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The no-pants guide to spending, saving, and thriving in the real world.

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Don’t Screw Future-You

Finance, Life

A conversation between me and my temporally displaced self.
Future Me: Excuse me, Jason?
Me: Yes?
FMe: <Slap!>
Me: May I ask what that was for?
FMe: Of course.
Me: What was that for, jerk?
FMe: That was payback for all of the hell you have put me through.
Me: What?!?  I’ve never even met you, before.
FMe: Of course you have.  I am future-you, and I’m sick of getting screwed by past-me, that is, you.
Me: Huh?
FMe: Listen close.  You’re not  the sharpest brick in the box and I don’t want to explain this twice.
Me: ???
FMe: A long time ago, when you first met our wife, you were dumb.
Me: I don’t appreciate….
FMe: Shut up.  I was dumb then, too.  Remember?  You…err…we bought a new truck, built an addition on our…err…your…err…whomever’s house, got married in the same year.  On top of many other expensive decisions.  Do your recall?
Me: Yes, I do.  So what?
FMe: If that wasn’t enough, you and your smoking-hot bride are still shopping like you’re rich. You drive a new car.  Your kids wear new clothes.  You’ve got a house full of new furniture.  How did you pay for all of that?
Me: Naturally, I charged it.  Zero payments, zero interest for a year!  Pretty smart, huh?
FMe: What happens in a year?
Me: I don’t know.  I’ve got a full year to figure that out.
FMe: <Slap!>  I’ll tell you what happens!  Future-you, that’s me, gets screwed!   Your raise didn’t come through.  You had a baby. The truck broke down.  Your wife took maternity leave.  A roommate moved out.  You took a loss in the stock market.  You didn’t plan!  You had no savings to cover any of those problems because you were too busy servicing debt to pay for your current life.
Me: How was I to know?
FMe: <Slap!>  Life happens!  You never know what is coming next.  You need to plan and save for what might happen.  Otherwise, you’ll just accumulate more debt to be serviced by yours-truly.  That is not acceptable.
Me:  So?  What are you going to do about it?
FMe: <Slap!>
Me: Really?  Again?
FMe: <Slap!>  I’m struggling to pay your debt. Your son starts college next year, but you’ve left me completely unable to help.  Your daughter wants to get married in a couple of years, but the Father-of-the-Bride can’t afford a tux.  My wife, your beatiful bride, wants a vacation that I can’t afford.   You’ve screwed me, dude.
Me: I’m sorry.  What can I do to fix it?
FMe: Buy me dinner, first.
Me: Huh?!?!?
FMe: Stop the excess spending. Spend less than you make, for a change.  No credit.
Me: None?
FMe: None.  Nada.  Zip.  Zilch.  Only spend what you can afford. Budget.  Pay off those nasty bills.  Don’t leave me hanging.
Me: So, what you’re saying is that, if I don’t have the money, I shouldn’t buy it?
FMe: Exactly.  That’s the path to wealth, freedom, and financial independence.  Live in the real world.
Me: Gee, thanks, Future-Me!  Now I know.
FMe: And knowing is half the battle.

What would your future-you have to say to you?

 

Experience the Live Real Magic

Misc

As some of you have noticed, the link to subscribe by email has changed.   While you do still have the option to subscribe to the rss feed through Feedburner, I’m no longer providing the link or recommending it.   What I have in its place is an actual email list.

Yes, you can now subscribe to Live Real, Now by email, without having to go through Feedburner. That means you can get all of the updates in your email, for free! This is magic.  This magic gives me another option to offer contests and free stuff.

There are two lists to choose from.

  1. The Magic option will have occasional deals, giveaways, contests, and opportunities not available to anyone else.
  2. The Posts and Magic option will send make sure you never miss a post from LRN by landing them in your email inbox. All the Magic from the first list is included here.

Your email will never be shared, with anyone, for any reason whatsoever. Ever. I hate spammers with a passion fueled by the fiery pits of hell to which spammers should be cast. I won’t be that guy.

Please, take this chance to subscribe to the magic.

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How to Maximize Your Income and Reduce Your Expenditures

Finance

If the past few years have taught us anything, it’s that we need to be taking out less debt and building up more savings. And certainly, it’s where the public seem to be heading – levels of mortgage overpayment and personal savings have rocketed in the past year amongst those who have the luxury of being able to put income aside.

For many of us though, finding money to save is a real struggle. After the bills and living costs are taken out of a monthly salary payment, there’s not always a lot left to play with. So what do you do?

The answer lies in getting tough with yourself, carrying out a review of your current spending patterns and working out a sensible budget. Essentially you need to both maximise income and reduce expenditure – both sides of the coin. There are plenty of ways to do this when you start thinking, so be creative and start thinking outside the box.

Here are a few top tips to get you started:

Ask for a pay rise – it seems like an obvious option, but so many of us never do it. Take a look at the market and see what similar companies are offering for your job role or profession. This will give you an idea of whether you’re currently being paid enough for your skills level and experience.

Ask your manager in a calm and prepared manager and come with facts and examples to back up your request. If the request is turned down, try again in a few months time, with more evidence. Also, ask HR for advice about your job salary banding and progression, so you show that you’re serious.

Get a new job – the obvious option when your pay rise request is denied. You may find that you can earn more elsewhere in the same profession, or flex your skills into a new career entirely. See a professional careers advisor for guidance.

Get a second income – more people than ever are opting for this route, by becoming self-employed on a part time basis. There are numerous industries that rely on an army of part-time staff, often self-employed. Examples are party-planners, sales people, freelance designers, coders, copywriters and researchers, market researchers, bar and restaurant staff and plenty more.

Take in a lodger – if you have a spare room, then the government allows you to take in a lodger without paying tax on rental income (up to £4250 pa.) This can be an effective way to make the use of your home to bring in income. Do your research first though on how to select the right lodger and make the relationship work.

Look for opportunities to earn – examples include signing up for overtime during busy periods at work or selling unwanted items on eBay. You could also sign up with the local council to count votes during election period, or help steward at large events. There are various agencies offering links to such opportunities if you search online.

On the other side of the coin lies spending reduction. This is a bitter pill for some to swallow, but there really is no point in earning more if you’re not going to make good use of it!

Food shopping – when it comes to food shopping, start using grocery coupons/vouchers and sign up for reward schemes. Downgrade your brands when you’re out shopping, so that you save money on you shop each time. Look at bulk buying offers, local grocers, markets and other opportunities to slash monthly grocery bills.

Travel – identify ways to save on travel, firstly by walking when a journey is a mile and under. If you’re doing this regularly you’ll save on petrol and you can cancel your gym subscription! With train tickets, book well in advance to take advantage of special deals and with holidays, look for cheap holiday offers and promotions via online search sites – these check the whole of the market to find the best prices and options for your requirements. Holiday extras such as car hire and airport parking can also usually be arranged via these online travel sites so be sure to compare prices to save yourself some money.

Clothes shopping – instead of shopping expensively on the high street, channel your passion for fashion into eBay. Many of your regular brands will be on there already and you can sell last season’s purchases to make way for the current season of items. Get savvy with bids and set yourself limits – you’ll find some great bargains if you’re clever about it!

Entertainment – when it comes to entertainment, sign up to group buying schemes for special offers and look more broadly in your area for things to do that don’t cost a lot of money. Things like local leisure centres, museums, parks, libraries, city parades and exhibitions are often free or subsidised by the council and you can enjoy time with the family without spending a lot of money on more commercial entertainments.

Hobbies – rather than taking up yet another expensive sport that you’ll buy all the equipment for and then never see through, find low cost hobbies to enjoy and cultivate. Walking or running, painting, music appreciation, gardening, racket sports, debating groups, local social clubs – all of these can be enjoyed without necessarily parting with too much cash. And it will broaden your horizons too – thinking more broadly about what counts, such as spending time with loved ones, rather than throwing money at free time like there’s no tomorrow!

 This post brought to you by MoneySupermarket.

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Three Ways to Make Christmas Cheap

Finance

Car off cliff sign
Image via Wikipedia

We failed Christmas Budgeting 101 this year.   I haven’t totaled the damage, yet, but we have spent at least $500 more than we had planned.

It hurt.

Next year, we’re going to handle the Christmas budget differently.   This year’s model isn’t working.   It’s a lot like pushing a car down a hill to get it started, but ignoring the cliff at the bottom.

1.  Use cash.  A huge part of our problem was that Capital One is helping us celebrate.   It’s horrible, because we both know we shouldn’t be using a credit card, for exactly this reason, but we can’t seem to make the transition back away from the plastic.   Part of the reason is that Amazon and ThinkGeek don’t accept cash, and part of it is convenience.    Don’t get me wrong, we’re not carrying a balance on the card, but it’s still far too easy to overspend.

2.  Communicate!  If our gift budget is $500, and I spend $300 online while she’s busy spending $300 in stores, out budget is shot.   Worse, if we spend that money buying stuff for the same people, our budget is shot before our shopping is done.   A little bit of this happened to us this year.

3.  Explore atheism.  There really is no more effective wa

y to cut down holiday expenses than to eliminate the holiday completely.   This may not be the best answer for everyone, but it’s effective.   On the other hand, I know several atheists who celebrate Christmas as much as anyone else.    This probably isn’t a good alternative for most people.

3, Take 2.  Cut back on “stuff”.  My kids have more toys than they can play with.  My kids’ parents have more toys than they can play with.  Do we really need more?   Wouldn’t it be better to spend the money I’d normally use to buy my wife a present on a series of date nights, spread out through the year?   I could take my kids to Feed My Starving Children so they can understand how privileged they are and how much the things they take for granted are really worth.

There are so many other ways to celebrate a holiday that has turned into a national orgy of consumerism.  Next year, we’ll be trying some of the alternatives.

 

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Festival of Frugality #278: The Pure Peer Pressure Edition

Misc

Peer Pressure
Peer Pressure

Welcome to the Festival of Frugality #278: The Pure Peer Pressure Edition.    If everyone else was jumping off of a cliff, would you do it, too?  Maybe not, but what happens if you surround yourself with people who hold the same values as you and are striving for personal growth in the same way?  Peer pressure doesn’t have to be negative.

“Peer pressure is not a monolithic force that presses adolescents into the same mold. . . . Adolescents generally choose friend whose values, attitudes, tastes, and families are similar to their own. In short, good kids rarely go bad because of their friends.” – Laurence Steinberg

Shameless plug:  If you like what you see, please take a moment to subscribe to Live Real, Now by email or RSS or follow us on Twitter.   All your friends are doing it.

Editor’s Picks:

Dinks Finance shows us a few ways to negotiate your mortgage fees.   Take a few minutes to read this post before you get a mortgage.

Money Ning reminds us that everyone needs a crappy job early in their working life.

Personal Finance by the Book is leading the fight against the 100,000 mile mindset.

Free Money Finance shows several ways to have fun dates on the cheap.   My secret is to make it look “creative” and “unique”  instead of “cheap”.  You don’t have to cave to the pressure of “expensive” to have a good time.

“Most literature on the culture of adolescence focuses on peer pressure as a negative force. Warnings about the “wrong crowd” read like tornado alerts in parent manuals. . . . It is a relative term that means different things in different places. In Fort Wayne, for example, the wrong crowd meant hanging out with liberal Democrats. In Connecticut, it meant kids who weren’t planning to get a Ph.D. from Yale.” – Mary Kay Blakely

The Best of the Rest:

Budgeting in the Fun Stuff talks about my favorite tax-funded institution: the Library.   I’ve easily save thousands of dollars since I started using the library consistently.

Babies are undeniably expensive.   Squirrelers provides some tips on limiting the early expenses.

“Don’t think you’re on the right road just because it’s a well-beaten path.”  – Author Unknown

Wealth Pilgrim shows how his daughter discover the secret to saving 80% on college costs.  The trick isn’t just going to a state school, but what you do when you get there.

ptMoney shares some copy-cat recipe sites.   I love making copy-cat meals with better quality ingredients for half the price.

“Every society honors its live conformists, and its dead troublemakers.”  – Mignon McLaughlin

Magical Penny recommends tracking your net worth.   Mint makes that easy to do.

Smart Wallet talks about going cash-only and the benefits of credit cards.  I am currently cash-only, but plan to transition to a good rewards card when all of the debt is gone.

Simple Life in France discusses radical simplicity and frugality in relationships.

“There’s one advantage to being 102. There’s no peer pressure.” – Dennis Wolfberg

I’m a bit of a foodie and more than a bit cheap, so when Not Made of Money talks about creative uses for some we stock up on, I’m listening.

Wanderlust Journey explains the Carnival Cruise loyalty program.  I’ve been on exactly one cruise and enjoyed it quite a bit.  It’s not the best method of travel for all possible destinations, but I can’t think of a better way to spend a couple of weeks in the Caribbean.

Beating Broke just saved a ton of money by switching to…wait, wrong venue.    Read how they saved money on a remodel.  Don’t be afraid to use your social capital–the skills of the people who care about you.

“If fifty million people say a foolish thing, it is still a foolish thing.”  – Anatole France

If you’ve got kids who are planning to play an instrument, you’ll want to pay attention to Budgets are Sexy‘s ideas on saving money on musical instruments.

Free From Broke talks about the hidden costs of home ownership.   A home is a never-ending money sink.

“Peer pressure has many redeeming qualities. It is the pressure of our peers, after all, that gives us the support to try things we otherwise wouldn’t have.” – Bill Treasurer

Suburban Dollar explains Swagbucks.

Money Help for Christians shares some tips to save money.  I particularly enjoyed the coupon walk-through link.

Provident Planning talks about someone living happily on $7000 per year.  I can’t imagine making it on that.

A “Normal” person is the sort of person that might be designed by a committee.  You know, “Each person puts in a pretty color and it comes out gray.”   – Alan Sherman

Final plug:  If you enjoyed yourself, don’t forget to subscribe to Live Real, Now by email or RSS or follow us on Twitter.   All your friends are doing it.   The coolest ones are even fans of LRN on Facebook.