Tuesday, April 28, 2009

Save Until You Have a Surplus?

Just so you understand my way of thinking I have to take a step back to when I was still a child. I spent a lot of time at my grandmother's house as a child. She grew up during the depression and she saved everything and when I say everything, I am being literal. After supper if there were a spoonful of peas left, you saved it. I remember summers of having to eat mint jelly with my peanut butter sandwiches. No one liked mint jelly especially with peanut butter and wonder bread. But she wasn't going to let that mint go to waste; it grew in abundance and no sense mowing it down. If she bought something like cottage cheese it had to sit in her refrigerator until it was close to the spoil date, then you had to eat it until it is gone. Why couldn't we eat a little bit until it's gone, Noooo.... That way you would appreciate it more.

But she was like that with old clothes, you used them as rags. Your thinking, hey that makes sense, what's wrong with that. Well I will tell you what's wrong with that; I wasn't all that comfortable dusting with my grandparent's underwear. Her attic was stuffed with all sorts of things and every nook and cranny throughout the house. So I am a pack rat not to the extreme that my grandmother is but I hold on to things a little too long.

My grandfather on the other hand had a completely different outlook on saving and surplus. Since he had polio and a phobia about leaving the house; it was his job to make supper every night. My grandmother had a job at the local shoe shop plus taught ceramics at night at the house. My grandfather made the ceramic molds and cooked the family meal. Between the two of them neither was a very good cook. My grandmother could burn the cake black on the top but not the bottom. My grandfather was just confused how to cook. So his first attempt was spaghetti. Back then there used to be a nifty chart on the back to measure by how many people to how much pasta you needed. Seems simple since it was the two of them but his downfall was it didn't look like enough. In goes the entire box of noodles. The sauce was tricky since he knew it had to be a tomato sauce with meat. So he fried a pound of hamburger and he doesn't drain the fat because that is wasting and then one can of Campbell's tomato soup and mix that in with the cooked noodles. Oh how dry and tasteless that was. But since he had plenty of leftovers, we would have to eat that for lunch. There weren't microwaves then and you learned to either eat leftovers cold or figure out some way to heat it back up. Gramps way was frying it in a lot of butter and serving this whole mess with bread and butter pickles. I'm not sure if that or peanut butter with mint jelly or fried bologna sandwiches with ketchup was worse. You learned to eat very little and search for berries in the woods after lunch.

My mother on the other hand had her own version of saving, not as much as her parents but strange just the same. She was obsessed with elastics; we never had enough in the junk drawer. She started saving the elastics on the vegetables; we had broccoli, asparagus, and other such elastics in the drawer which had the name of the vegetable on each one. When we ran out of elastics we were either forced to skip putting your hair in a pony tail or suffer the embarrassment of wearing "broccoli" elastic to which you are unmercifully teased at school. Her other obsessions in saving was electricity, garden produce, and heat. My mother in the dead of winter would wade through three feet of snow to hang out laundry. We had a dryer but that costs money to run. Why we had one I will never know. Summer I think was worse because we would get weeks of rain and there is all your clothes hanging on the line soaking wet. My sister and I started working in the summer and we were allotted 2 uniforms each. We literally had to beg our mother to let us use the dryer because we had no clothes to go to work.

Her other obsession was heating the house. The thermostat was always on 55 degrees and you were not allowed to turn it up past that number. Oil costs money. We had a woodstove but it really had to be going good in order to heat the house. So you learned to put on a lot of layers of clothing in order to stay warm. We did try to turn the heat up to 68 degrees once and turned it back down before she got home from work. She said she knew we used the furnace. And followed with the tirade about how much oil costs and we should have thrown on a sweater. Pretty bad when you have a turtleneck, t shirt, sweater, and a sweatshirt on and you're still cold.

Garden produce was another touchy area. My mother before leaving for work would leave my sister & me a long list of things to do during the day while she was at work. Some days we just couldn't get through the list for various reasons. My mother would stress that you had to pick all the peas. Some naturally just weren't ready for picking and when she checked the vines when she got home she would be so mad and whatever your excuse was she wasn't going to listen. The next morning we got up to another list and it was time to pick the green beans. The list said to pick all the beans and she counted them all before she went to work and would know if we picked them all. Our thinking was if she was out there at 5am counting how many string beans on the vines, why didn't she pick them? We had to cut them up for canning, how would she know if we picked them all? It would really boggle the mind if you thought about it and her way of thinking.

Well there are certain things I like to save like the smallest sized jeans I could fit into 20 years ago, shoes I no longer can fit but were really nice and special outfits I bought for the kids. I am a bit stingy with the heat but not to the extreme my mother was, the woodstove heats the house and yes oil is expensive but I do use it on an occasion. Running the farm I started to notice I had the opposite problem, instead of not enough I had a surplus of everything. It was once to the point I had over 50 dozen eggs in the fridge along with 8 gallons of milk. What was I going to do? I couldn't let this go to waste because that went against everything I was taught.

A surplus of items that I couldn't save forever. I was taught not to waste a thing unless it couldn't be fixed again, period.

But what to do with 40 dozen eggs, 16 gallons of milk, or your herd of 8 sheep turned to 17 after lambing? Well I will tell you, you have to be creative. That doesn't cost anything. I remembered back as a child we had pickled eggs a lot especially during the summer. While making pickles during the summer I noticed I would have surplus brining solutions, so I made different flavors of pickled eggs. Fine that takes care of the egg overflow but what about the milk? Well that was a little tricky, I have made goat milk soap before, well that could use up a bit but still I was getting two gallons a day, what then? I did use some of the milk to wean a calf and bottle baby lambs but I still had a lot left. Thinking about my options, there were few besides making puddings and anything else that I could use milk with but what would use a lot of milk... cheese. I bought a few books and learned to make cheese. What a scary thought that was, cheese seemed like a delicate process and a lot of things could go wrong. So I started with the basics of cottage cheese, ricotta, feta and mozzarella. I even made buttermilk. Well that didn't seem so bad and in my second year I tried blue cheese and yogurt as well. So now I sell homemade cheese.

Do you see how I made that problem disappear? At first I was really worried of wasting a surplus of items, I wasn't raised to waste. Most of the things I do here on my farm I really think about what else I could use something for. Well meaning people drop things off that they don't use any more and I either could take it to the dump or reuse it. Baling string can be used for many things like in the garden supporting plants, as a quick collar for a loose animal, or as the friendly dog catcher uses them as a belt. I think it is how we look at an item; I reuse milk jugs and egg cartons. It makes sense since I need them for my production and if I don't have to buy them then good for me.

So I guess I learned something from my grandparents from over 30 years ago, don't waste, use everything until it is gone and appreciate the things you have even mint jelly. Cher King.


Saturday, April 25, 2009

7 Easy Steps to Financial Recovery

Everyone is taking a look at how they can get their money back on track to financial recovery. A new study says U.S. households' net worth dropped by $11 trillion, a decline of nearly 18% during 2008. You can increase your net worth even in this economy by following these 7 easy steps:

1. Be a long term investor. Investors tend to extrapolate recent trends. If investments are going down, they think stocks will continue to go down and they stop buying. That's usually a wrong strategy because you will consistently buy at the top instead of buying low.

2. Don't be a market timer. Studies have shown that market timing which is the practice of buying and selling securities over a period of hours or days or weeks is useless. Rebalance your portfolio once a year. By rebalancing I mean if you target 50% growth for your goal, then once a year sell off the amount that represents over 50% of your growth position. If it has gone below 50%, then leave it alone.

3. Don't over spend. In times like this, you don't want to make frivolous purchases. Although there are bargains to be had, concentrate on making your money work for you. Buying boats, cars, televisions, etc. doesn't grow your money. Putting your money into IRAs, RothIRAs, SEPS, 401Ks, 403bs, can grow your money over time.

4. Maintain Diversification. Don't chase after the hot asset class of the week like foreign or tech. Spread your money over various asset classes (large cap, small cap , short term bonds, international, etc.) and over various asset styles (growth, income, balanced, etc).

5. Take advantage of tax-free and tax-deferred savings opportunities. Even if your employer doesn't offer a matching 401K, it is still in your best interest to maximize your contributions to your own 401K. You get double benefit- growth in a personal retirement plan and a tax savings which puts more cash in your pocket now.

6. Keep a stash of cash handy for emergencies- like the roof leaks, the car needs repair, or you may need money to support you while you look for another job. Emergency cash should be easily accessible without penalties for withdrawal.

7. Work with a trusted fiduciary advisor, coach, or mentor. By a fiduciary, I mean someone who is committed to putting your interests first. Look and ask for the ADV Part II form from a financial advisor to see conflicts of interests and how they are paid. For a coach, ask to see a contract or agreement that outlines how they are paid and any referral fees they may get.

By following these easy 7 steps to financial recovery you can get back on track with your personal finances, increase your net worth and feel better about your financial future.(Frean Alix LaRocca)

Wednesday, April 22, 2009

Don't Have Enough Money?

Do you often feel like you don't have enough money? Do you avoid paying for your own self-care and personal growth because you don't want to spend money on yourself? If you answer positively, you may be stuck in "scarcity thinking" which likely impedes your happiness and stagnates your growth.

People in "scarcity mode" focus on what they don't have rather than their many blessings. This anxiety may come from truly not having enough, but more often, it is a symptom of flawed thinking. Follow these steps to shift towards peace and prosperity.

The first step is to know where your money goes. Track your expenditures for one month and create an annual itemized list. Make sure you add in realistic estimates for gifts, vacations, children's activities and other items that aren't regular monthly expenses.

How do you spend your money? Are your expenditures concentrated on your children's activities and luxury items? Are they spent on expensive cars, high mortgages, material possessions? Most importantly, do your expenses reflect your values?

If your expenses aren't highly correlated with your values, you need to change how you spend your money. Take some time to clarify your priorities and goals for the next year. Make sure part of your expenditures is spent on your own growth and well- being, which will contribute greatly to your happiness and demonstrate self-respect to your children. Recognize that sometimes we have to make financial sacrifices in some areas in order to live fully.

If you have taken these steps and still can't comfortably pay your bills, consider going back to work or switching to a higher paying job. Sometimes scarcity is present in our lives to motivate us to make a change. You need a concrete plan to ensure your family income outweighs your expenses and your spending reflects your values. it is in this place that you are able to ditch scarcity thinking and focus instead on your abundance and many blessings.

When you spend money in alignment with your highest priorities (which must include your self-care and personal growth), control your expenses, take responsibility for earning money when it is needed, and shift your thoughts from "scarcity mode" to "abundance", you live with peace and prosperity. Make the changes you need to in order to get there. You will be glad you did! (Bria)

Sunday, April 19, 2009

Saving Tips in Hard Times

For so many of us it is time to tighten our belts and find ways to save money in these economic hard times. More and more families have to cut back as either jobs have been lost, wages cut back and mortgage payments and other debts are just too much to handle. Getting your debt paid off is crucial to getting yourself out of debt. Start finding ways to save during these hard times from various different sources.

Take this opportunity to turn your money issues into positive things like having family at home entertainment rather than an evening out at the movies which for a family of four can run into a lot of money. Movie tickets run at least eight dollars, add some popcorn and soda to that and the next thing you know you have spent fifty five to sixty dollars. So going to the movies once a week adds up to over three thousand dollars a year. That could pay off a sizeable credit card. What can you do on movie night instead of spending sixty dollars? As a family you can rent a movie, pop some popcorn at home and enjoy a night in at the movies saving yourself probably forty to forty five dollars a week.

You can make a family night at home with board games or good old fashioned cards. There are tons of games the whole family can play. I would also bet you have a cabinet full of board games that have not been played in a while. These are great opportunities to unite the family and have a few laughs while saving money. Too many families do not spend good quality time together and taking this opportunity to get closer to the kids and teach them good values and money saving tips is a smart idea. They will grow up learning that sometimes as an adult you just have to cut back and save money for crucial items like food and utilities. Kids are going to grow up and have to face the harsh reality that this country is going to have to pay back all the money we are spending to stimulate the economy. It is going to come from their hard work and tax money.

Unplug small appliances, television and computers when they are not in use and shutting off the lights when not in use to cut back on the utility bills is an amazing money saving idea. You may not think that your toaster that is not being used bit still plugged in is costing you money but simply being plugged in takes some current and you are paying for it.

Creating meals around items that are on sale or using coupons for food and ad matching is crucial to bring down your grocery bill. Little things like making sure you eat all the leftover food for a second meal another day rather than throwing the leftovers away saves tons of money. You can mix up things a little by adding a different vegetable the second time or a fresh loaf of bread to it makes it not feel like you are eating the same thing again. Teach the children how important it is not to waste food and how much money it saves when you can duplicate a meal simply with leftovers.

Get the kids out on a nice day to wash the car rather than paying for it to be washed. That is great family time. Sure, the kids will initially complain but I would bet that they end up laughing a bit and spraying water on each other. Have them help with yard work; get rid of the weekly landscaper. Give each child a daily and weekly job that helps cut back on paying someone else to do it.

Believe it or not some families are going back to making some of their clothes or at least mending them and handing them down to the younger ones. Maybe trade with a family or friend to mix up the clothes so it feels like they get something new. Have a garage sale and earn a few hundred dollars selling unwanted items. Go to a garage sale and pick up things you would normally buy at the store and pay a lot more for.

These family involved ideas not only help save money in these hard times but they teach great values to our children so when they grow up they can hand these same values to their children and hopefully know how to handle their money better than so many people in our country as we have all recently realized. Credit is not free money, let us start teaching our kids now.

Nancy Niblett is a highly successful Real Estate Agent specializing in the Chandler area. She credits her success to hard work, integrity and honesty. Clients continue to refer her over and over again. Nancy is one of the most successful award-winning agents and currently with West USA Revelation. She was awarded the Silver Top Producing individual agent in 2004, Double Gold individual in 2005 and the annual Spirit and Integrity award in 2005 and 2006. Her most cherished moment was bestowed on her in 2006, the Regional "Culture" award, which is the highest attainable honor given. (source: nancy niblett)

Saturday, April 18, 2009

Easy Money

Almost everyone today is looking for a way to save money, earn extra cash in their free time or just maintain during an economic recession. There are some things that consumers can do in order to save money and make cash in ways they may have never imagined. We live in an age where there are a lot of new opportunities that not everyone is familiar with. Also, there are some secrets that can help you save the money that you already have.

1. Smart Shopping 
What grocery store do you go to? Have you compared prices with other places locally? Chances are, there is a cheaper place for you to get your shopping done. Some popular stores that are especially cheap to shop at are: Aldi, Food Lion, Price Chopper and many many others.

2. Buy in Bulk 
Everything from beer to doughnuts, you simply save money if you buy in bulk. No matter what you are buying, if it is something that is consumable and you go through more than one if it in the course of two weeks, consider buying more of them at a time. In the world today, people make tons of money by selling individually packaged items, and a lot of your money is going to pay for such packaging! Save by purchasing the largest amount that you can, in whatever you buy!

3. Earn Money Online in your Free Time 
This one is a no-brainer. Ever find yourself bored at home, flipping through channels on the TV with nothing to do? Turn this extra time into money, easily! There is a huge industry on the internet with opportunities for people just like you to earn a lot from. It takes no experience, and I have been doing it for over 6 months now!

Friday, April 17, 2009

How to Manage Your Money

In a recent column entitled "The 3 Ms of Money," we discussed the principles of financial achievement - managing, multiplying and maintaining your money. Over the coming weeks, we will examine these three pathways to money success in greater detail.

The key to managing your money is knowing what to do with the money that you are already earning, so that you can comfortably pay your bills and work towards attaining your goals. There are four components to successful money management, which, like the ingredients in a recipe, are all essential to producing the perfect end result.

Budget properly

The first step in your journey to financial independence is to learn how to budget properly. A budget is a document that allows you to capture all the things you spend money on, along with your sources of income. The budget must be used as the basis for making all financial decisions.

In 2004 I discovered a book, The 9 Steps to Financial Freedom by money guru, Suze Orman. In it, she explained that in order to change our finances, we needed to be honest with ourselves about how we spent money. Orman helped me to design a simple spreadsheet that would capture every dollar that I had spent over the past year.

I searched for all my bills and receipts and placed them into different categories such as house, car and personal expenses, and debt payments. Then I recorded my actual earnings for the period. To my shock, I discovered that my monthly income had not been enough to meet all my expenses.

I realised that I had used loans and credit cards to finance my lifestyle, instead of living on what I had earned. The budget tool helped me to stop spending frivolously and to put aside my salary bonuses to pay for luxury items. For the first time, I felt that I knew where my money was going, and that I finally had control over my finances.

That initial budget form has been improved over the years and is now available on the Internet. This document is vital as it will help you to effectively carry out the other three money management steps.

Save consistently

You might think that saving money would be a normal process for most people. Not so, as I had never really saved anything prior to 2002. For many people who are young and carefree, money earned is money spent. I used to think, 'Why deprive myself by putting money in the bank?'

After reading The Richest Man in Babylon by George S Clason, I learnt some important savings principles. This helped me to adjust my attitude, as I realised that when you spend all you earn, you are only making others rich and impoverishing yourself.

Clason's masterpiece taught me that:

. putting aside ten per cent of every dollar I earned was the key to building wealth;

. the earlier I started to save, the more time would work in my favour;

. compound interest would make even a little amount of money grow exponentially;

. I had to be disciplined by making the savings process automatic.

Use your budget to record your savings as one of your first expense items.

Borrow wisely

After realising that I had been sabotaging myself by borrowing to finance my lifestyle, I searched for principles that could guide me on debt management. I learned that there was a difference between 'good' debt, where money was borrowed for productive purposes such as buying a house or starting a business; and 'bad' debt that was used for consumer spending.

The key is to use your budget to work out how much you can spend on non-essentials. If you want to buy more things, the financially smart way is to increase your income to pay for them, or cut back on other spending.

Plan for the future

It is very easy to squander money when you haven't set financial goals. You must create a dream for yourself, whether it is to buy a house, send your children to college, have a comfortable retirement, or just to achieve a savings target.

Although this principle can help you to make wise decisions with money, I realised that there was a vast difference between dreaming about your goals and attaining them. Napoleon Hill's Think and Grow Rich was very instrumental in teaching me how to actualise my dreams.

The four-step goal attainment process is: visualise and focus on what you want, express your dream as a specific and measurable goal, get expert help to create an action plan, and carry out the plan with enthusiasm and determination until you are successful.

The budget will help you to put aside extra funds to achieve your goals.

Next week we will look at ways of increasing your income to make ends meet, attain your goals and create wealth.(By Cherryl Hanson-Simpson)

Saturday, April 4, 2009

Free Financial

With each passing day, families across America and indeed most of the world are watching their bills pile up and their savings and investments disappear. The 'funny' thing is the rich are still getting richer, while the rest of us struggle just to survive.

There is one major difference between the rich and everyone else - The way they manage their money.

Henry D Mason write, What you do with your money is far, far more important than how much of it you have. You need to develop a rich mentally and money management method if you want to whether the current storm and come out the other side in better shape than you went in. A few years ago it may have been enough just to drift through life working and spending, but times have changed. If the current state of the economy has show us anything it is that nothing lasts forever. Time to get serious about you financial situation and make sure you never have to struggle again.

If you have been procrastinating or neglecting money management you need to stand up and take action. Don't delay any longer, start your journey towards you Financial Destiny Today! I want to show you how to effectively put your money to work for you. I have developed a simple, easy to follow method that will allow anyone to take control of their money and finally start to see the financial results they deserve.

Budgeting and saving is one thing, but you need more. You need a fool proof, can't fail, easy to follow methods. In the current economic climate you need a winning edge. Let me help you get that edge.