I used to sneak cheeseburgers into my pockets all the time at the movie theaters
I love this guy! -debthelper.com
Monday, September 28, 2009
So What If People Make Fun Of Our Frugality!
There’s been many a times I’ve been picked on for being frugal. Mostly during my prepubescent years, but even now I’ve been known to give a few of my friends a good laugh. I’m sure they were all just jealous (at least that’s what our mothers always says, right?) but either way I say who cares.
Who cares if our frugality and craftiness distracts people? Are they the ones saving a few dollars? Anope – we are. And because of that I say keep on doing your thang! As long as you’re happy and not breaking any rules (*ahem* Phil Varreal) who cares about these boring people and their spend-crazy lives. We like saving money and we’re not afraid to admit it!
In fact, I’ll even admit to some thriftiness right now: I used to sneak cheeseburgers into my pockets all the time at the movie theaters đ I’d swing by McDonald’s 10 mins. before start time and pick up some double cheeseburgers right off the $1 menu! Not only was it cheap, but it was craaaazy filling. And when that didn’t work out, I’d just raid the nearest 7-Eleven instead and grab myself 3 assorted candies back when they were 3/$1 (remember those days?). No way in hell was I spending $50+ on theater food.
And after thinking about this for a bit, I wondered how many others got made fun of for similar things? There’s gotta be a lot of us, right? Oh yeah, DEFINITELY right. Check out all the responses I got back after dropping the following note around the web:
Anyone ever make fun of you for being frugal/crafty?
Via Twitter:
@SpendOnLife: “Allowing myself time to “sleep on it” when making large purchases has been a source of laughter for my friends.”
@BudgetPulse: “Every now and then stay in on a weekend night to save money and get laughed at for it.”
@ThomasJFox: “All the time. Some mock my frugality; however, I am able to save 32% of my income because of my choices while they save 0.”
@MoneyManagement: “My daughter recently took a doll (Janet) she handmade to a tea party. All of the other girls had American Girl dolls.”
@CreditGoddess: “Got teased once for pulling out a calculator at the grocery store to figure out savings on buying single vs. 4-pack.”
@littlespace: “Heh. Yes, I get teased. Esp about how I tie environmentalism into it – eg. no paper plates cuz bad for earth & waste of $!”
@luciagia “I just im’d my boyfriend to remind him to bring home the ziplock bag his lunch was in. Perhaps I’m a little too frugal.”
@mycesi: “Friends laughed at a coworker of mine for only having basic cable. He used that xtra money to invest in a rental property :)…All my friends make my fun of my use of coupons at restaurants!”
@CanadianFinance: “I always hear about it at work… “why do you always bring your lunch?”, “do you ever buy anything at regular price?”, etc.”
@ModernTightwad: “Most embarrassing to me ever, some of my husband’s family joke (hopefully) that I’m a lush because … we go out to happy hour specials. The food specials are cheaper than I can cook, and I don’t have to clean so … it makes good sense … (Although they do look @ me oddly when I order a coke) Probably doesn’t help that when I do cook, I make a lot of beer roasts. (Chp Tndrizr)”
@MrsMicah: “your mom got teased for being frugaltastic last night, but they shut up when i told ’em she was with me. :)” (hey now, how’d this one sneak in?)
Via Facebook:
Nicole Canfora Lupo: “My friends rag on me because I patch my clothes, darn my socks, sew my own purses and make my own curtains.”
Nicole Ouellette: “The newish boyfriend seems amused at my frugality (the man ‘woots’ daily) but boy, did he like my homemade enchiladas the other night! Frugality = tasty and clever…Yup, one person at a time, I’m trying to change people’s minds about being financially responsible but cool…”
Jesse Michelsen: “Yea I’ve been called super cheap, etc. I just take it with a smile and shoot em a grin followed by a wink when they say “I have to wait till payday to buy laundry detergent””
Shelley Harrison: “This is the first year that I will be buying a tree in a loong time for the Holidays. We will be making ornaments since it is not in the budget this year.”
Via the Money Blog Network Forums:
PT @ PT Money: “BA$, did your friends call you the Hamburgler? (Hah!) I was made fun of for going without cable TV for the last year. I had friends and family members who would focus on that like it was the end of the world. They seemed to believe I was trying to get rich by going without cable TV alone. When it was just more practical for me to use Hulu.com and over the air HD channels. Frugality is about spending smarter, not just spending less, I think. And spending smarter is just one piece of my overall plan for financial freedom.”
Stephanie @ Poorer Than You “…a friend seriously told me to “grow up and stop getting free furniture off of Craigslist – you’re not in college anymore.”…I mean, come on, how is 22 (almost 23… birthday is Friday!) and just out of college too old for free furniture that’s in good shape? Actually, why is there an age on that at all?”
Financia of Financial Freak Show: “My friend always gives me crap about not going on vacation with them last year…until I pulled up at his house several weeks ago after just paying cash for a sweet used Lexus SUV and parked next to his $588 a month new truck….he said he liked mine more đ I told him he couldn’t ride in mine since he stunk like a filthy payment book”
Mr. Tough Money Live: “I have lots of liberals in my family. I wouldn’t say I am frugal as much as I am fiscally conservative and strategic with money and, of course, write about it regularly. My liberal family members extrapolate my fiscal conservatism into a full-blown political label and then mock me as an alleged Bush/Chaney/Palin/etc. lover. Generally, it’s those who don’t have much money that mock the most. It’s all in good fun but it is further proof that how you treat money in your own life can provoke interesting reactions from others.”
Roger @ The Amateur Financier: “Not really; my girlfriend has teased me a bit, particularly about starting up a blog about money (for some reason, it seems to amuse her), but I haven’t really taken any slack for saving/investing. Although, on the subject of sneaking food into movie theaters, I do that, as well; sneaking candy bars into the theater to avoid paying $3-5 for a box of Junior Mints. But, everyone does that, right? Right? RIGHT?”
Kevin @ No Debt Plan: “My friends do take little jabs at me for being frugal, but they also know it is paying off. I’ll top both of you — we don’t go to the movies. Ever. Too expensive and I used to work at one in high school. No desire to go back which is good… saves us $20-30 on tickets and food.”
Wife of My Journey To Millions: “Hello, This is My Journey’s wife. He sent me over to this forum when he saw this because he knows I am constantly getting picked on for being frugal. Here is my outlook on why it’s good to be frugal: The importance of things. It’s funny because I almost got chosen to be on the Rachel Ray show for my frugality. I guess others were worse than me because I didn’t get picked. But I certainly think you get farther in life being frugal than you do being a spender…and I also believe rich people stay rich…by being frugal (in their own way of course)
FFB from Free From Broke: “I’ve been called cheap from time to time but these were from people who spent freely. I’ve had lots of “come on it’s only 20 bucks” type of replies from friends. Interestingly, when I respond that since it’s only $20 why don’t they pay they never take me up on it!”
So there you have it. We all get made fun of for saving money! And if you’re reading this, chances are you TOO have been the source of these chuckles. But, as always, just brush that dirt of your shoulders and keep on pocketing them dollars. Life’s hard enough to be worrying about these jokers – stand up and be proud.
Source: Budgets Are Sexy
Labels: in the real world, money hacks, saving ideas
Clues You Live In A Frugal Home
photo by Mykl Roventine
Do you know a tightwad home when youâre inside one? For many people, penny-pinching strategies arenât noticeable. However, if youâre frugal, you have an eagleâs eye. If you visited a fellow frugalistaâs home, you could spot their frugal ways because you probably do them, too.
What in your home is a dead giveaway that you live a frugal life?
Source: Frugal Village
KITCHEN DRAWER: You might see saved rubber bands, free samples, pencil nubs (hey, they still have a point), bread twist ties, folded aluminum foil, used birthday candles, washed plastic baggies or saved bread bags to use for pet care.
FREEZER: What are all those baggies? Theyâre filled with overripe bananas, frozen pesto, broth, make-ahead meals, vegetables or leftovers, of course. Youâll see meat bought in bulk and divided into smaller meal-sized portions, too.
CUPBOARDS: Thereâs a full pantry. It often contains preserved foods from a home garden and a food stockpile bought when items were on sale. One reader, Polly in Pennsylvania, shares: âHomemade mixes line my pantry along with dried beans, rice, a 50-pound bag of potatoes and pecks of apples stored for winter. Thereâs a flyer on our icebox telling of the butcherâs latest chicken specials. Itâs what you donât see thatâs more pronounced. No soda, no chips, no store-bought snack foods, no takeout containers, no bottled water, etc.â You would notice homemade cleaners in spray bottles and very few brand-name foods, too.
REFRIGERATOR: You would see reconstituted powdered milk, iced tea, water, block cheese to shred, bagged apples versus individual, and leftovers ready for lunch the following day. You would see seasonal fruits and vegetables (often pre-chopped), reusable containers, a few cartons of eggs bought on sale, homemade condiments, syrups and sauce, bulk yeast and maybe some chilling cookie dough.
SINK AND COUNTER AREA: You might see a spray bottle of dish liquid diluted with water to spritz dishes, a toothbrush for scrubbing, dishrags, knitted or crocheted pot scrubbers or dishcloths, microfiber cloths or washcloths versus paper towels. You would see a kitchen-counter composter (often a coffee container reused) and a change jar, too. Coffee drinkers will have a thermos or carafe to keep coffee hot throughout the day.
LAUNDRY ROOM: You would see the washing-machine water set to cold. You would see a drying rack or retractable clothesline and a laundry loot jar, too. Another reader, Mary in Texas, shares: âMy laundry room is off the kitchen, and there are multiples of Zote soap, Borax and Super Washing Soda, plus a big plastic container of homemade laundry soap.â
APPLIANCES AND HELPFUL TOOLS: Most frugal homes have âtools of the tradeâ that help people save money. A few appliances that top the list are a food dehydrator, stand mixer and slow cooker. Thereâs a FoodSaver, food processor, grain mill or a spare freezer. Tools such as a calculator, canner, kitchen scale, manual can opener, box grater, rubber spatula, dry erase board, funnel, kitchen shears and cookbooks are incredibly helpful and are common to see in a frugal kitchen, too.
Environment for Frugal Behavior
A couple of months ago, my former colleague Alice asked me if I had any advice to help make her more disciplined to be better with her finances. I told her that I thought she was a reasonably disciplined person, but that she needed to change her environment to make it more saving and frugal-friendly. As someone who has spent months losing and keeping weight off, I asked Alice if she kept cookies and chips around all the time to tempt herself and test her willpower. She of course does not, and instead keeps an array of healthy foods around so that she can prepare healthy meals and snacks.
I see financial behavior in the same way. Too many people surround themselves with temptations for spending, splurging and wasting money; and then feel guilty because they gave into the temptations. When I left the corporate world and large corporate paychecks behind, I phased in a number of steps to create a frugal friendly environment. This is what I outlined for Alice:
âStop using shopping as a hobbyâ Rather than tempt yourself, cultivate newer habits that donât involve substantial spending such as hiking, going to public parks and museums and taking advantage of community concerts.
âRid yourself of overwhelming temptationsâcatalogs with fancy clothes or swanky electronics or furniture can cause you to feel the urge to pull out the credit cards. Better to eliminate these altogether.
âArrange group outings around activities that encourage lower spending levels â if you meet a group of friends regularly for a meal; go out for lunch or brunch instead of dinner; or better yet have a potluck.
âSet your savings and debt payment plans on automatic â rather than giving yourself the latitude to spend money before you have a chance to fund your savings or retirement, pay yourself first.
âCarry a limited amount of cash if you have problems staying within spending limits â many people find that not having the money is the best way to keep them from spending more
In recent weeks, Alice has done really well. Sheâs spent much less, especially on clothes and gifts, than before and has arranged to have retirement savings taken out of her bank account each month. Sheâs also managed to keep chocolate ice cream out of her freezer. Go Alice!
Source: Modern Gal
Ten habits for successful tightwads
photo by luminais
Frugalitarians have many small habits. Some of these strategies donât necessarily save much money. They might seem silly or insignificant to others because of the time spent doing them, too. But the fact is that these decisions reflect the creativity and determination by penny pinchers (called this for a reason) to be less wasteful. The thought process of living gently carries over through all aspects of your daily life. How often have you been torn on whether or not to throw something away? Maybe it was a container, button, straight pin, rubber band or a juice lid. Keep in mind that tightwads arenât hoarding hundreds of milk caps because they might find a use for them. Theyâll save a handful of caps to make a memory game or ornaments or use the plastic ring to keep socks together or none at all if itâs not useful to them.
What types of things contribute little to your finances but are still worth your time?
Here are a few common habits that are simply what frugal folks will do.
SAVE PLASTIC BREAD TABS: They are great little scrapers for counters, floors and dishes. Use as bookmarks or to hold rubber bands. Or attach one to a roll of tape so it doesnât fold over. Theyâre perfect for closing open plastic bags, such as rice or confectionersâ sugar.
REUSE ENVELOPES: Simply cover the address sections with new labels (cross out any bar codes) or simply use for scrap paper and youâre good to go.
CUT DRYER SHEETS IN HALF: This is the No. 1 tip submitted to me. Keep used sheets to clean your lint trap, wipe down your washing machine, dust, to help remove nail polish, line a trash can, or attach to a toilet-paper holder to give a fresh scent in the bathroom. Tuck them into a pillow or drawer, or attach them to a Swiffer mop.
REUSE GIFT WRAP: From saving bows to ironing tissue paper, it might only save a few cents but why throw away gift wrap that can be reused?
RENEWING: Melt items from scraps of crayons, soap or candles to make a full-size item again. Soap bits are often placed in a soap pump container with water to make liquid soap. Simply toss a marble into the container to help mix. One reader, Sandy C. in Minnesota, shares: âI use the little leftover hunks of bar soap and put them with some water in the toilet-brush container sitting by the toilets.â
TOILET-PAPER RATIONING: Some folks put themselves on a daily number of squares limit. While compulsive, it certainly tracks usage.
WASH FOOD WRAPPERS AND CONTAINERS: True tightwads know the value of a Pringles container. Rinse and reuse heavy-duty baggies (if not originally used for meat), foil and cereal bags, too. Disclaimer: Of course, some plastics will be reused in nonfood ways.
EMPTYING CONTAINERS: Cut open tubes (or completely flatten by using your toothbrush handle) and bottles, scrape jars or add water to sauce or condiment containers to get every last bit of product. Use every last bit of a lipstick. Scrape out the tube, and combine it with Vaseline to make a lip gloss or, if you have multiple broken lipsticks, create your own color palette.
FOOD SCRAPS: Save bread ends or âstaleâ bread for breadcrumbs, leftover vegetables for soup or flat pop or syrup from canned fruit to add to gelatin. Or reuse coffee grounds or tea bags. Another reader, Polly in Pennsylvania, shares: âI simmer orange, lemon and lime rinds on the stove before discarding to freshen the house.â
RESTAURANT TAKEAWAYS: Save all the condiment and seasoning packets, napkins and utensils. Read: Tightwads donât intentionally take extras. They save any that were given but not used.
Source: Frugal Village
11 Dumb Ways to get in Debt
There are many reasons why people fall in debt, such as medical issues, school, starting a business and purchasing a home. Some situation you do not have much of choice and the debt is for a good reason, for example if you get in debt due to school itâs fine because in the long run you will be able to make up for it. However there are some bad reasons why many fall in debt, the list below illustrates the top 11 âŚwell not so good reasons to fall in debt.
1. Leasing a Car â You are basically paying several hundred dollars per month in leasing only to return the car after a few years. After spending tens of thousands of dollars what do you have to show for it?
2. Purse and Shoes obsessions (or any other obsession for that matter) â Unless you are purchasing collectible items that increase in value, this is a pretty dumb way to get yourself in debt.
3. Financing a Car â If you can not afford that $50,000 car why do you think you can afford to finance it? A car loses about 25% of its value as soon as it is driven off the lot. You will be stuck making payments for the next 5 years or longer on something that is losing its value faster âŚthan Wall Street came down.
4. Using Credit Cards â So you want something you canât afford, you put it on the credit card only to pay 19.99% interest on the item. Now the $150 purchase ends up costing you over $300 in a year. Smart!
5. Financing latest gadgets â If you can not afford the newest Apple Macbooks and other electronic gadgets, not a problem, Best Buy will finance it for you! Now you can enjoy the latest gadgets for the next year and pay for it for the next five years. Three times what it was worth, GREAT DEAL!
6. Having expensive hobbies â Hobbies tend to become money traps. We canât afford to blow money on all of our hobbies, so we usually pick our favorite one (at the time) and waste all of our money on that. (Collecting comic books, DVDs etc)
7. Spiraling debt â You decided to take the great Best Buy financing offer for the newest LCD HD 52â TV, since you are at it why not get the newest Blue ray player with thatâŚ.oh and do not forget the home theatre systemâŚâŚoh and the DVDsâŚ.etcâŚand the debt keeps growing âŚthe spiraling debt!
8. Giving family and friends a loan or co-signing for a loan â Want to ruin your relationship with a family member or friend? Just give them a loan or even better co-signing for a loan, not only will you get rid of them but you will be left with a nice chunk of debt as a thank you.
9. Upgrading stuff. Why donât you just upsize your fries and drink for 58 cents? Whatâs another $2/month to get the VIP gym membership? If you are already going to spend $200 on a cell phone, whatâs another $100 to upgrade to a better one? And another $5/month to get 100 more minutes on your cell phone plan? Little things add up!
10. Playing the lottery or gambling â You are more likely to get hit by a lightening than winning the lotteryâŚand thatâs all I have to say for this.
11. Rent-to-own furniture and appliances â You canât afford a brand new leather couch? Just Rent-to-own it! You donât have $1000 in cash but you can do $100/month for the next 3 years. What a great deal!
Source: Financial Highway
Everything You Ever Really Needed to Know About Personal Finance on the Back of Five Business Cards
A few days ago, I had lunch with an individual who is considering hiring me to give a multi-hour seminar to a business convention on personal finance. This person knows me from the local community and is a reader of The Simple Dollar and he felt that I might be the right person to give such a presentation.
During the lunch, out of the blue, he asked me to give a five minute nutshell version of what I would present to the group. I thought for a minute, pulled a pen out of my pocket, and asked him for five business cards. In those next five minutes, I summarized everything I know about personal finance in a pocket-friendly presentation.
I saved the business cards, scanned them in, and thus, for your enjoyment, is my presentation (with some extensive helper notes so you can know what I was actually saying while drawing these cards).
Keep reading at The Simple Dollar
3 Real Life Ways To Save Money Today
1. Become A Free Finder Expert: Everybody I know is missing two things: time and money. I started taking just 20 minutes a day to seek out anything that is free. Some are scams, yes. But some are real, saving me time, money or both! Free is good. Free helps. How would you like to ditch your home and/or cell phone and start talking for free? Thereâs a program that gives free phones to people who are on government assistance in any form. You get the phone and a full year of minutesâŚfor free! Go to http://www.safelinkwireless.com to find out more
2. Counting To Ten Isnât Just For Pre-School: Before you buy anything, and I mean anything at all, stop and count to ten. Do you really need it? Do you just âwantâ it? Can you find it somewhere cheaper? Will it make a huge difference in your life if you donât get it? Are you buying this thing right here and right now because itâs a must have necessity? Or are you buying it because itâs convenient and easy and you just want, want, and want? Ask yourself this question: will life as I know it change if I donât buy this? Be honest. If you do this with every purchase in your life, and if youâre honest, youâll stop wasting money today.
3. Real Food For Real Cheap: Did you know you could get a week worth of food, for a family of four, for only $30? Angel Food Ministries is an organization that uses the power of bulk shopping and extreme organization to help you eat real, and nutritious, food for cheap. Simply go to one of the many locations, or click online, and follow the easy to order steps. Another idea? Play with your food. At my house, I serve lots of âdecorationâ foods. These are foods like tacos or pizzas where everyone makes their own with a slew of decoration foods like cheese and beans and whatever vegetables I have left over. This can be anything, reallyâŚ.from hamburgers to taco night to decorating spaghetti and baked potatoes. Get creative, save money and add some fun to dinner.
Looking for more ways to cut costs and save money? Visit http://www.debthelper.com today. We are a non profit financial education agency that can help you cut your credit card debt payment by almost 50% with one phone call. We offer counseling on: first time home buying, bankruptcy, foreclosure, credit card debt and more.
11 Ways to Spice Up Your Emergency Fund
A thriving emergency fund is an essential piece of a healthy financial picture.
Youâve heard this a million times before. The basics of emergency funds have been covered in depth. Weâre used to hearing discussions on why theyâre important and how large they should be.
But do you know what we donât hear much about? How freakinâ boring they are!
Letâs be honest: Thereâs nothing sexy about building an emergency fund. Sure, itâs possible to get fired up for the initial push. You can take advantage of small, specific tips to create an early spark. But what about going from $1000 in savings to six months of expenses? Eventually the excitement fades.
Testing a fresh approach can change everything. Sometimes all it takes is a minor shift in mindset. Whether youâre just getting started or need a push towards the next major benchmark, here are eleven tips to help spice up your saving:
Treat your emergency fund as self-insurance. An emergency fund is just another way to spread risk. Youâre spreading the risk that something unexpected pops up and wrecks your budget or causes you to fall into a cycle of borrowing. All too often, though, weâre worried about chasing 0.5% interest-rate increases or the lure of tying up our money in a bigger, better deal. Stop fretting. Find a high quality savings account with a decent return and plant your money there. Itâs not part of your investment portfolio â itâs part of a diverse insurance plan.
Narrow your definition of an âemergency.â Having savings in the bank can cause us to justify some unusual behavior. Suddenly, every unplanned expense becomes an emergency. How can anyone be expected to build a robust emergency fund when theyâre tapping into it every other month? Fight back by clearly defining what you will consider an emergency upfront. Youâll be shocked how fast your fund will prosper when you donât constantly use it as a crutch.
Over-budget for miscellaneous expenses. So how do you deal with those unplanned expenses that arenât valid emergencies? Expect the unexpected. Aim high on your miscellaneous budgeting category. Youâll break your budget less often and avoid the habit of reaching for your emergency fund. When these expenses do come up, take note, and add them into your budget. Eventually youâll develop the ability to project nearly all non-emergency expenses ahead of time.
Live a pay raise behind. The next time you get a promotion, donât fall victim to lifestyle inflation. Take the increase in monthly income and set up an automatic transfer to your emergency fund. When applied to retirement, this technique is often referred to as âpay yourself first.â As long as you can continue to live within your means, it works like magic. Looking for a place to start? Scale back one pay raise. Budget using your old income and start transferring the extra today!
Round up your budgeting categories. The simpler you make the budgeting process, the more likely you are to stick to it. One way Courtney and I have been able to simplify is by rounding our categories and expenses to convenient whole numbers. If your debt payment is $82.31 per month, budget $85. If your mortgage is $1368 per month, budget $1400. Not only will budgeting seem easier, but at the end of the month youâll have a buffer in your account which you can sweep into your emergency fund.
âSnowflakeâ your unplanned income. The term snowflaking is a nickname given to the process of applying any amount of extra money (no matter how small) to your debt with the lowest balance. Itâs a neat concept that can help quickly build momentum. Thereâs no reason this should be limited to paying off debt. Anytime you bump into a small windfall, immediately apply it to your emergency fund. Attack it with passion!
âRe-fundâ your savings. You know what the perfect amount is for your first emergency fund is? Whatever the amount of your tax refund check! In a perfect world, we wouldnât be loaning the government our money for the better part of a year – weâd be earning interest with savings accounts and certificates of deposits. But the truth is millions do. If youâre one of them this year, take the money and jump-start your emergency fund.
Save up for the knock-out punch. This technique starts with selecting a base level for your fund. Next, rather than paying extra on your debt or towards a savings goal, pour every extra penny into your emergency fund. Once the fund grows large enough to accomplish the goal and still leave you with the base amountâŚgo for the knock-out. Pay off the debt, book your plane tickets, select a new goal and start the process over. If a true emergency does strike you, chances are youâll have a little extra buffer.
Focus! Having serious trouble? Make your emergency fund your absolute number-one priority. Channel all of your energy. Pay the minimums on debt. Put your other savings goals on hiatus. (Some respected advisers even suggest halting your retirement savings for a short time!) Only you know for sure what level of intensity is right for you; however thereâs a lot to be said for the power of concentrated focus. Put your head down, knock it out, and move on to your other more sexy goals.
Negotiate a âbig win.â A broad tip, right? Hereâs the point: Use your emergency fund as an excuse to tackle a high-impact project. Need $1000 to get started? Go for it all at once. Ask for a raise, sell one of your cars, or refinance your mortgage. Look at your largest monthly expenses and ask yourself if there is a way you can make a huge impact quickly. Use these opportunities to get comfortable with the basics of negotiation. Itâs a skill thatâll pay dividends the rest of your life.
Sell your crap. Kill two birds with one stone. Have an emergency-fund dedicated spring-cleaning session. My suggestion is to create a list of everything you own. Every single item. Go room by room. Nothing has made me want to purge my stuff more than this process. Afterward, set a deadline to sell half of the items on the list. Get passionate and declare war on your stuff. Not only will you feel refreshed, but your emergency fund will be more healthy than ever.
What other ways have you found to spice up your emergency fund? How did you get started? Did you switch it up to maintain motivation? Share your personal experiences below!
Source: Get Rich Slowly
7 Life Lessons My 1-Year-Old Taught Me While Backpacking Abroad
14 months ago, my wife and I were destined for conformity. Courtney had just graduated college, and I was starting to see some early success in small business and real estate. We had just celebrated our first wedding anniversary and were looking forward to the birth of our first child. We had began looking for potential homes, complete with a wrap-around porch and a white picket fence. Soon weâd be just 1.5 kids, a minivan, and a over-sized mortgage away from true bliss.
Iâm fairly sure the physical process of childbirth is Godâs way of smacking us all across the face. Welcoming a sweaty bundle of joy into the world is nothing short of a miracle. For us, this event and the months that followed completely shattered even the most fundamental expectations for our lives.
We took a long hard look at our path and realized it wasnât one that we had willingly signed up for. At least not yet. We realized that time was only going to be our friend for so long, and conformity was no longer desirable. Instead we cooked up the following plan:
Over the next twelve months, weâd aggressively eliminate our consumer debt, sell all of our possessions, and spend at least two years abroad.
Howâs it working out? Pretty well, so far. We were able to take control of our financial life, sell all but two backpacks worth of crap, and recently wander through Australia and New Zealand looking for life. We knew we could use this adventure to help teach Milligan. However, neither of us realized the extent of what backpacking with our now 14-month-old daughter would end up teaching us:
1) Every Event In Life Is An Opportunity To Learn
Everyone knows that a young childâs mind is like a sponge. But you really donât realize how quickly they are able to absorb, grow, and learn until you get to experience it first hand. The funny thing is you can actually see Milligan learning. If you watch closely, you literally see her mind putting the pieces together. Iâd like to think that flying across the world, staying in hostels, riding buses, and strolling down beaches are all helping foster this sort of learning. Upon closer observation, though, Iâve noticed just these sort of things having the same effect on me.
2) Life Is More Fulfilling When Youâre Constantly Testing Your Limits
Kids naturally test limits. Itâs how they establish boundaries. In fact, usually this continues until somewhere between age 18-25. Milligan could care less about conforming to other peopleâs expectations right now. She takes great pleasure in pushing the envelope. I can often feel her little eyes, checking to see if Iâm watching her, right before she commits to the action she knows could land her in hot water. For me itâs more important that she realizes that sheâs not supposed to do something, than if she actually does it or not. Ironically, the whole process of selling our possessions and moving overseas felt eerily similar for us.
3) The Ability To Adapt Trumps All The Planning In The World
We planned for our trip for over a year. We researched where weâd like to go, the visa and job opportunities, and how weâd get there. We budgeted, paid down debt, and saved thousands. The end result? We ended up staying in our âdestinationâ a grand total of 3 days before drastically changing plans. Donât get me wrong, all the planning still saved us time, stress, and money. But it wasnât nearly as valuable as the ability to adapt our situation. Milligan doesnât plan, she just lives. Over 24 hours in the air? No problem. Staying over a week in a 10Ă10 hostel room? Sure thing. We havenât been able to find anything Milligan hasnât been able to easily adapt to yet. Honestly, itâs inspiring.
4) Modeling Others Is The Most Efficient Way To Learn A New Skill
Iâm continually amazed at how quickly Milligan can learn something just by observing. Iâve derived great joy from watching her first attempt to put a sock on her foot, stick Q-tips in her ears, brush her teeth, or even throw away trash. Now that sheâs a little older, itâs almost a daily occurrence that sheâs tackling a new concept simply by watching us. Iâve had a lot of success with modeling in my adult life as well, and watching Milli is a constant reminder of the power of this process.
5) Donât Be Afraid To Express Your Emotions
When Milli is happy, you canât help but laugh with her. Sheâll bounce around, smiling and giggling. She canât skip yet, but I think it will soon be one of her favorite methods of getting around. On the other hand, when sheâs angry or annoyed, sheâs not afraid to clearly let you know. The same goes for feeling tired, excited, hungry, or sick. Sheâs not worried about what society will think of her or how she is supposed to act. At what point does it become acceptable for us to numb down all of our emotions? It feels much better to draw inspiration from Milligan.
6) Patience Is A Sign Of Strength, Not Weakness
I can admit it. I used to think patience was a sign of weakness. If you wanted to get a specific result, you needed to take immediate and massive action. You should take the bull by the horns, go out and kill it, drag it home, and eat it. I quickly learned that having a baby is a crash course in patience, whether you signed up for it or not.
This course rocked my world. No matter how proactive you are, there are going to be times where your child crosses the point of no return. They are going to scream for attention, no matter where you are in the world. You can fight, struggle, and stress all you want, but itâs not going to help. What will help? An over-sized portion of love and patience. The rest is out of your control.
7) Imagination Is More Valuable Than All The Possessions In The World
Before we sold everything, Milligan had a wide-variety of books, toys, whistles, lights, and other distractions. Not to mention her own bedroom, lots of different outfits, and plenty of room to get into trouble. Since the trip, she now has just one book, one stuffed animal, and one special blanket. Whatâs filled in the gaps? Whatever we have on handâ including cardboard boxes, kitchen spatulas, remote controls, and other exciting toys. Her brilliant imagination has turned out to be more valuable than anything money could buy. Once again, without realizing it Courtney and I have gone through the exact same process and realization with our own âtoys.â
What The Future Holds
In the end, embarking on this journey has radically changed our lives. It would have been extremely easy for us to settle. We could have maintained a comfortable lifestyle surrounded with certainty. Instead, we chose to actively resist. We chose to blaze our own path in life, wherever it may lead us.
The most remarkable thing is that we assumed Milligan would be some sort of obstacle weâd have to overcome, but instead, sheâs been an amazing source of empowerment throughout the trip.
Iâm not sure what the next couple of years have in store for us. But I am looking forward to learning even more life lessons from the most effective teacher Iâve ever had, my 1-year-old daughter.
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Biography: Adam Baker, or just Baker, is a father, husband, traveler, blogger, and overall personal finance freak. You can follow his traveling adventures and more over at Man Vs. Debt or on Twitter â @ManVsDebt.
Sourc: The Art Of Nonconformity
What You Need to Know
Your ability to get future credit is based on your past and current experience.
⢠Do you pay your bills on time? On time payments represent 35% of your credit score, the largest single factor considered by the credit bureaus. The ability and willingness to pay on time tells any future creditor that you are responsible and serious about your debts.
⢠Do you carry too much debt? Your debt-to-income represents 30% of your credit score and is an important guage as to your spending habits. Simply put, the credit bureaus will determine what kind of spender they feel that you are based on how much debt you incur as opposed to what you earn. (Example: if your debt is $15,000 and your income is $30,000, your debt-to-income is 50%) What the credit bureau and creditors are looking for is a ratio of between 15 & 25% ideally, although in some cases creditors might allow a higher ratio.
⢠Do you have different types of credit? This represents 15% of your credit score. Creditors would rather that you have several different types of credit payments, as opposed to, letâs say all credit card debt. Most creditors are aware that credit card debt may fluctuate greatly according to use and can affect your debt-to-income ratio in a short time, while steady installment payments are a good test of your payment reliability over time.
⢠What is the length of your credit history? Your history is worth 10% of your score. The credit bureau and creditors want to know how long youâve had credit. If you have no history they cannot judge how you might do in the future, leaving you as a âghost debtor.â In reality, some creditors would rather see you with a bit of bad credit, rather than no credit history at all. That way, they can tell what youâve done and if your past mistakes can be corrected.
⢠Are you applying for too much credit? This is worth 10% of your score. Every time you fill out an application for credit, it is considered an Inquiry and takes between 8-12 points from your credit score. The more inquiries you have the lower your score becomes and the less credit will be extended to you. You need to be cautious about the offers that come in the mail or you see online, as they are usually too good to be true. We advise that you read the fine print of the contract before you sign anything or respond in any way.
⢠You should do better financially if you have a budget and financial goals. Goals that you set should be attainable, measurable and flexible.
⢠You have recourse when it comes to situations such as incorrect reporting on your credit report and harassment from creditors
⢠You are entitled to a free credit report once a year, which you can obtain at: annualcreditreport.com.
While there are sometimes circumstances that can affect your credit, in general good credit can be controlled by you.
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