Inexpensive Spring Break Fun
Welcome back!
Tis the season for Spring Break for many students out there. While thoughts of Spring break usually gravitate towards fun vacations in sunny warm destinations, many are cutting back this year due to the economy. However, just because funds may restrict big travel plans for this upcoming Spring Break, fun is still out there to be had for all ages.
I grew up in a household, where my parents always seemed to struggle with financial obligations. I spent many Spring Breaks at home with my younger sister, while our friends were jetting off to islands and Disney World with their parents. While our parents could not afford such elaborate vacations for my sister and I, my mother always went out of her way to made sure we had a great time. We spent most spring breaks hosting sleepovers, having movie marathons, and playing outside.
As my sister and I got older, my mom would take us on day trips into Chicago for the day. While this may sound really expensive, it was not. In my family, it was understood that we walked, no cabs for us. We would be so excited to go, it did not matter how far we wold have to walk. At one time, the museums had free days that we’d go to. Mom would pack a lunch for us and we would take the train into the city. The whole day would maybe cost us $40. We always had a blast.
My mother had another ingenious idea, to take a car trip to see our cousins and family in Nebraska. Every Spring Break for almost 10 years my mom would pile my sister and I into the car and down I80 we would go. We would stay with family to minimize costs. My sister and I were lucky to have cousins close in age. We would play for a week strait, while my mom had time to visit with family as well.
I found that my most favorite Spring Breaks were the low key ones. One year when my sister and I were in high school she decided that we would be allowed to re-do our bedrooms over the break, after all paint is cheap. We each helped work in each other’s rooms. We had so much fun. It was a wonderful treat.
So, keep in mind, Spring Break does not have to be outrageously expensive. Just remember to keep it loose and fun. Find fun things that you can do cheaply and enjoy your time off!
I am not a Degenerate!
It comes as no surprise that times are hard, and seem to be getting harder. Many Americans are having to decide what bills they can afford to pay. While budgeting and careful planning may help, sometimes there is just a shortage of available funds to pay the monthlies. As, the cost of living seems to continue to rise, the dollar seems to be stretched further than ever.
When you have missed a payment or are late on a payment these days, creditors are quick to let you know it. While you are clearly do owe them, do not allow yourself to be tormented and harassed by creditors. You have rights and there are laws for your protection from harassing creditors.
Unfortunately, I have had to start making tough choices recently. I just do not have enough money to pay everything on time. I like many Americans am doing the very best that I can.
I was prompted to write this post by an event that happened this week. My husband and I live in a very nice community, which we usually do not have a problem with. Last week, I received a call from our town’s water department. My check had been returned. I was so embarrassed, it had merely been an accounting error on our side. I returned the call to the water department to let them know that I would fix this mess right away. In the same phone call, they said that they would not take a check from my household anymore, due to my irresponsibility. Instead of arguing with the woman on the phone, I told her I would drop off the payment at the end of the day.
Two days went by since I had re-paid my water bill. I thought all was fine, until I got a call from the water department. The woman left a message on my phone at 8 am. in the morning. Her message that was left on my phone was incredibly rude and demeaning. Apparently I had not paid the bill correctly, which was a simple miscommunication. In the message she went on to demean my character and my husband’s character. I was shocked at the brazenness of her call and I was angry.
Later that afternoon, I went into the water department to pay my bill and set the woman who had made the call strait. I told her that I am not a bad person due to an accounting error. Further more, I asked her if she treated everyone who had issues with their bills in this manner. I reminded her that we are in the grips of a very serious recession and that a little compassion for people’s struggles might be in order. The woman did not seem to even register what I had said, and her rude service continued through out my business there. As a bill payer/ customer, you do have rights and you should be heard.
I was utterly shocked by her rudeness. There was absolutely no call for it. My husband was appalled at the treatment I had received as well. He jokingly said, that I should tell them that I was going to dig a well, and that they could keep their city wanter. This was a tricky situation, where I as the customer was not heard. Because it is a city service, I just have to deal with her behavior. I told my husband that the whole situation reminds me of a Simpsons episode where, Homer insults the local garbage men and does not have pick up service for months, causing his rubbish to pile up in his yard.
While I was clearly in the wrong for my accounting error, I still deserver to be treated with dignity and respect.
Resources for Recent Layoffs
540,000 jobs were cut last month, and this month is looking to be worse. It is a scary time to be employed and unemployed right now. Strong stable companies are shedding jobs in an effort to help their bottom line. However, where does that leave the receiver of a pink slip?
Well, if you have recently received a pink slip you are not alone. I came across a statistic the other day that said 70% of Americans know someone who has been effected by the economic downturn or laid off. In looking at that stat, it is amazing to me to see how rampant this really is.
As I was searching the net for information to aid those who have been recently laid off, I came across this article on Mashable.com. They have an article that lists the best 30 websites for those who are jobless right now.
This database of websites is wonderful! It is very rare in the vast universe that is the internet, to find such a detailed and concise list. The database, has sites not only how to find a new job, but how to manage your money until you do.
Ben Parr, the author says,
“But the worst time to panic is when you are laid off and lose your main source of income. We live in a new and powerful era of communication, one where we can find support, gather news, and network without ever leaving our computers.”
I would encourage all to take a quick glance at his database. This is a wonderful resource. I hope that this helps to those of you who have recently recieved that dreaded pink slip
What To Do With Your Tax Return?
Tis’ the season of the long awaited tax return for those early filers out there. Those glorious checks that cheerfully find their way to your mailbox, unless you live in California. With dollar signs in the eyes of many, strict budgeting is need and it is needed fast.
In these difficult times, this additional money can really help make a difference in a person’s budget, if they spend it correctly. I have some very dear friends, who I love very much, who will have received about $3000. worth of tax refunds from Uncle Sam this year. As their money is starting to trickle in, so are the unneeded large purchases.
I am not a financial scholar, I have made my mistakes financially. When I see friends of mine making such large frivolous purchases, this makes me start to think about how others will be spending their return as well. Will the whole country be as irresponsible as my dear friends?
I will not be receiving a return this year. I am totally bummed, because I could really use the extra influx of cash, right about now. I am sure that most of the country could use an influx of cash right now as well. Even though I will not be receiving a return this year, I pondered that if I had, what would I do with the money. I do know that large unneeded purchases would not be happening.
How can people like my friends even think about shelling out large amounts of cash at a time like this. I do understand that spending stimulates the economy, but in these shaky times, when jobs are not guaranteed, doesn’t it make sense to not spend but save? I know that there are those out there who will not spend like money is going out of style.
There are those out there that need that money to stay afloat financially. Wether that tax return comes or not, financial responsibilities never stop. I hope that for those who really do need the checks right now, that they use it in a responsible manner.
Austerity and Our New President
Tonight our president came before the press and the American public. Finally some questions about what the stimulus entailed, how it would be put into practice, and how its sucess could be determined.
It was wonderful to see a strong message broadcast to a leary country. Obama ventured to Elkhart Indiana today to see one if the hardest hit towns by this economic recession. I have driven through this area within the past year and I have to say that the scene was deviststing. I was so pleased that our President took the time to go there to see the average American’s plight. Tonight he used these people as an example saying that Washington needed to stop positioning themselves for the next election and work for the people who depend on them.
I watched the entire confernce and a few things stood out to me. First of all the President Obama said,
“As we speak, similar scenes are playing out in cities and towns across the country. Last Monday, more than 1,000 men and women stood in line for 35 firefighter jobs in Miami. Last month, our economy lost 598,000 jobs, which is nearly the equivalent of losing every single job in the state of Maine. And if there’s anyone out there who still doesn’t believe this constitutes a full-blown crisis, I suggest speaking to one of the millions of Americans whose lives have been turned upside down because they don’t know where their next paycheck is coming from.”
I knew the unemployment rate was sky rocking but, it is truly alarming when one looks at the raw data. Large portions of the country have been insulated from what the rest of the country is going through, tonight those people got to see how badly things have become for their fellow Americans.
I also liked how President Obama closed his speech by saying,
“We find ourselves in a rare moment where the citizens of our country and all countries are watching and waiting for us to lead. It is a responsibility that this generation did not ask for, but one that we must accept for the sake of our future and our children’s.”
We as a country are at a history making juncture, it’s sink or swim time. I am optimistic at this point in time, I think that our country will band together and rise again, like we have out of every other depression and recession. This country is not a stranger to hard times, and we have always pulled through. So, lets not break that trend. Let’s help our neighbors where and when we can and stand up as a country to make it through.
Family Emergencies On a Budget
Picture from Flickr
This past month I have had two major family emergencies which have required me to travel. As we all know, travel is not cheap. However, when duty calls, one must go. My husband and I live on a very limited budget, but we’ve managed to squeeze in the funds to go and be with our loved ones during these difficult times.
It is very easy for last minute trips to become very expensive, if one is not careful. In both cases, I made a budget and stuck to it. I also tried to ride with other family members to reduce my travel costs. I was lucky enough to live within an eight hour drive. I chose to travel by car because it was cheaper than a plane ticket. I did my homework on which way would be easier to travel. I also kept in mind that if I flew I would need a rental car.
I find that in a family emergency, that I prefer to stay in a hotel. Please do not misunderstand me, my family is wonderful and they have very nice homes. I find that when I stay in a hotel in times of crisis, my hotel room can be my place of solitude. I require this time to myself, and I find that it gives me time to decompress after a stressful day. I am also able to get a good night’s sleep. Which is vital to staying healthy during difficult times. Hotel stays do not have to be pricey. I found that in both cases staying at the chain hotels on the outskirts of city limits offers a much better room rate.
When setting a budget for a crisis, keep in mind that you have to eat. Depending on where you are, food prices can vary greatly. Just because you are on a budget, don’t eat fast food the entire time because it is cheap. When the body is under stress it is important to eat well. Budget good food into your trip costs. In driving across the country, it is important to keep in mind that a healthy diet should not go out the window, just because you are on the road. I found that I could make healthy, low cost food decisions on the road. Eat well while you are in times of great stress, you will be thankful to yourself. Eating well will keep you healthy and better prepared to handle stress.
Emergencies do not really allow time for the unexpected. Many have saving accounts for this reason. With the tough economy that type of saving seems harder and harder. With this past month, I have learned how truly important it is to have this kind of safety net of funds. I was able to make it on our income, but that is not without taking a financial hit. When family crisis hit, one would like to think that money would not factor in one’s ability to help and be there with family, but as I learned this past month, money factors very greatly. So, do yourself a favor, put a little money aside for an emergency fund, even if it only $100 bucks, every little bit helps. That $100 bucks could cover your food budget while you are gone. I will be trying to put away more that $100. so I am not caught off guard next time. But times are tough and people do the best they can.
On an ending note, while setting a budget is important while going, it is also important to understand that crisis holds the unexpected, and may require more funds than you had originally set aside. Be willing to roll with the punches but, still keep your head about you. I found on my first trip that I had set a strict budget for myself which I stuck to but, I found a needed additional expense during my trip. I was hesitant to spend the funds but, now in hindsight, I am so happy that I listened to my gut instinct and spent the money. Emergencies do not give the luxury of time to plan each dollar spent. So, if you need to spend a little extra, don’t beat yourself up about it, trust your gut and spend the money if necessary.
The Austere Wedding: 10 Tips For a Cheap Wedding on a Budget
Photo from Flickr
Every little girl dreams of the most special day, her wedding day. For many women, their imagination has painted an unrealistic image of the day. Images of insanely expensive weddings are pushed on females of all ages. Books, magazines and movies show elaborate weddings, usually ignoring what the cost of these events actually is.
Just because it’s a tough economy doesn’t mean that you still can’t have a nice wedding. Tough times will require you to pare back your elaborate plans and create some realistic expectations.
I got married two years ago and managed to do it on the cheap. People still tell me that I had the nicest wedding that they had ever been to. I saved a lot of money and I have helped a lot of friends do so as well, and now I want to help all you brides out there that are looking to save a few thousand dollars. Here are my Top Ten Ways of Saving a Money on your Wedding Day.
Top Ten Ways to Have a Wedding on a Budget:
1. Lower Your Wedding Expectations
I know this may seem harsh, but this is a harsh lesson to learn. I had all of the wonderful images of the big white wedding, memories of beautiful movie weddings. I had never given much thought to what a wedding would actually cost. What a slap across the face, when the realization of what the type of wedding that I had grown up seeing in movies and magazines would actually cost. Now, in saying lower your expectations, I am not saying you’ll have cheap looking wedding, I am just saying be realistic about what things really cost.
2. Wedding Photographers Can Be a Huge Waste Of Money
This was the biggest sticking point in my wedding planning. I was shocked to see how much wedding photographers actually charged just to shoot the wedding, which is really only a cople hours worth of work. I shopped around, a lot. My first choice was extremely expensive, but once I lowered my expectations, I chose another wonderful photographer. I was able to negotiate a deal to shoot the wedding.
The pictures were great but I soon realized that the wedding pictures were so expensive that I couldn’t afford to buy any of them! This was when I realized what had really happened, the shooting fee was cheap so that the money would be made in picture sales. I wish I would have realized this before hand. Honestly, I feel that my photographer was a waste of money. Member of my family shot many great pictures themselves while the photographers shot mostly the same photos. I could not tell the difference between the two.
So ask yourself, do you really need a professional photographer? Is there a few family or friends that can shoot the day for free?
3. Wedding Flowers and Wedding Decor
Let’s face it, flowers make the decor to many brides, myself included. There are a few money saving options when it comes to flowers and decor. First of all, try to think rationally. I know it can be hard, being swept up in the spirit of it all, and the florist is counting on that. Know what you want before you go to a florist and be firm on what you had pre-decided. Also, if you tell the florist that you are having an event besides a wedding, you’ll save a ton of money. There is a wedding mark-up, it’s true. Many services hear the word wedding and they know they can charge more. Another tip is, think about doing the flowers and decor yourself. This can save a ton of money. If you’re not talented enough, see if there is a friend or family member who is. Flowers are insanely cheap from a wholesale florist.
4. Wedding Music
There are so many ways to save money here. My husband and I burned a CD with our ceremony music on it. We did not pay to have someone preform. Honestly, the music on the CD was wonderful. We made sure to bring a back up just in case the original CD did not work. The reception music can easily be done with an I-pod. Most DJ’s use I-pods these days. When searching for music for the reception, look for a deal. Watch out for that wedding mark-up. Make sure to ask around, ask other brides who they used and if the entertainment was a good value for the money.
5. Wedding Reception Venue
There are so many ways to save money when it comes to where to hold the event of your special day. First of all consider how many people you have to accommodate, and what will you be feeding them. The options range from all inclusive banquet halls to the local VFW post. My husband and I originally found a great deal by asking a locally owned eatery to host the reception. Just keep in mind, some facilities have kitchens on site and others do not. If you choose a venue that is not equipped to accommodate a dinner service, you may have to rent equipment and hire a caterer, so beware because that can add up quickly.
6. The Wedding Guest List
This can be such a touchy issue for many brides. If you plan on having a reception where you will be feeding guests, it comes down to the simple question of, how many people can you afford to feed? I know this seems harsh but you must look at this issue practically. Also make sure to take into account how many people your venue can accommodate. Don’t go broke feeding people that you don’t even know! You’ll need to make some tough decisions about who needs to be there on your special day. You don’t need to invite your friend from second grade that you haven’t seen since, well, second grade.
7. Wedding Contracts… Always Leave a paper trail!
I cannot stress this enough! This is the most important money saver when planing a wedding! When I walked down the aisle, I was so naive. I did read about how to plan a wedding and thank God that every book said leave a paper trail. This piece of money saving advice came in handy twice for me during my planning. The first time, with the bridal shop where I bought my dress. and the second time when my reception venue pulled out 5 weeks before my big day. Remember signed contracts are legal documents, and in case you do have to go to court, you are going to need those. Make sure to keep all receipts and contracts organized and in one place. The more paperwork that shows that you held up your end of a contract, the better it is for you if something does go wrong.
8. Do Your Wedding Homework
Research your vendors. Get recommendations from other brides. Word of mouth is very important. I bought my wedding dress from a terrible dress shop, that was notorious for bad service. I had found out after the fact that everyone in the area knew not to do business with that particular shop. Luckily, I had my contract and a rather large paper trail to save my ass and my dress. I would also recommend reading up on saving money on weddings. There are some really great books out there, so start reading.
9. Saving money on the Wedding Dress
For many brides this is the most exciting and important part of the wedding, with the exception of marrying the spouse of your dreams. Again be so careful here. I hear constantly of brides that have been put through the ringer by the dress shop they chose. Check up on the practices of the dress shop that you choose. Make sure they aren’t letting others try on your dress (my personal experience). Also, look other places for alterations, but when looking else where make sure to get references. Also, some dress shops will discount dresses if the bridesmaids get their dresses there too, which can be a good deal.
10. Think With Your Head Not With Your Heart
I know this is so hard to do for the excited bride, but it is a necessity. Think about what you are really paying for. Really think about the decisions that you are making. Do not let people pressure you into decisions. Many vendors expect brides to be irrational, and that makes them easy to persuade and manipulate. Stand your ground, this will be your day after all. In retrospect, I was able to do this and it saved me thousands of dollars. Wedding planning can be a fun thing, just try to keep emotion out of it as much a possible.
Do you have any tips on holding an Austere Wedding? Please post them in the comments below!
My Latte Factor
Photo from Flickr
I am a latte junkie. They know me by name at my local Starbucks, which is sad, when I really consider it. They actually have my coffee pre-made and waiting for me. Yes this is true. But recently with the economic downturn, I started to really think about how much my latte addiction was costing me. When I added it up, the cold hard truth was there. I could not believe how much money I was spending at Starbucks. At the rate I was spending I might as well have bought stock in the company.
The realization of how much money I was actually spending was truly a wake up call. I thought of all of the things that I could do with the money that I was spending instead of drinking my money. I was so shocked by the realization of what I was spending per week, that I decided to quit Starbucks cold turkey. I told the girls to stop having my latte ready for me. I was done. At first I frequented Dunkin Donuts, because their coffee was much cheaper, but I was still stuck with that latte factor. I knew that I had to do better.
Quitting Starbucks was so hard, especially in the late afternoon, when I was ready for that second pick me up. I stayed strong and stayed away. Soon, I started to drink the coffee that my office provided, I never realized it before but they were brewing Starbucks coffee. Ah, that sweet, sweet taste of Starbucks. Soon I stopped buying coffee all together, what was the point? There was perfectly good coffee at the office, which was free. As an office of serious coffee drinkers, they bought good coffee.
After I left my job to go back to school, I had the dilemma of getting my morning Starbucks fix. I resisted temptation and I did not go back to that delicious trap. But I had to find a substitute. The school has a cafeteria, where if you buy a cup of coffee, you get free refills all day. That was a good deal, seeing that the original cup only costs $1.25. The only problem was that the coffee was awful. I realized that I was going to have to find some way of bringing my own coffee.
I invested in a coffee maker that I found on sale, and a good thermos as well. Soon, I was back in business. I would fill my thermos and be good for the day. I had never really bought coffee at the grocery store, why would I bother, that’s what Starbucks was for. I found that I could buy Starbucks coffee and grind it fresh right in the store for about $7.00! That’s the price of 2 lattes! The coffee was delicious and the pound lasts a really long time.
I went cold turkey about a year ago, and I am still going strong. I stopped by Starbucks a week ago because someone gave me a gift card. I ordered my usual latte and the price had gone up. I was shocked that I actually paid that price for a cup of coffee! I didn’t want to go back, even though I had a gift card.
When I think about it, there is little value for money, when you consider the alternative of just making your own coffee and taking it with you. I will use the rest of the card so that it does not go to waste, I have been shocked strait. I do miss the creamy taste of a mocha latte from time to time, but my waist does not. I have tried to recreate the taste but, I haven’t had any luck. I came across a video of a woman named Renee who runs another frugality blog, she came up with this recipe to substitute her latte factor. It looks pretty good, I have yet to try it, so if you do and it’s good let me know.
What’s your Latte Factor? What do you regularly spend money on that you can cut out of your life to save money. Add it all up over year and see how much your Latte Factor is really costing you.
The One Question that will get you through the New Depression
What do I really NEED?
This should be the new attitude that will get people through the modern day depression. Americans are coming out of a time of enormous prosperity, and great waste. Sure the credit boom was fun, while you were on top, but at the bottom, it is no fun. Those plastic little cards are sneaky, its easier to spend money when you do not see the actual cash coming out of your hand.
Want is a four-letter word.
It’s a dangerous word that needs to be used sparingly. It is okay to want for things, but one must be thankful for what you do have. In our materialistic society it is ingrained in all of us from childhood. Those Saturday morning toy commercials are made to make children want. This disease of want continues into adulthood, but now a $10 toy does not satisfy the want, soon it’s cars and electronics or expensive designer clothing and accessories.
Want and the concept of reason do not coexist for many people. Often when want takes over, rationality flees in the opposite direction.
Now I am not saying that I do not want items that are not basic necessities at times, but I do not run out to the store to purchase that want. It is possible to have rationale in this matter. I must say that this was a long and hard lived trait.
If I really want something, I think long and hard about that purchase. I ask myself, will I really use that? How often will I use the product? What purpose does it really have in my life? Do I think the price is actually representative of the value of the item? Will it go on sale? After I take into account these questions, I discuss it with my husband. I am capable of making rational decisions on my own, but having someone to bounce ideas and thoughts off of is helpful.
When a big purchase comes along that my husband and want to make, it is always a joint decision. We save for what we want, and we pay cash. Recently, my husband said that he would like to upgrade our television to a new HD one. Our current television is old, buttons are broken on it, but the picture is still good. The remote has been lost for centuries.
After much debate, my husband and I decided that if we really wanted a new television, then we would save for it. A little money from each paycheck will go towards that television, into a specially designated savings account. We are grateful for the television we do have and we realize that we do not actually need a new one. But that doesn’t mean a new one wouldn’t be nice, after we’ve earned it.
NEED is the most important word in the English language. So many purchases are made with little to no regard of need. Most purchases are merely based on want. This idea of want is a dangerous one and it’s why the economy is in such trouble. There are many reasons why people shop, some actually need to, some use it as entertainment, therapy, or just a fun way to pass an afternoon.
Shopping is not an entertainment outlet, it is to get what you actually need. Need is a very basic concept, which is confused with want to many. There are 4 basic needs, water, clothing, shelter, and food.
That’s it.
An HD television is not a need, nor is the newest model of car or a designer pair of sunglasses. These basic needs do not have to be the best and most expensive, they have to sustain life, that’s all. I know that sounds harsh but, when you really think about it, it’s true.
Overall, I encourage all of you out there to think about purchases with your head, use rationale, don’t use your heart or emotion. I have to say that like any new way of thinking, this takes practice and time to learn. It took me a couple of years, and at first, I was miserable. I am guilty of being a shopper who enjoyed the entertainment of it. But I must say that I wish I would have been taught early on the difference between wants and needs. The sooner you start to separate these two words, the better and happier you’ll be.
How to Survive the New Depression
Photo Courtesy of Improv Everywhere
It appears we’re on the verge of a new Great Depression. Unemployment is up, wages are stagnant, inflation is up, major corporations and banks are collapsing left and right. There hasn’t been this much instability in the international economy since the Great Depression.
The old Boy Scout motto is ‘Be Prepared” and that’s a great creed to live by. Nothing in life is guaranteed.
So, how can you prepare for this?
Maintain Calm
The people responsible for this mess aren’t losing any sleep, neither should you. Things may be getting bad, but they’ll only get better. The nature of the capitalist systems is a series of up and downs. Bad fiscal management by the Federal Government and the Federal Reserve has smoothed out the grooves for the past 30 years or so, the problem is that you CAN’T get rid of the ups and downs. That’s just not the way it works. That’s why it’s important to prepare for the valleys just as much as the peaks.
FDIC Backing
Your money is generally safe in a bank. You should be monitoring the financial health for your bank. Since most banks are publicly traded, this information is freely available. Don’t trust that the bank will always be there. Many banks have failed already. Luckily the FDIC has your deposits insured up to $100,000.
So, what if you have more than $100,000 cash in the bank? First, you shouldn’t have that much money in a savings or checking account to begin with. If you’re truly investing your money, passbook accounts are terrible places to keep your money. Your money should be invested in mutual funds, retirement funds, bonds, etc. So, what if you do have more than that in the bank anyway? Split it up, there is nothing to prevent you from spreading your cash around to several different banks. That way you’re completely protected.
Credit Unions
If you’re completely disgusted by the banking system, like my wife and I, you don’t have to continue participating in it. Join a local credit union. You’ll have more of a say in how your money is handled. Credit Unions are not for profit, so they won’t be consolidating and joining bigger banks and then making stupid multi-billion dollar investments that will bring down the economy. Credit, above all things, are local, which is great. Credit Unions can also get you a car loan, mortgage and other products. Your money is also insured by the Federal Government under a separate insurance program as the FDIC.
Invest in Foreign Markets
Any good investor diversifies his investments for greater returns. There are huge opportunities to invest in markets other than the USA. There are places in the world that are booming right now, despite the current troubles. Many mutual funds run funds based on foreign assets and currencies. The returns on these investments are usually pretty good. It is also a good idea to invest invest in Foreign Currencies and Minerals.
The dollar is currently weak against most foreign currencies, so hedge your bets and buy foreign currencies and hold them. Chances are their value will go up and you will make a profit when you convert them back to dollars (or use them when you travel). Also, many people advocate buying precious minerals like Gold and Silver. I don’t know much about this, just that you should be very careful investing in this fashion. There are a lot of scam operations out there.
Make Budget Cuts
Most people can cuts back and throw things out of their budgets without too much pain. Make a monthly budget of all your in-goings and outgoings and then see what you can cut out. This will allow you to live in your means and save more money. Start going with less.
Consolidate Debt or Get Rid of It
Debt is basically a form of slavery. Avoid it at all costs. That’s easy to say if you don’t have any debt. But what about if you have debt? Consolidate it, reduce it, pay it off. Your mortgage should be your only debt on the books and even then your goal should be to pay that off as quickly as possible. Don’t let anyone own you and you will have much less to worry about.
Shop Frugally
Be careful in how you spend your money on your weekly expenses like food and clothing. Don’t eat out as much. Buy your groceries at places like Walmart and Aldi, where you’ll get the most for your money. Don’t go the mall, you’ll always overpay. Read sales flyers every Sunday and clip coupons.
Maximize Income Earning
You can do this by getting a second job or starting your own home based business. There are many things around the house that can make you money that won’t cost you much to start. Chances are you have hobbies or skills that you can monetize. I wrote a guide a while back on how to make money with things around the house.
Inventory Your Assets
Make a database or spreadsheet of everything you own. That way you have an idea of your assets in case you need to start sellings things to get by. You may lose your job tomorrow. It’s important to know what you can sell tomorrow to buy your families groceries.
Refocus your efforts at work and Shine
If you’re worried about your job, work harder and do a better job. Make yourself irreplaceable. If you think you might be on the chopping block, polish your resume and be prepared for the worst. My general rule career wise is to ALWAYS be looking. Always be on the lookout for new opportunities. Don’t expect your life to work out because you think you deserve your job. You don’t deserve anything in this type of economy.
Educate Yourself
Knowledge will only make you more valuable on the job market. But I’m not just talking about schooling. I’m talking about educating yourself on how this economy works, how capitalism works, how socialism works, how international finance works. If you understand how these things work, you can successfully plan your life to weather the storms. Most people don’t know what derivatives are or mortgaged backed securities. They should.
Save Save Save
You should be saving 10% of your income right out of your paycheck before you spend it. Open an account at ING Direct or HSBC Direct or your local credit union. It’s important to have a cushion of money in the bank in case you lose your job or something catastrophic happens.
Closing Thoughts
One thing to keep in mind is that things WILL get better. That’s the nature of capitalism.
Related Articles:
10 Things Around the House That Can Make you Money
9 Ways to make Money Selling Your Stuff in An Emergency
How to Cut Advertising out of Your Life
