Frugal FreedomWritten by Cheryl Johnson
That most of us are considered poor is no disgrace, but does us credit; for, as mind is weakened by luxurious living, so it is strengthened by a frugal life.(Minucius Felix, 3rd century A.D.) People who live a frugal lifestyle often live with less stress. Typically, those who take control of their money feel they have more control over their life in general. You've heard old cliché "Money is Power." What most of us fail to understand is that power isn't in having money, or how much you have, rather in ability to control what money you do have! With that power comes peace of mind. It's peace of knowing that all you have is truly "yours". With that peace of mind comes Frugal Freedom. Freedom from debt. Freedom from envy. Freedom from ridicule, shame, and loss. Loss of what you might ask. Sanity, for one thing. Trust me, when walls of financial ruin come tumbling down around you, it's easy to loose your sanity! And, no matter how much money you have, if you can't control it, you are headed for financial ruin. There are many stories of those who have become wealthy and eventually fell to financial ruin. These are people who let money control them instead of responsibly managing their money. Much of transition from spendthrift to frugal is within mind. It's not so much a physical shedding of luxuries of life. Rather, it is ability to accept that you don't have to "keep up with Joneses." This can be a huge mental leap living in today's world of material values. It takes an understanding of what you really need to be successful. Focus inward to what drives you to want more money. Is it necessity or just appearances that drive you to spend more, have more and, consequently, owe more?
| | Biggest Budget BlundersWritten by Cheryl Johnson
Does your budget never seem to balance way it should? Are you constantly digging into savings to make ends meet?If you find that your budget isn't doing job, then it's time to take a good look at essential components you might be missing or you have not allowed sufficiently for. Some of biggest budget blunders are . . . . . . 1. Failure to plan for inevitable expensesWe all have irregular expenses that we naively refer to as "unexpected." Come on, is that flat tire really unexpected? Don't you secretly know that these things happen? Have you ever owned a car that did not need repairs or maintenance? If you have, you probably didn't own it long enough. The solution; Start counting on car breaking down instead of hoping it doesn't! The car isn't only area we slight in budget. Do you find yourself hoping and praying that hot water heater, washer, dryer, or some other major appliance doesn't need to be repaired or, worse yet, replaced. Home maintenance is always a factor in our finances. Even if you rent, you probably have some home related expenses waiting to creep up on you. These are just a couple examples of variable expenses that we often overlook. When you consider following other categories that could be included in this list, you can see serious consequences this oversight can have on your budget. . . - Property, Auto, Health and Life Insurance if not paid on a monthly schedule.
Even if you do pay monthly, you should try to save for a lump payment if at all possible. Most companies charge up to a $3 fee for monthly payment options. It doesn't sound like a lot but, over a years time it's $36 you won't be investing in their cause. I say, it's always best to invest in yourself. Don't you agree? Put $36 in your savings! - Taxes - Property, Federal, and State - If you know you will have to pay Uncle Sam, prepare for it. If you value your home or other property investment, prepare for costs. Don't scramble at last minute to come up with enough to pay your obligations. It's likely other areas of your budget will suffer greatly, since these expenses have a high priority.
- Clothing - Now, I can wear a piece of clothing 'til you can see through threads. I work at home, so I only have a few choice pieces for special occasions. I'm a no frills kind of gal. But, I have four kids. Do I expect them to stop growing or somehow not care how they look to their peers? Of course not! But, I'm working on it. Just kidding! I know that they will need more clothes, more shoes, more accessories....etc., etc., etc., etc.....
I use every resource available to me to cut down clothing budget, I know I must account for this expense. It will arise, whether I am prepared or not! - School Supplies - This is another one you just can't omit if you have kids. You can, however, use some clever money saving techniques and multiple resources to keep this expense to a minimum.
- Pet Care - If you have a pet, you most likely have expenses that come with this beloved family member. Vaccinations, flea control, veterinarian, and food are just a few that come to mind. Again, minimize costs by using all your resources.
Tip: My local county animal shelter gives rabies vaccines for $5. Good for three years if regularly vaccinated. Does yours? - Gifts - If your friends, family, and kids don't care if they don't get gifts from you, if you've declared war on holidays, or have a convenient hiding place when these occasions take place, then you can skip this one!
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