Having a child is a wonderful experience; however people often become pinched for cash when spending money on different baby products. Baby products can be expensive and ad up over time, but luckily, there are ways to cut corners and save money on different items that you have to buy for your child

Use store brand products. Instead of buying expensive brand name products, use the generic store brands as a substitute. These products are usually always the same quality, but for half the price. A friend of mine works in a factory – once a week they stop the machines and put the ‘home brand  boxes in. The same product as you can buy for 3 times the money!!

Find a WIC program. There are several Women Infant and Children programs throughout the country which work to help women who are living on low incomes. Find one of these programs in your area to see how they can help you save money with different products.

Use cloth diapers. Although many people don’t seem to like this idea, it is really an easy way to save money on baby products. Instead of spending money on diapers, you can save money by washing cloth diapers and reusing them.

Use coupons. Check the Sunday paper, the packaging of products or call the manufacturers directly for coupons. The money you save on individual items adds up over time.

Nurse your child. If you are physically capable of nursing your baby, you should do this instead of buying formula. Purchasing formula for your child adds up over time so eliminating this product will save you money.

Additionally, besides following the above mentioned ideas, remember that if you have to buy formula for your baby, choose the powder formula instead of the pre-made formula. It is the same quality and cheaper in price.

Remember that if you are trying to cut costs on medication by using a cheaper substitute, you should contact your physician to make sure that the medication you want to switch to is a healthy and effective substitute for your baby.

Right about now is the correct time to plan for retirement. Assuming there is a steady career in place, and possibly a home with a family, the target age for most individuals is around fifty-five. Yet in today’s society the average age of retirement continues to be pushed back, currently the average age stands at sixty-one and a half years of age. Now that may not seem like much, but considering the average life expectancy is about eighty-three years, losing six and a half years is approximately one third of the remaining years.

Of the aforementioned, the only one that can be deemed reasonable is the weakening economy. When looking at a bank account in middle age, there really is no reason to worry too much about other people. The children will eventually be earning their own money, and hey if there is a need for some side cash in retirement would it not be better to retire seven years earlier and work part time for a few years? These questions should be looked at on a per case basis, but really it is not the time to put away the dreams that have been made for the sake of others, or the sake of fear.

Now is the time to make a plan for the future. There is no excuse for being taken off guard by the issues involved in retirement, really with a proper plan the retirement can be met earlier than the average, and while losing six years may not sound like much now, when there is only eighteen left to live, it will.

How to Talk to Creditors Who Call

You probably have seen the commercials about the harassing creditors and have thought that is you. Some days you may not even want to answer your phone. Why is that?

It usually is because some of the creditors you deal with are not very negotiable. If you encounter a problem like this it is best to find a professional who is qualified to help you receive lower interest rates, settle on a reduced amount to be paid in full, or help determine reasonable monthly payments.

That is an extreme situation, however. Most creditors are happy to at least get you on the phone, and all they really truly want is an answer.

If a creditor phones you to ask you when you will be able to pay a bill do not say “I don’t know.” Saying “I don’t know” is the fast track to an unpleasant argument.  Instead, if you are on the phone with them say you will pay it on a specific date-even if you do not know if you can.

The only exception would be if you are required to put in writing when you will pay your debts. In this case tell them something such as you will call your accountant. Then, set a date when the creditor can call you back.

Dealing with Different Types of Creditors

Of all the types of creditors to deal with, student loan companies are probably the easiest to negotiate with. You have several options before you even become near being in default.

You can obtain a forbearance, receive a deferment (no-interest grace period extension), or simply send in an amount you can afford. They usually will work with you and usually these type of lenders are easy to negotiate with and usually do not require a professional.

The hardest creditors to deal with usually are the credit card companies. They usually are very rigid-even if you are a faithful customer who has paid every month for several months.

About Debt Negotiation Help

Different types of debt negotiation help include credit counselling, dept management plan, and debt consolidation. Bankruptcy is another option, although in most cases is a last resort. Please see the definition list below for further explanation:

Credit Counselling: One or more consultations scheduled in order to discuss your financial situation as a whole. Credit counsellors will usually ask you some questions about the amount of money you make and help you be accountable as you devise a reasonable monthly budget. Your new financial plan (budget) usually will involve the allocation of money toward repayment of past debts.

Debt Management Plan: This is a specific system used by professionals to help people calculate how much of their debt they can pay back per month. This system is usually based on a certain block of time, such as two, three, or five years.

Using this type of repayment plan your financial counsellor usually will handle all of your money. All you need to do is deposit it in an account set up by your debt manager (financial counsellor).

This system of repayment can be costly, as you need to pay the person who manages your debt for their time. However, often non-profit organizations and churches offer reduced-fee plans for low-income people.

Debt Consolidation: This is the process of combining all your debt together (usually unsecured ones like credit cards and quick loans) in order to only have to make one monthly payment. Financial counsellors will usually calculate the anticipated payment schedule of consolidated loans in order to determine if it is worth it for you to consolidate.

If your new interest rate after consolidation will be lower than it would be worth it to combine all your bills. If not, then you probably should not consider this option.

1)      Cook your own dinner

One of the simplest ways to begin to save money is to get into the habit of cooking often at home. Even if you don’t know how to cook or think you may not like it, eating out is by far one of the most costly pleasures that many of us indulge in. Unlike a major purchase or a vacation, it can be hard to keep track of how many times we eat out every week or how much we spend on that smoothie, latte or brunch.

JUST A LITTLE TIP: keep a journal for a few weeks and write down every time you spend even only 1 dollar on eating out – yes even that little ice cream, hot dog or…..  You will be surprised how much money you are spending!

2)      Brown bag it to work

Speaking of eating out, work lunches are another of those invisible drains on our wallet. Eating out for lunch often does not feel like eating out because it is usually not a pleasure outing. You are simply filling up before heading back to work. But if you are like most people, it can be very easy to eat out several times a week without even realizing how much money you are spending on lunch. If you’re serious about saving your hard-earned cash, make it a priority to bring your own  bag your lunch at least three times a week. If you still need incentive, sit down and do the math. Once you have seen exactly how much you’re spending just by going to work, you might feel differently about brown bagging it.

3)      Make a shopping list (and stick to it)

Without a list, there is a very high chance that you will buy items that are not urgent or even necessary One of the biggest mistakes that most of us make before going shopping is that we arrive at the store unprepared. It can be very hard to resist temptation if you arrive at the grocery store without a plan of attack. You may even leave the store without buying one or more of the items you came to buy! Before heading to the grocery store, make a real effort to sit down and make a complete list of everything you really need. Don’t rely on your excellent memory and cross off each item as you move along the aisles – and try not to buy anything you already decided you don’t need!

4)      Stock up on perishable items when they’re on sale

Be savvy when you go shopping. You will always need certain items: toothpaste, toilet paper, shampoo, cereals and other common household goods are good things to stock up on when they happen to be on sale.

5)      Use your local library

Maybe you haven’t stepped inside a library since . . . ever. If you are not familiar with the modern library, you will probably be surprised about what you’ll find inside. Free internet use, new release movies, bestsellers, free movie nights-many local libraries offer numerous opportunities for free entertainment. Remember that your taxes pay for the library, so go ahead and use it.

6)      Make comparison shopping a habit

No matter what kind of purchase you’re making, large or small, the smart consumer always does a complete price check. Whether you’re planning on buying a new book or a new car, simply checking online and making a few calls can save you a lot of money.

7)      Get organized

One of the easiest ways you can save money year-round is by becoming more organized. Organize your monthly bills, credit card accounts, shopping lists, clip coupons and organize all of these in one easily accessible folder. Save money on unnecessary late fees and don’t overpay simply by organizing your financial papers and accounts.

What does it mean to “live within your means without debt”?

Living within your means signifies being on top of your finances

 It means knowing at the drop of a hat exactly how much you can afford.

Knowing how much you have and how much you can spent, means not waking up in the middle of the night and wondering how to pay off the credit card bills.

It means knowing exactly what you can afford and what not. It also means much less stress

Secrets to living within your means without debt :

These are not really secrets-most people who are debt-free or serious about becoming debt-free can find these out for themselves. The true secret is to live below your means. That is, spend less than you make.  A lot less. How can you do this? Try to attack the problem from the angle that you already know needs attention. For instance, if you are a shopaholic, work on curbing your shopping sprees by making a written list of only the items you need before stepping out the door. Cross off each item as you shop. Also, consolidate all of your shopping needs into one trip, rather than smaller shopping trips spread throughout the week. Always buy the store brand, which is usually just as good as the name brand and a lot cheaper.

Spend less than you earn

This is a simply mantra that you should adopt in your quest to live within your means without debt: spend less than you earn. It really is that simple. Most of us, however, do the exact opposite.

Spending less than you earn means you have to sit down and face the cold hard facts of your current financial template. Sit down and do some simple math: how much gross income do you take in a month?  Next, subtract how much you need for life essentials. Life essentials include putting a roof over your head, food in your body and clothes on your back. Some financial gurus have come up with specific numbers on how you should ideally be spending your money each month.

How are you spending your money?

Roughly 10 % of your monthly income should be directed into a savings account. – no matter how little or much these 10% are!

Study your numbers

Now that you have the numbers, do the math and see how your monthly spending stands up.

 Are you splurging on your entertainment budget or spending half your income on shopping sprees? Are you paying off enough debt each month to really make a dent on those credit cards, or are you merely paying off interest?

 Are you saving anything for emergencies and the future?

 These can be hard questions to answer, especially if you have a sinking feeling that the answer is a resounding “no” on all accounts.  But this is also a very important step to take if you are serious about living within your means without debt

 In fact, if you are able to enter marriage without a huge financial burden it will increase your chance of a successful life together.

The following are tips on how to save money on your wedding and to prepare for married life:

Don’t get caught paying heaps for the venue!

Get married at your local church. You are sure to get a discount on ceremony and reception space if you plan your wedding and reception at a church. Sometimes if you are highly involved in a church organization you may even receive free space for your special day.

Hold a ceremony in a public park. Usually the permit for this will cost next to nothing. Sometimes you can even find outdoor spots where you can set up your wedding for free. I you want to protect your guests from rain you may be able to rent a pavilion for as inexpensive as a few hundred dollars or less.

Don’t be shy to shop for bargains at dollar stores and discount stores. . No one will tell where you bought it – and you can decorate in the nicest possible way for very little money if you put the effort in to go bargain shopping! There are especially great places to find themes for table and hall decorations. Often strands of white flowers, centrepieces, and candles have been available at these places for as cheap as a few dollars, or even only one dollar

 Don’t get caught paying off your wedding gown long after the ceremony! Shop for Wedding Attire at Factory Outlet or Closeout Stores. You would be surprise how many of last-year’s wedding gowns and tuxes are available. You can often rent or purchase these items for hundreds of dollars less than regular retail price. If they are only a year old they are sure to be in style, and it would often cost less to alter them than to purchase them brand new

Don’t put stress into your young marriage by paying off your honeymoon long after you got home! Plan unique but affordable getaways.

Plan fundraising games. One wedding reception game that is popular is “Pay a dollar to dance with the groom (or bride).” Another idea would be to sell raffle tickets for door prizes at wedding showers, bachelor and bachelorette (stag or hen/doe) parties. You might also consider selling cocktails and other drinks, planning a paid performance, or following through with a wacky dare.

Find Volunteer Cooks. You are sure to have a few willing cooks in your family, or within your group of friends. Also note that buffet style meals versus per-dish types of meals are usually less expensive. You can have a quality meal for your wedding reception guests at a fraction of what it would cost to hire a professional caterer.

Request help from as many people as possible. If you know you can find help for marriage and wedding preparation, ask as many people as possible. It will further cut down on wedding planning expenses. For instance, perhaps someone in your family or among your circle of friends, or your co-workers knows how to take professional pictures.

Following the above tips should help you have a very rewarding wedding ceremony. More importantly, you can start your life together off right-debt free and living within your means. In fact, if you are able to enter marriage without a huge financial burden it will increase your chance of a successful life together.

It is a little shocking that the price of gas has become a major expenditure issue in the past few years, but it has been showing no signs of slowing down. Really the best choice is to cut back on gas expenditure in any way possible, be it with some carpooling, walking, or avoiding the jets. Simple steps can be made all over to save some transportation money and help out the environment. This is one tip you can use when trying to accomplish your goals.

For basic transportation issues, one of the best solutions is as simple as a carpool. If the drive is thirty minutes to work and there are two others who can alternate drive then the saved money from gas can reach three figures each month easily.

If the city is where one lives, perhaps a nice bike or a walk can really save a big load of money, while also keeping the circulatory system strong.

Travel is exciting for many people in the United States and beyond. Perhaps there are friends in New York, or a cool spot in Chicago, flying between home and multiple places can place a major strain on a wallet. Of course there are discounted flights that are popping up all over the place, but for many the cost of flying deters many from taking as many vacations as are desired.

 Shockingly many of these travellers have never considered a nice train ride to their destination. Now a train ride solves the problem of hassle, which accompanies a long car ride, and it saves a plethora of money that can be wasted on a flight. Modern trains are extremely comfortable, and who would not rather spend money on a Broadway show rather than a mode of transportation that will put everyone in the same destination.

Credit card debt is also considerably higher than 30-somethings. According to MSN Money one in 10 people in their 40s have more than $10,000 in credit card debt, compared with one in 12 people in their 30s.

More income and more experience money managing explain why fewer 40-somethings are getting behind in bills. At the same time people in their 40s are getting much more serious about retirement than the younger aged. Once again MSN Money states, “The percentage of people who have workplace retirement plans or IRAs rises to 59% for those in their 40s, compared with 53% of 30-somethings.” This statement should mean a lot to those in their 40s.

You can find several transportation resources for seniors in your telephone directory or on the Internet. Check with your municipal and county departments for available services. In some cases, you may have to complete an application form. Some may require the signature of your doctor or medical professional. If you live or plan to live in a senior facility, private shuttle services to shopping malls and group social activities might also be available as a standard part of the residential package.

Tips to Keep Gar Prices You From Breaking Your Bank

It literally is madness the way gas prices have continued to soar. It does not seem like that long ago when prices were sub eighty-cents per gallon. Now it feels like that would only happen in those pictures that occur between midnight and six AM.

It is a little shocking that the price of gas has become a major expenditure issue in the past few years, but it has been showing no signs of slowing down. Really the best choice is to cut back on gas expenditure in any way possible, be it with some carpooling, walking, or avoiding the jets. Simple steps can be made all over to save some transportation money and help out the environment. This is one tip you can use when trying to accomplish your goals.

For basic transportation issues, one of the best solutions is as simple as a carpool. If the drive is thirty minutes to work and there are two others who can alternate drive then the saved money from gas can reach three figures each month easily.

If the city is where one lives, perhaps a nice bike or a walk can really save a big load of money, while also keeping the circulatory system strong.

Travel is exciting for many people in the United States and beyond. Perhaps there are friends in New York, or a cool spot in Chicago, flying between home and multiple places can place a major strain on a wallet. Of course there are discounted flights that are popping up all over the place, but for many the cost of flying deters many from taking as many vacations as are desired.

 Shockingly many of these travellers have never considered a nice train ride to their destination. Now a train ride solves the problem of hassle, which accompanies a long car ride, and it saves a plethora of money that can be wasted on a flight. Modern trains are extremely comfortable, and who would not rather spend money on a Broadway show rather than a mode of transportation that will put everyone in the same destination.

Credit card debt is also considerably higher than 30-somethings. According to MSN Money one in 10 people in their 40s have more than $10,000 in credit card debt, compared with one in 12 people in their 30s.

More income and more experience money managing explain why fewer 40-somethings are getting behind in bills. At the same time people in their 40s are getting much more serious about retirement than the younger aged. Once again MSN Money states, “The percentage of people who have workplace retirement plans or IRAs rises to 59% for those in their 40s, compared with 53% of 30-somethings.” This statement should mean a lot to those in their 40s.

You can find several transportation resources for seniors in your telephone directory or on the Internet. Check with your municipal and county departments for available services. In some cases, you may have to complete an application form. Some may require the signature of your doctor or medical professional. If you live or plan to live in a senior facility, private shuttle services to shopping malls and group social activities might also be available as a standard part of the residential package.

Tips to Keep Gar Prices You From Breaking Your Bank

It literally is madness the way gas prices have continued to soar. It does not seem like that long ago when prices were sub eighty-cents per gallon. Now it feels like that would only happen in those pictures that occur between midnight and six AM.

It is a little shocking that the price of gas has become a major expenditure issue in the past few years, but it has been showing no signs of slowing down. Really the best choice is to cut back on gas expenditure in any way possible, be it with some carpooling, walking, or avoiding the jets. Simple steps can be made all over to save some transportation money and help out the environment. This is one tip you can use when trying to accomplish your goals.

For basic transportation issues, one of the best solutions is as simple as a carpool. If the drive is thirty minutes to work and there are two others who can alternate drive then the saved money from gas can reach three figures each month easily.

If the city is where one lives, perhaps a nice bike or a walk can really save a big load of money, while also keeping the circulatory system strong.

Travel is exciting for many people in the United States and beyond. Perhaps there are friends in New York, or a cool spot in Chicago, flying between home and multiple places can place a major strain on a wallet. Of course there are discounted flights that are popping up all over the place, but for many the cost of flying deters many from taking as many vacations as are desired.

 Shockingly many of these travellers have never considered a nice train ride to their destination. Now a train ride solves the problem of hassle, which accompanies a long car ride, and it saves a plethora of money that can be wasted on a flight. Modern trains are extremely comfortable, and who would not rather spend money on a Broadway show rather than a mode of transportation that will put everyone in the same destination.

Credit card debt is also considerably higher than 30-somethings. According to MSN Money one in 10 people in their 40s have more than $10,000 in credit card debt, compared with one in 12 people in their 30s.

More income and more experience money managing explain why fewer 40-somethings are getting behind in bills. At the same time people in their 40s are getting much more serious about retirement than the younger aged. Once again MSN Money states, “The percentage of people who have workplace retirement plans or IRAs rises to 59% for those in their 40s, compared with 53% of 30-somethings.” This statement should mean a lot to those in their 40s.

You can find several transportation resources for seniors in your telephone directory or on the Internet. Check with your municipal and county departments for available services. In some cases, you may have to complete an application form. Some may require the signature of your doctor or medical professional. If you live or plan to live in a senior facility, private shuttle services to shopping malls and group social activities might also be available as a standard part of the residential package.

One of the more obvious tips is to turn out the lights when you are not in a room. That alone can save you at least a few dollars a month – or better still use low energy bulbs.

 Less-obvious ways to reduce cost of energy include the following:

Convert to renewable energy. Three time-tested natural sources of energy are sunlight, wind, and water. They are usually combined with solar panels, windmills, or generator. Cars have even been converted to other types of renewal fuel, such as wood or plant products.

Invest in more durable items. Sometimes the up-front cost of purchasing longer-lasting appliances, furniture, and other household items can be more than you want to pay. However, this short-term investment has long-term benefits. One of those is items that are well-made also are usually more energy efficient.

Heat and cool your house naturally. This can be achieved by pulling the shades during the day and pulling them up at least part way at night. (If you value your privacy blinds are useful for this purpose.    

Insulate your home. This will reduce the cost of heating and cooling. Along with that, make sure you close all doors while the home heater or air conditioner is on.

Wash full loads of clothes and dishes. When possible, do not run the dishwasher just for a few items. If you want to clean a stray dish a soap dispenser with a scrub brush attached is perfect for this purpose.

Hang clothes on the line instead of drying them. This will dramatically cut down on the energy used, as you will not be running the dryer nearly is often. Additional Tip: Clothes dry fastest on a hot, dry, sunny day.

Shut down your computer, television, car, and miscellaneous devices. Any computer or electronic item will use up the most energy, so it is important to shut it down at night or during other times when you are not using them.

Use compact florescent light bulbs. You usually get more usage for these for the price, as they last quite a bit longer than traditional bulbs.

Use power strips, and surge protectors. Any large device that you have such as a DVD player, television, or computer should be plugged into a box such as this. Using these devices can cut your bill as much as 30%.

Bath or short shower? If you absolutely cannot be content with taking a five-minute or ten-minute shower then you should consider taking a bath instead. It will save you money. However, if you take a shorter shower it would use less water than filling your tub with bath water.

More energy saving tips can be found on local and national government websites. You can also call energy savings hotlines for further advice.

Additionally, non-profit environmental groups have educational resource regarding various aspects of energy-saving and conservation. This information would ensure you a better quality of life.

You can also find information and more detailed tips on energy saving not only for the money saving aspect but also to help the environment in the environment in our enviromental section:

http://www.abundantlivingebooks.com/environment/

No matter how hard you try you wind up in the same trap, or so it seems…..

You may be a person or family who knows you need to get a handle on your finances. However, it is hard for you to get ahead.

 The following are helpful tips for living below your means:

Shop for Bargains. There is no shame in paying less for quality items, especially if it will reduce your financial burden and stress. For instance, you can find like new clothing-even brand names-at thrift stores, factory outlets, and discount stores. You can also find just about any household item  you need at online auctions.

Purchase off-brand food items. Some food items are not the same as the generic version (bologna for example). However, for most items, such as milk, eggs, margarine, bread, cereal (certain ones) and more the generic brand is less costly but tastes the same. You usually can find the same both dollar stores and regular stores sell off-brand items, and you can even find them at factory outlets or close-out stores.

Do not invest more than you can afford to lose. A general rule of thumb is to have a backup fund equal to the amount of money that you plan to invest in stocks, bonds, mutual funds, or forex. If you are planning to start a business it is wise if you have some capital in case of malfunctions and emergencies.

Keep tracking of spending- ALWAYS! This is one of the practices in which countless individuals and couples fail to follow through, and it costs them big at times. Overdraft fees can add up, and you could end up paying hundreds of dollars a month if you do not figure out your account balance each time you plan to shop.

Delay Gratification: The Old-Fashioned Rule: This concept -second to “obedience”-is probably one of the least favourite of all human kind. However it also is one of the most necessary in order to reap long-term rewards in life. It is time to break the cycle of spending money you do not have and instead saving for what you want.

 This is a BIG ONE When your children ask for toys at the checkout counter tell them no. Do not give in to any crying tantrums either, or you will reward irresponsible money management behaviour in them. Also, say no to friends who seem to drain your pockets every time you are around.

Additional Money-Saving Ideas:

If you have a problem with spending, you might want to consider getting rid of your credit cards as well. If you need to purchase items online you can do so with a debit card. Besides, debit cards only hold as much money as you put on them.

Conserving and reusing is also another option that you would want to consider to help you stay on track financially. Shopping bags, food containers and other items are some of the most commonly-reused items.  

Now that you have read this article, a new fire has hopefully sparked within you. Perhaps you have even thought of your own ideas for saving money every month. There is no wrong way to figure out how to live within your means. You also can find additional money-saving tips by searching consumer websites and reading budgeting magazines, and other publications. Professionals are also trained to help people in need of help with money management.

Experts say there are certain money missteps that many of us are likely to make. Here are the major money missteps that can easily land you in debt. These are very common missteps that many of us fall into without even knowing it.

 Buying a new car

 OK, this is not so much a money misstep (unless you really can’t afford a new car, or finance it with a high interest rate) as a preference that can easily get you into debt. Sure, you love that new car smell, the feeling that you are the one adding up the miles, but it is a known fact that new cars depreciate several thousand dollars as within the first year. Save yourself all that money that you’re paying for the privilege of the new car smell and buy a high quality pre-owned vehicle. Many used cars still carry the original warranty-even more incentive for buying a quality used vehicle.

Borrowing from your 401(k) or 403(b)

 In most cases, you won’t get a great deal at all. Your 401(k) deals are pre-tax, which means that eventually the money that you put in will get taxed when you withdraw it. Taking out a loan from your 401(k) or 403(b) means that you will be borrowing from pre-tax dollar which will eventually have to be repaid. When you eventually retire and begin your withdrawals, you will be taxed again. If you borrow money from your 401(k) or 403(b), you will effectively be getting taxed twice. Did you know that you are also required to repay the loan in only a few months? If you don’t happen to have the money for repayment, your loan will be treated as a withdrawal. You can expect a whopping 10 percent early withdrawal penalty.

 Using your home equity line of credit to pay off your credit card debt

You can lose your home if this doesn’t work out. Credit card debt is often described by unsecured debt, because there’s no real collateral that the credit card company can force you to sell in order to collect on the debt. A home mortgage and home equity loan is known as secured debt because your home is the collateral. But if you fall behind your payments, the lender can easily require you to sell your home in order to collect on the debt.

Avoid buying a variable annuity

When you buy a variable annuity you are making a contract with the insurance company and the money is used to buy mutual funds. Salesmen may try to pitch this kind of investment as a way of buying and selling funds inside the annuity without the tax bills as long as the money is invested. But did you know that you will have to pay income tax on any withdrawals? Plus, if you withdraw any money from your variable annuities before you are approximately 60 years of age, you will also be penalized with a 10 percent fee. So watch out for what may seem like a great deal on that tempting variable annuity. There are often many buried fees that are attached to variable annuities. Make sure to read all the fine print.

 Do not finance your new home purchase with a variable interest loan

Avoid those low initial teaser rates for financing your new home. If you can’t afford the home otherwise, you should probably not buy the home. Avoid option adjustable rate mortgages too. This will usually cause your loan balance to become bigger each month as the lender adds the unpaid interest on the balance of your home loan. Watch out for those great introductory rates-they can often turn out to be not-so-great.economy.

 It’s time to take personal responsibility and take an honest look at what we have done to contribute to the situation. The fact is that it is easier today than ever before to buy things we cannot afford and do not have the money to pay for. Not only do we convince ourselves that we need things but we convince ourselves that we need them now. Then, not only do we have to pay for things we can’t afford but we have to pay the interest on the loans we took out to pay for them. That doesn’t even take into account the exorbitant amount of fees associated with credit card use and other forms of borrowing money.

Can you imagine walking into a bank and asking for a loan to buy groceries or a new purse? Sounds absurd, doesn’t it? In essence, though, that’s exactly what we’re doing each time we swipe that plastic card for these types of purchases. We’ve gotten so used to shopping with plastic that we’ve forgotten we’re actually borrowing money each time we do so! In order to simplify our lives and live debt free, we have to make an honest assessment of where we are and where we want to go.

 Tomorrow, we’ll look more closely at assessing our unique situation to see what changes, if any, need to be made. In the meantime, spend a few minutes thinking about what, if anything, debt is holding you back from or keeping you from accomplishing. What would you have time, energy, and money to do if you weren’t burdened with debt? For more information on how to simplify your entire lifestyle, check out the whole package at  http://www.abundantlivingebooks.com/self-improvement/debtconsolidation/ 

 Sincerely, Sabine

Every person who enjoys a good afternoon of shopping knows well the tension that exists between the things we want versus the things we need. In our materialistic society, it can be very difficult to reconcile this tension. Often we convince ourselves that the things we want are the things we need. Most of us (especially those of us deep in debt) are very good at rationalizing our purchases. Here are some tips to help you overcome the urge to buy the things we want, rather than those we need.

What the wants vs. needs battle does to your budget

Buying what we want (or convincing ourselves that what we want is the same as what we need) can be dangerous to our budgets. If you find yourself in debt, there is a very good chance that you have been in a losing battle against your better judgment. But it is never too late to turn the battle around. When it comes to overspending, most of the time it has to do with overindulging. Before you can turn this battle around, you have to convince yourself of one basic truth: all you need is a roof over your head, clothes on your back and food on your plate. You don’t need a particularly fancy roof, expensive clothes or gourmet food. You just need to sustain yourself, and sustaining yourself means treating your hard-earned finances with respect.

Make a shopping list and stick to it

Here is one of the easiest and time-tested ways to buy what you need, and not what you want: make a shopping list every time you go out. Not just when you go grocery shopping, but every time you leave the door and head towards the store. Eliminate the concept of “browsing.” Browsing can easily lead to overspending. Every time you head to the store, make a specific shopping goal. For example, if you’re going back to school shopping tell yourself: “I need to buy a new notebook, pens, a new sweater and two new pairs of pants.” Be very specific and carry a list. Having your needs right there in front of you, in black and white, can be a powerful reminder of why you are at the store.

Ask yourself: Can it wait?

Buying only what you need all the time can be difficult and demoralizing. While you are at your favorite store and shopping for the essentials, you are bound to come across something beautiful that you love and want but probably don’t need, at least not right away. Instead of bemoaning your budget, ask yourself a simple question: can it wait? In most cases, it probably can, and you can even come back for the special purchase when your finances are (more) in order.

Watch who you run with

This can be difficult realization to make, but it is essential if you find yourself overspending. Do you have friends or family members who overindulge or overspend? Maybe they can afford such spending behavior (or maybe they can’t), but if you know you can’t, it’s time to take a break from these acquaintances. Constantly eating out, vacationing or going shopping with these friends is bound to do a number on your financial ledger. If you love your friends, but not their financial behavior, resolve to join in low-cost activities. Invite your friends over for a home-cooked dinner, picnic or to the art museum during free admission day. Be honest with your friends if they question your behavior. True friendship can overcome these spending differences.

Create your own mad money jar

Of course, always scrimping and saving is no fun. Do yourself a favor and create your own private money stash. Sock away stray dollar bills into a mad money jar and forget about it. Six months from the date of starting your jar, use the money for special purchase-something you want but don’t particularly need