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5 Ways to Reduce Your Spending

November 8, 2011 By Leave a Comment

These are hard times for many Americans. With layoffs, foreclosures, personal and business bankruptcies and mounting debt, we live in uncertain times. However, there is always hope and a way that can be made out of no way. Regardless of your current financial situation, there are ways to find extra money to improve your plight. It could be a huge improvement or small, but at least it will be progress. Even when it appears as if there is no more room to save, there is always something you can get rid of, reduce, or find a substitute for.  Continue to read. Below are five steps to help you reduce your budget to find extra money to pay down debt, save, and help others in need.

#1 – Utilities
If you’re not in a room, turn off the lights and television. Cook larger meals 2-3 days a week instead of every day to cut back on utility cost. Use your dishwasher, dryer, and washer only when you have a full load. Use blinds and curtains on windows to keep out heat in summer and keep in heat in winter. Use ceiling fans instead running the air conditioner. Turn down the hot water heater a few degrees, and turn it off while on vacation to cut cost.

#2 – Food
Bring your own snacks when running errands, visiting family, friends, and doing activities with children. Cook more and eat out less. Not only will money be saved, but you will eat healthier.  Use coupons from the newspaper and online for groceries and restaurants. Find restaurants in your areas where kids eat free. Eat out when kids can eat free, if you must go out.

#3 – Phone
Get rid of your landline if not needed. Use your cell phone for long distance calls. Get rid of all the unnecessary phone features that you do not need. Get a tracfone! It’s a pay-as-you-go cell phone that cost a one-time fee of $10-$20. You pay to put minutes on the phone as you need them. The best part, there is no monthly fee or contract.

#4 – Insurance
If your car is older and paid for, consider dropping collision insurance all together. Also, consider raising your deductible on your car, home, and health insurance to reduce your monthly cost. Reduce your spending and use the extra money to improve your financial situation, immediately. 

#5 – Cable
Is cable a must? A cable bill is not a necessity. Matter of fact, it is a luxury, especially if you cannot afford it. Having cable is a privilege that some just cannot afford. Paying $40, $70, $90, or $120 monthly to watch a tube adds up. Imagine this; get basic cable for $20 instead of paying $70 a month. Just that one change will save $600 a year.

You really can reduce your spending and find extra money to sustain your household, payoff debt, and save. Determine what are real needs and wants. Take care of your needs, first. Then make a decision to reduce your expenses today by using alternatives, cutting back, and eliminating things that just are not necessary and doesn’t make spending sense.  

Sharman Lawson is a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever! Visit her website at www.sharmanlawson.com.


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Does Your Pet Have You In Debt?

August 6, 2011 By Leave a Comment

 

I do not have a pet, but I have friends that do.  I happen to know that pet lovers “love them some pets.” In fact, many consider their pets children. I have a friend that rushes home from work to see her dog, not her children. Some people have more affection for their dog than their spouse. But that’s another article.  Nevertheless, debt is a problem in many households today. Debt is causing problems in relationships, making people lose sleep, and even causing physical health problems. With the cost of everything going up and our dollars being squeezed, we need to examine everything to cut back and save.  So my question to you: does your pet have you in debt?  

An acquaintance of mine spent $2,000 to purchase her dog. Then she had to pay to put the dog in training school for a couple of months. Then when she went on vacation, she paid a pet-sitter $60 a day to care for her sweet bundle of joy.  I am aware that a dog is supposed to be a man or woman’s best friend, but it appears without a budget for your pet, they can also put you in poverty!  If you are not in the habit of tracking your money or living on a spending plan, you probably have no idea how much your lovable pet is costing you.  

American’s have a $38.4 billion pet bill annually. Sixty-three percent of American households own at least one pet.  It doesn’t matter what kind of pet, the care and maintenance will cost you something. For example, the average dog or cat lives around 6-15 years, so over that time-frame, how much will you have invested in your pet? Many pet owners feel like money is not a consideration – it’s their pet for goodness-sake!  However, if you want to get out of debt, the cost of owning a pet should definitely be considered.

 Below are an average maintenance cost for dogs and cats.

 • Food – $240/year

• Dental care – $250-400/year

• Boarding or pet sitter – $15 to $100 per day

• Neutering – $142/dog and $99/cat

• Veterinarian visits – $211/dog or $179/cat

• Canine cataract surgery – $2,000-$3,000

• Cancer treatment – $5,000 or more

• Diabetes maintenance – $600-$1,000 a year

There is nothing wrong with owning a pet if you can afford it.  But what if you can’t afford it? It really does come down to choices and priorities. For instance, if you spend around $1,000 a year on your pet, and they live for 10 years that is $10,000 over ten years.  Do you currently have $10,000 in your retirement, emergency fund, or 401K? 

 So I ask you again, does your pet have you in debt?

                                                                                                                                                                             

Sharman Lawson is a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever!   Visit her website at www.sharmanlawson.com.


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Do You Feel You’ve Arrived?

June 3, 2011 By Leave a Comment

I remember a lady saying to me, “Now I’ve arrived.” This lady felt she had arrived because she had a big house, car, and her husband had a business making a lot of money.  I remember feeling sorry for her thinking, “But what if you lose all those things, what does that mean?” A big house, car, and salary do not equal success or arrival. It certainly doesn’t mean you’ve got it together mentally, emotionally, financially, or spiritually. It may just mean you’ve been able to accumulate some things, and hopefully in the process saved some money. This particular economy has exposed and made vulnerable many who felt they had arrived. In reality, most people who think they have arrived because of their lifestyle and “stuff”,  if the truth were told, have not arrived at all.

 

A Relationship
This year my parents celebrated their 52nd wedding anniversary. They are still together, in love, happy, have eight grown healthy children, and are financially sound. Additionally, they are blessed with 19 grandchildren, two great grandchildren, and two more great-grands on the way. My parents and grandparents stayed married, raised their children, worked together towards their goals, paid their mortgages off early, and realized their dreams. They lived their life and accomplished their goals without accumulating debt, messed up credit, going broke, and with a sane mind. Would you say they’ve arrived?

 

Retirement
It wasn’t long ago when homes were paid off when people were in their 40’s, 50’s and 60’s. People weren’t using the equity in their home as a credit card, or refinancing to live the life they had always envisioned. The average person used to live within their means whether they had zero, two, three, or ten children. People use to have a destination called retirement. Most people accomplished this fate without owing student loans, mortgages, department stores, car payments, and credit cards. The mindset was to leave an inheritance for their children and their children’s children. In the past, people lived in the same decent size home and paid it off. They drove cars that were paid for – not leased. Many were frugal, saved, sacrificed, prepared, and made a way out of no way for themselves and their children. Would you say the previous generation had arrived?

 

A Destination
Money and material things do not equal happiness, or mean that one has arrived. Matter of fact, nothing we possess, touch, or feel is even promised to be here tomorrow. I believe “arriving” is a destination. A destination may be for a season, a short-journey, a long-road, a move, or a spontaneous leap of faith. One thing to realize, the destination you arrive at can be rescheduled, subject to change, or terminated at any time. However, be encouraged knowing that God holds the key to what, where, when, and how you arrive. Now when you understand that truth, you really have arrived.

 

Sharman Lawson is a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever!   Visit her website at www.sharmanlawson.com. 

 



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