Six Small Steps to A Money Makeover

Here are a few more tidbits of information about managing our finances.  These can apply to anyone, widow or not.  Got them from the September 2012 of "O" Oprah Magazine.  I hope you find these helpful!  :)

Do This Now:

• "Electronic bills are great - unless they are lost in a crowded in-box.  Set up a separate e-mail account (e.g. alexa.bills@emailhostdotcom) to keep your e-bills orderly."  -  Alexa Von Tobel, founder of the personal finance Web site learnvest.com
• "Challenge yourself with a 21-day financial fast, during which you eliminate all spending except or the bare essentials.  Halting unnecessary purchases forces you to reflect on how much you consume."  -  Michelle Singletary, "The Color of Money" columnist for The Washington Post.
• "Stop delaying your savings!  So many women say they haven't done enough research to enroll in a 401(k) plan, but it's far better to act now and tweak your allocations later than to delay building any security at all."  -  Mary Caraccioli, host of We Owe What? on the Live Well Network.

Do This Soon:

• Step back and look at the big picture.  Fifty percent of your take-home pay should be allocated for essentials, 20 percent should go toward savings and debt, and 30 percent can cover everything else."  -  Alexa Von Tobel
• "Keep a spending journal for 30 days.  A month's worth of data makes it easier to see where you can cut back."  -  Michelle Singletary
• "Pick one intimidating financial situation - whether it's saving for a house or getting rid of your debt - and meet with a financial advisor.  You can find one through the National Foundation for Credit Counseling (nfcc.org).  A single session can put you on the right path."  -  Mary Caraccioli

What's your favorite financial hint?  Share it with us so we can all benefit.  :)

Put your wallet on a diet! - Money-saving ideas

Did you know you could save about $400 per month with just a few changes to your spending?  Depending upon how much you are spending each month (and we are already spending as little as possible, so I don't see how we could save $400/month) you can make a big dent in your expenses each month, and hopefully end up with a fatter wallet/bank account.

Here is the link to the site:  http://www.thebudgetdiet.com/cut-your-spending-by-400-a-month

I found this on Pinterest, and while many of the suggestions we have already done and/or they won't work for us (we live 10 miles from the nearest small town, so walking or riding our bikes into town for errands is not gonna be an option), there is a lot here to take from (and make changes with) for most people.

One thing I just got done doing - and this won't necessarily save money but I feel I am doing my part for the environment - is to go to www.DMAChoice.com and opt out of several kinds of junk mail.  You can go there and opt out of catalog lists, pre-approved credit offers, magazine lists, etc.  If it's clogging up your mailbox, you might as well get rid of it!

Another thing I am going to look into is getting rid of the "phantom" energy around our house.  I never thought about it, but by leaving my charger plugged in all time but only charging my phone at night I am wasting energy.  I need to go around the house and unplug chargers and appliances like that that may be "leaking" energy when they are not in use.  Maybe after a month or so of that I will have a pleasant surprise in my electric bill!

So what is your favorite saving tip?  What have you found you and your family can live without in order to save a little money here and there?  Share with us - and help us all to save!

Financial Tip #3 - Make an Emergency Fund

This is one of the best pieces of advice I got - set some money aside as an emergency fund for ... well, emergencies.

It isn't hard to do.  OK, in theory it's not hard to do.  But let's be realistic ... this can be a tough one.

Here are a few guidelines to get you started:

• Set a target for the amount you want to have in your emergency fund.  I like to have $1,000 set aside - that way I know I am covered when the washer gives out/the roof starts to leak/the lawnmower needs to be fixed/the car needs new tires/etc.  And you know those things don't just happen one at a time, right?!  We all know appliances gang up on you, and tend to quit in multiples.  Having enough to feel comfortable with whatever the near future may hold goes a long way in making you feel a little more secure.
• Reserve this fund for emergencies.  No, those darling shoes you saw on sale DO NOT count as an emergency!  Keep this fund "hands off" until you really need it.  If you're always dipping into it, soon it will be gone - and that kinda defeats the purpose of an emergency fund, don't ya think?!
• Yes, this comes straight from "Mr. Financial Peace" himself, Dave Ramsey.  This is one of his "baby steps" in taking control of your finances, instead of your finances controlling you.  And the whole idea of putting together an emergency fund is predicated on the assumption that you are not using your credit cards, or limited their use dramatically.  Don't use credit cards as your emergency fund!  This will only lead you further into debt - it's just too easy to use those blasted things.  And suddenly EVERYTHING looks like an emergency (see above.)
• Maybe you don't have your entire desired amount for your emergency fund at the moment.  Start saving it up -put a bit away each month into a savings account, money market, etc.  Somewhere that it's drawing interest (however little it may be) and that you can get at it quickly ... in case of an emergency!  Keep socking that money away until you reach your goal.

Then smile at the future!

"She is clothed with strength and dignity;
she can laugh at the days to come."
Proverbs 31:25 (NIV)

What is your favorite financial tip?  Share it with us!  :)