I was fascinated on the latest craze on earning opportunities online (ads for home credit processors, mystery shoppers, affiliate online researchers etc) that I wonder if taking a second job is worth considering to expedite my wanna-be millionaire dream? Let's see 8 hours full time work, 1 hour wanna-be chef time, 1 hour dinner, 1 hour blog time, 1 hour reading, 8 hours sleep - - If that means, not being able to watch Hell's Kitchen or House - - hmmm..maybe not!
The goal is for me to save and enjoy life and not to be a saved in the ER trying to reach a wanna-be dream!
Earlier at yahoo finance, an analyst made a positive assumption that the market will be stronger as investors are placing money back in the game. With creditors releasing money, this may mean higher interest rates on cards or other loans in the next few months.Speculations or not, do I want more possessions so I will be tied up with high interest rate in the next 3 years? Don't think so!
I have been successful in my zero card balance policy and so far these five rules worked.
Minimize credit card usage:
Articles indicated that an average American has 5 credit cards and has approximately $5,000 - $20,000 debt. I hope I will never be included in that census. This is the reason why I maintain only three active cards (one for grocery with a small limit; one for personal use that I have in my wallet for back up and one for emergency that I keep in my files). By maintaining few cards, I am able to limit frequency of consumption/usage to a few merchant. This is effective specially if you want to avoid the temptation of larger chain stores at the mall. I don't have a balance in my card - -and I intend to keep it that way!
Making a priority list vs play money :
If I can list down all the food I need to
purchase on a weekly basis so why not execute the same technique for my personal purchases
beyond $50. I created a file and listed down my wish list by category to determine if I can
afford it and at the timing I want it to happen based on my play money (extras after savings/bills/investment).
To do this, I simply created columns and listed down my wish list by category and ranked them in order of need (or shall i say, want?).
I always research for best online price and read the Sunday ads for specials and add price comparison in the table. Since I wear a 0P (zero petite), I make sure that I go to the store and actually try on a dress so I can be confident if I need to make online purchases. Finally, if I have to make the actual purchase online, I ask Dr D hubby to pay it via his pay pal account and I just cut him a check. In this way, it will be automatically be drafted from my play money fund . You'll be surprise that each time you go to the mall, the craving for retail therapy will be reduced.
My excel column categories:
- Segment: Clothing, Car, House Items, Makeup etc
- Brand: Clinique, BCBG Dress etc
- Purchase by: Cash, Visa Card
- Merchant: Online, Dillards, Macy's
- Occasion: Birthday, Christmas
- Estimate Cost: $250
- Play money for the month: $200 (Remaining money after bills, savings and other loans)
- Rank: High, Low, Medium
- Month: July, Aug
Go Cash if possible:
The convenience of credit/ debit cards
is tempting. Swipe and go, swipe and go..you are always confident that
there is a magic helper trapped in your wallet until the bill
arrives. To avoid being trapped in the credit cycle,
I make sure that I maintain $20 in my wallet. In this way, personal ad
hoc purchases (like snacks, laundry, video rental) are controlled. I
used to have a debit card
when we were in Colorado but not anymore! The debit card gave me the
arrogance that I have money on hand when I am in the store that I
usually spend more than I can afford!
Never rush on major purchases:
Who doesn’t like a new Volkswagen Beetle? I am due for a new car, and yes, I can afford it, I have been dreaming about it, my eyes turns green with envy whenever I see one at I-40 …but I am taking my sweet time as I refuse to pay for car loans. There came a time when I have to draw the line of what are basic necessities and what are luxuries in my life. Taking the car as an example: If my current car can still move me to and from work, if it can help me transport my groceries to and from home - -this is all I need for now.
Don't keep up with the Joneses:
Does your neighbors have swimming pools,
drive BMWs, weekly parties ! Good for them…all
the things I want to enjoy, I can DEFINITELY afford,…but I REFUSE to pay. The
thinking process should be simple…Find ways to maximize your time in
cutting cost and saving more money so you have no time to spare to
create physical inventory of what you have and what you don’t have
versus the guy next door. I forced myself to accept the concept of virtual assets earned through long term investing. In my head, I may not be driving a new Volkswagen but I look forward to having one green and one yellow Volkswagen and if I get lucky a Porsche ...maybe 15-20 years from now. Wow, I'll be a hot grandma!
Weekly clean closets:
Cleaning closet, cleaning garage…we’ve all heard of how once found treasures just by clearing up boxes. I have tried this and it worked for me (See my blog:CLEANING CLUTTER CAN HELP CUT COST ). So far, I have saved trips to the store when I arranged my personal items in boxes. Since I cleared up some space recenlty, I am starting in a clean slate and am more conscious of items I have accumulated that may still be of value.
NEXT: PRIORITIZE SAVING VS SPENDING: You do not have to give up on occasional splurges..just learn how to find ways to have fun and still save!
