Source:401kcalculator

I’m participating in the Ultimate Blog Swap. You’ll find me posting over at For the Mommas about An Easy Way to Save for Irregular Expenses, and I’m excited to welcome Phoebe from Getting Freedom to Life Your Way:

Staying in control of your finances can be really hard, especially when you’re not prepared for the everyday. We’ve made countless monthly cash flow plans. Some we’ve used with great success, while others failed from the get go.
The failures all have one thing in common–we failed to plan for any future expenses. Major budget fail!

Home Repairs

Even if you live in a new home, home repairs are bound to happen. They could be as small as repairing a hot water heater to repairing your roof. Something small can really throw off your cash flow plan if you’ve not allowed for them. Our goal is to have the amount of our home insurance deductible in it’s own savings account.

If you are a renter with the goal of owning your own home, instead of saving for repairs that are covered by your landlord, why not put back money for your future down payment?

Car Repairs/Purchase

Think oil changes, flat tires, windshield repairs.

I don’t know about you, but even with new vehicles it seems car repairs are never ending. If you find yourself drowning in them it might be time for you to start putting money in a separate savings account so you can buy a new vehicle for cash.

Clothing Purchases/Haircuts

The money we spend on clothing and haircuts is often overlooked since it isn’t a regular expense. But that doesn’t mean it isn’t a real expense! When I’ve not set aside money for clothing and haircuts, I find that I rob another budget category instead. Not only am I not being honest with myself, but I end up having no idea what I end up spending and in the process I mess up another category. Which will inevitably end up in failure. Either a total budget fail, or debt. Neither of which are pretty!

College

I know that there are varying opinions on whether to save for your child’s college education or not. My opinion:: If you’re in a position to save {even a little!}, go for it. At the average cost of $35,000 for one year of college, it’s highly unlikely that I’ll be able to save enough for all four of my children to attend college. Every little bit does help and starting them out on the right foot is important.

Retirement

You do not want to be working for all of your life–so plan now! As a general guideline, if you’re looking to retire when you’re 65, you need 6 times your annual income set aside in a retirement plan. Basically, you’d have to set aside 13% of your income for 30 years to fully fund your retirement account. That may mean cutting back in areas now so that you won’t be working later.

Unexpected

Let’s face it, life is full of the unexpected. It’s better to just plan for it so you it won’t derail your budget. A good round number for your emergency fund is $1000, although setting aside enough for 3-6 months worth of your living expenses is a safe way to ensure that if something were to happen to your income stream, your bills would still be paid.

See all of the Ultimate Blog Swap participants here.

What other expenses do you save for?

In 2008, after discovering they were close to $40,000 in debt, Phoebe and her husband decided things needed to change.  She found it her mission to find every single penny in their budget, and get freedom from the lender.  Resources are slim in their rural area, so she’s had to get creative! Phoebe shares her joys of gardening, canning, cooking from scratch, and crafting {amongst other things} on her blog, Getting Freedom.

6 Expenses You Should Be Saving For is a post from Life Your Way

© 2010-2012 Purple Martin Press, LLC | All rights reserved - This feed is provided for the convenience of Money Your Way subscribers. Any reproduction of the content within this feed is strictly prohibited. If you are reading this content elsewhere, please send an email to contact@yourway.net to let us know. Thanks.

The following post is from Christina of Northern Cheapskate:

photo credit: Tommy Sea

The best financial decision you can make is to never get into any debt.

If you’re like the majority of Americans, you’ve already botched that one.  But you can do the next best thing:

Get out of debt now and stay out.

But how do you dig out of debt when the hole seems so deep?  Start with these steps:

Assess the situation.

Sit down with all of your bills and statements and figure out exactly how much money you owe, who you owe, and how much interest you’re paying on each debt.  As painful as this step can be, it’s critical for establishing a plan to get rid of your debt.  Determine what you will have to do to get out of debt.

You should also do some soul searching to determine what lead to your debt problem.  Too much house?  Expensive cars?  Bought lots of gadgets?  Took a lot of vacations?  Consider the emotions behind your spending decisions.  Most people who are in debt have something else going on in their lives and use spending as a way to cope with that turmoil.  Figure out what motivated you to spend beyond your means, and work on developing a new way to deal with those issues.

Stop spending money you don’t have.

It sounds so simple, but once you’ve got into the habit of using plastic or taking out loans, it can be a hard habit to break.  Refuse to take on any more debt.  Use cash for everything.  Start stretching your budget by cooking at home, taking care of what you already have, and shopping secondhand stores and sales. Take advantage of all the free resources in your community and focus on free experiences instead of stuff.

Find money to throw at your debt. Sell some of your stuff, downsize to a smaller home, raise your insurance deductibles, or get a second job.  Do whatever you can to bring in some extra money and apply it to your debt.  Every little bit counts, so be sure to look for ways to save on both big things and the little things.

Establish a support system.

Get your entire family on board with your plans to get out of debt.  Find friends and community members who are also working to become debt-free, and be sure to spend time with them.  You won’t have to worry about “keeping up with the Jones” when you are all on a tight budget.  You’ll find inspiration and support from those who share your journey.  Read frugal living books and visit frugal living websites and online forums to find additional information and support to help you break the cycle of debt.

Stick with it.

It is really hard to get rid of debt.  My husband and I slogged through $70,000 of student loans and car debt for seven years on mediocre salaries while we paid down our debt.  It was hard to watch our friends take vacations and buy the latest gadgets while we ate dinner at home and watched movies we borrowed from the library.   Becoming debt free (except for our mortgage) has been worth all the work.  We now live in our dream home in the country, and I’m able to stay home with our kids.

I’ve learned that you can wallow in self pity, and denial and bad financial habits, or you can choose to change your life for the better.

No matter how hard it seems, stick with it.  You’ll find more freedom – both financially and emotionally – then you ever dreamed possible when you are free from the shackles of debt.

Are you working to dig out of debt?  How do you stay motivated?

	Christina Brown is the creator of Northern Cheapskate, a blog dedicated to frugal living through coupons, freebies, and money-saving ideas.  She lives in the rural north woods of Minnesota where she clips coupons, pinches pennies, and chases her three boys (a 6-year-old and twin 4-year olds) as a stay-at-home mom.

Start Digging out of Debt Today is a post from Life Your Way

© 2010-2012 Purple Martin Press, LLC | All rights reserved - This feed is provided for the convenience of Money Your Way subscribers. Any reproduction of the content within this feed is strictly prohibited. If you are reading this content elsewhere, please send an email to contact@yourway.net to let us know. Thanks.

The following post is from Christina of Northern Cheapskate:

photo credit: 401K

If you have ever read Dave Ramsey, you know that he hates credit cards.  He encourages people to pay with cash (or a debit card) instead of using the plastic.

Using a cash-only approach can certainly help someone get out of debt and stay out of debt.

But if you are disciplined, there are some positive benefits of carrying a credit card that shouldn’t be ignored.

Rewards

From cash back on your purchases to frequent flyer miles, there are plenty of credit cards on the market that offer rewards.  If you put all of your recurring regular expenses on a rewards card (like your utility bill, gas fill-ups, etc) and pay the bill in full every month, you’ll earn hundreds of dollars worth of rewards for just doing what you would normally be doing.  Make sure the credit card you choose doesn’t have any minimum purchase requirements to earn rewards or charge exorbitant annual fees, or the rewards won’t be worth it.

Consumer Protection

Some credit cards offer additional consumer protections, such as extended warranties on your purchases.  If you have a dispute with a merchant, sometimes your credit card company can help you resolve the issue and get a charge removed.

Rental Car Insurance

If you’re renting a car, hold off on paying for costly insurance until you’ve checked with your credit card company.  Some credit card companies offer some rental car insurance protections if you pay for the rental with your credit card.

Special Discounts

Some credit card companies offer special discounts and perks for their customers.  Everything from free museum admission to discounted concert tickets are available through special offers. So, find out what your card can offer you.

Foreign Travel

Traveling out of the country?  Carry plastic.  You won’t have to worry about the exchange rate when you use your credit card.  And you won’t have to carry too much cash.   Which leads me to my next point…

Cards Can Be Safer Than Cash

Carrying a large sum of cash can make you a target for thieves.  And if your cash is lost or stolen, it’s most likely gone forever.  On the other hand, if your credit card is lost or stolen, you can quickly cancel the account and contest any charges you didn’t make.  It’s a good idea to use credit cards instead of debit cards when making purchases or payments online, as the credit cards offer better protections. Ask your credit company about their fraud alert programs (sometimes you get this service for free) and protect your money from would-be thieves.

Credit cards should never be treated like an emergency fund.  You shouldn’t use them to live beyond your means.  But when you pay the balance in full every month and take advantage of the positive perks they offer, credit cards can be a useful tool to helping you manage your money.

Do you use credit cards?  Why or why not?

	Christina Brown is the creator of Northern Cheapskate, a blog dedicated to frugal living through coupons, freebies, and money-saving ideas.  She lives in the rural north woods of Minnesota where she clips coupons, pinches pennies, and chases her three boys (a 6-year-old and twin 4-year olds) as a stay-at-home mom.

The Positives of Paying with Plastic is a post from Life Your Way

© 2010-2012 Purple Martin Press, LLC | All rights reserved - This feed is provided for the convenience of Money Your Way subscribers. Any reproduction of the content within this feed is strictly prohibited. If you are reading this content elsewhere, please send an email to contact@yourway.net to let us know. Thanks.

The following post is from Christina of Northern Cheapskate:

photo credit: Eirik Solheim

When you’re feeling stuck because of debt, or you just can’t seem to get any traction when it comes to increasing your income, it can be very frustrating.   Watch any late night television, and you’ll be bombarded with sales pitches to consolidate your debt or make money quick.

Fortunately, there are some very simple things you can do right now, that are completely FREE, that would help your finances.

Check your credit report.

You can get a free credit report from each of the three reporting agencies (Experian, EquiFax, and TransUnion) once a year.   It’s a good idea to check your report to make sure that there are no errors.  Look closely to make sure debt you’ve paid off has been recorded properly. Make sure there isn’t any outstanding debt that isn’t yours, which could indicate identity theft.

Make sure to correct any errors you find.  An erroneous credit report can make it difficult for you to borrow money and can affect your credit score.  A low credit score can mean you’ll pay more for interest rates on borrowed money and increased insurance rates as well.  It doesn’t take long to check your credit report.  It’s totally free, and it’s easy.  The best part – you can see just how far you’ve come on your journey to better finances!

Start a budget.

If you’re serious about being a good steward of your money, then you should track your expenses and start a budget.  There are plenty of free budget tracking resources available – from printable spreadsheets to software to smartphone apps.   You’ll know where you stand when it comes to your money and you’ll know what expenditures are problem areas for you.

Negotiate your rates.

Pick up the phone and call your cell phone company, your cable/satellite company, or your internet service provider, and ask them for the best rates they can give you.  Do the same for your auto, home, and life insurance.   You could save a decent chunk of change with just a few minutes of your time.

Drop unhealthy (and expensive) vices.

Now, I’m not saying you should give up things that bring you enjoyment.  It’s ultimately up to you to decide what you value.  But consider giving up some of the more unhealthy vices you may have such as smoking, drinking, gambling, or fast food meals.  Consider dropping soda from your daily beverage consumption or avoiding relationships with people who drain you of your financial and emotional resources.   You’ll not only save a huge amount of money, you’ll also help prevent future financial difficulties caused by unhealthy habits.  And you’ll feel so much better.

Read. Read. Read.

Head to your local public library and check out all the personal finance books you can.  Read books on saving for retirement, getting out of debt, investing, and economics.   Check out books and magazines about cooking, sewing, home improvement, gardening, and do-it-yourself projects.   You’ll arm yourself with the tools to manage your money for free.  And you’ll learn valuable skills and enjoyable activities that can help you save money.

The truth is that when we’re stuck there is always something we can do.  We just have to stop and think a bit about what that is.

What free things have you done to get your finances on track?

	Christina Brown is the creator of Northern Cheapskate, a blog dedicated to frugal living through coupons, freebies, and money-saving ideas.  She lives in the rural north woods of Minnesota where she clips coupons, pinches pennies, and chases her three boys (a 6-year-old and twin 4-year olds) as a stay-at-home mom.

5 Free Things You Can Do to Help Your Finances is a post from Life Your Way

© 2010-2012 Purple Martin Press, LLC | All rights reserved - This feed is provided for the convenience of Money Your Way subscribers. Any reproduction of the content within this feed is strictly prohibited. If you are reading this content elsewhere, please send an email to contact@yourway.net to let us know. Thanks.