The words frugal, self-discipline, coupons, emergency funds and monthly budgets come to mind when you think about one income families.  When you decide to switch from two incomes to one your whole lifestyle changes and every expense needs to be examined and possibly cut.  But are there budget items you definitely should not skimp on?  Here are a few things I would not recommend cutting from your budget.

Estate Planning

Having a will, health care directives and Powers of Attorney are imperative – especially if you have children.  Too often, parents of young children neglect or postpone estate planning, saying they are too young, quite healthy, or cannot afford the expense.  Another reason may be that estate planning deals with feelings and attitudes that people often prefer to ignore.  Estate planning lets parents plan for care of their children, ensures their property will be transferred to the desired individuals, determines who should handle the business affairs of the estate, and determines who will handle the children’s property.

Health Insurance

Not having health insurance is one of the fastest ways to find your family in financial trouble.  One accident or significant illness without coverage can leave you holding hundreds of thousands of dollars in medical bills if you are not careful.  If insurance is not offered by your employer or you are self-employed, check into purchasing an individual policy.  While it may not be cheap the fact remains; what do you have if you don’t have your health?

Property Insurance

A house is usually a family’s greatest asset, so it is mandatory to have homeowners insurance when you have a mortgage. For many people this insurance premium is built into the mortgage payment.  If you can, pay extra for guaranteed-replacement coverage, which mandates that the insurer will replace your home if it is destroyed, regardless of the cost.  If you rent instead of own, a renter’s insurance policy is just as important.  In the event of a burglary, fire or disaster you should be able to at least have a policy that can cover most of the replacement costs.

Car Insurance

If you have an automobile you need car insurance; there is no way around this.  Not only is it required by the law, but it can also help to keep your finances safe.  Like a home, automobiles can be quite expensive and if your vehicle gets damaged you want to be able to repair or replace it. Most automotive insurance policies cover bodily injury or death of another person in an incident that you are legally responsible.  A policy generally pays for medical expenses related to the incident and legal defense costs.  Look for coverage of at least $100,000 per person, another $100,000 for property and $300,000 per accident.

Life Insurance

Your life is valuable because it is what allows you to work and earn an income to provide for your family. At the very least you should have enough life insurance to cover basic funeral expenses and provide a cushion for your family, and at most it should provide a stream of income for your family that can replace what is now gone.  Many employers offer a basic life insurance as a benefit and some even allow you to purchase additional coverage at a very affordable rate.  Outside of employer plans there are hundreds of insurance companies that can provide the right coverage for you.  Also consider taking out life insurance on the parent staying at home.  Should he or she die, the death benefit could cover the hefty expense of child care.

Disability Insurance for Working Spouse

Long term disability insurance is something that a lot of people do not think about. After all, most people have the “it won’t happen to me attitude.”  But a long term disability insurance policy can help to make sure that you can continue your current lifestyle even your family’s working spouse is injured.  You can choose to purchase long-term disability insurance that does not start until you have been disabled for over six months in an effort to save money on your premiums, but of course this assumes that you have a fully funded emergency fund in place to cover your family until then.

This article was a guest post from Adam Obrecht, CFP®, AO Wealth Advisory.

Adam Obrecht, CFP® is the owner and founder of AO Wealth Advisory in Waukee, Iowa.  His life passion is helping individuals, families and businesses maximize what they earn, invest wisely, and give generously to their family, charities, and community.  www.aowealthadvisory.com

Recently, there’s been quite a bit of discussion about the difficulty in finding a job. Millions of people in America are currently unemployed. Thousands of people are homeless or on the verge of becoming so. But how difficult is it really to find employment?

This has become a contentious topic in our country. For those who are gainfully employed there seems to be a growing disdain or lack of sympathy for those out of work. This is especially true for the long term unemployed who in some cases haven’t had a job for years. So what’s happening? How did we get to this point? Are all the people without jobs just lazy or incapable of doing work? Is the stigma of joblessness so strong that it prevents future employment?

One Man’s Perspective

First, let me be very clear about my own job history. I’m currently employed and have never been unemployed for more than 2 months in my entire life. I don’t say this to brag, but rather to be upfront regarding my own background and how I derive my perspective. I suspect for some my perspective will be relegated to a you-don’t-understand-because-you’ve-never-been-in-my-position opinion. But that could be said for virtually any topic we discuss. So let’s cut to the chase.

Is it hard to find a job? … NO.

There are probably a few people reading this right now who think I must be an uncaring idiot who has no idea what they’re going through. And in part, they’re right. I have absolutely no idea what you as an individual are going through. I don’t know anything about your personal finances. I don’t know how long you‘ve been unemployed. I don’t know if you’re homeless or living on the street. I don’t know what city or state you live in. I don’t know what field or craft you work within. So there many, many things I don’t know! I concede this point. But what I do know is that there are still many jobs for people who want and can work.

All hard work brings a profit, but mere talk leads only to poverty. – Proverbs 14:23 (NIV)

The real question you should be asking yourself is … “Am I willing to work how and where I’m needed?” You see I think most people aren’t looking for a “job”; instead I think most people are looking for a convenient “career”. For many people the career search must fit within self made guidelines or criteria. For example, the job must maintain their current lifestyle. The job must keep them in their current home. The job must offer benefits. The job hours must allow you to be home in time to meet the kids, when they get home from school. The list of personal job demands can go on forever.

Once someone starts any career they can quickly get mind locked into that job. Their job becomes their identity … it’s who they are. This can be devastating when in survival mode. The notion that they can only succeed where they directly gained their experience becomes as restricting as any jail. Unfortunately for these people, when the hammer falls and they find themselves laid-off or fired; they go on thinking there’s nothing more for them because that’s all they knew.

Be A Red Foreman

It’s not very difficult to find a reason to not have a job. In the popular hit sitcom That’s 70 Show, Red Forman (the father) eventually loses his job at a factory due to the plant being closed. Next thing he knows, things become increasingly tense and stress around the house grows (as always). But Red never gave up! He landed a variety of jobs in different places and even started his own business. Red Foreman was a Real Man! He looked at adversity and found a way to still provide for his family.

Of course, I realize Red is simply a character on TV. But his attitude is similar to a great many people in this world. Ask yourself if you’re the man, or woman, who is willing to work three part time jobs at different fast food chains … later to become a restaurant manager or entrepreneur. Are you the guy who started cutting lawns out of desperation … who might later open his own landscaping business? Are you the mom who cuts coupons so great you save thousands every year … and now you’re ready to start teaching classes about how to save money? Bottom-line, there is something to be said for the tenacity of those who just don’t quit.

Can it be hard to find the right job for you? … YES!

For those who think I believe all jobs are right for all people … you’re wrong. Many jobs people take are just to pay the bills or even survive. But survival and paying the bills demands we possess a willingness to work. I have no illusions about the current job market. However, if people put demands/restrictions on a job positions they don’t yet have … then they should realize their chances of being employed are greatly reduced.

Work is work! – Red Foreman, That 70’s Show

Work isn’t always easy and it’s not always fun … especially if you’re not working in your desired field. But don’t let the search for the perfect career stop you from taking the available job. Be willing to find a way to do what others won’t. In this sense you will be more valuable than the other person bucking for the same job.

Finding your way through unemployment can grind a person into the ground. Self doubt of your own abilities can drive your confidence into the ditch. However, each person is responsible for their own position in life. You and I both have the ability to become something or nothing. The choice is ours to make. What side of the equation will you be on?

Are you currently struggling with finding a job? Meet us in the comments and tell us about it. Perhaps some of us can respond and help.

Imagine with me two armies coming together over a valley rich in resources. The pasture is fertile, plenty of grass for both armies, there are orchards of apple trees, the water is pure and sparkling. There is room for both multitudes of people and horses, yet the commanders have grudges and preconceptions. Peace talks are tried, but they fail miserably. Horses are mounted, swords are drawn, and the battle is about to begin.

No, I’m not talking about a new fantasy novel that I’m writing (though, that might be a good introduction). I’m talking about dealing with your spouse about money. When a couple gets married, they both have preconceptions and ways of dealing with money. One may be a spender, one a saver. Getting rid of debt might be the goal of one, yet the other doesn’t care if they spend money they don’t have.

How To Deal With Finances In Marriage: What You Need To Know!

Here are several things that have helped Brianna and I with our discussions about money. They can help you too!

1. Get on the Same Page

This means you need to figure out your differences and make a solid commitment to change the way you deal with finances in marriage. First and foremost is to remember this money, regardless of who makes it, is both of yours. Start using the word “Our.” It’s our debt, our income, our cars, our student loan, our future. Second, make some compromises: If you’re a spender, this means you agree to have a limit. If you’re a saver, this means you actually loosen up and spend some money. Realize that you need to include your spouse in most financial decisions.

Brianna and I both had debt when we entered marriage. We made the decision to proactively change the way we referred to the money. We have a joint checking account and have made sure we remember that everything is ours.

2. Dream Together

The future is wide open. If a couple will talk about what they want to do, in regard to finances, this will align their hearts together and go a long way to unifying their views of money. Talk about why you’re paying off debt, the giving you want to do, the house that you want to buy. Talk about starting a business. Be open about your dreams and listen to your spouse’s dreams too.

This was one of the first things Brianna and I talked about. It was one of the topics we used to get to know each other during our courting period. We have dreams of giving, dreams of owning our own house, of ministry and doing things together. We also have a dream of celebrating when we get debt free and have the money to save: We want to go on an Alaskan Cruise. Yep, It’s a big dream, but it’s what we hold out to motivate us.

3. Take Action Together

This is the hard part. This is the commitment to sitting down and making a budget (or a cash flow plan if you prefer to call it that). The nuts and bolts of dealing with your money. Find out who is more inclined to crunch numbers (Dave Ramsey calls this person a nerd. I prefer the term organized. Grins). That person takes the responsibility to sit down every month and make that spreadsheet where every dollar has a name.

Then you have a meeting. This is where you have to make sure you communicate well. Each spouse has a voice and can give their opinion. Once you make your decisions on where the money goes, each spouse has to stick to it. The envelope system really helps in curbing spending; something about parting with cash hurts.

Brianna and I have figured out a good system for our budgeting. Since I’m the more detailed person (at least in this regard) I’m the one who makes the spreadsheet. On the last day of the month, I have every dollar assigned from that month’s income.

Then we sit down and talk about what the budget looks like. Sometimes I have to move some money around, because I didn’t know we were getting low on toilet paper or detergent. That’s why we talk about it. Since we’ve been doing this for almost 6 months, most of the amounts and categories stay the same, but occasionally we’ll add or remove a category. The goal is to be flexible while we talk about the budget. Then we stick to it through the whole month.

4. Pray Together

Remember, you’re dealing with God’s money, not yours. If you both take the time to set aside the worry about money, remember that He has your back and cares deeply for you, then that allows for a huge weight to be taken off.

Also, pray about the little things. Brianna will regularly ask for sales and cheap prices for the items on her grocery list – and God answers! There’s many a time she’ll come home and tell me that she found everything on sale and spent way less than she estimated.

Being married is a good thing and as a married couple our financial journey can be exciting and joyful. Enter into marriage as a team and not as opposing armies. Imagine the valley you will have to enjoy . . . together.

How do you talk about money with your spouse? What preconceptions have hindered your communication? Leave a comment below, won’t you?

I have had a very rough past year. I expected things to get better relatively soon after a layoff in January 2011, but instead, it seemed things got progressively worse. It’s triggered depression and has had me uneasy for a while.

When friends and family keep telling me to pray and give my problems to God, I know they mean well, but after constant disappointment, struggle, and frustration, I find it harder and harder to believe that things will get better just from praying and giving my problems to God. If that’s what I’ve been doing this whole time and nothing has changed for the better, how is it going to change if I do it today?

What I’m experiencing is a decrease in faith. I believe we’ve all experienced it at one point, even some of the prophets in the Bible. We’re not supposed to question God but there are times when we are so curious or feel so helpless, we ask Him why. Truthfully, it’s not up to us, and God doesn’t work on our time; He doesn’t have a watch.

No temptation has overtaken you except what is common to mankind. And God is faithful; he will not let you be tempted beyond what you can bear. But when you are tempted, he will also provide a way out so that you can endure it. – 1 Corinthians 10:13

I used to halfway joke that I thought God had me on mute. I felt like I was praying, praying, praying, and God didn’t hear me because he muted me a while back and forgot about it. I felt that way because it seemed as if my prayers would go unanswered.

I’m not the first person to feel that way, and I certainly won’t be the last.

In the Bible, Habakkuk felt the same way; he prayed to God about the violence going on in the Jewish society, and felt like God didn’t hear his prayers because the problem continued.

What I’m learning is that God is indeed listening, every time we pray. However, He also knows what’s best for us and the exact time we need Him. God isn’t going to bless me with something I don’t need, even if I ask for it. Maybe I’ve been asking for the wrong things. He’s not going to keep me suffering; He knows when the time is right. I have to trust that He knows what He’s doing. My faith has to increase, even in the darkest hour.

I’ve never wanted to pray to God to make me rich or anything shallow. I’ve never prayed for material blessings, as that’s not what He’s for. However, I have changed my prayers a little more. I ask for a peace of mind, to bring myself and my loved ones through the day safely, and the Serenity Prayer (serenity to accept the things I cannot change, courage to change the things I can, and the wisdom to know the difference).

It’s a work in progress. I’m a work in progress. Just like we work on strengthening our body’s muscles, I’m working on strengthening my faith muscle.

Have you ever been in Briana’s position? Do you struggle with faith sometimes? What helps? Leave a comment below.

PerkStreet vs. Ally: the fight is on! Let’s review both of these online financial institutions and compare them apples to apples. You might be surprised by the results.

PerkStreet and Ally Benefits Compared

In order to compare PerkStreet and Ally side by side, we’re going to look at the standard criteria:

• Cash back debit cards and how much you can earn.
• Cost to open an account.
• Minimum balance requirements.
• Interest rates.
• ATMs.

Let’s take it step by step looking at these standard banking features. Then, we’ll compare the two companies as if you’re a customer . . . and see who wins the match!

First, let’s look at the cash back debit card!

Cash Back Debit Cards

Ally and PerkStreet both have cash back debit cards, but they aren’t created equal. Each has their own payment structure and requirements.

PerkStreet offers the following:

• Earn 1% cash back on non-PIN debit card purchases if your checking balance is below $5,000.
• Earn 2% cash back on non-PIN debit card purchases if your checking balance is at $5,000 or above.
• Earn 5% cash back on non-PIN debit card purchases when you shop at recommended vendors (new vendors every month are announced).

As you shop, you will accumulate perks in a special section of the website where you can also redeem your perks. As you can see, there are several options for you to choose from.

But you will also be able to get music or coffee perks from iTunes or Starbucks. Simply choose if you prefer those perks and you can redeem your cash for those.

Ally offers the following:

PerkStreet isn’t the only one to offer cash back, however. Ally decided that they needed to compete and have specific offers that will entice customers to buy certain items or services.

Obviously, this isn’t as all-encompassing as PerkStreet’s offer (PerkStreet gives you cash back on every non-PIN purchase), but there is one benefit that stands out . . . .

Ally will put your cash back from offers directly into your account. No waiting to receive prepaid cards in the mail like you have to do with PerkStreet. Zero wait time!

Cost to Open an Account

PerkStreet requires at least $25 to open an account. Not very much.

Ally doesn’t require a minimum amount to open an account.

Simple as that!

Minimum Balance Requirements

As noted above, PerkStreet has a minimum balance requirement to get 2% cash back: $5,000. But they do not have a minimum balance requirement to maintain an open account.

PerkStreet does have an inactivity fee of $4.50 if you don’t use your account at least once a month. You won’t be assessed this fee if you: make a transaction with your debit card, write a check that clears the account, use online bill pay, initiate a withdrawal, or make a deposit to the account.

Ally does not advertise that they have a minimum balance requirement . . . at least I couldn’t find it! They say that there is no monthly maintenance fee.

Interest Rates

PerkStreet does not offer an interest rate for their checking account. However, for someone who spends $2,500 per month while maintaining $5,000 in their checking account, they will earn $600 per year in cash back. This simply blows away the competition . . . even those who offer interest on their checking accounts.

Let’s compare that with Ally. Ally does indeed offer an interest rate. Currently, on $5,000, they offer 0.40%. That’s $20 a year. PerkStreet wins this battle.

ATMs

After looking over Ally’s ATM policy, I have to say it rocks. Ally allows you to use any ATM you want. If the ATM is not in their network of free ATMs, then they will reimburse you the ATM fee at the end of your monthly statement period.

PerkStreet is still a good deal, but they don’t reimburse you ATM fees. That being said, they do offer 42,000 STARsf ATMs. That’s a lot. There’s a good chance you’ll be able to find an ATM near you.

Our Experience

Personally, we’ve never been with Ally before. But if we were to sign up, we’d do so because of the waved ATM fees and zero maintenance/inactivity fees. We’d also do so because Ally offers a variety of other financial products: CDs, Savings Accounts, and more. PerkStreet only currently offers a checking account, but they say that a PerkStreet Savings Account is on the way.

We have much more experience with PerkStreet, and although they do have an inactivity fee, we’ve never run into it. Even if we did, it would be worth keeping the PerkStreet checking account. Why? We estimate that we make over $550 per year from PerkStreet. That’s a lot of pizza . . . or a car insurance payment for those of you who are more financially responsible!

Remember, you have to do what’s in your best interest. Compare PerkStreet and Ally for yourself. Visit their websites at PerkStreet.com and Ally.com.

Have you been with either bank? Let us know in the comments what you think and help our readers make a decision for themselves!

My husband and I seem to be recovering financially from Christmas. We were more than reimbursed by the wonderful gifts from our family and friends in the form of clothing, movies, etc. But our bank account remains a little parched.

It’s a little difficult to remember to put gifts as a category into the budget. Families are constantly growing so the number of birthdays increases as does the gifting budget. Buying gifts is a beautiful thing and it really shouldn’t be a financial burden. So how do you make it so?

Well, gift giving seems to be an increasingly difficult art to perfect. Everyone has access to almost everything now. Not only is it difficult to buy a nice gift and stay within budget, but it’s difficult to buy gifts that will be liked. Keep fighting for that look of delight on your loved one’s face by giving to them! Here are some smarter giving tips that will help you stay within budget while getting something they are sure to love.

3 Smarter Giving Tips

1. Listen.

If you’re around the person you’re buying for a lot then listen for tips as to what he or she has been wanting. Sure, you won’t really surprise them, but a gift they genuinely want and will use will be appreciated.

If what he or she is wanting is way out of budget, don’t sweat it! Look for a cheaper alternative or follow the other tips. An inexpensive one-of-a-kind gift is the kind of gift everyone wants to give, right?

2. Make it.

I’m not talking about finger painting a turkey. I’m talking about putting a personal touch on your gift; magnify your skills. Can you sew? Make the birthday girl a purse, wallet, or headband. Are you good at graphic design? Design an edgy print for the birthday guy to hang on the wall. They will think of you every time they look at it because it has your stamp on it.

3. Search the web.

But please, not Amazon or eBay! Check out sites like Modcloth and Etsy for homemade items of all categories. These two sites are the perfect places to look for that person that seems to have everything.

There are price range icons according to your budget and shipping costs are very reasonable. The sellers at these sites are talented people so don’t feel bad if you’re not crafty yourself! There’s a plethora of vintage-style jewelry and homemade fashion at your fingertips! And for guys? How about some custom made cell phone cases or cool tees?

Oh, by the way, don’t forget to save your gift bags and tissue paper! It’ll save you money and a trip to the store!

Should I Really Give?

If it’s an especially tight month and you just don’t think you can afford a birthday gift for someone, that’s a difficult situation. I strongly believe, however, that you should find a way to buy one anyway.

The Bible mentions the word “give” more than 1,400 times. Remember the widow who gave away her last copper coins in Matthew 12 and Luke 21? We should be willing to give past our own means. Our willingness to give to others demonstrates our love for Christ. There are so many things we can learn about giving.

How do you choose to give? Meet us in the comments and let us know how you budget for gifts – and let us in on your giving tips!

Today I’ve been thinking about financial planning. Well, every day I think about it, but for some reason I thought I should share some thoughts with you – the readers. My question is this: do financial plans work? If so, which ones are better than others? What financial plan do you have?

As many of you know, right now we’re on Dave Ramsey’s Total Money Makeover plan. It’s been going well! So far, we’ve:

• Paid off all of our non-mortgage debt.
• Built an emergency fund of six months worth of expenses.
• Started saving toward a college education.

If you know Dave’s plan, you recognize that we got through the first three baby steps and are taking a detour to make sure we don’t go into student loan debt.

Yes, we’re paying cash for college. No student loans! We are able to do so because of the circumstances of our income and how low we keep our expenses. In addition, any monetary gifts we receive, we put toward our financial plan.

Will Our Plan Work?

I’ve given a lot of thought toward if our plan will work. Sure, Dave’s plan has worked for countless people, but will our slightly modified plan work? Maybe Dave would endorse our excursion away from his “baby steps” to ensure we didn’t go into student loan debt. But can Dave’s plan – or any plan for that matter – really work under a wide variety of circumstances?

I think it can, but only if God allows it.

And that’s the point. I believe that for Christians, personal finance is managing God’s money how God would want it handled. It’s not our money, it’s God’s. We’re not to boast about our future plans. If it’s the Lord’s will, then we might accomplish the plans we have designed.

Now listen, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.” Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, “If it is the Lord’s will, we will live and do this or that.”  - James 4:13-15

Will our plan work? Maybe. Only if it is the Lord’s will.

What is the Lord’s Will?

That’s the question of the hour. It’s difficult to know the will of the Lord, but I suspect it comes from a lot of prayer and Biblical research.

We can certainly find various principles in the Bible. For example, we know that the “borrower is slave to the lender.” (Proverbs 22:7) There are many other principles that you can find within the Bible, and they should become part of your planning.

Using these approaches, we can find some clues as to what the Lord wills for our lives. Now, we do have freewill, and we can choose some of the specifics of our financial plan, but we should use the template that God gives us.

Which Financial Plans Actually Work?

I think you can see where we’re going with this. We shouldn’t solely look towards the plans of people. Instead, we should look at these sources:

• The Lord’s principles as outlined in the Bible.
• The plans that have worked for God’s people.
• Prayer.

There are so many financial plans you can choose from. Some are more aggressive on debt reduction than other plans, some are focused on investing. Others tell you to save money, and still others will push you to dramatically change your lifestyle. Whatever plan you choose, make sure that it aligns with Biblical principles.

I’m convinced that the plans that actually work claim to:

• Take a long time to complete. Anything that promises you overnight success is really too good to be true.
• Have a step by step approach that allows you focused intensity on one goal at a time. I’ve experienced what focused intensity can do in your financial world – it works wonders. Having one goal to work on at a time allows you to get excited about your goal and put all your energy into it.
• Require a big picture perspective. Some financial plans are so narrow in their scope that they only focus on debt reduction without teaching budgeting. Or they focus on saving up for emergencies without allowing for investing. You’re going to need to find one that has a balanced approach.

Perhaps someday I’ll list several famous financial plans and compare them for you. Would that be helpful?

Meet us in the comments and let us know what you think. What financial plans work best for you? What have you accomplished so far while on your financial plan?

Image by epSos.de

You’ve been waiting for your next pay check to come so you can go on that shopping spree. You’ve had your eye on a pair of shoes for a month; there was an adorable sweater and a beautiful dress in the window. And when you walk out of the store with that full bag you feel on top of the world.

But when you look at your bank account you realize you spent more than you had intended. Here are ten tips to keep your wardrobe updated while keeping your wallet full!

1. Sort through your closet

We’re all guilty of forgetting what we own. You go shopping and buy a black tank top only to find you already had two black tank tops already stuffed in the back of your dresser drawer. And try on the clothes you haven’t worn in awhile. Sometimes you forget how good they look and they’ll feel brand new.

2. Make a list

If you see a look that you like in a magazine or a girl walking down the street, write down the items you don’t own. When the budget allows a shopping spree you’ll know just what to get. Sticking to the list may involve a bit of willpower, but don’t forget the power of birthdays and holidays. Keep adding to the list until your next birthday and holiday and your patience will be rewarded. If you didn’t get what you wanted? You most likely got a gift card or money to put towards it.

3. Sign up for email coupons

Having your inbox full of emails may be annoying, but if you sign up for emails from the places you actually shop at it will be worth your while. You’ll receive notifications of sales and thirty percent off coupons on a good day. Be careful not to rush out every time you receive a good email because despite the percent off and sales you’ll find yourself spending more.

4. Skip the fads

Leopard print jeggings may be the all the rage right now, but think of how often you’d wear an item before purchasing it. An occasional fashion splurge is okay (a cobalt blue trench coat anyone?) as long as you see yourself wearing the same item for multiple seasons to come.

5. Go for solids

Classic colors like black, white and gray never go out of style. Reds, blues, browns and greens can be layered together to create many options. Use accessories to change your outfit from day to night. If solids bore you look for details like ruffles or rouching or a clever cut like a boatneck neckline. Classic colors are just that: classic.

6. Beware of bags

We love bags. We love to match them to our shoes. But also get bored of using the same on after awhile. To fix this problem simply rotate your favorite bags throughout the year to feel like new. If only we could all be Kim Kardasian and afford the best bags in an available colors . . . If you just have to have a new bag, put a low price limit on each bag you buy since you won’t be using it for a long period of time.

7. Think about it

There’s a sort of high feeling you get when watching the cashier ring up your purchases. To avoid the guilt feeling once you walk in your front door, ask yourself “Do I really need that?” The ruffled neon yellow blouse may trigger a fashion revolution for you, but will it pay itself off? Another question to ask yourself: Is the item bound to show up in a Vogue spread? If the answer is yes then it’s not practical enough for real life.

8. Get ideas

There’s no harm in looking. As long as you have the strength to avoid pressing the “put in cart” button feel free to go online and look at what your favorite stores have to offer. Most offer pictures of models wearing full outfits. If you like an ensemble you often find that you have all of the items to put it together. Ms. Matching and Ms. Mixing are our best friends.

9. Time your shopping sprees

Don’t only wait for regular sales and discounts, but after the season is over, the store wants to get rid of their items to make room for the upcoming season. Buying clothes out of season can be tricky, but the prices will make it worth your while.

10. Have a party

Yes, have a party! Get your girlfriends together for a clothes swapping party! Save money, spend time with your friends and eat good food. You’ve seen her wearing the prettiest shirt you’ve ever seen…

So you go, girl! You can love to shop; it’s okay! Just take these tips and your bank account will thank you.

Do you have any shopping tips you’d like to share? Meet us in the comments section!

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Do you start hyperventilating when you hear the word “debt?” Do you have several digits in your debt amount? Are you getting phone calls from debt collectors to the point where you’ve actually considered changing your phone number? You’re not alone. Here’s how you can start paying off your debt today.

You can do it. Let’s start.

Start Paying Off Debt

The very first step to pay off your debt is also the most difficult: starting to pay off your debt. Here are some things we did to pay off our debt, and how you can do the same.

Stop digging the hole

Admitting you have a debt problem is a great first step to paying off your debt. If you’re doing something that is bad for you – like going deeper and deeper into debt – the first thing you have to do is stop. You can’t continue the trend. That means you have to make a commitment to:

• Not take out any more loans (except for perhaps a reasonable fixed rate mortgage).
• Cut up your credit cards (do this now, please).
• Put yourself in a position to not be tempted to go into debt again.

That last one was pretty important for long term success. Is your income where it should be so that you don’t have to worry about going into debt again? I think you’ll find that once you make the commitment to not go into further debt, you’ll find ways to raise your income.

List your debts smallest to largest

In order to pay off your debts, you’re going to have to take an inventory of the debts that you have. How much are the balances on each? What companies or people do you owe? These are the most important questions to ask.

Don’t worry so much about the interest rate on the debts. While it makes mathematical sense to pay off your debts starting with the higher interest rates, you’ll be more motivated by the quick wins when you pay off your smaller balances first. For more information on this concept, see Dave Ramsey’s 2nd Baby Step.

Make a budget and attack your debt!

Make a budget in order to get your expenses low enough to throw all your extra money at your debt. Remember that using your income in an effective way requires a proper budget. Without it, you’ll be spending money based on what’s in your head; not on paper. And that, my friends, is dangerous. We cannot keep all the complexities of our financial situation in our heads. Put them on paper or in your budgeting software to keep everything in line.

After you have your budget up and running, you’ll know exactly how much money you can allocate to your debt. Attack your smallest debt first while making minimum payments on everything else. When you quickly knock that one out, move on to the next one! Take all the money that you were putting toward the smallest one and allocate that for the next debt!

Soon, you’ll be flying through your debt and blasting it out of the water. Sweet if you ask me.

Maintain Your Debt Free Lifestyle

To maintain your debt free lifestyle, it’s a great idea to start an emergency fund. This way, when you get a very large, gross medical bill in the mail, you can laugh and say to that envelope in your hand, “You thought you’d hurt me. But no, you’re wrong you insanely high medical bill. I laugh at you.”

Then, with all the drama and prestige you can muster, pay it off with your emergency fund. No more going to your credit cards! You shred those credit cards anyway, so good luck with that!

There you have it. Do you have some motivation building up inside of you? Good. Now go start paying off your debt! You’ll live better and enjoy the extra cash flow every month.

What kind of debt are you working on? How long until you pay it off? Meet us in the comments!

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My father taught me how to prune trees. You find where you want to cut and you look for that fork in the branch. That is where you cut. No hack and slash, no indiscriminate chainsaw running here (even though that sounds like a lot of fun). To prune correctly you had to take the time and envision where you wanted the tree to grow.

Budgets are a lot like that. Think of all the categories as main branches and your income as the trunk. Each dollar grows off those branches and can be very useful producing a variety of different fruit. Sometimes though, a branch can start growing the wrong way and needs to be pruned and grafted onto a different main branch.

Recently my wife and I found several branches that needed pruning:

Branch # 1 – The cell phone plan

We love our cell phones! We love our social networking too (or at least I do). Problem is we were spending too much time checking our phones for the latest status update. For me it was becoming a very bad habit. When our internet at home went up after the promotion we were on expired, we knew we had to change some things around.

Our cell company, Koodo, here in Canada offers unique ways to change our details around, without getting into a longer contract. We analyzed our habits and decided that we needed to get a lower amount of minutes for both of us, with unlimited incoming calls, and unlimited texting. The data plans were cut because they weren’t necessary. We have WiFi in the house and in the majority of places we go; thus able to connect if we have to.

The result? We went from around 120 dollars a month to around 80 dollars a month. That is a savings of 40 dollars! Exactly what needed to be transplanted to the internet bill.

Branch # 2 – Car Insurance

I started thinking about the car I have and realized that it is decreasing in value. The deductible on the collision insurance I would pay would be just about the value of the car. I also could do without the car if I absolutely had to get rid of it (ie. Got in an accident that totaled the car). I made a call and took collision off.

Now I must caution you: This step is only if you are willing to pay for collision damage out of your own pocket, or if you don’t mind that you have a bumper missing, or something like that. It also depends on how good of a driver you are too.

Being the owner of this car means that I was willing to take the risk and save 30 dollars a month on car insurance.

Branch # 3 – Groceries

This branch is one that you have to look long and hard at. What kind of food do you buy? How much of it is junk food? What are items that can stretch longer during the month? How do you eat right on a small budget?

My wife has discovered the answer to a few of these questions for our little family. She sits down with her recipes and makes a monthly menu. Her first step is to take inventory of what we have on hand and try to incorporate that into the menu. Then she goes through her recipes and makes a menu that she breaks down into ingredients. Those ingredients are made into a shopping list. The initial shopping list for the month is a long one for most of the staples needed for most of the recipes. After the first list is made, she makes a weekly list for fruit, veggies and milk.

Our monthly menu looks similar to this menu.

I am very proud of my wife and the work she takes to trim the groceries branch. Last month she managed to trim 20 bucks off. We rolled that over into the next month so that we could buy an extra case of chicken and I imagine that we’ll keep rolling over the extra amounts for more of the on hand staples. However, I do foresee a month where we don’t have to buy a large amount of food and that’s where the savings will show up and be applied to another category.

Last Thoughts . . .

Cutting expenses is hard, but worth it. When the day comes and we are debt free, some of these categories will be funded to the max and we will have some wiggle room. Right now, though, we are intense on getting out of bondage and into financial freedom!

If you have recently pruned some categories, please share with us in the comments.  We all can use suggestions!