Final Week #8-Decisions, Decisions

Well, here we are at the last week of the Financial Fast. Those of us that "stuck it out" are hopefully better financially now than we were just 8 weeks ago.

I thought about what to have as our final week challenge. So here it is, your last challenge is to make sound decisions about the future of your financial status. One thing that I tell my children is to pray everyday to allow God to help them make good decisions. Our decisions, whether good or bad will change our lives forever. For example one bad decision can totally ruin your life and send your life going downward. However, one good decision can also change your life and have you moving upward and in the right direction.

This week you must decide your future. Ask yourself the following questions:

1. Do I want to continue to live paycheck to paycheck for the next 10 years?

2. Do I want to own an expensive car and rent an apartment?

3. Do I really want to continue to stress each month over how I am going to make payments on items that I can't afford.

4. Can I continue to live the lie of my lifestyle for the sake of my family and friends?

5. Will I continue to remain "disconnected" with my spending and my debt?

These are just a few questions that we should ask ourselves. I am sure that you can add to this list. You must awaken from your zombie state and deal with your financial issues. And yes, some of you may have "more important" things to deal with in your life. However, if you take time to deal with your money issues, it may help in other areas of your life.

So again, this week take time out to make a declaration about your finances. Such as, no more late payments as of today!, no more bounced checks after today. It is decision time!

Week #7-Start Saving

Okay, we all know that times are now extremely tight financially for everyone. In watching the news, we understand that this may just be the beginning of the financial crisis. We have a long way to go to recovery. And unfortunately most of us only have enough in our savings accounts to purchase movie tickets and 1 shared popcorn!(smile). This does not include your 401 or retirement account money.

So Week #7 is about starting to really build up your savings account. I know Suze Orman suggests we have an 8-month emergency fund, but lets just start with having a 2-week emergency fund and build from there.(lol)

I would suggest two types of Savings Accounts or Plans: An Emergency Fund Savings Plan and a Look-A-Head Savings Account:

The Emergency Fund:

1. This fund is not to be touched but in the case of a true emergency. When no other options are available.(ie, loss of employment, car breaks down, hot water tanks exploses!, etc...)

2. This account should not have an ATM/Debit card for easy access.

3. If married, both parties must agree prior to any withdrawals from this account.

4. No "borrowing" from this account until payday!

5. Decide how much money you are able to contribute each paycheck and stick to it. No excuses!

6. A great way is to establish a payroll deduction with your employer to have money automatically placed in this account each paycheck.

7. The amounts can be small (25.00) a paycheck, just start somewhere.

Look Ahead Savings Account

1. This account is to cover extra, planned expenses to avoid credit card use.

2. As a family plan a vacation for the summer, then decide how much money you will need to take the vacation. Then start saving!

3. Stay focused on the intent of the account. Do not start using for other items, unless agreed upon by all parties. Example: If you need new furniture for the guest bedroom, start saving now and buy the furniture with cash. You know every August school clothes will be needed, so this account can have $300.00 for new school clothes.

6. Decide how much money per paycheck you can place into this account and try to stick to it.

7. Even if you don't save all of the money needed, at least 1/2 of the money can be used to pay cash for a vacation, versus a full credit card vacation.

A good thing is to set a goal for your Emergency Fund Account. How much money do you want by the end of the year. Okay, so if you don't currently have a saving account, go today and open a savings account. Remember being consistent is key to saving money.

If you have other saving tips, please share.

Week #6-Challenge Making Budget Cuts

Today in the Sacramento Bee there is an article which speaks of the price of cotton, leather, copper, polyester and other items that have reached record high prices. As we all know, if the prices go up for the manufacturer it is only a matter of time before the cost increases are passed along to us. This article states that items such as cold cuts, shoes, clothes, etc are expected to increase up to 20% by the fall season. This is crazy in our economy today.

So we shall battle back! Our Challenge for Week #6 is to cut your grocery budget by 10%. I know this seems difficult, but it can and must be done! Here are a few tips to help you achieve this goal.

1. Set a goal for your new budget. Look in your cabinets and find items, that you REALLY do not need to purchase monthly. Be real about it, do you really need 3 types of popcorn?(Kettle, homestyle, movie theatre butter). Eliminate a few of your want items from your grocery list. We all need to make sacrifices. Have your hubby and children make a sacrifice as well.

2. Make a shopping list prior to entering the grocery store. You can go to http://www.allrecipes.com/ and pick menu items and it will create a grocery list for you to print.
3. Use coupons! Last year I registered at http://www.coupons.com/ and they send me weekly coupons. I save approximately $5 to $7 dollars per shopping trip. One caution, do not use coupons to try NEW items. Only clip the coupons for items that you already use and have a need to purchase.

4. Price compare before you buy. Sometimes the bigger, "on-sale" item is not the better buy. Check the price per oz, and make sure you are getting a great deal. This number is located on the price tag in the store.

5. Take cash to the grocery store. If you only have a certain about to spend, you will not overspend or "splurge" on unwanted items.

If you have further grocery savings tips, please post!