Living on a shoestring

[Jeffery (LCLA)]

Excuse me Dan, while I borrow your office for a moment. (I used to do that to my vendors, too. I'd walk into their building and start their offices)

Living on a shoestring

We weren't all born into the Hilton family or related to the Rockefellers or Gates. Some of us aren't superstars or independently wealthy so the rest of us had to save, cut back, do without and buy on sale. I'd like for all of us to share what we've done (or ideas for what someone can do) to save that dime to get through the hard times to make it to the big times. I'll start.

1. Quit those vices. Yeah, I know easier said than done. If you can't quit, change to a cheaper brand. Buy the cheapest pack of cigs you can find and you'll want to quit.

2. Every thing that carries a late fee, pay it on time. there is no sense in paying a $35 late fee on a credit card.

3. Stop buying new cars and buy something nearly new.

4. Peanut and Jelly sandwiches can go a long way. Raman noodles are actually a nearly balanced meal (high sodium, though, and supplement with vitamins) and only cost .15 or .10 if you get the store brand.

5. Store brands are just a good as name brands most of the time.

6. Cut coupons and don't be scared to use them.

7. Trade down. If you house isn't affordable, trade down to a smaller house and rent yours out.

8. Cheapest price doesn't mean best deal and most expensive doesn't mean best quality. Don't be too shy to bring a calculator with you to the store.

9. Stop keeping up with the Joneses and buy their house from the bank when they get foreclosed.

10. Stop buying CD's and listen to the radio, it's free.

11. Stop renting videos, you get no equitable interest in the media and the entertainment only lasts a couple of hours.

12. Do you really need 300 channels of digital entertainment? I didn't think so, get rid of that Direct TV and watch local channels. You'll be surprised at what's on the news. If you don't like the programming, read a book, your mind needs exercise, too.

13. Stop buying books and go to the library, it's free and you just might find some new friends.

14. Move that thermostat a few degrees, you'll get used to it.

15. Get a second job. If you have a spouse not working, guess what, that's right, they need to get a job. There's nothing wrong with working at Mc. D's if you're getting out of debt.

16. Trade services with your neighbor. If they lack a skill and you can help them out and make a trade (personally, I do it for free and so do my neighbors)

17. Don't get a pet, if you're lonely, log on to MB and chatter away.

18. Show no loyalty to your insurance company. Shop those rates.

19. Call your credit card company and ask for a rate reduction. You won't get it if you don't ask.

20. Got a credit card invitation in the mail offering zero interest? Transfer those balances and some some bucks.

21. Stuck with that car note? Call the bank and ask for a rate reduction, again, you won't get it if you don't ask.

22. Instead of eating out, have your friends bring a dish and have a party.

23. Stop paying for website hosting and get it for free. Just search for "free web hosting". Sure, you'll have a banner at the top of your pages, but you still get your message out.

24. Stop buying sodas and switch to Tea, it's better for you anyway.

25. You really don't need that super unleaded gas. There are only a few vehicles that require 93 octane and you really don't get better gas mileage.

26. If you're driving under 45 mph, open the window, over 45 use the air conditioner. The heater doesn't effect your gas mileage.

27. Food stamps and welfare are a temporary assistance. If you absolutely need it, use it. If you don't need it, get off of it. I know some folks think it's free money, but I'm tire of feeding people I don't know.

28. Stop having kids. If you can't afford to feed the ones you have now, why have more? You're not being just to yourself or the kids.

OK, that's all I have for now. When you're out of debt, and your income is twice the amount of your expenses, feel free to eat out once in a while (but don't get back into those old habits).

Now, don't be shamed into not posting. You can even word it so it doesn't seem like you had to cut corners so post up, I'm running out of ideas.

[Dan Auito]

Here's some material to add Jeffers!

Getting Organized

The first step in getting organized is to take an inventory of what you have working for and against you. I suggest looking at finance first. Here is where you look at every credit card you own and loan you have that currently has a balance that you are obligated to pay.

This is hands-on credit consolidation; you personally do it all. Now total up the dollar amount you currently owe to everyone and find the credit card or loan that is charging you the highest interest rate. Once you have zeroed in on the highest interest rate charging lender, set that bill aside and make it your mission to pay it off first. You will be diverting all other available cash to reduce this high interest lender’s hold on you to zero.

You should use as much available lower interest rate money to shift the balances of the much higher interest debt to the lower interest charge cards rate. Use the balance transfer checks to pay off the highest interest-charging bad guys first.

Tip: Use any pre-approved cards that tease you with no interest for one year or more to transfer balances and pay no interest while you eliminate your debt.

In order to quickly pay off the highest interest rate lender first, pay only the minimum required monthly payment to all the lower interest rate loans and take every diverted extra dollar that is available for debt reduction and put it towards paying the high card or loan off first. Once that card is paid off, call the company and close that account. Celebrate by cutting that card up into small pieces. Have a little ceremony that symbolizes the death of bad debt!

Now continue doing that same thing - putting all available money towards your next highest interest rate credit card or loan, only now, add to it everything that you were paying towards the first card that is now gone. You will find that your debts will be paid off quicker and quicker because more money is being freed up to pay the next lender in line. In debt shifting I call this putting the hammer down because you will be pounding these lenders with larger and larger amounts at faster and faster rates with every card and loan you retire and close out!

Keep using the above technique until all your debts are paid!

The second step is to put into place a needed spending freeze. Literally put all your credit cards in a bag of water and put them in the freezer. Inform everyone that every discretionary dollar needs to pass a unanimous decision in order to be spent. That means no knick-knacks or doodads. Everyone is expected to tighten up on their spending habits and use only cash. Plastic is like play money; it is easy to use. Stop falling into the lender’s trap of fooling you into believing that you’re not spending real money - you are! Pay cash and you will pay attention.

There are many ways to restructure debt. Let’s look at a few. If you are driving a new car, sell it and get out from underneath those high payments. Drive something less expensive while you eliminate debt and prepare to qualify to buy your own home. Start staying home on Friday and Saturday nights. Eating out is expensive and it adds up fast. Do your own cooking at home for much lower cost meals. Limit your entertainment expenses and completely eliminate alcohol!

Please allow me to say this one thing about alcohol. Alcohol knocks out your reasoning ability by first impairing your brain’s defensive reasoning inhibitors and then flooding your pleasure sensors at the same time. When that happens you basically don’t have a care in the world and money is no object. When you come to your senses and sober up, the amount of money spent is far more than you ever planned for. That’s a fact! If someone is a dyed in the wool, true blue alcohol-dependant, denial-laden individual, than A.A. is the only way to truly understand and conquer the devise. Whoever is drinking must stop or you will be hard pressed to ever save a dime. It’s a death sentence for your family’s savings plan.

The third step is to start finding ways to make more money as well as save it. There are a number of ways to do this as well. If you punch a time clock, start getting a few more hours. Tell the boss you’re buckling down. If you can manage a second job or a better one, take it. Unload all your junk by having a yard sale. If you can downsize or share rent with someone else for a while, do it! Now apply all that extra cash that you have right on top of that highest interest rate card or loan.

So organize an effort to, in effect, get organized. The only way things change is by making a commitment to start, one step at a time. Once the budget is established all you have to do is adjust it, fine tune it and stick with it.

I'm off my soapbox now: Next

[Debbie]

Hmmm...at the moment, I don't have the "wisdom" to pass along but I can tell you a little of my experiences.

Before I had a chance to attend college, I was hired by the State of Illinois at age 18. I never forgotten how much my monthly gross salary: $746.00. I thought I was rich.

Moved out of my parents' home to begin my new life. A new life, alright, the one that I literally made myself poor within 2 years. I totally ignored everything that my parents taught me about money.

Luckily, I was only in debt for under $3k but at my salary, it was alot of money. Barely living paycheck to paycheck.

I had enough money to pay my bills, my rent, my used car but I had no money for groceries. I paid for whatever I could afford. I remember eating ice cream for dinner for several weeks while skipping breakfast and lunch. Occassionally, I'd visit my parents and "steal" their foods from the pantry behind their backs.

The one thing that stayed with me was what my parents taught me about was protecting my credit ratings. I didn't really understand it nor comprehend it. All I really understood was to make sure I make my payments every month. Even if it's just $5 a month. I did exactly that---make as much payments as I could even if it means going without food and recreational pleasures.

I lost weight and was on the verge of being seriously underweight. It was a combination of health and swallowing my pride that made me go back to my parents' home. They were relieved. They had just decided to "drag" me back home against my will but relieved that it was actually my decision to go back home.

It took me 5 months of regaining my health and pay off of all my bills plus more than enough money to move out. I also paid $25 a week to my parents in an attempt to be as independent as possible.

I did well until I married very young and divorced young. No money problem until ex-husband filed bankruptcy on me and others. Once again, history repeated itself, but I did eat this time. Took me about 2 years to be debt free.

Since then, I have done well. Granted, I'm not rich but I have money in several places. Most are not immediate liquid but I have access if I ever need them.

I learned that not having any emergency funds as well as not putting money into investments---that is living foolishly! If there's one thing I've learned--- Living well is my best revenge!

Debbie

[Aldo]

Before spending anything, I need to know what it costs to buy some time.

I could have offered thoughts/examples for each of Jeffery's points before my pillow calls me. Then I saw the replies and knew I had more to say, but my pillow doesn't accept excuses or exceptions.

This is among the best threads/posts ever offered here due to its obvious value to anyone who can spell the word 'munnie' and I'll reply when my pillow releases me on parole in the morning. (Methinks my parole will be revoked in about 24 hours.)

[AIR]

great post, its something that people dont think about often enough, I constantly have to remind myself that Im not rich yet, sure I manage my money well and will never be in debt, but sometimes I loose focus and drop 200 dollars on dinner or 100 bucks at the bar, the next morning I wake up thinking I could be getting 20% on that money in the stock market or I could have saved that money for a down payment on my first real estate investment.
the latest thing I did to save some money was to agree not to go overboard for x-mas with my girlfriend we both decided to do something small. max $150, i usually spend close to $600.

[eldorado]

WOW! I guess I'm ahead of the game...

1. Quit those vices. Yeah, I know easier said than done. If you can't quit, change to a cheaper brand. Buy the cheapest pack of cigs you can find and you'll want to quit.
I already smoke $15.00 a carton crap I buy out of state.

2. Every thing that carries a late fee, pay it on time. there is no sense in paying a $35 late fee on a credit card.
Yeah , If I had the funds in time. I want to cut all of them up and get business lines of credit. With the interest and late fees I pay, it equals 30%

3. Stop buying new cars and buy something nearly new.
I drive a 1998-I havnt had a new car since 1994

4. Peanut and Jelly sandwiches can go a long way. Raman noodles are actually a nearly balanced meal (high sodium, though, and supplement with vitamins) and only cost .15 or .10 if you get the store brand.
Ramen noodles give me nightmares! Thank Gawd i got a wife that knows how to cook and stretch food.


5. Store brands are just a good as name brands most of the time.
Whats a store brand? I buy veggies,eggs,and meat from the local farmers at 1/2 the price

6. Cut coupons and don't be scared to use them.
already there-but their pretty useless when you dont shop much

7. Trade down. If you house isn't affordable, trade down to a smaller house and rent yours out.
Cant get much smaller..went form 4500 sq ft to 1200 sq ft

8. Cheapest price doesn't mean best deal and most expensive doesn't mean best quality. Don't be too shy to bring a calculator with you to the store.
I use local farmers angus natural fed beef-its cheaper and better. Hmm. I guess there is an advantage living here


9. Stop keeping up with the Joneses and buy their house from the bank when they get foreclosed.
What business do you think I'm in already!

10. Stop buying CD's and listen to the radio, it's free.
I download ll my music. I havnt bought a cd in years

11. Stop renting videos, you get no equitable interest in the media and the entertainment only lasts a couple of hoursI
I download all my movies-usually new releases. I havnt rented a video since VHS

12. Do you really need 300 channels of digital entertainment? I didn't think so, get rid of that Direct TV and watch local channels. You'll be surprised at what's on the news. If you don't like the programming, read a book, your mind needs exercise, too.
I canceled Dish net years ago. I cracked their card and every channel is turned on

13. Stop buying books and go to the library, it's free and you just might find some new friends
Who has time to read?-with all those movies and channels

14. Move that thermostat a few degrees, you'll get used to it.
I already get free pallets and cut them up for firewood..pathetic eh?


15. Get a second job. If you have a spouse not working, guess what, that's right, they need to get a job. There's nothing wrong with working at Mc. D's if you're getting out of debt.
yeah right! Like there are any around here. I guess I could milk cows...Before I'd work for someone else.. I'd starve!

16. Trade services with your neighbor. If they lack a skill and you can help them out and make a trade (personally, I do it for free and so do my neighbors)
I'm already trying to trade wifes>OOPs! did I say that?? LOL
I do already, she's on the city council,provides me with leads before anyone else know about them and she's a parametric and I wired her house.

17. Don't get a pet, if you're lonely, log on to MB and chatter away.
tell that to the crazy cat lady I married! we have 13 now!

18. Show no loyalty to your insurance company. Shop those rates.
Who can afford insurance? (I'm kidding) I pay $500 a year for 2 cars-cant beat that!

19. Call your credit card company and ask for a rate reduction. You won't get it if you don't ask.
What universe are you form? Hell, I'm begging them not to cancel me. I dont think they want to hear about a rate reduction..

20. Got a credit card invitation in the mail offering zero interest? Transfer those balances and some some bucks.
With my current FICO. (because of 3 HELOCS and maxed cards form rehabs, Those stopped coming months ago

21. Stuck with that car note? Call the bank and ask for a rate reduction, again, you won't get it if you don't ask.
Reduction? I'm begging them not to take it!

22. Instead of eating out, have your friends bring a dish and have a party.
Last time I went out to eat was 7 months ago. Nobody can make food as good as the wifes. so, whats the point? besides this one horse town only has 3 restaurants


23. Stop paying for website hosting and get it for free. Just search for "free web hosting". Sure, you'll have a banner at the top of your pages, but you still get your message out.
I cant afford the internet bill!

24. Stop buying sodas and switch to Tea, it's better for you anyway.
already there.I'd kill for a diet pepsi

25. You really don't need that super unleaded gas. There are only a few vehicles that require 93 octane and you really don't get better gas mileage.
93 octane? I cant afford gas period. I'm building an electric car..i only put on 3000 miles a year now!

26. If you're driving under 45 mph, open the window, over 45 use the air conditioner. The heater doesn't effect your gas mileage.
What windows?> those were broken out in a fit of rage months ago LOLOL

27. Food stamps and welfare are a temporary assistance. If you absolutely need it, use it. If you don't need it, get off of it. I know some folks think it's free money, but I'm tire of feeding people I don't know.
not available here

28. Stop having kids. If you can't afford to feed the ones you have now, why have more? You're not being just to yourself or the kids.
Stop having kids.. haha I havnt used the winkie in a year!
Tell that to the gal across the street with 10 on welfare

Just kidding ! But a lot of those answers above are true. Things are not really that bad-They will be if I don't consolidate all these properties into on loan soon!. I do, however, live frugally. The Mediia monsters make you work to pay for things you don't need. An Intelligent person see this

[blessedx100]

I'm going to keep this brief as I can I am in the middle of a mess and not quite sure what to do I've bulked, I have been searching for property for my own personal use, found a seller who is motivated is willing to accept owner financing, with option money up frontm but may have the opportunity to purchase up fron but don know how i can consumate the deal, to tell the truth scared stiff, because they said YES, after that I got numb, then I was stumped with now what homes are selling for low 170k-199 ask is 185k how do i do the math in knowing what to offer, or should i do the seller financing i do have some credit issues also their is istant equity in the deal, it's just putting it toghther HELP:SM094: