My $300 Float

Five years ago my wife was pregnant so we started making plans for her to be off work for a bit. We’re a two income family by necessity not by choice (school loans suck), so we had to get a forbearance on some loans as well as put some money away into savings. Things went smoothly and Tonia was able to take 6 months off to spend with Tanner after he was born. It was invaluable.

As part of the savings process I wrote a check to myself for $300 that I never cashed. It simply sat in a drawer and was erased from our checking account balance. Virtually. In reality it was still in there.

So when Tonia went back to work, and our finances were back to normal, I still had a $300 check sitting in a drawer. I ripped it up and now have $300 in my checking account that doesn’t show up when I look at the bottom line of my register. I just love having that little security blanket in there when times are tight.

Do you have any financial quirks?

Filed under: Budget, Conservation, Economics, Finances, Money, Savings

Get Rich Slowly

I’ve been inspired lately by my brothers recent job loss. It caused me to look at my situation and see how I was prepared for something like that. Around the same time I started reading a blog called Get Rich Slowly. It’s pretty helpful, and inspiring. I’m very excited about some of the things I’m doing to free myself from the worry of money.

Below are a few of my personal tips.

1. Direct Deposit into savings each week. Each week I have a portion of my check directly deposited into a savings account. There is something about not seeing it on your paycheck that allows it to vanish from your mind, and helps you save. Start with a number you can afford at first. Then increase it once you get used to living on your reduced income. This will force you to live beneath your means while saving some dough. I just recently upped my amount $25. I am so stoked about raising it again soon!

2. Pay off smaller loans first. A seasoned financial planner will tell you to pay off your higher interest loans first, but paying of the small loans first gives you a psychological boost by seeing the debt disappear quickly. Pay everything you have to spare toward the lowest loan first (while only paying the minimum on the rest). Once that is payed off, take the money you were using on that loan and apply it toward the next lowest each month. Pretty soon you will be paying some huge payments toward your bigger loans. And your debt will disappear.

3. Don’t spend change. Save it all and cash it in for larger bills once a year. Instead of giving the cashier a dollar and a quarter for a $3.05 bill, give them $4.00 and pocket the change and put it in a jar. This is another forced savings method. And it works!!

4. Plan meals ahead. My wife and I just started getting back into this habit, and it rocks! We plan meals out for at least a week in advance. Then we prep for the next few days. This will limit the amount of time you settle for going out to eat, thus saving you some dough. We also plan our meals around different sales on food we find. Chicken on sale? We’re having chicken this week!

5. Buy used. It is so tempting to buy shiny new things, but if you simply bought the used stuff on amazon.com, or shopped at a second hand store, or even at T.J. Maxx, you could save yourself so much money. And 9 times out of 10 it’s practically as nice as a new one. Ebay would also be a nice option.

6. Borrow. I just saved myself $25 that I would have normally spent by borrowing a book from the library instead of buying it. I also borrowed another book from a friend. Need to plow your driveway? Borrow the snow blower from your neighbor. There is simply no need for everybody to own one of everything. On that note, please borrow my stuff. I have tons of stuff.

7. Credit Card = Emergencies Only. It’s so easy to just throw something on your credit card and convince yourself that you’ll pay it off immediately. I hardly ever do. And so the interest keeps adding up, and that $10 you saved on the power drill ends up costing you $43 more than the original price. I don’t recommend throwing them out completely because they are a very valuable safety net. But only view them as such, and you’ll be doing yourself a favor.

8. Conserve. This isn’t just a hippy tree-hugging thing. This also pads your pocketbook. Look for ways to conserve around your house. Insulate your hot water heater. Dial down the hot water heater 2°. Dial down your furnace or AC. Use less water. Turn off lights. Replace your incandescent light bulbs with compact fluorescent bulbs. Buy a Brita water filter jug instead of bottled water. Unplug things that you don’t use. The list is endless.

9. Learn more / Make yourself more marketable. Take every advantage offered to you by your employer to further your education in any and every subject. Learn something new. Read books. Go through tutorials. The more education and skills you have, the more marketable you are in life, translating into cash in your pocket.

10. Tithe and give away. Sounds counter-intuative, but this is the most important tip I can give you. The more you give away, the more that will come back to you. I learned an amazing object lesson about giving in Jr. High, and I have never looked back. As a direct result, God has blessed me with never EVER having to worry about money. But I warn you, don’t do it for the reward. Do it because your heart compels you. The person receiving the gift will know the difference, and you will not enjoy the blessing of peace in return.

What are your money saving tips?

Filed under: Budget, Conservation, Money, Savings