Focus on Frugal

We are creatures of habit, and it's really easy to get into the habit of spending money on things we don't need, and trust me we all have our weaknesses (mine is craft supplies). Advertisers do a really good job at convincing us that we need this or that, actually the word they like to use these days is you DESERVE, insert whatever item they are trying to sell you here. There is good news though just like spending can be a habit so can living frugally. So here are some tips to help you focus on being frugal.

1.) Set goals, when you know what you are aiming for you won't be wandering around lost. Write it out and place it where you can see it everyday.

2.) Learn to love saving/make a game out of seeing how much you can save. If you are someone who loves a challenge, challenge yourself to see how much you can save. Make a game out of it see if you can find creative ways to fix something that might be broke or finding it used for a fraction of the price instead of going out and buying new. Or maybe seeing how you can save on the food budget by cutting back on wasted, food etc.

3.) Count your blessings. This one is a major one, when you realize how blessed you are with things that can't be bought with money, suddenly that shiny new gadget that you've been eyeing isn't so shiny anymore. You could have every new toy there is on the market and still not be happy, because contentment and happiness doesn't come from stuff. 

Five things Suze Orman and Dave Ramsey (Sort of) agree on.

1. Debt snowball, while their methods are slightly different, the concept is basically the same. Focus on one debt, pay minimum payments on the other debts, once one debt is paid off move what you where paying on the next debt. So if you were paying $100 a month on the debt you paid off add that $100 to the next debt, and keep going so your snowball grows each time. Here is where their methods vary:.

Orman's method is to start paying off the debt that has the highest interest rate to lowest interest rate.

Ramsey would tell you to start with the smallest debt to largest debt.

So which is better? I ran some numbers, let's say you had $10,000 worth of debt and it was broke down like this:

$4,000  Minimum payment $45 @11.99%
$2,500   Minimum payment $50 @21.99%
$1,000 Minimum payment $15 @12.99%
$2,000 Minimum payment $20 @7.99%
$500 Minimum payment $15 @9.99%

Let's say you only had $50 extra (Not exactly Gazelle speed) to put on your debt each month, with either plan it takes 7.25 years to pay off the $10,000. I am giving Ramsey this one though here is why with Orman's plan it would take almost three years before you see your first bill paid off in full, Ramsey's plan you'd see your first debt paid in full in 8 months. Seeing how the key to paying down debt is to stay motivated and focused you are going to be more apt to stay motivated if you see progress at a fairly good rate. (I might add a note when repaying your debt if you can squeak ANY extra towards debt repayment, by cutting your spending back, picking up more hours at work do so, this was just a simplified example. :) )

2.Both agree that you have to have an emergency fund, Ramsey's first baby step is to save up a thousand dollars BEFORE your debt is repaid, then AFTER your debt is paid off save up a three to six months emergency fund. Orman's advice used to be 3-6 months however after the stock market crashed in 2008 she upped it to 6-8 months.

3. They tell their listeners that it's important to teach kids at a young age the importance of handling money well, not by simply giving them an allowance, but a chore chart and paying them per chore.

4. Both agree that it's important to have life insurance, and that you should buy term life insurance.
Neither one have anything good to say about whole life insurance.

5. Both HATE co-signing. Orman and Ramsey would both tell you NEVER to co-sign, even if it's for your kid, or your sibling, JUST DON'T DO IT!

Ten Ways to Save Some Cash

Here are ten ways to save some money.

1. Save your change.
Every penny counts, so find yourself an old jar or container something to hold your loose change, at the end of the day throw your change in there. I think you will be surprised to see that it adds up fast.
You can also get apps that round everything you buy up to the next dollar and saves the change in a separate account, but I'm not comfortable with connecting my bank account to an app.

2. Get Organized. 
This seems like an odd way to save money, but trust me it's effective. A large percentage of saving money has to do with thinking ahead and planning stuff out. If you are organized you don't end up buying something that you already have. Which leads me to my next tip.

3. Sell your unwanted stuff. 
Have a yard sell, sell on your local Facebook, post stuff for sale on EBay. Earn some money off of what you no longer need or no longer using.

4. Get a new insurance quote.
If you haven't got a new quote in a while, you may want to talk to an insurance broker. Chances are they can get you the same coverage and lower rates. It's definitely worth checking out.

5. Plan cheaper ways to hang out with your friends. 
Going out to eat and a movie can be quite pricey, paying $8 or more for a movie, plus $10 more dollars for a meal and depending if you get snacks or not it can get costly fast! Instead make an inexpensive meal at home and pick out a movie you already own (Or ask your friend to bring their favorite movie.) Pop some popcorn, and just hang out. Or if you need to get out of the house search for free options in the area. (If you live in a big city there are usually TONS of free activities.)

6. Gift Giving. 
There are a ton of ways to save when it comes to gift giving. If you are a crafty person look for gift ideas on Pintrest that you can make, it's really easy to make a Christmas ornament with an old cookie cutter and some polymer clay.  Or shop sells year around, find something for 90% off that immediately makes you think of someone on your gift list snag it. It'll help if you keep a list of who you have bought what for, and for who you still need to find a gift. Or don't give gifts, let's be honest sometimes we simply can't afford it and that's perfectly fine. Honestly what we all cherish the most is time spent together with those we love.

7. Want vs. Need.
Truly think about what you need to stay alive, Netflix isn't a need it's a want, and that cellphone upgrade isn't a need it's a want. We've got to take a hard look at what we call Needs and determine if it really is or not. Unless you live in a warm area you need a coat for winter, but you don't need a name brand coat, when another coat that doesn't have the fancy name will do.

8. Plan out your trips.

Don't make five billion trips to town, plan where you need to go and what you need to get and make one trip.

9. Make a budget.

Have a game plan to where your money is going. You wouldn't drive a car with a blindfold on why would you handle your finances blindly? Write out your ALL your expenses, and be realistic with it don't plan $20 for something when nine times out of ten you spend $30 on it. 

10. Stop comparing yourself to the Jones.

Learn to be content with what you got and stop coveting the Jones' things.

You've got your own life to live stop trying to live the Jones' life.