If you are doing any of these boneheaded, irresponsible things with your money – STOP! Someday there will be a need that you cannot meet. Maybe it will be your need or maybe it will be the need of someone you care about. Either way you are going wish you had back all that money you pissed away on _________.

ATM Fees, Overdraft Fees, Late Charges

Just hold that $20 bill up and set the corner on fire. You get no joy, no thing to hold in your hand, no future value from these stupid expenditures. You are a smart person, you can figure out which ATM’s are fee free, you can balance your checkbook and you can pay your bills on time. There is absolutely no excuse for wasting money like this. Get angry right now and vow never to just hand your hard earned money over to the banking fat cats again.

Rent to Own, Pay Day loans, Tote the Note Used Car Lots, Cash Advances

Dumb, dumb, dumb. You cannot do these things and win with your money. Follow these two simple rules always and forever:

1)      If you can’t pay for it, you can’t have it

2)      Spend less then you make

Can’t pay cash for that couch, TV or washer? Then you cannot have it; look to craigslist.com or freecycle.org for a short-term solution and save your pennies for what you really want.

Addictions

If a spending is compulsive, you need to find a way to STOP. Meals out, coffee, purses, the latest electronic gadget and even books are extremely unhealthy when you continue to purchase them despite a stated desire to cut back. Sometimes it is helpful to:

Change your route so that you don’t drive past the place you spend

Don’t carry money or credit cards or debit cards if you have proven you can’t stop buying. Carry just enough cash to pay for what you need for the day

Replace your shopping with something pleasant. Take a walk in the park instead of stopping for coffee after work.

If you have a physically as well as financially destructive addiction, like cigarettes, alcohol or drugs seek help. Not only will the spending on these substances wreak havoc on your chances for financial independence, they will undermine your health.

Ignore your Health

Sadly, health insurance is a huge limiting factor in many people’s lives. I know people who want to retire or quit their job and start their own business and the only thing standing in their way is affordable health insurance. At a normal weight and without often avoidable conditions like diabetes and high blood pressure or a habit like smoking, insurance can be affordable. But if find yourself with a height & weight outside the insurance companies’ parameters or with a chronic condition and premiums for both your life and health insurance skyrocket.

I am in no way inferring that all cases of high blood pressure or Type II diabetes or any other chronic conditions are avoidable. In addition, I know that it is not equally easy for everyone to maintain a healthy weight or avoid addictions; but most of us, through exercise, addiction avoidance and healthy eating, can either avoid, postpone or control many diseases and conditions.

We’ve all done stupid things with our money, the secret to winning is to recognize when we are doing something dumb and find a way to quit doing it.

 

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A Weight Weenies Approach to your Budget

by Cassie on May 3, 2012

In biking or hiking, those enthusiasts that are obsessed with the weight of their gear often refer to themselves as “Weight Weenies”.  I’m not one (mostly because I could never stand to spend that much money on gear; generally, the less it weighs, the more it costs) but in both sports, I love to read of their latest methods to shave a few ounces or even grams off their load. Occasionally there is a takeaway that I can afford; but always there is some entertainment and maybe an enlightenment to be found reading of the lengths they go to save a half a gram.

If you are currently in a season of your life that screams for you to reduce expenses either to pay off debt, live on a smaller salary or save like crazy for something you really want; adopting a “Budget Weenie” mentality will help you achieve you goal faster.

Just remember, “Weight Weenies” do not live like this every day. They may live this stripped down life for a long 5 months on the trail but once they achieve their goal, they head back to their queen sized bed in a real house with running water. Similarly, I don’t want you to be a “Budget Weenie” forever - just until you hit your goal.

These guys are fanatical. Here is an example so you will understand how far they will go to save weight.

Lots of these guys cut the handle of their toothbrush down to a stub exactly the length they need to reach their back teeth and then they drill holes in what’s left.

Or, “I sawed off just the top of my toothbrush and hot glued it into a carbon fiber arrow shaft. The handle was full length and it weighed .1 oz.”

Or this one: (that other piece is a firesteel used for starting fires).This last one demonstrates this hiker’s understanding of the important principle of multi-use.

Let’s examine the principles of ultra light backpacking:

Choose the smallest lightest gear suited to the purpose  And then ruthlessly remove every part that is not functional, like the tags, any inch of unnecessary drawstring, extra straps etc.

Choose gear that serves multiple purposes-as seen in the toothbrush example above

Eliminate un-needed gear-you must learn the difference between a want and a need. These guys will carry luxury (anything that does not meet a real need) items but only after they openly and honestly label it as such.

Take only the amount you need - you Sam’s club shoppers need to remember this one

The more you can reduce the weight; the more you can reduce the weight – this is a very important concept. If you reduce the weight of the stuff you are carrying, you can reduce the weight of the pack you put it in.

The Hiking “Weight Weenies” always start with the big 3, the backpack, the sleeping bag and the tent. Since these are likely the three heaviest essentials, big gains can be made by paying very careful attention here. The trick is to making sure to allow just enough weight to get the level of comfort and protection for your satisfaction. Some will be miserable without a real live tent on the trail while others can be quite satisfied with a very lightweight tarp. It’s your pack and you are carrying it so you get to make the choices.

Let’s examine our big 3, housing, transportation and food through some of the “Weight Weenies” principles:

As a “Budget Weenie”, preparing your food from scratch at home is the least expensive option that serves the purpose. Eating out or buying preprocessed packaged foods is way too expensive, not to mention unhealthy.  Beans and Rice is not just a saying; it really is a very inexpensive way to eat.

In this season, you don’t need a guest room or a garage, the kids can bunk up, and you all can share one bath.  Get a roommate.

If you are a single, fresh from college with a big bag of student loans, you need to take whatever you are thinking in terms of housing and cut it in half or maybe less. You need to be one-step up from the homeless guy living in the box.

Pay very close attention to the where when choosing housing.  This line of thinking is much like the “Weight Weenies” principle, “the more you can reduce the weight; the more you can reduce the weight”. If you choose an inexpensive place very close to where you work, not only to do save on housing costs, you can save a ton on transportation.

If you want to be a real “Budget Weenie”, you need to bike, walk or bus your way to work. If you’re a two-car family, become a one-car family for this season. If you can bike or walk to work or at least to your errands, you’ve conquered the exercise bit without paying for a gym membership while saving gas and wear and tear on your vehicle. Wow, multiple budget cuts with one action.

Eliminate the un-needed.  Is this a want or a need?

Luxuries are allowed, but only if you consciously and honestly acknowledge that you are willing choose to postpone your goal in order to have them.

Remember, we are ruthlessly removing every single expense that is not absolutely necessary.

To successfully adopt the “Weight Weenies” principles to your budget we must:

Measure -”Weight Weenies” must have a scale and a spreadsheet. If you are going to be a successful “Budget Weenie” you must have a spreadsheet of your income and expenses and a graph showing your progress toward your goal (debt reduction, savings, net worth).

AND

Enjoy It - “Weight Weenies” take great personal satisfaction in every teeny tiny reduction. You need to make this a game, every cent you free up to throw at your target is a win.

Happy cutting!

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I Can’t

April 30, 2012

If you were a very lucky child, every time you said, “I can’t” or “I’ll never be able to”, there was someone standing nearby to kindly and patiently insist that you could. When you were finally motivated by that persistent encouragement and did try but ultimately failed, they were still standing near, nudging you to [...]

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All You Need To Be Is Better Than Me

April 25, 2012

When I struggle with a self-discipline issue, I sometimes fall into the trap of comparing myself to others. You know how this is done; you start thinking about how you should really get serious about getting out of debt or losing a few pounds or finding a better job. “I really mean it this time”, [...]

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Struggling against the Tithe

February 20, 2012

One of my goals in our Be, Do and Have More Challenge is to grow my faith. I’m making progress in this area and this week marks my second consecutive month of giving the first 10% of our income to our church rather than whatever is left at the end of the month. I really [...]

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Nail your Shoes to the Floor-Week 4 of the Be, Do and Have More Challenge

February 14, 2012

I have really struggled this week with one of my goals. I told you last week despite lots of activity, I have made no forward progress on my get my life uncomplicated goal. With great optimism, I announced it was time to back up and try a new approach. I’m here to report this week [...]

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Week 3 UPDATE – Be, Do and Have More (of what you want) Goals Challenge

February 6, 2012

When we started our Pick Four Goal Challenge, we said writing down our efforts every day and reviewing them once a week would be how we ensure progress. So, here is my weekly review. This past week: Lose 12 lbs goal – Yippee! Progress. After my friend called me on not scheduling my workout for [...]

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One Thing

January 28, 2012

What one thing can you do right now to get over the barrier that is standing between you and achieving your goal? One of our Be, Do and Have More (of what you want) Goals Challenge participants told me yesterday how she is nailing her fitness goal. She is running and lifting weights. She is [...]

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Thinking of a Short Sale?

January 23, 2012

There was an article in today’s Tampa Bay Times that really ticked me off. For Debtors, Sell Now or Pay Later, described the probable tax consequences of a short sale of a primary residence  after December 31, 2012 when The Mortgage Debt Relief Act of 2007 will expire. The problem with the article was it [...]

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Week 1 UPDATE Be, Do and Have More (of what you want) Goals Challenge

January 23, 2012

This was our first week of working towards our three goals. If you wrote in your workbook like you were supposed to, you should have filled up several pages describing the steps you took each day towards each of your goals or you should have written did nothing when in fact you failed to do [...]

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