What Are Some Quick Ways to Start Saving Money?

There are all kinds of ways to cut back and save money. With just a few simple ideas, I bet you could find a way to save at least $100 a month. Once you get started, I challenge you to keep going and find ways to cut back even more. So not only are you saving, but putting more towards your debt. Do whatever you have to do to be able to save $100 a month and then put it in savings or put it towards your debt. Here are a few ideas to get you started:

• Buy store brand or generic brands whenever possible. Be sure to have a list with you when you shop and stick to it to avoid impulse buying. If you are able to, buy generic versions of the medicines you take. Buy items that are on sale.
• Take good care of your car. Keep it running efficiently by getting it tuned up, keeping the tires properly inflated, and use the least expensive gas with the proper octane rating for your vehicle.
• Stop your magazine subscriptions. Rent a a movie from Redbox instead of going to the movies. Look for alternate forms of entertainment like museums, zoos, a walk in the park, or picnics with family and friends. Get books from the library. Hey, that one is free.
• Buy items on sale for holidays and birthdays. Have a budget for what you are going to spend. Remember, it's about the thought.
• Set your thermostat to 68 degrees in the winter and 78 degrees in the summer to save on your utility bills.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).] Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your  email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.

How to Determine Your Financial Goals: Both Short and Long Term

Ever have a goal to save more, get out of debt, or make more money? Most people, especially at the start of a new year, set goals and never stick with them. One reason is they never write down the specific goals they desire to reach financially. Just as important as planning your budget, it's as just important to plan your financial goals. The best way to determine what your financial goals actually are is to simply ask your elf the question, what are my short and long term goals? A great way to accomplish this is to talk your spouse to help draw out your financial priorities. Start by making a list of what is important to each of you and put them in the order of most important to least important. Then compare your lists so both of you know what the others priorities are. Next integrate them and begin putting together your plan to achieve your goals.

What are short terms goals? Short term goals can be anything you'd like save for or purchase. Anywhere from within the next month, this year, or maybe even the next two or three years. Next try to determine whether your goals are either something you "want" or something you "need". Dave Ramsey suggests asking yourself these three questions:

1. "If we didn't purchase this item this year would it make a big difference to both of us?" If it doesn't, it slides over to the wants list.
2. On the needs list, ask yourself, "If we could only purchase one of these items by saving for it this year, which one would we prioritize first?" Then, choose which would be the second and so on for both the needs list and wants list.
3. "How much will each item cost?" Begin researching to what these particular items cost.

Once you finish answering these questions, add the dollar amount of the needs list and divide it by twelve months. Once you have determined the amount, place it in your budget separately from your normal savings bucket and start saving for it.

What are long term goals? Loan term goals are those that you plan on achieving in the next three years or longer. For instance, my wife and I started our plan earlier this year to be debt free in the next five years. Under normal circumstances we weren't able to pay off all of our credit cards in a few months or even year, but five years was a realistic goal. Just like short term goals ask yourself questions to determine your specific long term goals. Some of the questions you can ask yourself can cover:

• Paying off debt
• Savings
• Retirement
• Funding College for your children
• Automobile replacement
• Travel
• Pay off your home
• Starting a business
• Giving to Charity
• Paying for your child's/children's wedding
• Remodel your home
• Financial freedom

The list is endless, but you will never reach your goals if don't write them down, make a plan to execute them, and stick to them.

Let us hear from you. What are some of your long and short term goals?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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CreditCards.com Interviews the Author of Financial Elite

Day 269 of my Financial Freedom Countdown

I was reading the article QA with Lynette Khalfani-Cox and in the interview with CreditCards.com Lynettee discusses how she paid off six figures of debt in three years. In case you didn't know Lynette is a former Wall Street Journal and CNBC reporter and is now a money coach and financial expert for Oprah Winfrey, Fox Business, Dr. Phil, and CNN.

In the interview Lynette reveals that despite making a six figure income salary she still racked up six figures in credit card debt. The good news is she paid it all off in three years.

Her story is very much like my own. I racked up six figures of credit card debt while making a six figure salary and although Lynette paid her debt off in three years, I have a five year plan and would love to knock it in three just like she did. Anyway I was thinking what it would be like if CreditCards.com was interviewing me and what I would say.

CreditCards.com: Tell me, what do you blog about?

FinancialElite.com: I blog about personal finance. My intent is to motivate people to get out of debt, encourage them to manage their credit and debt wisely. I discuss all kinds of topics, from investing and real estate, to saving money and budgeting. Credit and debt are my two favorite topics because I have struggled in those areas. Not only once, but twice. So many people struggle in these areas all their lives.

CreditCards.com: In your blog "Financial Elite," you share with people your struggles with debt and your financial troubles. Why?

FinancialElite.com: Being in debt sucks. I am trying to show people that there are a lot of people in debt and you know what? You can pay it off.  It's easy to get in debt, but it's hard to get out. It's just like losing and gaining weight. You have to exercise and eat right to keep in shape. When you are in debt you need to find ways to spend less and usually make more money along with it. But you can do it if you work at it.

CreditCards.com: You made over six figures, but still ended up with $100,000 of debt. What happened?

Financialelite.com: People get into debt for many reasons. Some stroke of bad luck is often a cause -- laid off, getting divorced, becoming disabled, death of a spouse.

The rest tend to be overspenders or were never taught any money managements skills. I think I was a combination of a lot of things. Having a finance degree and working in the financial industry, I had a lot of knowledge on how to manage money. My first wife was an overspender and I got caught up in the vacations, treating people to dinner, buying expensive gifts for friends and relatives that we couldn't afford. The thing is the first time I was six figures in debt I was only making about $40,000 a year.

When we divorced I decided to use what I know and get things under control. I had just under $100,000 of debt and I was determined to payoff every penny. I got a second  job, sold things like CDs, sold my furniture, sold parts of my toy collection, and donated tons of stuff.

Things had almost immediately turned around for me once I decided that I needed to get rid of this debt. I had basic cable, a dial up modem, wore clothes that were to big for me (I started getting myself into shape not only physically, but financially as well).

CreditCards.com: So it was hitting rock bottom that made you say, "I need to change this?" You were divorced during the time you were paying off the debt, so it must have been difficult.

FinancialElite.com: Lots of consumers have debt problems after a divorce, but in my case I always felt it was my marriage that led to the debt problem. I never put my foot down hard enough to put a stop to the spending that was ultimately the problem, but getting divorced began the turn around. I will never tell someone to get divorced to fix their financial problems. Marriage needs to worked on just like your finances. I never asked for the divorce, but I may never have gotten a grip on my finances if I hadn't.

I also started to get cut off from my creditors at that time too. My cards were maxed and out and I would try to get my interest rates lowered and the credits were coming back not only raising my interest rates in some instances, but quite often they would close my accounts as well.

The bottom line was I hated the debt. I used think of all the stuff I could be doing if I didn't have all these payments.  I wouldn't have to worry if I was going to have to file bankruptcy or not. My biggest fear was being late on a payment, which is the one thing I was proud about, I was never ever late on any payment to anyone.

CreditCards.com: Paying off $100,00 in credit card debt in five years may seem impossible to some people. How did you do it?

FinancialElite.com: It wasn't like I miraculously got out of debt. It was through perseverance and working on it diligently that made the difference.

Like I was saying earlier, I revamped the spending habits I developed with my ex-wife and stop all frivolous spending. I stopped eating out and did with out as much as I could.

Negotiating with creditors didn't work that well the first time around with six figures of debt. This time it has been great. Many of my creditors have lowered my interest rates as low 0.00%. I also put every bit of extra cash I received towards the debt. It may have been a bonus at work, a tax return, a gift of cash, or even saved up spare change. Anything extra went towards the debt. Paying only the minimums on the credit cards was getting no where fast and I knew the more I paid the sooner I would get them paid off.

As the economy improved in 2002 so did my income. I started paying more and more towards my credit card debt. As one would get paid off, I would start working on another. Soon I had a run away debt snowball and the balances really came down fast.

I had some stock options that had finally become worth a descent amount and I cashed them out and put them towards my remaining debt. After five years of chipping away at my debt every single penny had been paid back.

CreditCards.com: If someone is reading this and feeling overwhelmed, what is your advice?

FinancialElite.com: Keep the faith. Most people have less debt than I have and I paid off six figures of debt once and I am working on doing it again. I have another five year plan and I am almost through the first year. I know it is tough, but it does get better. Since starting my five year plan I am beginning to see the same results this second time around that I had seen the first time. Things do get better in time.

Having debt doesn't mean you are a failure. Your life isn't over because you are in this hole. Everybody faces a tough time and it is always darkest before the dawn.

The main thing I want people to get out of this is, you can do it! I have done this once and I am doing it again. Make a plan and keep working on it. If you keep chipping away at the debt, you will dig yourself out of the hole.

I said I would never be in that kind of debt again, but it did happen again. I am not filing bankruptcy, I am not going to lose my home, and I am not going to default on any of my debt. I am going to pay back every penny and once again have financial freedom. The only thin I am going to lose is my debt.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your  email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.

So What if I Don't Have Money Set Aside in Savings?

If you don't have money set aside in a minimum of $1,000 emergency fund, you need to get serious right now on how to start saving. There is no doubt about it, you must build up a savings reserve. Start getting creative on ways you and your family can reduce your expenses or even increase your income so you have money in case the need arises. DO NOT depend on your credit cards as a savings device. The only true savings is one that is cash. There is nothing more important then your family itself than having an emergency fund of $1,000 and building it up to 6 to 8 months of income.

(photo via credit.com)

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your  email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.

5 Steps to a Perfect Budget: It's a Must if You Want to Get Out of Debt

I argued with my wife for years that we needed to have a budget. If we had implemented one a few years ago, we may have not had the financial problems we have today. But that was before and the now is; we have a budget in place and it is working quite well. The thing is most people haven't even gotten that far.

Most people hate to put together a budget much less have to be on one at all. A budget is basically a business plan. By having a budget you're just writing down your spending plan for the month. For many, a budget is a restraining device like shackles, a ball and chain, or like being handcuffed to a post. When you have a budget you have no freedom.

In actuality, a budget is freedom. You still get to spend money, but this time you know exactly what it is going towards. For most, like us, starting a budget enables you to find more money than you thought you had.

Since my current path to paying off my credit cards and to financial freedom is through Dave Rasmey's Seven "Baby Steps" my budget plan comes from him as well.

Here's Dave's 5 steps to budgeting:

1. It' won't be perfect the first time you do it. It will start working much better after three or four months.
2. Spend it all on paper before the month begins.
3. Over fund your groceries category. Most people under-fund that category.
4. Husbands (if applicable) need to loosen up and quit using the budget as a whipping tool on their wives.
5. If married, both spouses need to do the budget together. The preacher said"... you are one." 

Dave also discusses this detail in his Financial Peace University seminars. If you are working on paying off your debt or just want to brush up on your finances I recommend taking the 13 week course. To find a location of the seminar go HERE.

"A budget is telling your money where to go instead of wondering where it went." - John C. Maxwell

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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