Keep Christmas gift costs under control

There’s no doubt we spend a lot of money at Christmas time. 

As a matter of fact, a quarter of all personal spending in the United States is done during the holiday season. As families grow, so does the gift list and our Christmas budget can get out of hand. But, there are ways to save and cut back on your gift giving without looking like a scrooge.

Remember, it’s the thought that counts.  Right? We should be celebrating the real meaning of the season. Well, that’s a hard sell at times to children but with creative planning coupled with imagination, your gifts will be appreciated and you can avoid going into holiday debt.

Celebrate Christmas all year long especially where buying gifts is concerned.  Make a gift list early in the year and when you do your everyday shopping you’re sure to stumble onto the perfect gift for someone on your list.

It may even be on sale or on special. Two for one clearance deals can double your shopping fun. Huge savings can be found right after Christmas so constantly be on the lookout. No last minute shopping for you.

Scan sales flyers and clip coupons.  You may already do this but this year keep gift giving in mind too.  Try to use coupons in combination with sale prices and save even more. Sign up for department stores newsletters online to keep on top of sales. Newsletters many times include special offers and discounts.

Shop the Internet.  Compare prices not only online but how they compare with and between local stores.  Usually, when you buy online you don’t pay sales tax and many times shipping is free. The gas savings is another plus.

Carpool with a friend when you’re going shopping. This not only saves fuel but you can exchange ideas on what to give and where to go. Make gift buying fun instead of a obligatory chore. Don’t forget to shop the Dollar Stores and the 99 Cent Stores, many times these stores have end of line stock, so you get the real thing but for much less than it would have sold for in a regular store. No one has to know what you spent on the gift.

Sheriff Woody has recently found a new home, from our house to another small Toy Story fan

Image by CatJB

Yard and garage sales are great places to find that perfect treasure for a fraction of the cost.  And often, items are new, in their original package and unopened.  But, the item doesn't have to be new. With a little clean up and fix up it can look new. Or, maybe you’ll be lucky enough to find an antique or one-of-a-kind item that just needs a coat of polish.

Regifting is a practice that’s gaining in popularity. Yes, many people do it and you can too. No need to keep that gift you received years ago in the closet gathering dust. Dust it off, gift wrap it, give it to someone who can use it and you save, as well as de-clutter.

If you have frequent flyer miles that are going to waste give them as a gift. Who wouldn't enjoy a free plane ride? Most mileage plans can also be traded for merchandise or even cash. Don’t let them expire even if you have to give them away.

Gift exchanges. Many large families...mine included....nowadays draw names to keep holiday expenses in line. Some only give gifts to the children or exchange cards. Of course, personal, obviously well thought out gifts are always most appreciated.

This is my little family a couple of Christmas' ago....

Image by CatJB

Enjoy the holiday season but stay within your budget.  

It will be a happier New Year if it starts debt free.  

Managing and paying off your debt - the nitty gritty

No one likes to live with a mountain of debt and  it feels so good once that mountain has been lifted off of your shoulders. Once you have no debt (not including a mortgage, as that is generally an asset creator, you will have much more money to put towards investments and future wealth creation projects.

Having some debt is often a given in our modern society - such as a mortgage or a car payment. You can actually pay cash for those things, too - but at the very least you want to minimize your revolving credit.

Figure Out Everything You Owe

The first step is to know where you stand. You don't want to just pay bills as they arrive in your mailbox, without knowing precisely how much you owe total - as well as a broken down amount.

You want to organize your debt. You can do it with a pen and paper or use a tool on your computer like Excel, where you can create a spreadsheet. You want to know several things about your debt:

* The current total amount due
* The available credit
* The minimum payment due
* The percentage rate you're being charged.

Add up everything - including credit cards, money you owe to family or friends, medical bills, tuition, etc. Don't let yourself guess at these numbers - either look at your current statement or better yet, call for a current balance in case you've charged more since the last one was mailed out.

Photo credit Morguefile

Make it a point to stop spending on your lines of credit that day. You want the arrow pointing down, not up in terms of what you owe to creditors and lenders. Pay cash for things from this point on.

You may also want to write out your current monthly bills that aren't based on revolving credit. This could include things such as:

* Electric bill
* Water bill
* Cable TV
* Internet Service
* Phone bill

Write down other monthly expenses, such as:

* Gas
* Groceries
* Haircuts
* Clothing

This helps you see what exactly where your money has to go each month. It might shock you to see it all laid out in front of you - especially if you're used to juggling bills and living paycheck to paycheck.

Decide How You Want to Pay Things Off

There are two lines of thought in approaching how you should pay off debt. Both are considered the snowball method. 

Snowball means you start small and end up on a roll, making bigger payments. 

The first method is widely approved by financial experts. It involves you going to that list of debt that you created and listing them in order of highest to lowest interest rate.

This means you pay off the card with the highest interest rate first, which saves you money in the long-run because you're no longer paying that high rate. This is sound advice, but there's another train of thought you might want to consider.

So for example, your list might look like this:

* Visa 29.99%
* Mastercard 23%
* American Express 15%

You can list your debt in order from smallest amount owed on your credit cards to largest amount owed. The idea here is that you'll find it very motivating to see a credit card paid off in full - and that frees up a minimum payment that you then apply to the next smallest credit card in your list.

Both ideas are good - only you can decide which approach would better suit you. If you want to cheer yourself on and celebrate each milestone, then option #2 might work better for you.

If finances are of utmost importance, then you might want the first option - because you can celebrate the money you're saving in interest. But pick a plan and then work it.

Create a Family Budget and Stick to It

Without a family budget, you won't make much progress in how you pay off your debt - no matter which option you choose. You know how dieting is all about calories in - calories out? You can find links to free budgeting software in this post.

Well, money is no different. You want to spend less than you earn. Just as you listed your debt so that you could see it all spelled out for you, you have to do the same with your family money.

Write down what you earn and what your spouse earns. Pool all sources, including child support or alimony if you're divorced. Add up the incoming monies and compare it to the debt that you have in regards to minimum payments.

You want to tally up everything - school fees or activities, birthday parties, Christmas, and fun things you do as a family. You might need to go back through past statements to see what you've spent on discretionary items.

You're going to want to start building up a bit of a buffer or an emergency fund. You don't want to make arrangements to spend every last cent - when something unexpected might pop up that you have to address.

If you realize that you have too many bills all piling up at one time of the month, you can contact your lenders and ask for a new due date or billing cycle. This can help if you and your spouse get paid twice monthly, or weekly rather than one monthly payment.

As you start to get debt paid off, it's important that you update your monthly budget to adjust for things you've paid off or paid down - or when you have more money coming in.

Figure Out How You Can Earn More and Spend Less

Photo credit Morguefile

First let's talk about cutting down on your expenses. When you're serious about debt reduction, you have to feel the belt tightening - or else you're not doing everything you can to get out of debt fast enough!

Here are some things you can do to cut costs and save more money that you can put towards old debt:

* Get rid of unnecessary expenditures. 

For example, do you really need the newspaper? Can you go online and read the news or watch it on TV instead? How about bottled water delivered to your doorstep - is it a luxury you can do without temporarily?

Do you have a landline and a cell phone bill? Would it be possible to get rid of your landline phone service and just go with a cell phone? If so, that's one less payment each month.

* Cut back on existing packages. 

Cable TV is a budget buster. You might spend hundreds of dollars getting tons of movie channels and special packages for sports and entertainment. Cut it out altogether or cut back to a basic plan. If you need to, invest in a Netflix account for much less than you would a cable TV package.

If you can bundle things to save money, do it. For example, you might have your phone, cable TV and Internet service all with different companies. You can save money by bundling it with one provider.

* Save on electricity and water.

Make sure you and everyone in your family) understands the importance of shutting off lights and conserving electricity for your monthly bills. Same with water usage - don't let the water run while brushing your teeth, and don't do small loads of dishes and laundry - wait until you have a full load. More water saving tips in this post, and electricity saving tips in this one.

* Quit eating out.

Eating out at restaurants doesn't help you stick to a budget. It might help you save time, stopping for fast food, but it can wreak havoc on your pocketbook and monthly budget.

* See who is charging you more.

If you have credit cards that are charging you annual fees, you can request that those be waived. Otherwise, you might want to shop elsewhere for a different line of credit with no fee.

You also want to check things like your bank accounts to see if they're charging you a monthly fee for using their service. There are some banks that will do away with this charge to keep you as a customer.

* Make a meal plan.

People who shop without a list tend to spend more than people who make a weekly meal plan and budget for their families. Shop based on whatever coupons your local store is offering in the weekly paper.

Make sure you pack lunches instead of eating out at work. As Dave Ramsey says, you can live on beans and rice while you're paying off your debt if you're serious about it.

* Look for cheaper forms of entertainment.

Don't have an official date night out every weekend where you're shelling out for an expensive dinner and a movie. Instead, invite other couples over and have game night at your house with snacks and wine.

Once you have seen how you can spend less, look at how you can earn more. Whether you get a second job, host garage sales, sign up for programs where you host parties and earn money, or make money working from home online - you can put all that extra dough toward your old debt.

Once You Get Out of Debt, Stay There!

The most important thing to remember is that once you start digging your way out of debt, you don't want to  fall back into the old trap a second time (or third of fourth). Some people find spending is a hard habit to break.

When you pay off your debt, you might find it hard to see all of that available credit but resist the urge to charge your cards up again. Get rid of any unnecessary credit and store cards. Close those accounts.

Using cash for purchases can often save you money - not just in the absence of interest charges - but because retailers will sometimes give you a discount when you pay cash.

Save up an emergency fund that covers at least 3 months' worth of your necessary payments. That way, you're covered in case you have an issue that lasts longer than a few days off work - or an emergency pops up that you weren't prepared for.

More food savings.....all about coupons

It’s odd these days to see a working family that’s not on a food budget.

Image by CatJB

The main family shopper is always searching for ways to cut back on the amount of money spent on food. But we still want to feed our families decent foods. One way to do this is by using coupons.

But are there coupons for 'healthy' foods? Yes, there are, though not always as many as there are for the more processed types of foods. Be selective and look for coupons that suit your way of eating.

At a conservative estimate, there are millions of coupons circulating every day that could cut your food budget by 30 to 50% - even more if you’re willing to turn couponing into a passion. Although this does depend somewhat on where you live, coupons are not all that common in Australia for example.

But even the casual coupon clipper can become quite successful overnight and with more work and dedication become a super saver shopper. You need to learn patience, flexibility and perhaps to give up your favorite brand, but it can be done and you can save a lot of money.

Remember, coupons are designed to sell a certain product and get you in the store, but if the item is not one you need and use, then you are  NOT saving money by buying it, even at it's reduced price.

Food coupons can be found in many places. The Sunday newspaper is usually the best source but also look on line, at public libraries and check flyers that come in the mail. Some stores issue coupons at checkout for use on your next trip. Be sure and note expiration dates and if a cash value is offered. Don’t let them expire and go to waste.

Organize yourself before you shop. A binder can be a great way of keeping your clipped coupons in order. Or try keeping them sorted by food type in an easy to search through container and match coupons with needs on your grocery list. Some coupons may have mail in rebates. Look out for this and be sure to follow up.

This coupon binder system has everything you need for super saver couponing.

Coupon Binder available on Amazon.

Sign up for a store loyalty card if one is offered, these usually offer coupons plus bonus points that are cumulative each time you shop. Using a store’s own credit card can lead to double points and free item coupons. Check your receipt for any offers that may be on it and check the back too.

When you combine regular coupons with sale prices, you’re becoming a super saver.  If a coupon item is not on sale and it’s not something you need urgently, try to wait until it’s on sale.Always be on the lookout for sale and two-for-one deals.

Compare advertisements. It may pay you to drive to more than one store if it’s an item you need, have a coupon and it’s not available anywhere else. But, before you burn up extra gas, ask if the store honors its competitor’s coupons.  Many will do this just to keep you in the store. You can call ahead to save a trip or check out their policy over the web.

Don’t be sucked into the 2 for a dollar marketing ploy, unless it’s to your advantage with a coupon. If you need two of the item go ahead and buy them; but you can save by buying only one if that’s what you actually need. For example, the sign may read: 15 limes for a dollar.  Unless you’re a big lime user, some could go bad before you use them.

There was a time when some shoppers felt using coupons was not appreciated by the grocer and hesitated to use them. Occasionally, this will still be the case, you may come across a new employee at the store who is unfamiliar with coupons and needs to call management for help, creating delays for other customers.

But in general, it’s a faster and easier method now with computers. Some of these strategies may not be right for you. It takes practice and patience, trial and error.

If stretching your food dollar is your goal, make the most of using coupons.

20 tips to save money on your water bill.

Saving money on your water bill - twenty tips

Water charges can build up quickly and go unnoticed, until suddenly you're presented with a  water bill that makes you gasp.

We had a $500 water bill one quarter, it was about 3 times as high as usual. I pinpointed the increase to the drip hoses I'd been using on the garden. Oops.

1. Check for water leaks, inside the house and out. Hoses, leaking shower pipes....

2. Install timers on watering systems.

3. Replace dripping tap washers inside the house and out.

4. Turn the tap off when brushing your teeth.

5. Install a dual flush toilet.

6. If it's brown, flush it down.....you've heard that one right? Flushing the toilet uses a lot of water.

7. Install a displacement device in the cistern (tank) of single flush toilets, as it can save you water every flush. You can do this by removing the lid of your cistern and placing a large sealed plastic bottle filled with pebbles and water inside in a way that won’t interfere with the flushing mechanism.

8. Put a timer in the shower and take five minute showers.

 9. Only run the dishwasher when it's full.

10. Install a water efficient washing machine.

11. Adjust the level of water in your washing machine to suit the size of load you are washing.

12. Collect rain water, this can be used for gardening or included in a grey water system. Install a rain barrel or a water tank.

13. Place a bucket on the floor of the shower while you shower and use the water collected on the garden.

14. Instead of spraying the kids with the running hose in summer, give them small spray bottles full of water and let them spray each other. Much less water is used this way.

15. Install a water efficient shower head, and make sure it doesn't drip.

16. Use water bottles for the family, instead of everyone grabbing a glass of water when they're thirsty. This means less water wasted (as people tend to over-fill a glass and tip out the remainder) and less dishes to wash.

17. Don't bathe your kids every day if they don't need it.

18. Place pet's drinking bowls out of the sun, to reduce evaporation.

19. Use mulch on your garden to reduce water loss.

20. When washing veggies in the kitchen, put the plug in or put some water into a bowl for washing the, don't let the tap run.

There ya go, twenty water saving tips that will save you money. 

How many of these are you doing already?

20 tips to save money on your electricity bill

20 electricity saving tips for your home

1. Keep your appliances clean and well maintained. Vacuum the coils of the fridge. Clean the filters on your wall heater. Clean the filters in your dishwasher. Keep an eye on build-up in your washing machine and dishwasher. Vacuum out your computer, it attracts dust which makes the fan work much harder.

2. Have appliances such as heaters and air conditioners checked out annually by a qualified service technician. This can reduce the appliance’s operating costs by as much as 20%, extend the life of the system, and improve its safety and air quality.

3. When using air conditioners, it is best to establish your comfort temperature, and then set your thermostat at that level permanently. This will definitely save on electric bills because the air conditioning unit takes less energy to cool air four to five degrees than it does to cool air eight to ten degrees.

4. Keep your deep freezer full. Fill empty bottles with water and use them to fill space in your freezer, you freezer is more efficient because objects hold the cold, whereas air needs to be constantly cooled down.

5. If you experience a power outage, keep your fridge and freezer closed as much as possible to conserve the cold air inside so your food does not spoil.

6. In refrigerators, do not over stuff compartments with bottles and plastic containers. Cool air must circulate freely to avoid overworking the condenser. Don't have your fridge set to such a low temperature that it freezes your food.

7. Hang dry your washing. Electric dryers use huge amounts of power. If you have central heating vents, you can hang your washing on a rack and place the rack over or under a vent.

8. Always use energy saving lights or light bulbs. These energy saving lights or light bulbs usually last up to 12 times longer. Plus, energy saving light bulbs consume less energy.

9. In winter, set your heating a little lower and put a sweater on.

10. Turn off lights and appliances when not in use. This one is a no-brainer. Why would you leave something turned on when nobody is using it?

11. Install lined curtains and draw them in the evening to keep the heat in. Or during a hot day, to keep the heat out.

12. Don't heat or cool rooms you are not using.

13. Turn heating off, or lower, at night.

14. Block drafts coming in under doors with a rolled up towel.

15.  Insulate your hot water heater, wrap it up to keep the heat in it.

16. Consider installing double glazed windows. They keep the heat out in summer and the heat in, in winter.

17. Turn appliances off at the wall. TVs and computers still draw decent amounts of power when in standby mode.

18. When using your oven, cook several things at once, or one after another. This saves your oven using energy to heat up from cold multiple times.

19. On a cold day when you've finished using the oven, leave the oven door ope so the residual heat can help heat the house.

20. Instead of leaving outdoor security lights on all night, install a sensor, so they only light up if they detect movement.

There they are, twenty electricity saving tips, see how many you can initiate today.

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Tips on saving money on your car

We all know prices seem to go higher every year, especially the cost of gas. Car expenses are one big factor in most households that stretches the budget, sometimes to breaking point. Here are some guidelines to help you save money on your transportation:

1. To keep your car on the road, you should check your vehicle regularly. A well-maintained vehicle will hopefully cost you less in repairs. Do the simple maintenance yourself, things like oil changes, new windscreen wipers, rotating tires, changing bulbs in light fittings. Look up your make and model of car on the internet and find out how to do these things.

2. Do not to buy a new car. The value of a car depreciates automatically when you drive it out off the showroom of the car dealer shop. You want someone else to cop that depreciation, not you. Buy a new-to-you car, at least 1 or 2 years old. Get the car checked over though so you know you're not buying a lemon. The internet is your friend here: look up the make and model and see what other people are saying about it.

3. Compare the prices of buying a car from a dealer, to buying the car from a private owner. A car from a dealer may be a bit more expensive but you may be able to get extra warranties.

4. Compare gasoline rates. Find out who has the cheapest gas on what days. Is it cheaper to fill up before  a long weekend? Use reward cards through various stores and credit companies to get cheaper gas. Check the gas cap is tightened to ensure no gas can spill out.

5. Always keep your engine tuned-up and have your tires inflated to their correct pressure to save you more money. A well-maintained engine consumes less gas. Heavy loads in your vehicle can cause your car to use more fuel because of the excess weight, so empty the trunk.

6.     Drive smoothly. Heavy braking and fast acceleration use more gas.

7.     Limit the use of your car on a day to day basis. Walk or take the bus or the subway to save gasoline. If you know you need to pay for parking once you get there, see if you can carpool with others who are going to the same venue as yourself. Combine your errands so you can do all or most of them in one trip.

Another 'saving money on and for school fees' ideas post

How to save money for tuition fees

As soon as a child is born, many parents think about setting up some sort of savings for their children’s college education.

With tuition fees always on the increase, it is better to have a sound financial plan in place from the earliest days, so the thought of sending your kids off to college when they grow up doesn't make you turn pale at the thought.

Aside from any cash that you have saved up yourself, here are the top 3 sources that can help you get your kids through college:

1. Savings
2. Scholarship grants and financial aid
4. Part-time jobs 

These are good avenues for you and your children to investigate before they start on their college education.

Here are some ways to make a start:

1. Earlier is better. Start putting some money away weekly or monthly as soon as your child is born. 

First, put the savings or investments under your name. This is for tax reasons.
Later on, decide whether you want to transfer the account to your child’s name for them to use as they see fit, or keep control of the account yourself and pay the fees and expenses from it yourself.
There may be tax implications and this may also affect any applications for financial aid, so get some advice from an accountant or tax agent.


2. Scholarship grants and financial aid

Contact the schools your child is applying to, to ask if they have any financial aid programs available. While your child is still at high school, talk to the school counselor about what types of financial aid are available for someone in your situation.
Look into scholarships that pay money to students that excel in certain areas.Look into welfare groups that may provide financial help or help paying for books and equipment. Does your child excel at a certain sport? Sports scholarships are a coveted way of funding college, take advantage of one if you can.


3. Part time work

Encourage your child to find themselves a part time job. This sets them up with good work habits and gives them some responsibility. Help them to find a job that does not take up their every waking moment though and try to ensure they are not being taken advantage of by their employer.

Student loans should be a last resort. 

These can be a huge millstone round the neck of a young person once they enter the workforce and are trying to pay it back, often while supporting a young family and paying rent or a mortgage. Use student loans only if there is no other way to fund college.

Saving money on your utility bills

Keeping utility costs under control

Utilities expenses such as electricity  gas, and water contribute a large amount to your household bills. But there are some ways to save money on your utility bills, here are a few tips to get you started:

1. Identify which appliances are using the most electricity in your household. You could possibly save hundreds of dollars a year by getting involved in a home management load program that offers a 100 dollar savings in one year on electric utility hour rate programs. This will certainly help you lower your electricity costs and will teach you a bit about home energy conservation.

2. Look into improved appliance efficiency. Heating systems and appliances are often the ones that use a lot of electricity. The water heater often uses up a lot of energy as well. You can cover the water heater to insulate it or consider changing it to an on-demand system, where water is heated only as you need it. The refrigerator can be another power sucker, make sure you give your refrigerator coils a cleaning at least twice a year as well. Be sure to get these appliances checked regularly to ensure they're running efficiently. A well-maintained appliance will last longer and run better.

3. Remember to give your furnace a tune up at least twice a year. You may also want to set a timer for the heater to have a regular flow of electricity whenever it is in use. Call your utility service to check if there is a lower rate offered during any specific time of the day. In summer, hang dry your washing, try to keep the dryer for really rainy days only.

4. Try lowering your heating bills. Set your thermostat a few degrees lower and throw on a jumper or pull-over instead.. You can even save more by shutting off the heating while you're at work turn right down at night when the family are asleep. This will help you conserve electricity and save more money.

5. Keep close tabs on long distance telephone calls to lower your telephone bills. Install a voip phone...voice over internet...then you will only pay a few cents per call. Use skype to keep in touch with relatives far away. Check how many free minutes you have on your mobile phone, use those instead. Ask yourself if you really need a land-line phone at all.

6. Lower your water bills in order to save money. Check if there are leaks, inside the house or out. Install  a water saving shower head. If you have any dripping taps, install new washers to stop the dripping. Check for leaks in hoses and outdoor watering systems. Make sure your toilet has a duel flush system installed.  Set up a water tank or even just a rain barrel to catch rain water from the roof, this can be used in the laundry or on the garden.

7.     Turn off appliances at the wall will save electricity. Shut your computer down all the way at night and turn it off at the wall. Any appliance that shows a glowing light when it is off, is still drawing power.

Have good look around your house and garage to make sure there is nothing that may be drawing power or using water undetected.

Keeping back-to-school costs under control

Cutting cost with the kids' schooling

Whenever the school season is just around the corner, there's only one thing that parents are thinking about - the impending costs. Education is something we all need of course but it can become very costly, especially if you have more than one child in school. Applying for scholarships and education grants for your children one way to get them through schooling, but not many people will be able to successfully take that path.

There are a few simple and effective measures that parents can think about in regards to keeping the costs down when it comes to school, especially during the back-to-school season.

Be organized
Keep an inventory of your children's school supplies and keep it organized. Keep a record of what items the school asks you to supply at the beginning of the school year and at the start of each term. Make lists. If you come across a good back-to-school sale on those items, stock up.

Tax holidays
Tax holidays are often offered by many states during the back-to-school season. Price ceilings will be put on different school items. You might want to do a little research and ask about the schedule and the details of the tax holidays in your area.

Buying school supplies in bulk
You may find it's cheaper to buy school supplies in bulk, so if you're buying pencils, for example, you might want to buy a box rather than buying one for each of your kids. Or buy a carton of ten boxes of pencils, if you know each child will be asked to bring a whole box to school. Teachers are not given much in the way of funds to purchase these supplies for the classroom, so notices will often be sent home requesting children bring these items to school.

Transport
Is there a school bus? Can you create a carpool? Are you close enough for your children to walk or ride to school? Can you drop the kids to school while you or your husband are on the way to wherever you're going for the day so you're not making a special trip? Can you take turns driving the kids with a friend and take their kids too? Is there an older person or university student you know who is willing to walk kids to school? They could take a group of kids who all go to the same school and they could be paid a little by each family.

Snacks
If you're packing a school lunch, include food you know your kids will eat at school. Don't give them individually packaged servings of cheese, crackers, chips, cookies or pre-packaged fruit....buy a large pack and divide them into smaller serves yourself. Give them fresh fruit.

Uniforms
If your child's school has a uniform code, find out if the school sells secondhand uniform items. And you may find some of the local chain stores sell clothing items in the correct colors and styles for your child's school, it may just be a case of purchasing the school logo to iron onto the pocket. Ask at the school office if this is an option. Can you get hand-me-down uniform items from a friend who's child has grown out of them? Sometimes school uniform items, particularly for high school, are offered on freecycle.

Getting your children through the school years without bankrupting the household can be a challenging task.

Do your best though, starting with the above list...!

Paring down the grocery budget

Saving money on food costs

Thinking of trying to downsize your food expenses? Then you should read the following tips. They will give you some starting ideas on how to go about it reducing your grocery bill. This is not an exhaustive list, but somewhere to begin.

Do you drink coffee?
It can be a good idea to re-use your coffee grounds one more time. Using coffee grounds two times will not greatly affect the taste of the coffee and try to do this using a filter permanent or re-usable filter system. Keep the grounds refrigerated until you need them the next time. (If you're not a purist, use regular dried coffee, it's cheaper!)

Or tea?
Loose leaf tea will usually give you more bang for your buck than tea bags. Use a simple stainless steel strainer with your loose leaf tea.

Bread at a good price
Grocery stores will often sell bread that was made the day before at a reduced price. This bread is still fine to eat and if you freeze it, you can just thaw out however many slices you want at a time. Day old bread makes good toast and toasted sandwiches. If you have a lot of space in your freezer, consider buying a few reduced loaves at a time to freeze.

In the grocery store
- Make a list before you go and stick to it. Prioritize basic goods and avoid buying extras.
- Check out the prices on the displays at the end of the aisles.
- Remember, branded products cost considerably more than store brands.
- Check the price per unit, or per weight when comparing products.
- Look for reduced items. If you find a good sale on an item you use, stock up, especially if you can freeze items that are close to their use-by date.
- Check your receipt. Make sure what you paid is what is advertised on the shelf price. If you have been over-charged, go back and tell them, sometimes this results in getting the item free.
- Eat before you grocery shop, so you're not tempted by your hungry stomach.
- Use coupons if they apply to the items you normally buy.

Things you may not know you can freeze
Cheese, butter, milk, yoghurt (it thaws out a bit runnier though...good for smoothies), meat of course, deli meats such as ham and salami, juice, bread, bread rolls, croissants, pocket breads and fresh produce of all types.

Buy in bulk
Often it is cheaper to buy a large container or bag of a product, then divide it up into smaller serves. Don't buy pre-grated cheese or pre-sliced baby carrots, it is easy enough to do this yourself and will cost you less if you do. Keep your eyes open for 'buy two, get one free' deals.

Pack a lunch
If you regularly are out of the house for lunch, consider packing a lunch to bring with you. It will generally be healthier and cheaper than purchasing lunch every day. If you're out with the kids, bring snacks and drink bottles so you don't need to stop and buy snacks when little people are hungry.

Bring a drink
Always bring a drink bottle with water in it wherever you go. Or keep a stainless steel water bottle in the car (s/steel won't taint the taste of the water if left in the car for a while.) If you forget a drink, just wait till you get home. It's ok to be thirsty for an hour or so while you shop

Eating cheaply does not necessarily mean eating poor quality food. Look around and you might be surprised at the options there are to choose from. Take time to consider your choices so that not only will you save money, but you and the family will be eating healthily as well.

Patience and saving money

Saving yourself money by being patient  

Patience is a virtue, we've all heard that one. 

Not everyone has lots it and we all get ours tested from time to time but did you know that by exercising your patience, you could save yourself money at the same time?  Read on...

Have the patience to walk instead of drive.  It saves you gas, parking and the stresses of driving. Walking improves your health and is better for the environment. If it's at all practical, give yourself some extra time to walk to your destination.

Be patient when purchasing. Price compare before you buy. From clothing to health club memberships, from plumbing services to insurance plans, from car accessories to a new home; compare the offers of 3 to 5 suppliers or providers before carefully choosing the best one.  Let them know that you are taking the time to search the market and they may just be able to offer you the best savings. Truly, the patient consumer is a winner!

Use coupons if they are available. Using coupons is an exercise in patience. Clip them, sort them, compare them, remember to bring them with you. Having the patience to do this may well bring you sizable savings.

Track your expenses. Huge amounts of patience are required here, as we all know it's not much fun keeping track of every last penny. Keep your receipts and records, no matter how small or how frequently they occur.

Visit the library. Have the patience to reserve any books you are desperate to read, instead of purchasing them. Definite money saving there. 

Buy over the internet. Yes, you will need patience until the postman arrives with your parcel, there is no instant gratification by buying online. Yet by exercising patience in this area, you will often find you've saved money by getting a better deal than buying in a store.

Saving your money. Place your 'spare' money in a high interest savings account and patiently watch it grow. Compounding interest is a wonderful thing!

Start giving your patience a work out today!

Have control over your money

Being in control so you can save money.

Self-control is a virtue. Or is it Patience is a virtue? I think it's patience but we'll go with self-control.

Learning self-control over money
Learning self control when it comes to money can be a painful lesson for some. But learning it will prove to be very significant in achieving your financial freedom. Possessing a sense of self-control will help you to resist the terrible "itch" to spend money the moment you are in possession of it.

This is a problem for many people. When money is available, they spend it. Impulse spending, as we discussed previously, is the downfall of budgets, relationships and savings. People fail to think of the future and indulge of the instant, yet, fleeting pleasure, of obtaining something new.



Your financial success starts with a conscious effort to find out where your money is going....lists of expenses, then allocation of your money.......the budget., and using self control to curb impulse spending.

How do we learn self control over money?
How do we learn self-control when it comes to money? Many of us have no role models for this, our parents may have relied on credit to provide many of the things we enjoyed as children. We can obtain easy credit at a young age, with no knowledge of how to manage it. We are told 'you deserve the best' and of course, the best cots money.  .

Here are a few quick tips to help you exercise your self control when it comes to impulsive buying and saving your money.

1.  Do not purchase items on impulse.  We went over this in the last post, but it so important, so it goes here too. Consider every purchase carefully.

2.  Identify your needs from your wants.  This was discussed in the last post too, but belongs here also.

3.   Make savings a goal. Pay money into your savings as soon as you get it.

4.  Do not shop when you are hungry or stressed.

5.  Leave the credit cards at home.

6.  Find a financial role model. 

7.  Join an online group of thrifty, like-minded people, to discuss ideas. Try a forum.

7. Pay bills on time. If this is not possible, contact the company to arrange a payment plan. Once your bills are paid, you will have clearer idea of what money is left over.

Ah self-control. 

Many people bemoan a lack of it, but by exercising yours, you can make it stronger and it will serve you well in your quest for financial freedom.

Are you buying on impulse?

Identify impulse spending

Many of us get into the habit of want it - buy it. Or, see it - buy it. 

And this is one of the deadly sins when it comes to saving your hard earned money.

Have a look at these questions and ask yourself:

1.) Does your spouse or partner complain about the amount of money you spend?

2.) Are you surprised each month when your credit card bill arrives at how the bill is, compared to what you thought it would be?

3.) Do you have a lot more shoes and clothes in your closet than you really need?

4.) Do you own every new gadget that comes onto the market, hot off the manufacturers shelves?

5.) Do you buy things you didn't know you wanted until you saw them on display in a store?


If you answered “yes” to any two of the above questions, you can class yourself as an impulse spender.

This is not a good thing.

Well, it doesn't take a genius to see that, but the problem of impulse spending......

 - Will prevent you from saving for important things like a house, a reliable car, education or retirement.

- Impulse spending will often cause you to take on consumer debt (credit card debt) that can cost you a lot of money via interest payments in the long run.

- Impulse spending will not only put a strain on your finances but may strain your relationships, as well. Many relationships break up or otherwise come to grief over finances.

- Impulse spending can lead to clutter in our homes, which in turn can place stress on the family members who live amidst the clutter and chaos.


How do I stop spending money?

To overcome the problem, the first thing to do is learn to identify your wants from your true needs.

Needs - food, clothing, housing, electricity, water. Many people would list a car and internet access in this category as well.

Wants - high end clothing, electronic gadgets, fancy kitchenware and appliances, a new car, the latest mobile phone.

Of course there are many more things that can listed in these categories, and there will be some exceptions as well, depending on your exact circumstances. Make a list of your own and see if you can identify wants vs needs.


Create a savings goal. 
Once you have your budget in place and know how much (if any) spare money there should be, assign some of that money to a savings account and pay it into that account as soon as you have it. This leaves less for impulse buying.

Identify your shopping triggers
Take notice of those times when you're sorely tempted to shop, when you don't actually need something. Are you bored? Lonely? Stressed? What is it that puts you in impulse spending mode?

Cancel credit cards
If you have no credit card and work on a cash only system, it is a lot harder to impulse spend. If you need a credit card, give the actual card to your nearest and dearest unless you need the card to purchase a need.

Shop with a list
Make a list, bring enough money with you for what is on the list and stick to it religiously.

Shop vicariously
Some people report they can appease their impulse spending tendencies by browsing online.
Make a wish-list at Amazon.
Folks will even go so far as to put items in their online 'cart', but not actually purchase anything.

It is difficult, but resist trying to 'keep up with the Joneses'. The Joneses may well be up to their eyeballs in consumer debt, and you don't want to 'keep up' with that.

If you see something you think you really need, that is not on your needs list, don't buy it right away. 

Go home, think about it, talk about it with your partner. 

Research the product and where to get the best price. 

Then if, after a week, you still need/want it, have decided it will enhance your life, and you can purchase it without going into debt, do so.

That is not impulse spending, that is a well considered purchase.

If you can do this for all your wants, you will have successfully overcome impulse spending.

I need help making a budget!

Well, lucky for you there are many free, online budgeting websites.

Budgetpulse.com  is one, it has a free video to view and is free to sign up and use. This site has a very helpful FAQs section if you can't figure something out.

Mevelopes  is free online envelope budgeting. This one has an iphone and ipad app available too.

Mint.com is another very good freebie, also with apps available so you can get really organised.

BudgetSimple is one, it is free initially to sign up and use, though you do need to create an account to use it. Once you're in though, it funnels you to a page to try their paid version. You can try out the paid version for about $4 for your first month though, so this may be worth doing to see if this is for you.

Take a look at a couple of these are see if they suit your needs. Ones with down-loadable apps would be perfect, but take care that you're not just setting yourself up for another monthly expense that will drain your funds.

Aim to never get another one of these:

You need a budget because.....

Why do I need to make a Budget?

You think you know where your money goes and you don’t need it all written down to keep up with it, right? Well, if there is nothing left over at the end of the week, or you just don't think you spend that much but there's nothing left, try this:

Keep track of every penny you spend for one month. Every penny.

You might shocked at what all the little purchases add up to. Now, take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year, or by 52 for weeks, if it's something you buy weekly (Starbucks maybe?) and see what it adds up to.

Eek! Did you get a fright? That, right there, is the very reason all of us need a budget.

If we can get control of the small expenses and plug the small money-leaking gaps, we have a much better chance of getting to that end result of financial freedom.

Little things really do count. Imagine you spend $5 every day on lunch. That comes to $1300 a year. Just on lunch! Now, obviously there would be a few weeks when you're not at work, public holidays, annual leave etc, but you get the idea. So if you change that to buying once a week instead, and packing your lunch the other days, you are only spending $260 for the year. That's a saving of $1040. That's huge! Put that towards your credit card debt or emergency fund, every bit helps.

See what I mean… it really IS the little things and you still get lunch every day AND that was only one little change in your daily routine. And you will find other places to cut expenses once your budget us in place.

So, get tracking those expenses. For one month, write down everything. Every small bit of change, every coffee or take-out meal, every stop at the thrift shop, every bill you pay, every time you fill up the car or bribe the kids with a soft serve cone (guilty over here!).

Once you have that information, you will be able to make a much more precise budget and get a good picture of where your money is going every month.

Take charge of your money - find out where it's going

Being in charge of your money: TIPS ON BUDGETING 

With prices of commodities increasing day by day it is a very good idea to make your very own budget,

making sure that every penny you or your spouse earn is accounted for.

Make a start on coordinating your income and expenditures, this is cruicial to financial freedom and security.

Your out-goings (expenses) should ideally be less than your incomings (income).

Once you have written your budget, you may well find that this is not the case. It is now up to you to manage

your income in a way that allows for all expenses to be paid, and the remainder put towards paying down debt, or paying into your emergency fund.

If both of these are covered, put the remainder into your savings account.

Your source of income, lifestyle, spending habits, current job and house location, cost of living, payables and loans will  determine your budget. Starting to take charge of your finances is one sure way of feeling like your are taking charge of your life and on the road to success.

The following tips and recommendations will provide you with details on how you can begin to take charge of your money with a budget.

A budget will help your manage your finances and and perhaps assume a new outlook

which will help you become responsible for your spending.

Ø Grab a pocket calculator or just a pen and paper – Do the numbers on your purchasing needs. Compare prices across

your current location for the grocery and household items you need on a day-to-day basis.

Ø Save as much as you can on any big ticket item you are trying to buy.

Do your research and compare prices. Particular stores will price match an opposing store's price, use this to your advantage.

Ø 'Aim to spend less than you earn' – This is a fundamental priciple of financial freedom.

There is truth to the phrase that you cannot live in a world where you consume more than what you can produce.

Ø Determine your wants and needs – Limit your spending on wants, things which you are not in dire need of.

According to a recent study, luxuries are second only to gambling in terms of the detrimental impact they have on our of money.

Ø Keep a list – When you are out and about, write down any little purchases you make and be sure to keep receipts.

This will help you to see where your money may be dripping away to.

A wise consumer needs to consider the amount of any item they purchase and how will it impact his or her life. Do you have one already? Do you really need the latest and greatest? Can you make do with what you have and put the money you save towards your debt or emergency fund?

Sacrifice in the short term is well worth the ultimate goal of freedom from debt, freedom from worry about money......financial freedom.

Why do I need an emergency fund?

What is an emergency fund?

Emergency funds could be considered a necessity as far as financial security is concerned, since it gives you a back-up for if or when an emergency arises. The burden of paying sudden huge medical or dental bills, or an unexpected home or major car repair can you leave you in a financial hole that it's difficult to climb out of.

When you have no emergency fund, you may have to resort to adding more debt on to your credit card that can take several years to repay, all the while increasing because of the interest charges. Loan sharks and pay day loans are something else to avoid if you can.

So, by putting an extra thirty to fifty dollars or really, just however much you can spare every month, in an individual 'emergency savings account' you can rest a little bit easier knowing that your immediate bills will be covered in the event of a  job loss. An emergency fund will give you some breathing room and some room to negotiate in regards to sudden medical bills. Treat your emergency fund as another bill if you can, pay into it each month so it builds up to a reasonable amount as quickly as possible.

Your emergency fund will ideally be enough to cover three months worth of expenses. Think about weekly and monthly bills, the mortgage, insurance, gas for the car, groceries, the kids schooling. The goal is to create savings from budgeting your income, that give you a financial cushion when times get tight. What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.

Your emergency fund is not an investment or your savings though, once you have saved up three months worth of expenses, open another account for long term savings. Again, if you can, pay into this every month. The success of your long term saving depends on placing whatever amount of money you can away constantly and steadily so your money is working for you at all times.

Where will the money for your emergency fund and savings come from if there's nothing leftover at the end of the week? You need a budget.
Budgeting is examining your weekly or monthly expenditure and putting aside money for anticipated and unanticipated future use. Within your budget you set can  up a goal to save a certain amount each pay day. Set saving for the emergency fund as your first goal.

When you realize where your money is being spent, then it will be easier to choose and make a decision where to trim down expenses. What you may notice when you start accounting for every penny is that it is very easy to just 'fritter' your money away. A coffee here, take-out on Friday, an ice-cream at the drive-thru.

The amount saved from budgeting can either go to your savings goal, emergency fund or both. Perhaps you already have debt that you're paying down. You may need to adjust your budget to continuing paying down your debt as well as paying into your emergency fund. While it's nice to have savings also, make debt and your emergency fund your priority.

So a budget will be an essential part of your plan for financial freedom, and a good way to make a start on it is to write down every little tiny thing that you spend money on.


More on budgeting to come.

Living a frugal lifestyle

Live within your means

The word “frugality” seems to have more negative connotations for most people than simply being a saver, a cheapskate or tightwad. There is a thin line between being thrifty and careful with your money, and being too much of a tightwad, to the point of being awkward and ridiculous. This is where the negative connotation comes from.

But if you are guided with the right principles and reasons in deciding to live a frugal life, you will never go wrong. A frugal life is often in line when environmentally sound principles, so you win on two fronts.

If you have decided to live frugally, do not be concerned of what other people may think. Keep your focus on the end goal....financial freedom. Besides, most people won't know you live a 'frugal' lifestyle, there's no need to actually advertise the fact.

Get started with these basic tips:

1. Create a budget so you know where every cent of your money is going

2. Save for an emergency fund. Try to save up three months worth of expenses and keep it in a high interest bearing account.

3. Your own home - If you are planning on buying soon, do not be overwhelmed by the excitement and possibilities, instead be practical. Buy a smaller, cheaper house than you can afford, leaving you a surplus of funds to plough back into your mortgage or renovate your pride and joy with.Try other ways like rent-to-own, do-it-yourself arrangements, and owner financing. A mortgagee sale or foreclosure can be a good place to buy a reasonably priced home.

4. Buying a car - Stay away from sports cars and even SUVs if you can. Vehicles that are 'special' or modified will cost you more to run and more in insurance costs. Think what you need a car for, and buy accordingly. If buying from a dealer, ask about warranties. Buy a new-to-you car, rather than a new car.
Avoid financing a car if at all possible.

5. Shopping for groceries - Try store brand items. Check out fresh items that are marked down for quick sale and freeze them. Shop during sales or use coupons. Eat fruit and veggies that are in season and check out farmer's markets and farm gate sales in your area.

6. Family outings - There are inexpensive ways to entertain your family: libraries, local parks and play grounds, skate parks, picnics, visit with a parents group and local church. Your local pool or beach. Look out for discounts to things like the zoo or aquarium. Museums are often free.

7. Buying School Supplies - Stock school supplies at home by buying them at the end of the school year when they are being discounted.

8.  Eating Out - Having take-out on a Friday night is fine if you do it once in a while. But this can be expensive if you're doing it once a week or more.

9. Clothing - Naturally, if you are the kind of person who adores signature and designer clothes, don't expect that there to be much left of your take home pay. Instead, wear clothes that can easily be matched with your other clothes. Shop for signature pieces in thrift stores, where you may find good brands for mere pennies.

10.  Turn off lights and appliances that are not in current use. Shut your computer all the way off overnight.

These are just a few things to think about and implement at the start of your frugal journey. Keep the end goal of paying down debt and financial freedom in the front of your mind.