friends

Tuesday’s Tip: Take the Roadmap Challenge (Part 2)

/ abschilling / Leave a comment

Well, it’s been a week since I introduced the first part of the challenge. Did you try it? How did it go? Did you notice anything about your spending habits? Were you surprised by anything? Many times we’re shocked by how much we spend. We don’t realize that those ‘little things’, the inexpensive items we buy on a whim, can actually add up to quite a bit when it happens on a regular basis. Think about what you saved in one week – and now imagine that on a slightly grander scale . . .

Which leads me to the next part of the challenge, in three steps.

Step 1: Take a good, hard look at your expense log from the past week. Is there anything you could stand to cut back on or do without? (Answer HONESTLY!!!) You may find that there are a couple of things on your list. That’s ok.

Step 2: Pick just ONE thing on your list and cut it out for the next 30 days. April 1 – 30. One month.

Step 3: Keep track of how much you save over the course of the next month.

I’m not asking you to give up every extra expense, just one. Pick one that’s the most frequent purchase. Or maybe one that’s the most unhealthy. Or the most expensive one. Whichever one you pick, do without it for the next month. On April 30, take the amount of money you saved and multiply it by 12 to see how much you can save in a year. Then ask yourself, What else could I do with that money? Pay down debt? Make an extra payment on something?? Pay something off???

Once you’ve done that, contact me and let me know what you cut out of your spending, how much you saved in a month, how much you’d save in a year, and what you learned from the experience. If you do, you’ll be entered into the contest and you could win a FREE consultation with me. You’ll get the Money Roadmap package which includes my book, a binder, and ledger paper, plus I will help you set up your own Roadmap and teach you how to use it.

There it is. The Roadmap Challenge. Try it. What do you have to lose? More importantly, what could you gain with good money management??

Good luck! I know you can do it! I can’t wait to hear from you!

Today is April 1st. Ready . . . set . . . GO!

Tuesday’s Tip: Take the Roadmap Challenge (Part 1)

/ abschilling / Leave a comment

Ah, Spring! Aren’t you excited? More sunshine. Longer days. Warmer weather . . . ok, I choked on that one, too. (For those of us living in the Chicago area, we’re still waiting for that last one!) But still, when I think of Spring, I think of trees budding, flowers blooming, grass greening, and I’m filled with a sense of renewal. That’s what Spring is all about, isn’t it? Things beginning anew. Fresh starts. And . . .

SPRING CLEANING!!!

When I say that, most people think of the mile-long “Honey, Do” list taunting them from the fridge door: cleaning out the closets, going through the stuff in the garage, and washing windows, to name a few. But I’m talking about cleaning in a more financial way. The concept is the same though . . . go through your stuff, keep what’s necessary, and get rid of the rest. Think of it as clearing up and reorganizing your finances.

Over the years, I’ve had many people ask me what they could do to accomplish that particular goal and my answer is always the same: Grab a pencil and paper and keep track of all the money you spend in a month, then sit down, take a very close look at it to figure out where your money is going, and determine what you need and what you can do without. (Coincidentally, it’s one of the first steps outlined in my book!!) Most of the time, the reaction is the same – jaws drop to the floor.

“A whole month?” they ask.

“Yes. A whole month,” I reply.

“That’s a really long time,” they complain.

“Yes, it is,” I say, “But it’ll give you a solid picture of where all your money is going.”

“And we have to write down ALL of it?” they ask.

“Yes. ALL of it. Every dime. Bills, credit cards, EVERYTHING you buy in CASH. ALL of it.”

Again, jaws drop to the floor. What I’ve found, however, is that everyone who was truly serious about taking control of their finances followed my advice and were astonished by what they learned at the end of that month. They also learned that, by doing away with some of the extraneous items they didn’t realize were emptying their wallets and bank accounts, they were able to save quite a bit of money. In some cases, hundreds of dollars a month. Some people even told me that after just one or two weeks of tracking their expenses, they could easily see which unnecessary items they could cut back on, or cut out completely.

Don’t believe me? Ok. Let’s consider my friend, “Lucy”, who once told me that she’s addicted to a mocha coffee concoction and has to have it every morning on her way to work. She says she wants to get a good jolt to start her day, so she orders a large. Ok. With tax, she pays $3.58. Multiply that by 5 work days. That comes to $17.90 per week. Multiply that by, say, 49 actual work weeks in a year. The total now becomes $877.10 per year. Hmm . . . I can think of a few things that I’d rather do with $877 than drink coffee . . .

Still don’t think that makes a difference? Ok. Try this one on for size. Let’s say you go out to eat two times per week. For the sake of making it easier to calculate, let’s estimate that you spend about $50 per week. $50 multiplied by 52 weeks comes to $2600 per year. I suppose if you really want to get goofy, imagine you get a mocha coffee every day AND go out to eat twice a week . . . that’s almost $3500 per year that could go toward something else. And that’s just for two people. What about a family of 3? 4? 5? It boggles the mind.

So, here’s my challenge to you: Track your extra expenses for the next week and calculate how much money you could save per month and per year by cutting back or cutting them out. I’m not even talking about bills. I’m talking about those extra things you put on your credit card or things you pay for in cash. Those dinners out. Those lattes in the morning on the way to work. Movies. Drinks with friends every weekend. Try to focus on the extra little things that you pay for fairly often. Is there a habit forming?

Now think: What would happen if you went 30 days without them? Would it make a difference in your finances? Are you willing to find out?

Stay tuned for Part 2 of the Roadmap Challenge . . .

Tuesday’s Tip: Break the Bad

/ abschilling / Leave a comment

Everywhere I go, I hear new year’s resolutions being flung around as freely as candy from a parade float. People are vowing to make changes to better themselves, their lives, their communities, and even the world. However, the most common goal, by far, was to lead a healthier lifestyle, which encompasses a multitude of different options ranging from losing weight to exercising more to breaking bad habits. And that got me thinking . . .

Breaking a bad habit is tough to do. I know, first hand, how hard it is, but I also know how wonderful it feels to be successful – in more ways than one. I confess that I used to smoke. (There it is, folks.) I tried to quit several times, but always seemed to give in eventually. I was smoke-free for quite a long time before having kids and during my pregnancy, then started again when they were about 6 or 7 months old. It was easy to blame it on stress, of course. Then, when they were almost 2, I finally managed to quit altogether and have been rid of the habit for over ten years. Don’t get me wrong, there are days I seriously wonder why the heck I ever quit! Then I think about all the progress I’ve made as a runner, how much I love it, and how smoking would completely ruin it, and I decide it’s not worth it. So, you could say that I’m enjoying the health benefits of being a non-smoker.

Just recently, I noticed a sign at the corner gas station advertising a sale on cigarettes: $6.85 per pack. Wow! I couldn’t believe it. That’s a lot more than I used to spend over a decade ago. And that got me thinking about the cost of being a smoker now. What would I be paying if I were still smoking? When I got home, I grabbed a calculator and did a little experiment to find out the financial benefit of not smoking. I know the cost per pack varies depending on location, but I live in the Chicago suburbs, so I’m going to use the average for this area, which is about $7.50. Ok. Let’s see. I used to smoke about 10 cigarettes per day. That means it would cost me $3.75 per day . . . times 365 days . . . that comes to $1,368.75 per year. If I smoked a pack a day, then the cost rises to $2,737.50 per year. Really? I was amazed at the numbers starting at me from the calculator. I instantly thought of a few things I could do with an extra $2,700 per year. Then, just for kicks, I multiplied that number by 5 . . . $13,687.50 saved in 5 years. Holy cow! Then I took one step closer to ridiculous and calculated the savings for 10 years. I nearly fell off my chair! $27,375. Amazing! Do you know how much house you could pay off with that money? Or you could buy a nice little car! You could save it for a rainy day . . . or college . . . grad school . . . vacations . . . retirement . . . The list goes on and on.

And what about other costly habits? I could think of a couple. How much could people be saving by kicking those bad boys to the curb? They don’t even necessarily need to be bad for you, like smoking was, for me. What about that iced coffee on the way to work everyday? Or eating out for lunch everyday? Or even twice a week? How about takeout dinners? Shopping every weekend? Blah, ba-blah, ba-blah . . . Please understand that I’m not suggesting we all become hermits, eat ramen and rice for the rest of our lives, deprive ourselves of things we need, and never do anything fun – we gotta live, right?! The trick is to be sensible about it.

Moral of the story: breaking a bad habit, or any habit that drains your pocketbook, could potentially save you more money than you think. Don’t believe me? Pick a habit . . . do the math. See what happens. The truth lies in the numbers. Cutting out a habit, or at least scaling way back, could mean some serious extra cash in our pockets. I don’t know about you, but I like that!

Tuesday’s Tip: Count Your Blessings

/ abschilling / Leave a comment

New Year’s Eve: easily one of the most anticipated days of the year – or one of the most dreaded. Whether we’re bidding a fond ‘farewell’ to great times or saying ‘good riddance’ to memories we’d rather forget, we tend to spend this time reflecting on the events of the past year before we look ahead to whatever awaits us during the year to come. And it isn’t always easy.

For me, I belong to the group of people who would like to tie up 2013 in a trash bag and throw it on the curb. It can rot in the dump alongside 2012. My family and I have endured enough heartache and loss in two years to last us for quite a while, so I suppose we’re hoping not necessarily for a prosperous or wonderful year, but maybe just one that doesn’t beat us up so much. And I know I’m not alone. Many people feel this way. It’s a little frightening to wonder what life has in store for us in the new year after all we’ve been through.

But as much as I might like to wash 2013 down the drain, I must also show a little gratitude for what the struggles have revealed to me. My friends supported me, even when I was at my worst. I’ve grown closer to others in my family. I appreciate and enjoy my children more. My marriage is stronger than ever. My feelings about what’s really important in life have changed for the better. And I’ve survived, which tells me I’m tougher than I thought.

So, I’m thinking that instead of feeling sorry for myself as I ring in 2014, maybe I’ll rummage through 2013, keep what I need, and toss the rest. Then I’ll start fresh in the morning and take it as it comes, grateful for all that I have. I’m not saying that I won’t grieve or feel sadness or anger, but I just won’t let it consume me. I’ll have another New Year’s Eve whenever I need it, take stock of the good stuff, get rid of the bad, and keep going.

I’m not one for making New Year’s resolutions, but maybe counting my blessings every once in a while is a good start . . .

Tuesday’s Tip: Holiday Feasts

/ abschilling / Leave a comment

One of my favorite things to do during the holidays is EAT! I make meals or goodies that I don’t normally make . . . friends and family do the same . . . and whenever we get together to celebrate the holidays, sometimes we end up acting more like grazing cows than humans. Don’t get me wrong. Our family Christmas feast is a full-on, sit-down, stuff-your-face event with all of our favorite foods. But other social gatherings offer a help-yourself-as-many-times-as-you-can selection of foods and before you know it, you’ve filled your plate five times in one evening. Oh well. It doesn’t happen very often, right? Right?!

So, what does eating have to do with saving money? Well, as anyone can tell you, preparing for a holiday feast can get pretty expensive, not to mention stressful, especially if it’s left up to one or two people. Everyone knows someone who insists on taking care of absolutely everything, while others don’t seem to mind letting everyone else do all the work. So, for those of us that fall somewhere in the middle, it helps to share the responsibilities of preparing the meal. If you’d like to try divvying up all the work among family or friends, but don’t know exactly how to go about doing it, here are a couple of strategies that might work for you.

First, let each family or guest make their own favorite dish or two to bring to the table. Or, if you’re like my family and you already know who-likes-what, simply count up the number of different favorites and then split them up evenly among everyone. Then again, there’s my dad who insists on buying the shrimp, but doesn’t want to cook it! LOL (Love you, Dad!)

Second, try letting each family pick a part of a multi-course meal: appetizer, main dish, dessert, or drinks. For example, we have something called “Neighbor Night” and four families get together on a somewhat regular basis. Well, at least we try. And we’ve agreed to rotate responsibilities whenever we get together. For instance, whoever is hosting the party at their house provides all the drinks. The other three families then supply the rest, and it changes with every party. That way no one is stuck with the same thing every time.

With the economy the way it is right now, I don’t know too many people who can foot the entire bill on a huge holiday gathering. But then again there’s just something fun, exciting, and comforting about sharing a meal with the people we love and sharing our favorite things with them all. It’s not only easier on the wallet, but also less stressful knowing it’s not all on our shoulders. And who knows, you just might discover something new about yourself, your family, friends, and oh yeah . . . food!

Yum!