Like many families, my family is spread out throughout the U.S. Before we had a child, this aspect of our lives didn’t bother me or my husband too much. It was nice to have our own space but we knew that our parents were a relatively short drive away (3 hours north to my parents, 2 hours south to his) if we needed or wanted to visit (or if there was an emergency). It was a pretty sweet set up, actually.

Then we had our daughter.

Both of us grew up with our extended families less than 20 minutes from our childhood homes. I saw my grandparents at least once a month (usually more), spent the night at their houses, and my cousins were part of my social circle. My husband had a similar situation. But now, living a distance away, we were not going to be able to afford that same opportunity for our daughter despite even our best efforts.

When our daughter was first born, we had no money. We were mired in a substantial amount of debt and it was all we could do to pay our bills, feed and clothe ourselves, and get to work. We didn’t have extra money for anything, including frequent visits to our parents or buying ink to print pictures to send to our families. We were fortunate that our parents didn’t mind coming to visit us but after awhile, it became pretty taxing on them (as she’s gotten older and our financial situation has improved, we do a much better job of taking turns visiting). We had to, and continue to have to, dig deep to find ways to keep our daughter connected to her extended family without breaking anyone’s budget. Here’s what we’ve come up with:

• Skype and FaceTime on iPhones. This is relatively new for us since we just got Skype working properly (computer problems, not a problem with Skype) and we’ve finally figured out how to use the Face to Face feature (don’t judge). It’s wonderful to have the ability for our daughter to have conversations with her grandparents while “looking” at them. It makes it a much more personal experience and honestly, it’s kind of fun.
• Snapfish. I cannot extol the benefits of Snapfish enough. It is wonderful to be able to upload a boatload of pictures and then with the click of a few buttons, share the entire album with her grandparents, great-grandmother, aunt, cousins, and even close friends. They then have the ability to select what pictures they want to have developed instead of us choosing it for them. And we get to share a lot more without having to spend a fortune on postage. (Note: Email and texting also comes in handy for sharing pictures.)
• Blogs. Although I don’t personally have a blog (yet) detailing my daughter’s day to day activities and accomplishments, there are many people that do. In fact, that’s how Scary Mommy got started; it was an online baby book that she shared with friends and family. If you’re not too keen on the whole internet reading about your kid and seeing pictures, you can set the blog to private and share it only with the intended audience. As an added bonus, it makes a nice, permanent baby book for the kid to look back on.

Make no mistake about it. The “old fashioned” way of doing things is still just as meaningful. I know my grandmother (my daughter’s great-grandmother) loves getting photos and drawings in the mail (birthday/anniversary cards aren’t too bad either). It’s always a good time when we visit in person or make a traditional phone call.  But the distance between us has made it more difficult to share forge the relationships that we had growing up. Thanks to the Internet, that gap is now a lot smaller.

How do you frugally connect with family members who are a distance away?

The Enemy of Debt Questionnaire – Congratulations to Jeff Lundberg!

How much debt did you have and how long did it take you to pay it off?

We paid off over $65,000 in 22 months.

How does becoming debt free actually feel? Does it feel better than you imagined it would?

We paid off our last debt (besides the mortgage) last month. It feels great! We’re very excited to start building wealth and being able to give!?

What were some of the struggles that you had to deal with along the way? Was there ever a time where you almost gave up?

The hardest part was sticking with a written budget and staying motivated. There were a few times where we wanted to give up, but we stuck to our goals and pushed through.

What would you consider to be the most important key to becoming debt free? What helped you the most?

Learning to say “No” to yourself is essential. We posted charts and debt “thermometers” on the bathroom mirror. Every time we met our goal for the month, we would cross it off.

It’s important to actually have a plan. Figure out how much debt you have, and how quickly you want to pay it off. Then, determine how much you’ll need to budget each month for debt payments in order to meet your goal. Write it down. Every month, physically cross it off. Put it someplace visual where you can see it every day.

It’s also important to visualize why you want to become debt free in the first place. Think of how much extra money it frees up each month. What would you do with that extra money?

It seems a lot of people have bought into the idea that debt is essential in order to prosper, what do you have to say to those people?

Banks and creditors are really good at pushing their product: debt. It is one of the most marketed products in history. Especially in Western societies, it has been woven into the culture.

Your grandparents didn’t have credit cards. They didn’t even exist. People still pay cash for cars and even homes. Normal people.

What was the biggest sacrifice you would say you made in order to become debt free? What about you changed the most?

We cut back in pretty much every area of our budget. For me, the biggest thing was not eating out.

Did your friends and family give you a hard time about your new mission to eliminate the debt from your life? If so how did you deal with it? Do you think you inspired others by your journey

Most of my friends and family were supportive. One of my co-workers balked whenever the subject came up, though. He felt that you would always have a car payment, and always have debt.

He congratulated me on becoming debt free, but somehow I still don’t think he was convinced.

What is next for you? What financial goals do you plan to accomplish?

We’re working the Dave Ramsey Baby Steps.

1 – $1,000 cash in the bank (done)
2 – Debt Free except the house (done)
3 – Emergency fund of 3-6 months expenses (almost done)
4 – Save 15% towards retirement (starting in June)
5 – Save for kids college fund (starting in June)
6 – Payoff house early (we refinanced to a 15 year fixed, will pay off sooner)
7 – Become wealthy and GIVE

This story was submitted by Jeff Lundberg of www..jefflundberg.com. Jeff is a web developer out of Detroit, MI. His wife is an attorney. They both decided to follow Dave Ramsey’s plan and get out of debt!

photo credit

Debt Free News From A Debt Free Reader Series

Click here to read any of the other great debt free stories in this popular series!

More to come…but only if I get some new submissions!

Many of us are wondering when we’re going to punch our way out of this economic recession we’ve been wallowing in for the past five years or so.  It’s anyone’s guess, but I’d say we’re going to be in it for quite a while, and perhaps it will get even worse, simply because so many of us only learn the hard way. It seems we insist on repeating failed behavior patterns largely because they’re what we know and are comfortable with. Failure to obtain different results by doing the same thing again and again apparently has no bearing on the matter, we do it anyway.

Collectively, all the foregoing is true, but individually, it doesn’t have to be. As a rational being, we can do much better than mindlessly repeating what has proven to be unsuccessful. We can make deliberate and lasting changes in our behavior, no matter what the crowd or our “leaders” might be doing or suggesting.

Being a big fan of watching the crowd, instead of following it, let me present you with a simple way to weather just about any kind of recession or downturn in the economy. It’s an approach that I follow and it has served me well. It’s something we can all make use of because we’re all likely to go through three to four economic downturns in our lives. The technique is simple; it has only two steps to follow:

Step 1, develop a frugal and financially conservative lifestyle that, within reason, maximizes income, minimizes expenses, and focuses on wise investment of resources to create lasting and meaningful wealth. During good economic times, implement the lifestyle with deliberate focus as if you’re in a downturned economy.

Step 2, when the economy turns sour, make only minor changes in your lifestyle as warranted based on special circumstances. In other words, you largely continue as if nothing unusual has happened.

The bottom line is that most people go through feast and famine cycles that are often self-generated because of choice. They spend freely when times are good and hunker down in an austerity mode when times are tough. Why not choose differently? My experience shows that living more conservatively as a norm provides great results over the long haul. If you follow the two simple steps above, you can maintain a reasonably even keel no matter what financial waters you’re navigating. The choice is yours, smooth sailing or a financial roller coaster ride.

A Peek at Techniques

Assuming you’re enamored with the idea of smooth sailing, let’s look at some ideas with respect to how one might maintain an even keel, regardless of the economic times. We’re really talking about a mindset that reflects a financially conservative strategy, and we can see hints of the mindset by looking at specific tactics that one can employ to achieve important financial goals. Here are just a few examples.

• Buy used vehicles and maintain them. New vehicles lose tremendous value right after you purchase them. Used vehicles provide high transportation value and can be maintained for perhaps the equivalent of one new car payment each year. If you buy a new car, then make it fit with your long-term interests and then “run the wheels off of it.”
• Seek employment in a recession-resistant marketplace. The electric utility industry and the medical field are good examples. No matter what the economy is doing, people need electricity and medical care as they are vital for daily living.
• Maintain a relatively steady lifestyle; when income goes up, spending doesn’t necessarily have to expand to match, instead, savings and investment can and should be enhanced. Maximizing income and savings is a key to rapid wealth accumulation.
• Practice taking the “long view” in whatever you do. Whether it’s a second home, a second car, or another child, each has initial costs and long-term recurring costs. As an example, consider the additional cost of monthly payments, upkeep, insurance, annual registration and depreciation associated with another vehicle before making a purchase. If you visualize making all of the recurring payments, it can help you make a better decision because there is a good chance that you’ll be doing so with your eyes wide open.
• No long-term consumer debt. If there is anything that makes for a financial monkey on our backs, it has to be consumer debt. The wise know that credit cards are a means of paying for something, not a way to give ourselves a personal loan.

The roller coaster ride of economic ups and downs isn’t limited to personal finance. I’ve worked as an employee in several large companies that have gone through “austerity modes” on several occasions, and none of the restrictions on spending have ever affected me or my staff simply because I’m not naturally inclined to be a careless spender, no matter whose money we’re talking about. If you do much the same in your personal life, you’ll find that changes in economic conditions won’t necessarily force you into changing your lifestyle, pulling in your horns or hunkering down to weather the recession. Instead, you’ll operate largely as usual, and without nearly as much concern and discomfort as those who match their lifestyle to income that fluctuates.

The two simple steps outlined above can offer peace of mind, and that means a lot to me. I’m not comfortable living on the edge as so many do. In addition, with such smooth and steady sailing, instead of roller coaster riding, it’s much easier to maintain a good “sight picture” and that promotes attaining long term goals – the only ones worth shooting for according to my play book.

You’re the Captain

To be sure, this approach to weathering tough economic times won’t work for everyone, but it has worked well for me. I live a life of abundance, but it’s largely because I’ve defined what abundance is on my terms according to my own “long view.” I don’t let others create the definitions and rules in my life; instead, I do that for myself. I’m perfectly happy knowing that my lifestyle doesn’t have to change much at all, no matter what the economy is or isn’t doing.

An acquaintance of mine on Facebook sent me a note recently. I don’t know that he has great insight into my life, but it was clear by his comment that he imagined somehow my life was special or ”charmed” instead of well charted and lived in a deliberate manner. He said, “If my life was as smooth sailing as yours, I’d have it made.”  My response was simple and filled with what I see as truth, “It can be, just talk to the captain.”

photo credit

My son has been involved in youth sports since he was three. We have run the gamut; gymnastics, karate, soccer, wrestling, lacrosse, and football. My initial goal in exposing him to youth sports was to have him expend some of his little boy energy in a way that was safe and fun for him.

Little did I know the love for competition would blossom at such a young age; he is addicted… to thrill of practice, games, and being a winner.

For those of you that don’t know me, I am a divorced single mom and my son is a Type 1 Diabetic. Over the past year I have added some pretty hefty medical expenses to the laundry list of bills that I pay each month. The added medical expenses have squeezed my already tight budget and my sons activities are becoming increasingly more difficult to keep up with financially.

What are your Reasons?

I feel these activities are important for him and will continue to make sacrifices where I can to ensure he can play. My reasons for involving my son in youth sports are slightly different than many of the other parents cheering along beside me at Saturday morning games.

• I want my son to get plenty of exercise.  As a diabetic it is important for him to get plenty of exercise to help keep his blood sugar regulated and his body fit.
• I want him to learn the meaning of “team”.  Teamwork is a fundamental life skill that I feel is best learned early. Being part of a team teaches lessons you can’t learn from a book; sharing, leadership, and working with others to accomplish a goal.
• I want him to have fun!  My fondest memories from childhood were being part of youth sports teams. Being with kids your own age all trying to achieve a goal together, and building special friendships with people that are just like you.

Sometimes I wonder about the other parents… I think they think little Johnny is a superstar and destined to go pro; earning scholarships, sponsorships, and one day making millions so he can pay them back for the thousands of dollars his training cost over the course of his youth career.

Or, they see potential in little Johnny that they never had; otherwise know as “living vicariously through your kid”.

Sound familiar?

Let’s face the facts

The chances of going “pro” are about as good as hitting the lottery.

Little Johnny may be so burnt out from playing ball since he was three that at 18 he decides to quit.

One sunny Saturday afternoon little Johnny takes a “hit” and breaks his leg. The doctor says he will never be able to play like he used to.

So as you walk up to the registration table or into the sporting goods store ask yourself if you are there for the right reasons.

Can I afford this?

I have seen parents rack up serious credit card debt just so their kid can play and “look good” on the field. If the expense of youth sports does not fit in your budget you are going to need to make some adjustments or just say no.

Perhaps you can forgo other discretionary expenses to afford the sport or look into scholarship programs for families that can’t afford the cost. Our youth football program has these scholarships available I know they have helped many families who could otherwise not afford for their child to play.

Does my child really want to do this?

Every time my son comes home from school with a colorful flyer boasting the next season’s sport, I sigh and ask do you really want to do this?

When the response is yes, I make sure he understands that this is a commitment for both of us; me financially and him physically. I do not allow him to skip practice or miss games.

Commitment is another life lesson learned on the field, and believe me I take full advantage of all the life lessons I can get out of these expensive sports activities.

Are you trying to keep up with the Jones’s?

Yes, this even happens in youth sports. The goal of youth sports is for the kids to learn something new, have fun, and get exercise, not to see who has the tricked out lacrosse stick, or head to toe designer outfit.

As parents we want our kids to fit in, but the kids will do that on their own by being “themselves”. They don’t need all the stuff sporting good marketers try to sell them; $150 sneakers, super absorbent socks at $15 a pair, or high priced sports drinks. They will do just fine with used equipment, regular socks and good old fashioned water.

Equipment and practice attire can get out of control… if you let it. Ask yourself if new equipment is worth double the cost. My son wears hand-me-down cleats from his cousin (we are lucky the sizes are right in line for this) for both football and lacrosse and we purchased his lacrosse gear at Play it again Sports, a store that buys and sells used equipment.　

The point I am trying to make is that youth sports are a great way to teach your kids valuable lessons: how to set goals, hard work, teamwork, dealing with pressure—all lessons that will serve them well in life. We all want that for our kids, but like anything else you have to weigh the benefits and the expense. Youth sports are expensive, this is not likely to change and once your kids are hooked, well it gets harder to say no.

There are ways you can make it more affordable, revamp your budget, and sacrifice in other areas.  Just make sure you are shelling out your hard earned dollars for the right reasons.

See the little boy in the picture above, he is smiling through his mouth guard, for me that smile is priceless!!

Have you gone into debt over youth sports for your kids?

The process of getting out of debt is as much physical work as it is mental. Making changes in our life style and our mindset is such a difficult but important step.

I have found that there are four very important aspects to this process that need to be remembered and achieved in order for you to reach the level of success that you strive for.

Those aspects are the four “p’s” of debt reduction

1. Positivity
2. Planning
3. Practicality
4. Perseverance

Like many of you, I am in a great deal of debt. In fact, I am in more debt now that I was when I decided to start tackling my debt. It hasn’t been an easy road for me due to divorce, unemployment, loss of a car and a move that was out of my control. It was until recently that I had my first real success in my debt reduction.

I paid off my first credit card!

It was a great day to see that account balance at zero but part of me kept thinking “you have so much farther to go.” I wanted to share with everyone my success but kept adding in a “but” every time I told it.

That had to end and I had to remember the first “P” in debt reduction: Positivity!

Keeping a positive attitude during my debt elimination process has been difficult at times. I have fallen to frivolous spending and impulse purchases. I have spent money that could have gone towards debt when I needed a “pick-me-up.” I have spent times feeling down and depressed over my situation.

Whenever I have let those feelings seep in, my dedication to becoming debt free wanes. Maintaining a positive attitude is essential to this process. It is normal to lose that feeling from time to time but it is important to have steps in place to regain your positive attitude as quickly as possible.

Everything is easier when you have a buddy. Debt reduction is no different. Whether is a girl friend, a spouse or an entire message board, find someone who will allow you to vent but then help pick you back up.

Keep an arsenal of ideas in mind for when times get tough. What can you do to build your positivity back up?

• Is it spending the day at the park in the sun?
• Will volunteering with those who are less fortunate than you help?
• Is it coffee with a friend that helps cheer you up.

Whatever it is use those times when positivity is less to do them.

Planning is essential for the success of your path to freedom. Having a plan for where your money will go and how you will earn extra money is key. Have a plan that celebrates your progress and continues to push you forward in these efforts.

Have a plan for what to do when you want to spend money.

• Are you going to contact your buddy or spouse whenever the bill at Target reaches $50?
• Maybe you need a plan in place for what to do when you just really want to eat out for dinner (I suggest you have a list of some super easy meals that you can make within 30 minutes that keeps you from eating out. Perfect time for “Breakfast for Dinner” night!)

Plans can change and you should expect that. As you learn more about yourself and your relationship with money, your plan will evolve. This is great. As long as you always have a plan in place, your opportunities to lose momentum will decrease.

Practicality can come in many forms. It can mean being honest with yourself and about what you REALLY need.

• Is it practical to have cable AND Netflix?
• Is it practical for you and your family to have $200 a month in an entertainment budget?

It can be the devil’s advocate to impulse purchases. Asking yourself “is this practical” can save you from buying something you can survive without. For example, I was at Target the other day looking at kitchen gadgets. I am an avid cook and have been slowly trying to accumulate what I need in my kitchen. I wanted to buy a vegetable chopper (you’ve seen them on informercials, it dices the veggies perfectly every time) but I stopped myself to ask “is this practical?” The answer was “no.” While it would have been great to have because it would save me time in the kitchen, I do not need it. I can take an extra 10 minutes to chop up veggies.

And that easily I avoided spending $24.99. Practicality!

Perseverance is the final “p” of debt reduction. It is also the only way you will accomplish your goal of being debt free.

Perseverance is the result of failing and then picking yourself back up and trying harder. Let’s face it, at times you will fail. We have all done it (and more than likely will again). Anyone who has fought their way out of debt has had a weak moment and given in to impulse. The important thing to remember is to not backslide, just get back in the saddle and try again the next day.

Every time you fail and pick yourself back up, you grow stronger. You become more determined and you increase your momentum. Failures spur on the process when you do not allow them to take over. Use those moments to grow as a person.

The journey out of debt is a difficult one. At times it is depressing and can feel like it will never end. But staying positive, sticking to your plan, remaining practical and persevering will make this journey something you will never forget!

photo credit:

1: The Consumerist (text added by me)

2: LifeSuperCharger

Do you have a credit score?  Probably so.  Do you have any idea what your credit score is?  Maybe you do, maybe you don’t.  Do you really believe that it’s totally necessary to have a credit score?  Most people do, and I think they are wrong.

This guy thinks he needs a credit score!

First, let’s take a quick look at exactly what your credit score is and why you have one.  Your credit score, also known as the FICO score, was created by the Fair Isaac Company (Thus “FICO”) to estimate a person’s credit worthiness.  Your FICO score is really just a number that tells people how good you are at borrowing money.

Your score is calculated using these general guidelines:

• 35% is based on your debt history
• 30% is based on your level of debt
• 15% is based on how long you’ve been in debt
• 10% is based on how much new debt you have
• 10% is based on the types of debt you have

So what do all these factors have in common?  They all say “Hey baby, I’m in debt!”  The higher the score you have means that lenders can trust you more highly so that they can give you more debt and they know you’re more likely to pay it back.

But what happens when you don’t have any debt?  Well if you’ve been out of debt for a long enough period of time, your credit score can actually go to zero, and in my opinion, that’s a good thing.  You actually CAN win without a credit score.  A zero or nonexistent credit score shows that you have actually achieved something that not many people have, and that something is freedom from the bondage of debt.

When you’re free from debt you don’t have to worry about making those payments every month that drag you down emotionally, physically, and financially.  You’re not paying extra for all those things you buy with credit in the form of interest and fees.  You become so much more free to live life the way YOU want to live it and you end up having less stress because you’re no longer a slave to the lender.

I can hear the questions now, “But Doc, what if I need to buy a house or even a car?  How would I be able to buy those high dollar items if I don’t have a credit score?”  Well, buying the car is easy.  If you’ve decided to make the commitment to become debt free, or if you already are debt free, saving up for a car is very simple thing.  You just keep driving your present car until its paid off, then keep driving it, start putting the payments in the bank to save for the next one, and in a few short years you buy another car.

But what if you want to buy a house without a credit score?  Even If you’re debt free except for your mortgage, a house can be very expensive.  Of  course the best way by far to buy a house is with cash, but I’m not going to nail anyone for taking out a reasonable mortgage that makes sense.

This is where the technique of manual underwriting comes in.  Many people don’t know about this process, and not every lender can provide this option, but manual underwriting is what you will need in order to get a mortgage when you have a zero credit score because you don’t use consumer credit any more.

Basically manual underwriting is a nonautomated, MANUAL process of figuring out how much a lender thinks they should loan you.  Normally the process is automated, they just stick your numbers into a computer and it spits out a number based on what their software says.  The manual underwriting process actually has a human being running the show to determine how much they should loan to you.

However, there are certain guidelines that you’ll need to meet in order to get a mortgage that is manually underwritten:

• You must be able to prove that you’re paying 4-6 regular bills in a timely fashion over an 18-24 month time period.  Those might   include rent, phone, cell phone, power, water, etc.
• You should choose a 15 year conventional fixed rate mortgage.
• You must have a strong employment history and predictable personal income history.
• You must be able to put at least 20% down on the home.
• Your previous credit history should have no red flags.  Even though you have no credit score, previous history does matter.

So yes, you can buy a house with a zero credit score.  It’s just a different process than most people use.  Of course the best way to pay for a house is to pay cash (I know some people that have actually done it), but it usually does take many years of banging away at that mortgage payment to get the house paid off and eventually pay cash for the next one.

Remember, living with a credit score, whether it’s a good score or a bad score, is a choice that you make.  Do you really want to be one of those people that creditors like to see coming?  Don’t get me wrong, if you’re using credit you should always be trustworthy in how you use it, so don’t start stiffing your creditors and putting your credit score in the toilet.

However, the best thing you can do for yourself and your family is to change your mindset about money and work your plan to pay off all your debts and Celebrate Financial Freedomwith the rest of us who have already arrived at that awesome destination.

C-H-A-N-G-E.

People hate it!

People hate having to change anything, sometimes regardless of the benefits that lie ahead. Change is uncomfortable and sometimes a little scary. The fear of having to face something unfamiliar can often paralyze us into inaction.

Sometimes change is forced upon us and sometimes the choice is our own to make.

So whether we like it or not, change is a very big part of who we are.

We may as well embrace it.

In terms of personal finance, change is constant. And when it comes to debt change can save you from financial destruction. Nobody wants to be buried under debt but when we let our fear of change keep us from addressing a problem, the problems only get worse.

Before we know it, we’re facing overwhelming amounts of debt, crippling stress, and possibly even divorce.

Instead of going that route, why not be proactive and face your fears. Change your habits and behaviors now and on your terms.

Do it little by little. Go at your own pace. Take baby steps in the other direction.

The changes you make will be well worth the effort.

Now I have one question for you.

What Are You Willing to Sacrifice for Your Freedom?

Part of the reason we fear change when it comes to personal finance is because we are scared of what we won’t be able to have or do. We become accustomed to a lifestyle that affords us many luxuries, but this lifestyle is unsustainable. We know it but we often ignore it because facing the truth about our situation is painful.

Living in denial, however, does not absolve us of the future consequences of our decisions.

I’m a firm believer in taking baby steps to accomplish anything. I loved the movie What About Bob and I rocked the debt snowball using Dave Ramsey’s Total Money Makeover. How you get out of debt is up to you but regardless of which method you choose, you can still use baby steps to get you there.

Now let’s talk about sacrifice.

It’s something else we hate. Sacrifice is a big part of change which explains why it’s so difficult to embrace. Whenever change occurs something is sacrificed.

Everything my wife and I sacrificed back in 2008 when we were SUPER SERIOUS about getting out of debt, we have either bought again or realized we didn’t really need in the first place. I say this to remind you that what you sacrifice now will be more available to you once you’re out of debt.

What’s the point of having a 60″ flat screen television with a resale value of $2,000 when you’re thousands of dollars in debt?

Sell the television.

Sell your car payment(s).

Sell your junk.

Give up a vacation (or two).

Stop eating out.

Get out of debt and THEN enjoy some of those material luxuries with the peace of mind of knowing you aren’t making someone else wealthy in the process. Get out of debt and pay yourself that interest!

Nothing you can enjoy now is worth the financial slavery you sign up for by using debt to enjoy it.

Nothing!

I know some will disagree with that statement, mainly because many see a house and education as good debt. That’s okay, but I do not recognize “good debt” because I don’t believe there is such a thing. Owing someone money regardless of what it is for is a form of slavery in my humble opinion but that’s just me.

So I ask again. What are you willing to sacrifice today for your freedom tomorrow?

Reader Challenge

Make one sacrifice or change in your life that will help you pay off more debt. Give up something in the name of your freedom but keep this in mind.

• It doesn’t have to be forever.
• You’ll be able to enjoy it or have it again one day.
• You may find you don’t “need” it after all.

My wife and I didn’t want to sell or change anything. Trust me on that. We didn’t want to but we did because we knew we were not managing our money right. We knew if we kept spending like we were and continued the same behaviors that got us into debt, our situation would have been much bigger than $26,000 of debt.

That realization alone gave us the strength we needed to just let go.

Of all the people I have attempted to help turn things around the biggest issue I have found is that they weren’t ready or willing to just let go.

In my experience letting go was extremely empowering and we realized a lot about ourselves during that time.

Get out of debt.

Take one baby step at a time.

Give up or sacrifice one thing. Just one.

What will it be?

Leave a comment and let’s talk about it.

Photo Credit: 1, 2, 3, 4.

Just about 4 years ago, I decided to become a vegetarian. I did it after reading a few books and having the vivid imagery stick with me.  My imagination started to get the best of me and before I knew it, meat was literally off the table. It’s been good not only for my health but for my family’s budget as well.

There’s a reason that when people are trying to cut back on their grocery budget they opt to have meatless meals each week. Meat is expensive. But vegetarian meals, if not planned properly, don’t actually save money. In fact, they can cost even more! Here are a few tips to keep your meatless meals inexpensive and budget friendly:

• Refrain from convenience foods. Boca burgers, Amy’s frozen and prepared meals, and numerous other brands provide a nice meat-free alternative that still tastes…well, like meat. They’re a nice way to transition to a meat free diet (kind of like nonalcoholic beer) but they are expensive. If you base your meals around these types of foods, you’re not benefiting your budget at all. Incorporating one or two every few weeks isn’t a huge budget buster but  do not make these a staple.
• Stock up on beans. They’re a great source of protein and are quite versatile. At my supermarket, organic beans go on sale every few months or so and I go to town stocking up. When they’re on sale, they’re the same price as the regular store brand beans and since I stock up, I save money over the next few months.  I prefer to use organic beans because they are not packaged with sugar. While I could save even more money by using dried beans, I cannot cook them properly at all. It’s actually a waste of money for me to buy them.
• Pay attention to recipes and ingredients. One of my biggest problems with many vegetarian meals is the expensive spices and herbs that are required. On numerous occasions, I’ve been drawn to recipes only to toss them aside due to some ingredient like saffron that’s going to cost more than the rest of the ingredients combined (last price check on saffron? $18 for 2 threads. Outrageous).  By carefully reading the recipes, you’ll be able to figure out which ones are practical and money saving and which ones are just too costly.
• Eat in season produce. This obviously applies to non-vegetarian meals as well. But when you’re trying to incorporate vegetarian meals into your weekly meal plan, it’s even more important that you follow this rule. Vegetarian meals are typically heavier on fruits and vegetables and to use out of season produce is sure to be a budget killer. And if you live in a food desert or have trouble affording fresh produce, frozen vegetables are a suitable substitute.
• Be open minded. Many people can’t imagine a meal without meat. I know because I’m married to one of those people. But when I decided that I couldn’t eat meat anymore, my husband and I had a long talk about it. We established one rule “If it tastes good, we’ll eat it”. As a result, we’ve had many, many meals that neither of us ever thought we’d enjoy (and not one of them involved tofu. Because tofu? Is disgusting). Being open to trying new recipes and foods has allowed us the ability to expand our recipe index and our palettes. It’s also saved our budget on more than one occasion.

I concede that a vegetarian diet isn’t for everyone. And that’s fine. But it certainly is a good way to shave a few dollars off of your grocery budget.

How do you save money on your grocery budget?

I’m not a mechanic. My wife reminds me of this every time I pop the hood of one of our vehicles when there’s a suspected problem. Sometimes it works out, sometimes it doesn’t.

I’m not Doctor Pizel, either, as I’m so gently told whenever a “discussion” occurs regarding whether it’s appropriate to take one of our children to be examined due to some bump or bruise or cough.

I’m not a vacuum cleaner repair person or a hair stylist either, but what does that matter?

The point is, I’m not going to let a little thing like having no knowledge of a subject stop me from at least attempting to fix or do something before I admit defeat and pay some outrageous fee to have it done for me.

The hot topic lately seems to be plumbing. There’s been a hand full of projects around the house that have caused me to strap on my tool belt, get my plumber’s crack mojo on, and develop my previously nonexistent DIY plumber skills.

Leaking Refigerator:

A few weekends ago, we moved our refrigerator off the wall, and cleaned behind and under it for the first time since we moved into our house. That was, ahem, 8 years ago.

A few days later, we noticed a puddle of water on the floor coming out from underneath the fridge.

Vonnie had the phone book out and was scanning for plumbers as I pulled the fridge out from it’s space in the kitchen cabinetry. I found that the water line to the fridge was loose and dripping. A few turns with a crescent wrench, and the dripping stopped.

Leak solved, and outrageous plumber bill averted!

Leaking Hand Sprayer:

The hand sprayer for our kitchen sink had developed a crack which would cause water to be sprayed across the kitchen every time the trigger was squeezed. I picked up a new “universal” hand sprayer for $7 from Walmart.

I was able to install it without any problems, but regardless of how much I tightened things, it kept leaking from the bottom. After some trial and error, and under pressure of threats to call a “real plumber,” I discovered that the term “universal” apparently didn’t apply to my kitchen faucet unit. I had to go to an actual hardware store and buy the replacement unit for my particular brand of kitchen faucet. Of course that was slightly more expensive at $25.

Drip gone, no plumber needed.

Dishwasher Door Latch:

On Thanksgiving day, the latch on our dishwasher broke. We did dishes by hand for months, but eventually Vonnie had enough and pleaded with me to get the latch fixed. I looked online and found the part only cost about $20 with shipping and handling. Receiving the part in the mail, and with my confidence boosted by recent DIY successes, I quickly tore open the package excited to get started. I quickly realized assistance was needed, as the electrical connectors didn’t quite match up.

I found a video on YouTube that explained exactly what I needed to do. I had the part installed, and the dishwasher running in under 15 minutes.

Side Note: Two lessons learned here:

1. Always research how to install a new part first as you will learn some valuable pieces of information. For example, I learned that it is a good idea to turn off the electricity to a dishwasher prior to messing with the connectors to the latch. Yes, there is real current going to the latch. I found this out when I received electrical shock #1 while trying to figure out on my own how to install the part.

2. Always carefully inspect the labels on your breaker switches. “Washer” could very well mean “Clothes Washer,” which you may not expect if some idiot put it between “Range” and “Kitchen Outlets” in the electrical box. I found this out when I received electrical shock #2 while connecting the latch after I thought I had turned off the current to the dishwasher.

Toilet:

The toilet in one of the bathrooms on the top level of our home was acting kind of funny. Sometimes, after flushing it, the tank would begin to fill up, then stop. When I caught Vonnie online investigating how much a new toilet would cost, I figured I’d better get to work.

The water pressure in our neighborhood is not very good. Therefore, we have a water pressure booster that kicks in when the water pressure drops below a certain point. After poking around a bit, I noticed that if I turned on the bathroom faucet after flushing the toilet, I’d cause a significant drop in water pressure, the booster would kick in, and the toilet would resume filling.

The toilet filling would cause the pressure to drop enough to not allow the water to come up into the toilet, but not enough to cause the water pressure booster to kick in.

I pulled out the manual to our water pressure booster, and adjusted slightly the needed pressure level that would cause the unit to run. I flushed the toilet several times, and it successfully filled each time.

Victory declared.

The cost of doing all 4 projects was slightly over $50. The last time we actually had a plumber come out on a service call it was $80 just for him to walk in the door. By my estimation, we saved hundreds of dollars just because I was willing to give something new a try.

Have you ever saved money by teaching yourself something new?

I’ve always held the position that if you can do something yourself, you shouldn’t pay someone else to do it for you. From car repairs and home remodeling to weight loss and personal finance. Over the last year I have realized some things that have caused me to reconsider that approach.

Until I met Travis Pizel, you would have heard me say things like “avoid debt relief companies like the plague”, but have since realized that what method you choose should depend on what’s best for you. I generally try to base my opinions on a case-by-case basis. I think that’s a more realistic approach to anything.

Also, struggling with my own weight loss and physical fitness for the past 13 years, I’ve been stubborn about reaching out for help myself. I’ve recently decided to pay for counsel and advice from a certified health and weight loss coach. She is helping me build new habits and behaviors so that once I lose the weight, it’ll stay off, but she’s also working to keep me motivated and accountable.

For me, this decision was a hard one to make, but since making it I truly feel more in control of my eating habits and behaviors. I just needed a little guidance.

The big lesson for me in all of this is that even though it’s possible to do something on your own, it’s also possible that you might reach your goals a little faster with the help and expertise of someone trained and passionate in whatever you are struggling to accomplish. My 13 year struggle has really affected my confidence and caused me to wonder if my goals were even attainable. Obviously they are, and that’s precisely why I needed to seek help in this area. I need the rest of the puzzle pieces and my health and weight loss coach has them.

A Financial Advisor can help you complete your financial puzzle. Sometimes we need a push in the right direction. Whether it’s a little push or a big push, having outside help could be the difference between success and failure.

Over the years, as I have seriously struggled to lose weight and get in shape, I’ve had some success in losing weight but failed to keep it off each and every time. I have often wished that losing weight and keeping it off was as easy for me as getting out of debt and staying out of debt has been. It takes some of the same principles but one thing I’ve realized is that the difference for me lies in the fact that I don’t need debt — but I do need to eat. It’s easier to avoid something when you have completely forsaken it.

You can’t exactly do that with food.

So for me, outside help has been so beneficial. I’ve lost about 15 pounds so far but I truly feel like the best news comes from what I am learning about health and nutrition from my coach. A financial advisor serves the same purpose. He/she uses their personal knowledge and expertise to guide you in the right direction based on your specific goals. They help you make decisions about your money but they also help keep you on track.

“I am in debt and I can’t afford a Financial Advisor.”

It’s true, a financial advisor is not for everyone. My recommendation is that you get out of debt first before seeking the counsel of an advisor. There are the DIY programs like Dave Ramsey’s Total Money Makeover, and then there are places like CareOne Debt Relief Services for those that need a little guidance. There’s no wrong way as long as you are not being taken advantage of in the process.

After you’re debt free, a financial advisor could come in handy with things like how much to save and invest, tax and estate planning, budgeting, and the super important, planning for retirement. There are a lot of choices out there and the choices you make depend heavily on where you want to be and by when. An advisor can help bridge the gap between what you know and don’t know in any area of financial planning.

Please check out the video below. David John Marotta is a financial advisor here in Charlottesville, and a personal friend of mine. His site is Marotta on Money and he really enjoys helping people make the best decisions possible with their money.

Photo Credit / Video Credit