"Maxed Out"- a documentary on credit card debt

If you haven't seen this inspiring and heartbreaking documentary I highly recommend it. It gives you insight into what motivates credit card companies to keep handing out debt so freely. Be prepared for some very depressing subject matter though. So many middle class families are effected by debt and the credit card companies take advantage of their difficult situations by doing what? Offering them more credit!

If that documentary isn't a kick in the pants to get out of debt I don't know what is. If you're reading this blog and have a plan to get rid of your debt consider yourself lucky. For some people it almost seems impossible that they will ever not owe someone money.

Enjoy and recommend this documentary to everyone you know. In debt or out of it.

Getting Rid of Those Financial Wants

We all have them. Those lists of things that we can't wait to buy. New vehicles, clothes, boats, TV's, ipods. I even have a bookmarks folder that is dedicated to links of all of my wants. Right now, not an arms length away is a magazine called "The Robb Report" that is chalk full of all sorts of yachts, and fancy watches, and luxury items for one to dream about. No more! Right after I finish writing this sentence I am going to delete the bookmarks folder and throw away the magazine....

How does it feel you ask?

umm...

Simple I suppose? No longer will I be ranking which item will be the next in line to purchase. Oddly enough it also seems to relieve some of the financial stress that I've been feeling lately. It couldn't be that things that I haven't even spent money on yet could be causing me stress, could it?? THAT is scary.

Happy Halloween!

Get Out Of Debt

HAHAHA. This was too funny. I was browsing through some youtube videos on getting out of debt and I came across this SNL sketch. It's hilarious. After I watched it though I felt very sheepish. I've been wanting to buy a nice camera for a while and I could easily put it on my credit card. Twice I have made it to the checkout of a couple online stores but didn't go through with the purchase. I think it's time I took that video's advice. ''If you don't have any money, don't buy anything!"
Enjoy.

Consolidating Debt. Good or Bad?

Recently I was offered a mastercard at 1.9% interest for 6 months on balance transfers. Seeing as I had my debt spread around 2 lines of credit and a visa I thought it might be best to take advantage of this offer. I was approved for a $5000.00 limit and it was just enough to consolidate all those other debts. Now I'm not sure if it was a good or a bad thing that I did this. On one hand I'm saving a tonne in interest payments, but I'm already 3 months in and the balance isn't even below $4000.00 This worries me. I think I'm the type of person that won't do anything until it has to happen and this lower interest rate, although saving me money, is just bumping that debt down the list. I have managed to stay out of the red on both my lines of credit and until recently my visa had a balance of no more than $300.

What kind of person are you? Do you allow yourself to only act out of necessity when it comes to paying down your debt? I guess I'm overwhelmed at the moment. It can be very difficult to think you're ever going to get out of debt when you're spinning your wheels or worse, going backwards. I'm staying focused on the goals that I've set out for myself and I think I will most likely have to get a second job for a while. You've gotta do what you've gotta do. I'm looking forward to the day when I can say I'm completely debt free.

Saving With Loose Change Jars

So...Something that I love to do is to have multiple loose change jars for different purposes. This is how I lay it out-
Coins $.25 or less =Dinner, Drinks, or Movies.
Coins $1-$2 =Clothes or a day trip(gas, entertainment for the day)
Bills $5-$10=Chunk payments on loans or credit cards

At the end of every day when I get home I empty the change out of my pockets and check my wallet for bills. I put everything in the appropriate jar and watch it grow. I never dip into the jars for anything other than their labeled purpose. I also try to wait until each jar is full to the brim before I even think about counting it. When you do count the change up after the jar becomes full I guarantee you will be blown away by how much is in there. And lets face it, what do we always end up spending the loose change in our pockets on? I know I usually spend it on junk food or pop. It's a great feeling when you count a jar for the first time and realize how much money you have managed to save without much effort at all.

Have fun with this tip. It's hard not to!

Dave Ramsey is an Inspiration

I was just cruising around youtube watching some video's on getting out of debt and I ran across a seminar that Dave Ramsey did called "Dumping Debt". It was fabulous. I don't know if any of you have heard his radio show but he does a lot to help people make the best decisions with their finances. The series is worth the watch.

Saving Money AND Eating Healthy

It can be very difficult to maintain a healthy diet when living on limited funds. There are several things on can do to eat right while still maintaining a positive bank balance. Number one? A good multivitamin.

Multivitamins give our bodies what they need to function in a normal manner. It is best to obtain these nutrients from a well balanced diet but sometimes it is very difficult to afford the food that makes this happen. A multivitamin can cost you as little as 35 cents per day. I usually take one in the morning and one at night. Another great supplement is omega 3 and 6 and 9 capsules. They do all sorts of good things for your body like giving you healthier hair and skin as well as, when combined with exercise, promoting fat loss.

Number two..Try to cut back on meat consumption for 2-3 days of the week. Meat can be one of the most expensive grocery items and replacing it with another source of protein can save you quite a bit every month. I like to replace chicken breast or steak with a can of tuna. Tuna is very high in protein and isn't that disgusting if you add it to some homemade macaroni and cheese :) Other good sources of protein include almonds (which also contain omega fatty acids) and other nuts, eggs, and tofu.

Number three... STOP EATING OUT!! This one really should be number one as it is one of the biggest bank account drainers out there. I know it can be a huge hassle to prepare every single meal of the day but it can save you an incredible amount over the month. I love going out for dinner so one way I justify it is, for every time that I walk to town instead of driving my big truck I put aside $5. That usually adds up to a pretty nice meal for me and my girlfriend about once a month.

Start Small

One thing that most people have done in the past is get a nice big jar to chuck excess change into. This is a tried and tested way to save a few bucks here and there that can go toward a nice dinner or a short trip. I've even heard of people saving hundreds this way. However, with our society moving more towards the plastic way of purchasing it can be hard to even save up enough change for a cup of coffee and a donut. There are options you can take advantage of that will accomplish the same thing.

Paypal has a debit card that will immediately give you 1% back on all purchases. You can find some credit cards that do the same. Careful though because some credit cards have hidden fees. Stay away from fees of any kind. Fees are bad. My favorite thing to do is to make errors in my cheque balancing. You know how people set their clocks ahead so when their alarms go off and they get up they realize they actually have 15 more minutes than they thought? And it's a pleasant surprise even though they know they did it? Yea. It's like that with cheque book errors. Say I get an $800 dollar cheque. I just tell my cheque-book that I was paid $775 and voila..a magical free $25 will appear when I most need it.

Saving money is more a mental game than most people think. You really have to get into good habits financially to be able to turn your luck around. Don't be afraid to make up silly things that help you save $5 or $10 here and there. It can add up really fast. You'll be off the mac and cheese in no time!

Hello Everyone!

Well..To start off with I'll tell you a little bit about myself. I graduated high school in 2002 and have been studying music for most of the time since then. I recently graduated with a degree in music composition and after failing at starting a record label (after investing thousands) I am trying to grow my landscape maintenance business, buy some real estate, and get rid of my student loans.

I hope that the readers of this blog and gain some inspiration or knowledge from my struggles to achieve the financial goals I have set out for myself. This blog is as much for me as anyone. I believe it will keep me grounded and remind me daily of what I need to do if I want to reach financial freedom.