Oh $ay Can I $ave

The holidays are long over.  For some they leave their imprint - on the checkbook!  Many people will resolve to solve the weight crisis while others will make this their year to reduce debt.  Like a large majority of our peers we have some debt.  I used to listen to Dave Ramsey (and I still use a lot of his strategies) and I like the fact the debt we have is "healthy" but at the same time it makes me sick to think about bills.

Here are some of my favorite tips for remodeling your debt issues - no matter what the size.

1.  Pay off the small debt now.

If you have three bowls of porridge - one filled to the brim, one half way full, and one with maybe a tablespoon in it then you should focus on eliminating that small amount first (so said Goldie.)  It only makes sense to go ahead and rid yourself of what you can and then eliminate it all together.  For me, personally, this is a retailer card (we'll call it Target).  The balance on it is slim and my priority is to pay it off and let it go (as in put the plastic in a place where it cannot be reached.)

If you eliminate the small debt you have more room to focus on the larger piece of the pie.

2.  Make your payments on time.

Our household moved from paying bills twice a month to doing it all at the start of the month.  We "pretend" to be paid once a month so that we can move everything out to where it goes and then utilize supplemental paychecks for other needs (savings.)  I personally feel that by having one day at the beginning of the month (or end) to pay all the bills will help you understand how much your budget needs to be and will also keep your bills from being late.  Late bills = horrible fees, increased interest, and dents to your credit score.  Side note:  I also get that some people cannot do this because their pay is smaller and they have a more difficult time making ends meet.  If you can try this then go for it if not hang in there.

3.  Envelopes

2016 will be the year of the envelope for us.  I mentioned Dave Ramsey at the start of this and I'll mention him again now.  When it comes to cash we tend to think twice about spending.  Swiping a card seems to be meaningless to humans.  If you give us cash we're a little more inclined to think things out and hold on a little tighter to it.  Ramsey teaches the envelope system and I think this could be critical to so many of us and our budgeting/savings abilities.
I cannot remember the entire teaching but I do remember this part:  Pay your bills and then budget out how much you need for food, gas, and extra expenditures for the month.
In our home we need around $300 for groceries each month.  So I would take $300 in cash and have it in a safe. Each week I would take out just enough to purchase groceries for the week.  My car is not a bad gas guzzler and it generally takes about $28.00 to fill it up each week so in another envelope I would put my gas allowance.  When I think of "extras" in our home I immediately think of haircuts, going to get ice cream after school, or a date night.  This envelope would hold the least amount of money but it would be there in the event we had a chance to splurge a little.

I think it would be awesome to see how much money we do not use out of the envelopes and put that in a savings account or towards something special for the family at the end of the year.

4.  Shop Smart

This is where your eyes glaze over.  I'll keep it short and sweet.

• Grocery shop with a list.  That means menu plan for the week and find the best deals along with clipping those coupons.  Also if you shop at an actual grocery store and not a Target/Walmart deal then use the shopping incentive card (MVP, VIC, Rewards, etc).  If you do not have one get one or ask the person behind you if you can give them rewards by scanning their card (sometimes using them so many times gets you great coupons, and waivers for $ off your next purchase.)
• Utilize all these Smart Phone Apps:  Ibotta, Checkout51, Cartwheel, Savings Catcher.
• The first quarter of the year is a great time to hit up second hand shops for odds and ends you may need.  However, if your closet is full and you really need nothing, stay away!
• Shop around for automotive care.  Don't forget to get your oil changed in your car.  Just a few weeks ago a friend's son paid the very high price of not maintaining his vehicle and his motor blew up.  Had he maintained his oil changes this would not have happened.  Call around and find out who has the best prices on auto care, tires, work, etc.  Cars are expensive but I would rather maintain what I have for $50 every 3,000 miles than have to fork out $350 every thirty days.

And finally...
If you do not need it, do not get it.

5.  Cut the vice.

Now is the time to evaluate which habits are getting you in economic strife.  If you smoke you're looking at $5-$6 for one pack of cigarettes.  I don't know many people who smoke one pack a month so do the math and figure out if it is really, truly worth it (hack, hack, cough, cough, throat clear.)

Fast food (the other killer) is a habit which will rip apart your checking account.  Dollar menus are phasing out in 2016 and at $4 a pop for a cheap meal you're in for a money ache.  Two meals out a day will cost you a minimum of $8 while for a week we're looking at $40-$56 - that is a grocery trip that will pay for a week of food for you.


So there ya go!  My little two cents on financially savvy living for 2016.  It isn't much but I think it could help us out a little!  Do you have a specific teaching you love about money managing?  Are you a Dave Ramsey fan?  Share it in the comments on Facebook or over at Google+!