal game could be:


  • Asking yourself to wait 3-7 days before purchasing anything besides necessities
  • Asking yourself if you have something already on hand before purchasing anything
  • Making a conscious decision to purchase used if at all possible
  • Eliminating food waste and examining if food scraps have another use
  • Using reusable items before purchasing single-use items like water bottles and drinks
  • Only purchasing clothes when something needs to be replaced and can't be repaired
  • Using washcloths and rags for paper towels, napkins, facial tissues, and more
  • Eliminating electrical use when possible and using solar or hand power instead
  • Walking or biking instead of driving the car
  • Making your own cleaners and beauty products
  • No more eating out and tightening the grocery budget
  • And so much more...

Every decision you make in a day should be examined for frugal reasons. There are always ways to save more money.

There may not be things you are willing to do to save more money. That is okay, but ask yourself why you are not willing to go that far to save money or not spend money. If saving/not spending money will hurt yourself or harm your family, then you shouldn't be doing it. There is a fine line in extreme frugality and withholding a critical necessity or service to not spend money is crossing the line.

Extreme frugality may bring on extreme cheapness. In some cases, being cheap is not a bad thing. People may view you are cheap just because you are not willing to buy something, go to a "party" for the sole purchase of buying something or will not go out bar hopping. That is not being cheap, that is being frugal. Being cheap is only spending what you have to without thought to others or yourself and potentially causing harm. Being cheap is also spending the least amount of money possible even though what you are purchasing is pure crap and you will be buying a new one when that item breaks easily. Being cheap is also taking advantage of a situation to get something free or get the upper hand over someone just so you don't have to spend anything. I could go on about being cheap and sometimes it is a good thing, but not usually.

You want to be fair in your extreme frugality. You are doing this for yourself and your family. Being cheap is not always being fair to yourself or others. However, in your frugality, look for the free things you can get. Being extremely frugal does not mean your life is over with or that you can not have any fun. Take advantage of these free things:


  • Look for free things you can do or take home. 
  • Take advantage of your library for books and movies. 
  • Look for events around the area that do not cost you anything but maybe gas money. 
  • Look for things that people are giving away for free. 
  • Be a curb shopper, dumpster diver, free garage sale box looker. 
  • Be creative with what you have and what you find.
  • Have staycations often and keep them as frugal as possible.
  • Learn new skills with items you already have.
  • Don't say no when someone wants to treat you or your family.

You can still live a full life even though you have your nose to the extremely frugal grindstone. You can still have fun. You can still be involved in things you love, but just be conscious of what it is asking of you financially. Some groups and things are fun, but if you are constantly bleeding money to be in while trying to actively save money, something is wrong. You may have to let those things go for a time while you are being extremely frugal.

While being extremely frugal is a very good thing, you still have some things to keep in mind. Being an extreme frugalister can make your mind think some funny things. Like you shouldn't throw anything away or give anything away. Like you should be a hoarder. That couldn't be farther from the truth! Yes, by all means, keep what you can use or think of a use for. However, if you have things you cannot use at all, you should give them away, sell them, donate them, or responsibly recycle them. Please don't be an episode of one of those shows! If you have stuff not serving you, do something with it. Your home shouldn't be a fire hazard because of the stuff you own.

Lastly, you have to be intentional in your extreme frugal game. You have to be content with what you already have. If you are used to shopping a lot, you need to figure out why and stop. You have to be happy with what you have and not use shopping as stress relief. You have to be content with what you have and not be envious of what the neighbors have. You do not need to have the latest, greatest things. That is not being contented. You need to be content with the ten-year-old car and a house without a pool.  You need to be happy with wearing out your clothes without buying this season's newest fashions. You need to be okay with bringing your own lunch and not going out to lunch every day or every week. You have to be content with what you have and your decisions to save money so you can achieve your goals. Otherwise, being extremely frugal will not be an easy process for you.

Extreme frugality is not for everyone, but everyone can do it. You can try it for a short amount of time or the rest of your life. You never know when you will need to be extremely frugal so being extremely frugal now will only serve you later. I would encourage you to give it a try and make it work for you!

Thanks for reading,
Erica

Other articles on frugality:
Are You Frugal? 
50 Ways You Are Not Being Frugal
Is It A Need Or A Want? What Should You Spend Your Money On?


Sunday, December 31, 2017

10 Frugal Living Goals You Should Be Making This Year


While everyone should be a frugal lifer, a lot of people struggle to do so. Life happens and you end up spending more money than you want to. You are busy and money just flies out the window. A good deal of living frugally is planning ahead and having goals. What do you want to accomplish financially? In what areas do you want to save money? How can you simplify your life to spend less money? Only you can answer those questions, but let me help you set some frugal living goals for the next year!

10 Frugal Living Goals You Should Be Making This Year

1. Learn new things to cook from scratch. You can save so much money on your grocery bill by cooking from scratch. Processed food and eating out is so expensive even with a good deal or a special. Learn to make things from scratch and you will also improve your own health as well.


2. Find new ways to save money. When you are a frugal lifer, this can be hard. You think you already know and have found all the ways to save money, but I can almost guarantee you that you can find more. It can be tough, but I am sure you already know of more ways to save money.


3. Have a no-spend week each month or a no-spend month twice a year. I think these are really healthy for a frugal living lifestyle because they force you to really think about if you need something or you just want it. You also are forced to eat what you have at home, be less wasteful, and make do with what you have.


4. Ask yourself if you really need to buy something. Do you really need it or do you have something that will do? How long can you wait before you buy it? Implement a 3, 7, or 14-day waiting period before buying something other than groceries and household necessities. Sometimes you can find something at home that works just as well or you will find out that you don't really need it.


5. Challenge yourself to buy all your clothes used. You can make exceptions like underwear and socks if you want to, but honestly, I have found those brand new, in package or store tags still on, at the thrift store too.


6. Limit your monetary pleasures. Are you eating out a lot more than once a week or once a month? Are you getting massages, manicures, or pedicures every month? Do you shop just to shop? Do you stop at the convenience store for a candy bar every day? We all have something that we waste money on in the name of treating ourselves. A little pleasure is always a good thing, but is there a way you can do that and not spend money?


7. Do you have an emergency fund? If not, you should start one. Everyone should have an emergency fund of at least $1000 to cover those kinds of expenses. If you have one already, what can you do to double it? Ideally, your emergency fund should be able to cover 3-6 months of your normal income in case you lose your job or get injured for some reason.


8. Are you out of debt? If you are, great! If not, what can you do this year to get out of debt or lessen the burden? Can you cut back on your expenses more to pay down your debt? Can you find other ways to make money to pay down your debt?


9. Organize your things and make an inventory of what you have. Seriously, so much money is wasted because we don't know what we have. We have food in the kitchen and in our pantries that go to waste. We have more things in our closets than we will ever use. We buy batteries because we can't find the package bought a month ago (for example). Take stock of what you have and organize your things.


10. Make a budget or review your budget. This can be the hardest things about being a frugal lifer. I really have trouble sticking to a budget because of unplanned expenses. After something upsets my budget, I lose hope and focus. However, this is the year I need to start. I want you to start your budget too if you don't have one. If you do have one, this is a great time to sit down and review your budget. Are there any increased expenses? Can you save more? Can you pay down more debt? Can you put more in retirement? Work on your budget today!


What frugal living goals do you have for this upcoming year?

Thanks for reading,
Erica

Sunday, December 10, 2017

12 Reasons Why You Should Be Thrift Shopping!


Long before thrift shopping was cool, I was doing it to stretch my budget and because I just couldn't afford new things. In fact, my parents did the same thing! I grew up on hand-me-downs until I outgrew my cousin's clothes. Almost all my books came from used bookstores and the library. We went to auctions and garage sales. My parents needed to stretch their pennies too!

Now thrift shopping is cool. Thrift stores are gaining popularity as are the "for sale" or "garage sale" groups on Facebook. Craigslist is still going strong and eBay is still a great place to unload your used but still in great condition goods. Consignment shops are still a good place to buy and unload your good condition goods (and make a little extra money!). Garage sales are still fun places to shop!

I have a lot of fun thrift shopping as long as I don't go overboard. I want you all to be thrift shoppers too. If you are but know someone who should be, show them this post!

12 Reasons Why You Should Be Thrift Shopping!

1. Thrift shopping is sustainable. If you are even a little bit concerned about our planet, you know there are way too many goods being produced today. More than can be used actually, but people still demand and buy them. By buying used, you are breaking that cycle and keeping perfectly good things from going to the landfill. To keep the sustainability cycle going, you should use those used goods until they are completely worn out or pass them on to someone who can use it. 

2. You are a non-consumer. As stated in #1, you are breaking the consumerism cycle. When you purchase something used, you are a non-consumer. You are not buying something new. You are not supporting the mass merchandisers. You are not succumbing to advertising telling you to need something new. You are using what someone doesn't need anymore and you are not supporting people who have no interest in your local economy.

3. Thrift shopping supports your local economy! Whether you buy something from a used goods store or a person, your money stays right in that area. Your money isn't going to some big corporation who cares very little about you. Your money is going to a local organization (except Goodwill) or people who will, in turn, spend that money locally. 

4. Why buy new when used will do? This phrase is attributed to a certain person, but honestly, it has been around awhile. Why? Because it is true! Used is just as good as new in most situations. Most of my clothes and my kids' clothes were used growing up. We got new things for gifts on birthdays and holidays, but otherwise, they were used. Even when they were in high school, we regularly found almost new and new clothes for them at the thrift store. I still buy almost all of my clothes used because you can't beat the prices!

5. You save money! Doesn't everyone like to save money? You can outfit an apartment or a house for hundreds of dollars cheaper than buying new. Does buying used things gross you out? Wash them once and get over it. You are saving money! 

6. If you have kids, you are teaching them frugality. My kids liked to go to the thrift stores and garage sales growing up. They still do even as teenagers and young adults. They also have found a lot of great things there. They learned one way of being frugal and they learned that used things were not gross. The younger they learn that, the better.

7. You will find brand new things while thrift shopping. Honestly, this is the best. People are often too lazy to return something to the store or cannot return it so they will just donate it to the thrift store or sell on a garage sale. Their loss is your gain because, most of the time, you will get it for only a few dollars. Score!

8. Anyone can thrift shop! And I do mean anyone. Some of the most financially stable people I know are avid used goods shoppers. They love a good deal and refuse to pay full price. Let's take some tips from those people, shall we? You can be a prepper, homesteader, parent, retiree, single, married, young, old, rich, poor, and anything else you can identify with. Anyone can be a thrift shopper!

9. You can find really good presents while thrift shopping. I have found a lot of presents while thrift shopping. Books that look brand new. Clothes with tags still on them. Sets of dishes still in the original sealed box. Candlesticks and vases because I know people that collect them. You get the hint. Start your gift shopping at the thrift store or online consignment sites and go from there. 

10. Once you start, you won't be able to stop. I know that sounds pompous, but it is true. The idea you will be saving money and scoring some really good stuff is addicting. When you realize you can do this all the time, you will be hooked!

11. The inventory is always changing. If you can't find what you are looking for one day, wait a few days and come back to the store/check again online. More than likely, you will find what you want at a price that is reasonable or cheap. 

12. Thrift stores have sales too. They get a lot of things donated or consigned to them. They often do not have the storage for these things so they run sales. Our local stores often run a buy 1 get 1 free or buy 2 get one free sale. They also have bag sales where a bag of goods is five dollars no matter what you have in the bag. I know other thrift stores will have 50% off sales and more. Keep your eyes open and you will find even better deals at the thrift stores. 

Thrift shopping is fun! The pursuit can be challenging at times, but the results are usually worth it. Just know, even with thrift shopping, you need to be mindful of your budget and not get crazy while shopping. Sometimes, people will buy whatever they want because it is a good deal, but they still overspend. 

What is your favorite thing to buy in the thrift store?

Thanks for reading,
Erica


Monday, December 26, 2016

How To Start Saving Money For Next Christmas


What do you mean next Christmas? Christmas was, like, yesterday!

I know, I know. However, now is the time to set your budget for next Christmas and to start saving money for it. You know how much you spent on gifts, food, entertainment, and all the little extras. If you don't know, now is a good time to find the receipts and add them up. 

While you might be in shock over how much you spent, you need to take the time now to come up with a plan for next year. My goal is to pay cash or have the money in my checking account to pay for Christmas. I start early buying gifts so I can spread out the spending more. Saving money now allows me to start buying early because I have the money already saved.

If you were forced to use credit cards to pay for Christmas this year, this plan is for you too. Pay off those credit cards as quickly as possible and start putting some money away for next Christmas. If you used credit cards for the points and cash backs and can pay them off right away, that last little bit was directed at you. I understand using credit cards for those sort of things. Just be able to pay them off right away, okay?

Saving money for next Christmas can be painless, but might also require a little sacrifice of time, money, and giving up a guilty pleasure or two. You are trying to not stress about how to pay for Christmas when December rolls around. You want to give the best Christmas you can reasonably afford to. This is how you can do that. 

How To Start Saving Money For Next Christmas:

1. Set a budget! Look at how much you spent on this previous Christmas. Did you spend more than you thought? Were there some surprises you were not anticipating? Do you or your significant other like to go overboard with the gifts? Now is the time to look at these things. 

You can set your budget according to what you spent this year. If you thought you spent way too much, set a specific dollar amount you will spend on the kids, grandkids, parents, and everyone else that you bought for. If you know that you will have to chip in on a gift for the boss or a coach, figure that in. Then set a budget for food, the extras, and entertainment. 

For the rest of the steps, my estimated budget is $1000 (which is close, but I using this amount for figuring the rest of the steps). 

2. Come up with a savings plan. You know how many paychecks you will have between now and next Christmas. In my case, exactly 26 paychecks will happen. How much can you spare from your budget to save for next Christmas? I know I can usually spare $25 a pay period (and that is being stingy). At roughly $50 a month, I will be saving $600. 

An easy way to make sure the money is being saved is to have it automatically taken out of your account and put directly into a savings account. You can do this by having it direct deposited from your paycheck or setting up an automatic transfer with your bank. If you have good self-discipline, you can do the transferring yourself. 

Some people prefer to save money as cash and to use cash. You can still withdraw the money every pay period and put in an envelope marked for Christmas. If you think you might have trouble with spending it on other things, put it somewhere safe in the house and not in your purse/wallet. Otherwise, leave it with a trusted family member or friend who will also not spend it for you.

3. Figure out how to make up the deficit. If you cannot save enough money from just your paychecks, you need to figure out how to make up the difference. As you can figure, I still have $400 to come up with to make up the difference. Honestly, this is just making extra money and we should all know how to do this by now. If not, here are some ideas:

  • Side Jobs
  • Tax Refund
  • Selling Unused or Not Needed Things
  • Redeeming Cans and Bottles for the Deposit (If you have this option)
  • Selling Things on Consignment
  • Babysitting, Pet-sitting, and House-sitting

Put this money away in the Christmas savings. If you earn more money than you need, then keep saving it for other things. You can never have too much money saved, especially in the emergency fund!

4. When you do decide to start shopping, spend wisely. You never know when you might trip over a deal of the lifetime on something you wanted to give as a gift. When you do spend, use the cash you saved or transfer the money into your checking account. 

5. Keep a careful accounting of what you are spending through the year. You can use this for the following year's Christmas budget. Sometimes, surprises happen and you have to spend money on a gift you were not planning on. Keep the receipts in an envelope with a small ledger of what spending has occurred. This way, you can figure that in for next year. 

How do you save money for Christmas? 

Thanks for reading, 
Erica

Related Posts:
10 Money Saving Hacks For A Happier (And Cheaper) Holidays!
10 Money Saving Tips For A Frugal Holidays!


Tuesday, October 25, 2016

Is It Better To Live Within Your Means or Try To Earn More To Afford More?


This is the fairly simple question. The answer is much more complicated. 

Is it better to learn to live within your means? The answer should be yes for many reasons. Many people struggle with this though. 

We think we are entitled to things. We think we deserve certain things because we work hard. We think we should have a fancy house, a new car, expensive vacations every year (sometimes multiple times a year), name brand clothes, the newest gadgets, expensive cell phone plans, satellite/cable television, and more.

Saving money and working towards things like homes and cars was a concept that was extremely common until the late 1940's and the 1950's. To be in debt to someone was considered to be a temporary thing, not a lifestyle. Debts were paid off quickly if debt was even accrued. Cash and bartering was the common practice. Producing your own goods was considered the best thing for families. It was a matter of pride to have money in the bank.

Attitudes have changed. Drastically. Marketing targeted the newly created middle class and baby boomers. Buying on credit became the thing to do in order to have nice things. You work hard so you deserve to play hard. You kids needed the newest toys. If your friends have it, so should you! Why have old things like hand-me-down furniture when you can have new furniture? 

Young adults then wanted what their parents had. They didn't realize or didn't care that their parents had worked hard for what they had. They didn't understand how their parents had scrimped and saved for their home, nice car, and relaxed middle years. They just wanted what their parents had and they wanted it now. Whether or not they made enough money to afford it.

Who cares if they could afford it? They could just buy it on credit!

The lesson that was forgotten in just a few generations was to learn to live within their own means. To budget their income. To save for what they wanted instead of using a credit card or borrowing the money. 

I have no room to talk, by the way. Most of us do not have room to talk.

We learned from those around us. I was fortunate to have extremely frugal parents, but they struggled too. I have had some extremely hard money lessons. I thought I could handle all the debt I accrued and my daily expenses and bills too. I was pretty stupid. 

I still struggle with living within my means. Every two weeks, my budget is planned out. However, a major unplanned expense can throw my budget off for months. A small miscalculation can have me overdrawn for a week or more. Even though I make extra money from my Ebay sales, this blog, and selling things online, sometimes it doesn't seem like enough. 

Unfortunately, most of us are this way or have been this way. Being in debt is stressful. Many people cannot afford to miss work or use very limited personal time off. Many cannot afford to miss a paycheck or to lose their jobs. Many struggle just to live within their means. So they try to earn more.

Adding to your income can sometimes be the solution to getting out of debt or getting some necessary home/car repairs done. Whether it is a series of small independent jobs, a part-time job, working a side hustle, working from home, or selling off unnecessary things, making extra money can always help. However, these can come at a cost too.

You can become dependent on the extra income and pretty soon that will not be enough either. You will spend even more time away from loved ones if you work outside of the home. Temporary sacrifice can be a good thing to help pay off debt or to get your savings built up, but long-term sacrifice can have an effect on your life, your relationships with loved ones, and your health. Is it worth it?

Even if you work from home to make extra money, there is a cost involved. You have to spend time away from the family in a quiet space to work. If you work after everyone goes to sleep, you get less sleep which impacts your health. Income is not always consistent. Depending on the week or season of life, you might not be able to work as much as you would like or need to. Sometimes, working at home also involves spending more to make more which can not always be a good thing. 

Don't get me wrong - I think working at home to make extra money is the way to go if you can do it. It takes a lot of discipline to work consistently and get as much done as you can with the distractions around you. You have to make your life just as much of a priority as your work, but it can be done. 

If you are single and alone, these costs may not bother you. If you are in debt or need extra money for a new car, by all means, try to earn more. It is better to live life, go into a relationship, or even a marriage debt free and with a comfortable cushion of savings. 

However, if you are working more to afford more, is it worth the cost? Is spending time away from your family so they can have more worth the cost? If you are working all the overtime you can get to be able to live in a five bedroom home when a three bedroom home would do just fine, is it worth it? If you are driving a gas guzzling status symbol to work when a small compact would cost so much less, is it worth it? Is killing yourself to be able to afford more worth it?

I think it is better to live within your means. I say this knowing that I work a few jobs from home, but I am trying to build a cushion in my budget and be able to afford repairs, birthdays, and holidays. I try to work when my kids will be the least impacted like over my lunch hour or at night after they go to bed. Sometimes I include them in my work if I can. I tried the part-time work outside of the home and the sacrifice wasn't worth it. I missed too much time with them and, as a single mom, I couldn't afford to do that. So I learned to live within my means and make sacrifices at home of things we did not need.

Learning to live within your means makes you more content and happier. You don't feel the pressure to keep up with the neighbors or your friends because you made the commitment to make the most of what you earn and that's it. If you need to earn more, you know it is because you need to get something you need or to make repairs that are in your budget. 

What do you think? Is it better to live within your means or try to earn more to afford more?

Thanks for reading,
Erica


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