Author: Laurie

July 24, 2013

How to Help Others When You’re on a Tight Budget

A few weeks ago, Grayson over at Debt Roundup shared a story about facing poverty in our lives. In my 46 years, I’ve had lots of run-ins with poverty; I’ve been involved in several ministries that focus on feeding the poor and caring for the poor. I’ve lived in many a lower-income neighborhood, and as a child, my family faced its own battles with hunger.

Lots of people that I came in contact with during the different ministries I’ve been involved in had no money for food simply because they didn’t manage well, end of conversation. I saw first-hand as we ministered to the poor in different capacities as they walked around in $100 tennis shoes or jeans, yet didn’t fix a broken screen on the window or had no money left over after the 3 cases of soda or their cell phone payment to buy their kids food.

But there are the cases, like the one Grayson ran into, where people really are trying their best and simply cannot make ends meet, for a variety of reasons. As a child, I remember specifically a time when that happened to us. After my parents’ divorce, my mom, despite dad’s faithful child support payments, just didn’t have much money. So she took advantage of the welfare system while she learned office skills and learned to drive so that she could get a job and bring more money in.

But one week it just wasn’t enough. There were 3 days until the next welfare check, and we had NO food. None. The cupboards were bare, and my two younger brothers and I could do nothing but watch as mom cried, wondering how she would feed her babies for the next 3 days. We sat there in silence, the four of us, and didn’t notice when my baby brother, then 4, slipped out the door.

Doug, with his 4-year-old logic, had walked up to the corner store, set several food items on the counter and waited patiently for the cashier, who knew us well (thanks to the PacMan and Centipede games that garnished the corner of the store 🙂 ) to bag up the food and bring it home. Doug didn’t understand why mom was so upset when there was a plethora of food just waiting for us at the 7-eleven.

When the cashier asked Doug for the amount due, my little brother looked at him, with those big-blue eyes, wondering what on earth he was talking about.

Then came Superman.

A wonderfully kind old widower, who lived across the street from us, happened to be behind Doug in line and figured out what was going on. The frugal man had more than enough money to live on, and kindly bought our groceries and walked Doug home.

Imagine my mom’s surprise when Doug and Old Tom walked up to the door with a bag of groceries in hand. It was Christmas in July, that’s for sure.

So when you see someone, like Grayson did, who truly seems like they’re doing their best, but still struggling, think about how it might feel if you didn’t have the money to feed your babies, and then step in as you feel led. Maybe you don’t have the cash to buy their groceries, but here are some ways that even those on the strictest of budgets can help out the less fortunate or those who just need a hand:

1. Give of your time. Serve food or clean up at a homeless shelter or soup kitchen. Help package and distribute food at the local food shelf. Get involved with organizations that need people to shop or deliver food that they collect and pay for. There are all sorts of volunteer opportunities out there that require time but little or no money.

2. Give of your surplus. Clean out your pantry and give the food you know you won’t eat, or that is near expiration, to the local food shelf. Give your “buy one, get one free” items to the food shelf. Clean out your closet of all of those clothes or household items that you haven’t used in years, and donate them to your favorite charity. Give away the extra veggies in your garden. Or pick up one extra thing on each shopping trip that can go into a donation bag. Every little bit helps.

3. Partner with others. Maybe you’ve got a friend with lots of money who would like to help others, but has no time or know-how of shopping for the food shelf. Work together: your friend supplies the cash, you do the shopping, and you deliver the goods together. Volunteer at an organization like Feed My Starving Children, that has volunteers pack food that they buy to send off to third world countries. There are many organizations out there who need hands to help more than they need money.

4. Look close to home. Chances are, you can find a way to help others right in your close circle of family, friends or neighbors. Maybe there’s a single mom in your life who could really use a babysitter once in a while. Or an elderly person who needs help with errands or housework. Maybe you could help a young couple just starting out by teaching them what you’ve learned about budgeting and money management.

There’s always a way to give to others, no matter how tight your budget might be. Just keep your eyes open, and you’ll find a way. 🙂

July 22, 2013

The Most Dangerous Roadblock to Your Debt Freedom

Happy Monday, friends! I’ve written a guest post that’s being featured over at Frugal Rules today, called “Secrets to Helping You Get Out of Debt Quicker.” Head on over and check it out by clicking on the link. Now, onto today’s post!

I’ve written lots of posts about how spend tracking, budgeting, and generally having a plan are crucial to getting your debt paid off. But as I’ve perused the web the last six months, searching for continued wisdom on how to get out of debt, there’s one roadblock that keeps popping up over and over that is keeping people in debt. Is that what’s keeping you in debt?

The roadblock is: Refusal to face the truth. Denial. There – I’ve said it. I’m going to try and be as compassionate as I can here, while still being honest. If this post is for you, you’ll know it in your heart. Is denial keeping you in debt?

Truth about money and spending comes in many forms:

1. I don’t have that much debt. Or, I’m not really that overweight. Or, I don’t drink too much. Or whatever your vice is. We are free to do as we please, for the most part, on this earth. But the truth is that there are consequences to our actions. Not controlling your weight, or choosing to eat only processed/junk foods, can lead to diabetes, high blood pressure, heart disease and a myriad of other issues. You can say that those health issues aren’t caused by the extra weight you’re carrying around, or by the bad food choices you’re making, but the truth is still the truth, no matter how much you deny it.

The same goes for your money situation. No matter how “normal” it is, or how much less debt you have than the guy next to you, the fact of the matter is that your debt is keeping you in bondage to your credit card company, loan shark, or mortgage bank. Your house is not truly yours if you have a mortgage on it, and your time is not truly yours if you are forced to work a job you hate because you are handcuffed to your different loan companies.

2. I am managing my debt just fine / my debt situation is not my fault. That may be true, but one wrong move, and your house of cards could tumble down at any moment. Is it really fair of you to keep your debt load and your minimum payment schedule, especially when you’ve got a family? Is it fair to the kids when you lose your house because you lost a job? It’s not your fault? Really? Let me ask you a question: If you had spent the last 15 years managing your money wisely, budgeting, saving and avoiding debt, and tracking your spending, how much cash on hand and how much debt would you have right now? Go back and add up the last 15 years of your tax returns. How much money has come into your hands in that time period, and what would your money situation look like today if you’d saved 10% of that money and used extra cash to pay off your mortgage instead of going out to eat, to the movies or on spendy clothes for the last 15 years? Oh, you haven’t spent that much? I challenge you to go back and track your spending for the last year and add up what you spent on entertainment, clothing, groceries and the like. Seriously: be honest with yourself – how much more did you spend than you thought you were spending?

3. It really doesn’t matter what my debt situation is. It does if you have to find a new home because you lost yours. It does if a job loss means you can’t feed your kids or pay the electric bill. And it does every time you have to say “no” to something because of money, have a fight with your spouse because of money, or turn down a great opportunity because you can’t afford it. Yes, your debt really does matter if it’s keeping you from living a peaceful life.

4. I deserve to spend money. This is a lie that media and advertising have used to dupe the unassuming public into believing so that they can make money. Don’t you deserve peace and financial security more? Don’t your spouse and your children deserve those things? And honestly, is that trip to the fancy restaurant, or that new pair of jeans, or that new gadget really, truly making you happy? I seriously doubt it. You deserve SO much more than “stuff”. You deserve a life where you can make decisions based on what’s best for you and/or your family, not based on whether or not you’ll be able to pay the bills each month.

5. I don’t spend that much / I only spend on necessities. Spend-tracking was our wake-up call to face the facts regarding this particular path of denial. We went back and wrote down every dime we’d spent in the previous year on groceries, gas and entertainment. And I would challenge you to do the same. We thought we were being frugal, but the numbers can’t lie. Writing down what you spend will show you where those financial leaks are.

Regarding necessities, I plead with you to get back to basics. Kids’ activities are not necessities. Smartphones are not necessities. Nor are takeout meals, restaurant meals or other forms of entertainment. Or name brand/new clothing. Is it difficult to give up these things? Yes. Telling our kids “no” to things they want to do or have has been one of the most difficult parts of our decision to control our spending so that we can get out of debt.

But we know that, in the end, it will be worth it. When we get to debt free, we are putting our family in a place where:

a. our kids won’t have to worry about the burden of supporting us financially

b. we can do things like take vacations, go out to eat, or buy things for the kids in a way where it won’t even touch us financially

c. we’re putting ourselves in a position where we can make big family decisions not based on our debt situation, but based on what’s best for our family

I plead with you, friends, to kick denial to the curb, and to wake up and face the truth about your money and your spending. The road to get to debt free will indeed be difficult, but the life of freedom you’ll experience when you’re done will, from what everyone tells me, be worth every minute of sacrifice it takes to get there.

Are you strong enough to make the journey? Which pain will you choose? The short-term pain of making the necessary sacrifices to get out of debt, or the long-term pain of being in bondage to debt for the rest of your life?

July 18, 2013

Stockpiling Basics: How to Stockpile on a Budget

Some people might think stockpiling is unnecessary, but let me tell you: As a Minnesotan, we’ve had more than our fair share of days when we’ve been stuck in the house due to a 36-inch snowstorm or a stretch of 30-below zero winter days.

Have you ever thought about having a stockpile of food set aside for a disaster or time of need, but were scared of taking action due to potential costs? If so, you’re in luck, because there are ways to stockpile on even the tightest of budgets. Go to almost any commercial site on survival food and you’ll find it easy (and highly recommended) to spend thousands and thousands of dollars on a 1-to-2 year supply of food for your family. But creating your own stockpile survival is often easier and most always cheaper.

Before you write off stockpiling as only for “preppers”, consider the victims of recent hurricanes and other natural disasters. These poor folks were often stuck in their homes with no electricity and/or no access to transportation, as they waiting for hard-working city officials to restore power and clear streets, of which tasks far outnumbered the number of personnel assigned to the jobs. Residents often had to wait 2 weeks or even longer before they could get to a store or cook food, and with the financial picture of most Americans being what it is these days, leaving town for a sunny destination or even a far away family member’s home that allowed for food and power sources was simply not an option.

Therefore it’s in your own best interest to have at least a small stockpile of foods and medicines on hand in case of a natural or other disaster that might keep you locked in your home. Here are some things you can stock up on and still have money left over to pay the bills if you’re on a tight budget.

Core Foods

Core foods should consist of main meals for breakfast, lunch and dinner. Here is some of what we try and stock up on. Some needs to be prepared, and some doesn’t. You may be in a situation where you still have power, but can’t leave your home due to blocked roads or extreme hot or cold temperatures. Here are some basics that will get you through if the normal food supply is running low:

Rice (check the big box stores – we get ours for $10 for a 25 lb box)

Pasta – big bags(5 lbs.) go for roughly $6 at the shopping clubs

Beans: pinto, black, navy – whatever your family likes best. You can get a huge bag of beans for about $7

Oatmeal: 2 – 5lb. containers for $7.98

Fully cooked meats, soups, stews, veggies and meals of your liking. (Price, your choice. It depends on how much rice, beans and pasta your family can handle, but these are definitely optional and not necessities, unless you’re stuck without power, so we always like to have at least some on hand.) Let’s estimate $50 for this category.

**Note: This is a crucial part of stockpiling – only get the things your family likes to eat. Don’t waste your money on stuff you hate just to have something in the house.

Beverages

This is easy. Keep on hand these three basics:

Water (we buy the gallon jugs. One gallon for each family member per day. I would have at least a two-week supply on hand, so if you have a 4-person family, that’s 28 gallons of purified drinking water). $28 at the most for a two-week supply, $56 for a month-supply.

A large box of powdered milk, for drinking and/or baking. Yeah, it’s gross, but desperate times call for desperate measures. Walmart sells generic powdered milk, 64oz. for under $14

Optional: you may want to have on hand some type of powdered flavoring, such as Koolaid, for your water, as a special treat. I wouldn’t spend any more than $5 on this though

Spices

We keep a stockpile of 5 basic spices:

Salt $1.50 for 2- 26oz containers

Pepper $7.64 for 18 oz.

Garlic Powder $5.94 for 21 oz.

Chili Powder $5.28 for 20 oz.

Cinnamon $4.58 18 .oz

This may not cover all of your spice preferences, but it will cover the basics. You may want to exchange the garlic and/or chili powder for your own favorites too, but we’ve found that these five basics can get us by for most recipes.

Baking Supplies

It’s always good to have some basic baking supplies on hand too, for if an emergency arises and grocery stores are unavailable.

Flour $4.76 for a 10-lb. bag

White Sugar $4.79 for a 10-lb. bag

Brown Sugar $3.98 for 4-lbs.

Baking soda –$1.24 for 2 lbs.

Baking powder $5.78 for 60 oz.

Vanilla flavoring $6.88 for 16 oz.

Cocoa $6.78 for 23 oz. (What? Chocolate is not a necessity? I vehemently disagree!)

Butter (can be frozen) 4- 1 lb. boxes for $7.98

Eggs – not especially storable – this is where backyard chickens come in VERY handy. That being said, I have skipped the eggs in things like pancakes and biscuits, and added a bit more water as needed to moisten, and they were perfectly acceptable to eat.

First Aid

You’ll also want to have at least a basic first aid kit available. What should be in the basic kit?

Bandaids

1 Ace Bandage (for sprains and to use as a tourniquet if necessary)

Ibuprofen

Acetaminophen

Benadryl Allergy liquid for kids (faster acting in a liquid form for allergic reactions)

Neosporin or some other antibacterial ointment

Caladryl (for poison ivy, etc.)

Basic first aid instruction kit

Total cost for these items should run you about $30

Total spent on your basic stockpiling supply? Roughly $250. And this food list should easily last your family a month.

That being said, $250 is a lot of money to most people. So how can you get the best bang for your buck and fit your stockpiling supply into an already tight budget?

1. Stockpile a little at a time. Mr. CBB over at Canadian Budget Binder is a pro at this. He always budgets a bit into his weekly grocery budget for stockpiling. Check out his money-saving grocery tips here.

2. Hit the sales. It’s crucial to take advantage of great sales, both for your regular grocery shopping and for your stockpile. When our favorite spaghetti sauce went on sale for 99 cents a jar, we bought 15 jars for the stockpile. Add in the pasta, and we’re talking $1.75 for each meal for our family of six.

3. Stick to the basics. Your stockpiling supply is not meant to be full of gourmet meals. Of course, if you can afford it, go all out. But for those on a tight budget who are simply concerned about being able to feed their families in a time of crisis, stick to the basics. The important thing here is that you have food to eat, water to drink, and basic medical supplies for emergencies that can be handled at home.

Remember that for homes with babies or toddlers, those on regular medications, those with pets, and others with specific needs, you’ll need to stock up on those necessary supplies as well.

What do you think of our basic stockpiling list? Are we missing anything?

July 16, 2013

Recipe of the Week: Taco Chicken

This healthy and delicious recipe is for my dad. My dad is one of the greatest guys on earth, and I love him SO much. He’s the type of guy who’d help anyone who asked him, and even those who don’t ask. My dad’s one fault is that he has always worked too hard, and IMHO, that led to an “eat on the run” diet, which, along with his “all work/not enough play” mindset, resulted in a barrage of health problems he’s been dealing with over the last year. Too many to list here, suffice to say he’s been on about a 9-month forced rest.

But what I’m really proud of about my dad is that he’s taken the bull by the horns concerning his health. He’s changed his diet to include a lot more veggies and fruits, and a lot less processed sugars. Donuts and coffee are no longer his staple breakfast. I’m really very proud of my dad’s hard work in changing his diet, and since he’s quite the connoisseur of great food, I’m always on the lookout for great, healthy recipes for him. This one’s for you, dad. Put it in the cookbook.

Taco Chicken

1 – 2 chicken breasts, cubed and fried in olive oil, or grilled, and semi-cooled

1/2 red onion, sliced thin

2 ripe (but not mushy) avocados, cubed

1 can black beans, rinsed and drained

1 c. frozen corn, thawed to room temp (we skip the corn)

3 ripe roma tomatoes, diced

1 handful cilantro, chopped

1 T. chili powder

1 t. garlic powder

1 t. cumin

1/2 t. salt

1 t. black pepper

Put chicken, onion, avocado, beans, corn, tomato and cilantro in large bowl and mix. Combine spices in separate, small bowl and mix thoroughly (this spice combo is our homemade taco seasoning – all the taste without the chemicals. Also, we use 1 t. of salt instead of 1/2 t., but that may be too much for some people). Sprinkle spice mix on chicken/veggie mix and coat well. Serve immediately.

*Spice it up: Serve with Chipotle Rice and/or homemade guacamole.

July 15, 2013

The Best Birthday Ever

So, not too long ago, I celebrated a birthday. Normally, I’m a bit shy about my birthday and generally don’t like to talk about it, but I just felt so inclined to share with ya’ll why this was what I view as my best birthday ever. Full disclosure here: I’m an optimist and generally love my birthday every year. It doesn’t need to be fancy: just a nice day with Rick and the kids on my birthday is fine with me. But this birthday was different. Why?

Well, for one, we’re more in debt than we’ve ever been in our lives. This obviously equates to more stress, so it might not make any sense that this was a greater-than-ever birthday. So how can I possibly count this as my greatest yet birthday? I’ll tell you:

1. We’ve got a plan in place. Gone are the days where we float willy-nilly in and out of debt, wondering if we’re going to make our money last till the end of the month. We’ve got a budget, and a plan, not only for getting out of debt, but for what we want to do with our financial lives in the long-term, so that we can live more carefree in our regular lives in the long-term, and today.

2. We’ve got a new perspective. Living the last six months on a super-strict budget has given me, and all of us, a new appreciation for the basics in life. I am more grateful than ever that we always have food to eat and a warm place to live, even if it’s not necessarily my dream menu plan or dream home. Getting back to basics, I guess, has given me an appreciation for what’s truly important in life, and it’s not working to satisfy my “immediate gratification” desires. In fact, my first thought for celebrating my birthday was a nice steak dinner out at a halfway decent restaurant. But the more I thought about it, the more I realized I’d have a much better time with my family if we were simply together at home, with no other noise, distractions or strangers to take away from the experience.

So Rick, who we lovingly refer to as “The Grillmeister”, grilled the kids and himself some burgers, me a fabulous porterhouse steak (from the 1/4 side of beef we got in the spring at $3.50 a pound – SCORE!), served with a baked potato and steamed broccoli, and he and the kids made me a homemade chocolate cake and we bought some Oreo Cookie ice cream. It was absolutely fabulous, and it cost us all of about $15!

3. The real me. Living on a back to basics, getting-out-of-debt-budget has taken some real soul-searching. I’ve had to learn why I spent like I did in the first place, and work to heal the hurts that caused my frivolous spending. Also, since keeping up with the Joneses’ is out of the question now, I’ve had to learn to accept me for who I am, and I’ve also had to learn who my real friends are. These journeys were painful sometimes, but now I know that the real me is a perfectly acceptable human being, no matter what I wear or have (or don’t have, for that matter), and I am now certain of who my true friends are.

This year was the best birthday ever because of the “getting out of debt” journey we chose to walk on January 1, and because of the changes our “getting out of debt” journey forced us to make. Aside from being debt free one day, this journey has increased our happiness in SO many ways on a personal level too. The sacrifices we are making to get out of debt have shown us what’s truly important in life. What a wonderful thing!

July 11, 2013

What You Can Expect if You Choose to Go on a Get out of Debt Journey

We started our journey out of debt in January of 2013, and as of today, we’re just over 6 months into our road to debt free. It’s been quite the rollercoaster of a ride so far, but we’ve also learned and grown in ways we never imagined.

Let me ask you a question: Are you in a boatload of debt and considering changing your lifestyle to free yourself of that debt burden?

If so, there are some things you need to know. It won’t always be an easy journey, especially if you are choosing, like we did, to get extreme about getting rid of the debt. And I feel it’s only fair to give you a bit of advanced warning about some of the things you may encounter when you make this life-changing decision to free yourself and your family from the debt that’s weighing on your shoulders.

What can you expect?

1. Erratic emotions. This is the time, before you begin your journey, to start getting your emotions under control. Once you begin your journey to debt free, you’ll likely feel all kinds of different emotions. Some days, you’ll feel like you can conquer the world. Other days, the days when the reality of your debt situation smacks you in the face, you’ll feel like you’re being crushed by your mountain of debt, and that you’ll never get free.

Days will come when you simply want to give up because it’s too difficult and it’s taking too long. And other days you’ll be searching the streets for pennies because you’re so jacked up on the high of eliminating the debt.

It’s very important when dealing with these feelings that you either learn to talk logically and objectively with yourself about the fickleness of emotions, or have a good friend who will do it for you. Take it day by day, and have weapons in place to combat your discouragement on the days you feel overwhelmed. And when you’re having your good days, use them to your advantage: collect aluminum cans by the roadside, check the thrift stores for hidden treasures, or do whatever else you can do to catapult your goals.

2. A change in your friendships. When we started this blog and shared the truth about our situation, the gossip started to spread, even though we thought we were being anonymous. Some people lifted us up and are supporting us on our journey to this day, others turned their noses up at us, whether out of fear or pride, I don’t know. Did this bother us? Maybe just a bit. But when my husband and I sat down and talked about it, we realized that the “friends” who’d pridefully abandoned us were mostly people we knew we couldn’t fully trust to begin with, so no love lost there, and probably “good riddance” instead.

And on the other side of the coin, not only have some of our friendships been strengthened by revealing our debt and our plan to get out of it, we’ve also made some new, really great friends who are cheering us on to victory.

Whether you do it anonymously or not, f you truly commit to changing your lifestyle in order to get out of debt, people are going to get suspicious that you’ve stopped going out to eat, joining them on costly outings or skipping this activity or that. And it’s likely that people will find out what your situation is whether you want them to or not. Be prepared to strengthen yourself to handle their reactions.

3. Some rocky roads. I remember when we first started our plan to get out of debt, things were pretty smooth sailing at first. But then the usual life problems kicked in: unexpected expenses, such as car repairs, medical bills, and other things that happen that can tempt you to throw the debt payoff plan by the wayside. But just remember that if you stick to the plan, the time will come when those unexpected expenses will no longer hold you hostage, because you’ve got no debt and a healthy emergency fund.

After nearly six months of living super frugally, and learning to conquer the various happenings that work to get us off of our debt-slaying track, I can honestly say that we’re SO glad we’re on this road. We’ve got a long ways to go yet, but both my husband and I know that when we get there, it will have been worth all of the trouble. 🙂

July 8, 2013

Making the Right Credit Card Choices

Making the right credit card choices is essential to your future credit score and health of your finances. Everyone has different spending habits, budgets, and lifestyles, which makes the process of finding the “right” credit card a difficult process. However, by reading this quick guide and doing follow-up online research, you will have a much easier road ahead of you. Read more

July 4, 2013

Five Frugal Tips for Saving Money

In this day and age, many people seem to think having a savings account is a lost art. Personal savings amounts continue to fluctuate in the UK, while in America, they’re simply declining. However, there are huge benefits to saving at least a portion of your income. Read more

July 3, 2013

Recipe of the Week: Pistachio Salad

Can you say “Sweet and delicious?”

This little gem of a recipe is a family favorite here. The kids request one of the grandmas to make it on every single holiday. That’s why I thought it’d be a great one to share today. Put it on your “Fort of YU-ly” (the way my Norwegian grandfather used to say it. 🙂 ) menu and your guests will not be disappointed! ****A note: We always double this recipe for larger gatherings.

Pistachio Salad

1 small pkg instant pistachio pudding 1 8 oz container Cool Whip

1 – 20 oz. can crushed pineapple 1/2. c. chopped walnuts

2.5 c. mini marshmallows 1/2 c. chopped dates (opt.)

1/4. c. chopped maraschino cherries

In medium-sized bowl, mix pineapple, with juice, and unprepared pudding mix until well blended. Add in remaining ingredients: dates, walnuts, cherries, marshmallows and cool whip. Mix well, chill, and serve. Top with more chopped walnuts for a garnish if you wish. That’s it!

July 1, 2013

Ooh, ooh, Pick Me!

In the vein of shameless self-promotion, I’m asking you to head on over to My Personal Finance Journey’s Tour de Personal Finance contest and vote for The Frugal Farmer’s article by putting “Depression” in the comments section. Here’s the link:

http://www.mypersonalfinancejourney.com/2013/07/tour-de-personal-finance-stage-6-saving-investing-group-posts-41-44.html

Thanks ahead of time for supporting The Frugal Farmer!