Why Not Make It Yourself?

You know - there are those "cheapskate" shows.  There are also those shows that show how people
are into couponing and saving big bucks (and no whammies for those of you who remember that and can't say, "Big Bucks" without following it up with, "No Whammies!").  I have not been a good couponer. I convinced myself that I'd subscribe to the Sunday paper so I could get the coupons and I have a stack of coupon ads at home where probably more than half of the coupons are expired.

Who I am is a creative guy who loves to make things.  So why not make things that, in the long run, will save me money?

I'm sure I'm not the ONLY person that balks at the notion of paying so much for detergent.  It's like, you want HOW MUCH for some soap powder?  I saw a few posts about making your own laundry detergent on Pinterest and it peeked my interest. I've read up on it and now I'm ready to try it.

There are recipes for the powdered detergent all over the internet but generally they are all the same. I plan to make a batch on Sunday. Of course, there will be a follow-up. :)

Recipe 1

Recipe 2

Since I happen to love Dr. Bronner's soaps - I will be using a bar of the almond scented soap (love, love, love almond scent).

A dollar saved is a dollar earned. With this recipe, I will have earned $100 a year.  I think that way better than a $2 coupon every other month, don't you?

Educate. Empower. Economize.

Using Your Talents to Help Debt Disappear

I've always had an entrepreneurial spirit. As a kid I sold other kids "bicycle insurance". The insurance got them a flat tire fixed without needing to buy a patch kit or to do it themselves.  I'm pretty sure I stole that idea from Triple A.  In high school I created hand-painted sweatshirts that my mom would sell for me at her job at the Post Office.  As an adult, I've always been interested in art and became an art teacher years ago before I started working as an administrator in higher education.

Art is one of those things I can lose myself in.  Time seems to fly and I won't even notice or remember to eat lunch or dinner. A few years back, I started selling things on Etsy. I find a lot of happiness when I am creating something for others.  It wasn't until I ventured into the world of graphic design while working at a university in Nevada that it all made sense.

Graphic design is something that people use or see everyday and these days, more and more people request the services of a designer.  I took notice of this last year when a graduate student I supervised talked about how she was getting so many clients as a freelancer that she was struggling to keep up.  That conversation spawned more discussions over the next couple of years and with a lot of thought and consideration, I took the plunge and entered the world of freelancing with my site Diablo Design.

Taking something you love and figuring out a way to make money doing it is something that can help you get out of debt.  I've had friends ask me how I find time to do all of these things and work my full-time job. The answer is that I'm motivated.  Motivated to be out of debt and motivated to make money to pay my bills on time.  Motivated to have money in my pocket to do more things for fun.

Not everyone has an artistic talent to do something like this but they probably do have a talent that others are willing to pay money for. Have you ever given any consideration to what service you might offer someone? Your talent may be proofreading.  There are tons of people out there looking for that type of service. You might have a knack for writing and really enjoy sharing your words with others - you might want to share your writings by doing some self-publishing like the a friend of mine has done (she's now on her second book - Go Tumika!).  Are you a person who's handy on a sewing machine? Spread the word that you know how to do a few things with needle and thread.  Perhaps you're an awesome baker.  Bake those cakes and pastries and sell them!  The list of talents is seemingly endless. 

I remember how my grandmother hustled.  She sewed. She baked. She catered events.  She used her talents and her personality to sell things she could make and she never had a full-time job that I knew of.  Those things she would sell were her full-time job!

How does someone get started?  Like Nike says, "Just do it". You start by telling friends that you have services to offer. You tell co-workers.  You get on social media and scatter your skill set across the world wide web.  You take risks.  Not financially that is - that's how we got into this mess as it is but you can do what you can with the means you have available.  The rest is all "learn as you go".

When I first started out back in 2002, I felt as though anyone with a serious passion to sell services had a website. I spent money on this (years ago) and failed.  You can't be afraid to fail. You have to believe in yourself and in your talents that you will succeed. And you have to repeat to yourself that you must succeed in order to pay off debt.  At least that's what I told myself.

Take some time and consider what services you have to offer to others. Is it something you'd be willing to pay for yourself?  Is there a demand? Who is your audience?  Here's a great article on this very topic that may give you even more insight on how to begin.

I'd love to have a full-time career as a graphic designer and be my own boss. I'm working on getting closer to that dream. For now, I'm working on getting closer to being debt-free.

Educate. Empower. Economize.

Fool Me Once...

This is a lesson on assessing the situation.

If you haven't guessed, money to spare is something I don't have these days. Without having a roommate currently, the wallet has gotten extremely lean. This is most likely due to my rash decision to pay the HVAC company $600 to "fix" my furnace by ridding it of "harmful" mold.  I use quotes because: 1. I have lived with this furnace for 4 years now and it hadn't been an issue. There's no mold in the house or on the walls that was a sign of anything wrong.  2. I really didn't have the money to pay them the $1200 they were asking for originally so they "lowered" the price. This should have been the real clue here. 3. I could have cleaned out that damn furnace myself with some soapy bleach water.  I am considering this a $600 (tough and expensive) lesson learned.

Fast forward to last Friday.  I realized my car inspection needed to be done prior to driving to West Virginia for a wedding so I headed to Midas - this is where I get my oil changes and the last three car inspections done. This was a 6 hour drive so I really just figured I'd be in an out with my new inspection sticker.  Wishful thinking.  The mechanic came in and told me that I needed to have the bushings on my sway bars replaced as well as the light bulb that lights up my license plate. I was thinking, "Okay. Bushing and a light blub can't possible be more than $150 bucks." 

The mechanic punched in a few things and then asked, "It's not a hybrid, is it?" and I replied, "No." 

"Good." the mechanic said.  "That would have made the price a lot more", he stated. 

I was relieved.  I knew I was good to go then.

"Well, your total is $302 for everything." he stated.

"$302!?  I don't have that kind of money. I'm going out of town right after all of this and that's all the money I have in the bank."

Then he said, "Well, I can throw in a $30 off coupon for you but that's the best I can do."

I told him I didn't have $272 either and that I will just have to worry about that when I got back from the trip.

The mechanic then stated that I have 15 days to fix the issues and gave me the estimate.

I left the building and got into my car, seeing the white inspection sticker pasted to the windshield. with the large rejection symbol on it.  I opened up the envelop with the estimate and saw the price breakdown.  $19.99 for labor to install a friggin' lightbulb????? You've got to be kidding me.   $172 for the labor of installing the new bushings.  I drove off that morning and continued my trip. I knew there had to be a better way.

I returned from my trip Sunday night determined to find a mechanic with better prices.  Located right next door to Midas  was Merchant Tire.  It is literally about 60 feet from Midas.  I walked in and told the woman what I needed done to pass inspection.  She also asked me if it were a hybrid.  She then stated that it would be $165 to replace the bushings and another $10 to replace the light bulb.

"Are you kidding me?" I said with excitement.  I told her how they were trying to charge me $300 for the same thing. 

She shook her head and said, "It's just bushings and a bulb. It shouldn't be that pricey."

I quickly informed her that she just won a new customer.

The lesson I learned from the situation with the furnace is to always wait to make a decision.  Businesses are always hoping to make something seem like an emergency when in fact, it isn't. An emergency is a flat tire that needs to be fixed. A brake system that isn't working properly.  A furnace that isn't working.

After shelling out $600 for something that I probably could have waited on, I vowed to never be fooled into thinking that everything is an urgent matter.  Everything can be sorted out if you remain calm and give consideration to what really needs to happen.

This lesson has most definitely been learned. And $125 remains in my bank account!

Educated. Empower. Economize.

Questions from a Blog Reader: Money Management Programs

Recently I had a reader ask me some questions related to the money management company that I am using to help me pay down my debt.  It was timely because another reader and friend of mine just told me that she has officially enrolled in the program to pay off her debt.  She is now going to pay off her debt in 4 years as opposed to 33 years!  This is all great news for them.

I asked the reader who asked the questions if I could post them along with my responses.  She agreed and I wanted to share them with my readers. She brought up some great questions that I believe everyone worries about when they're beginning to focus more on their financial health. Hopefully my responses will help others who may be deciding to take steps toward enrolling into a money management company.

How long was the process from the first conversation you had with the company until you committing to being part of the plan they proposed?  Do you pay the application fee and then they work with the creditors, and then they tell you how long it will take and how much the payments will be, etc.?  I guess what I am wondering is, if it doesn't sound like a good option for me, what's the point of no return, or when can I decide yes this sounds good or not?

The process could have started just as soon as I finished the counseling portion of the phone call.  Once you pay the application fee, you have to also pay the first installment which seemed like a lot to pay all at once. My issue was that I was never paying all of my bills on time. I'd skip payments so I was never selling out that much money.   The company will tell you the estimated amount you will pay and an estimate of how long it will take you to pay it off before you pay anything.  Once you pay the first installment it usually takes about a week or so before it hits your creditors.  Just know that the company will have contacted everyone once you paid, to let them know what you're doing because they are negotiating your new interest rates, which are generally lower.  You have to know that you will be told that being in the program, they will close all of those accounts that you give to them.  I kept one card (the one that I had the longest).   Ultimately, I say it's a good option for anyone... the real question is, "are you ready to live without using credit?". haha That's the tough part because so many of us are used to just pulling out a credit card for things.  I primarily live off cash now.  I can't even really say that the one card that I have is for emergencies. It has a $300 limit.  What I have learned is that without depending on credit cards and being more mindful of my budget, I have a lot more money than I had before. I have been putting money in savings and that's something I never did before.

Did you every consider bankruptcy? Or could you do that after doing this consolidation if for some reason you felt that was your best option?

I never considered bankruptcy because most of my debt is student loans (over $90K worth) and those don't go away with bankruptcy.  My hope is that when I eventually sell my house that I will make a good amount to pay a lot of that loan down.  The credit debt is less than $20K and is more like paying a car payment. Luckily I don't have a car payment anymore - plus that debt will be paid off in 2 1/2 more years. That's when I plan to sell my house.

You mentioned maintaining one card with a small limit even while in consolidation.  Do they work that out for you with one of your current card?  Or do you do that yourself?

The company may insist that you put all of your creditors into the program.  I had one card in full on collections so it really didn't matter whether I added them in the program or not. I did get to choose the card I wanted to keep and I choose the $300 limit one because I knew that I could never dig myself into the hole again.  If I really wanted to, I could pay off that balance in just a couple months time with diligence.   You can tell them that you want to keep one but they certainly tell you what the best method is. haha

Did you have any store specific cards?  Were those included in your consolidation?

I put all of my store cards on the program too.  Honestly, store cards are really bad cards to have anyway.  Their interest rates are typically higher and if you have a major card anyhow, you wouldn't need a store card.  That's just me preaching though. hahaha Sorry.  I've gotten so frugal that it's crazy.  I shop clearance racks like a champ! Clearance in the grocery store, clothing store, bakery, Starbucks, you name it.

Lastly, I know on your blog you talked about some expenses due to home ownership like a furnace, etc.  I am thinking in my head...what if while I'm in this consolidation program something bad happens with my car, God forbid, or something along those lines.  Since, you can't open any new lines of credit while you're in it, what would you do in that case?  This sounds so trivial!  Maybe you have savings, but I am trying to play through all the possible scenarios.  I realize this is probably the best thing for me either way, but I want to go in as informed as possible when I call them.

You're right! What do you do? That was one of my worries, too.  You'll be surprised how much money you can save just by looking into your options.  I started saving money as part of this 52 week money challenge I started with friends. You have to save for the "just in case".  That's pretty much the only way.  If my furnace broke down and I didn't have the money - I at least have space heaters or at worst, I could get a kerosene heater.  If the A/C broke down, well, I'd buy fans.  When I needed my furnace worked on, I have some savings so that helped.  Other things that might help is to really investigate what's available to you or what you can do to save money.  Is there a commuter plan at your job?  Maybe carpool?  Do you really need cable?  How about the gym membership? You can find ways to cut your utility bills.  If you have a smart phone, maybe it's time to put it on sabbatical until your bills are paid off (which has been a consideration for me). Cooking your meals at home instead of eating out is another option.  It seems really scary but once you commit to it you really do just find ways to make life work.  

One thing Suze Orman told me to do when I was on her show was to stop bowling in my league each week.  That's one piece of her advice that I didn't take.  I still bowl but I make room for it in my budget and adjust other things.  I keep my meals to $3 - $5 each during the week and that allows me to put some money in savings and to bowl.

It is most certainly a lifestyle change. 

Educate. Empower. Economize.

Roommates Make a Difference

Hey folks!  I'm back.  Yep, it's been a while and there's no excuse for that. But, hey... I'm here

writing. 

It's been nearly a month since my two roommates have moved out.  I would be lying if I said that I miss them.  What I miss is their money.  It's not that they were awful roommates.  They most definitely were not.  Probably the best roommates I've had since my senior year of college.  I just happen to like the solitude of the space in general. They weren't loud at all and it was definitely a treat to come home and have people to chat it up with for a bit then go out separate ways in the house.  I think what made the experience nice was that one of the renters is a friend of mine from my college days.  We already had a rapport.

Now that there's no more money coming in, I'm back to fitting the bills all alone. I have considered getting another roommate. I have a friend who is weighing his options with regard to signing a new lease or moving into my house in August. We get along well, so I don't foresee any problems.  Best of all, it would only be for 6 months!  I love a short term situation. 

Sometimes you just have to do things you're not completely comfortable with in order to get yourself out of another uncomfortable situation.  In hindsight, had I not took all of those student loans out I wouldn't be paying back nearly as much... Had I just sucked it up and paid the loans when they first went into repayment, I'd probably be paid off by now.  Had I not gotten all of these credit cards and paid them off only to run them up again, I'd probably not need a roommate. However, I did and this is my life and I am "handlin' my business".

So, you see, there is a nice span of time between now and August.  No extra money coming in and me trying to save money as well as pay all my bills during that entire time!  I'm still on target for paying off my credit card debt (haven't missed a single payment) and I have made every payment on my student loans without fail. 

What's a man to do to keep his head above water in the interim?  He gets his hustle on!  I'm clipping coupons and saving my coins!  Oh, and selling things online.   If you'd like to check out what I sell, visit Five Loves Artistry, Brilliant Banana Tees, or my Etsy shop!

As Prince wrote in his song, "America", "..may not be in the black. but (s)he's happy (s)he ain't in the red."

Any other money saving tips from readers are welcome!  

Consumerism and Our Debt

"What do you really want?"

That's the thought that goes through my mind when I make purchases.  I'm not perfect. I still succumb to the, "The cost is just too great to leave this in the store" spending philosophy. It's all part of consumerism.  That's the idea of advertisers telling us that we need stuff in order to be happier, make others happy or find ways to make life easier. Subliminal and oftentimes blatant notions that we must have stuff to feel "fabulous", "amazing", or have the "most amazing skin", the "silkiest hair" or that a pair of shoes can make us run and jump higher.

I discovered a group that's led by Macklemore & Ryan Lewis.  On their album there's a song called "Wing$". This song is about consumerism and the violence and status that is associated with it - with the endorsements from celebrities to sell products and how it affects us as consumers. It's pretty deep! The song is centered around shoes but it can be associated with just about anything you buy.

Are the things we buy the stuff that make us happy?  I'll be the first to say that shopping used to give me a "high".  I'd buy something and be so happy that I got it only to realize that it was more about just the experience of having it for the first few days or weeks.  After that, I wouldn't appreciate the purchase and more times than I care to mention, wouldn't use it.  Case in point, my acoustic guitar. I always wanted one for the fantasy of having a guitar and being able to strum the strings in a magnificent melody.  Well, that didn't quite happen.  I ended up with an instrument that lives in a brilliant red cloth case tucked away in my closet, that hasn't seen the light of day in over 8 years.

The role you play in consumerism becomes even more important now that it's tax time.  I have filed my taxes and have since gotten my refund. The plan is to use 90% of it to pay toward debt.  I still have a couple of bill collectors calling the house and this will take care of that.  The rest will go toward my bank consolidation loan.  The remaining 10%? I bought myself a reasonably priced juice extractor and will use the remaining cash on my trip to a professional conference.  I will also buy a new entryway door for my townhouse to continue working on the investment of my home.

Without careful consideration, it would be easy to buy myself stuff with this large tax refund.What do I really want? I really want to be out of debt. Therefore, I will put $2000 toward that bank loan.

What's your plan of action if you're getting a tax refund?

Educate. Empower. Economize.

A 52 Week Financial Challenge

As I settle into the new year I find that I have new optimism.  What was so scary about paying my bills, student loans and cutting back on my expenses to achieve all of that?  Hell if I know - but I do know this much to be true.  I AM STILL HERE!

Print the Challenge by clicking on image.

I was browsing my Facebook Newsfeed and came across a challenge to save money. It looks VERY interesting.  I mean, each week you put away the amount of money that relates to the week of the year it is.  Week one = $1. Week two = $2. Week three = $3 and so on. Okay. Okay.  Sounds easily until you're in week 42 and you think, "What in the hell?  Where am I going to get $42? Honestly, you can make it work and I will take on this challenge. I am tired of only having $5 in my savings account.  If it weren't necessary to have at least $5 in a savings account to have a bank account - I wouldn't have that much saved.

So, this Friday I will begin the challenge. I am still here. I am still paying my bills. I am still sure I can meet this challenge and actually save money. Who doesn't want $1378?

If you're up for the challenge, I'd love to hear from you throughout the experience. I'll be sharing my progress periodically.

Join my adventures on Facebook, too!

Educate. Empower. Economize.

He's Slicing and Dicing His Way to Financial Freedom

Necessity is the mother of invention. I needed to find a way to have more money to pay my debt.  Mind you, I have been avoiding making payments for years.  This means, had I paid the debt when I incurred the debt, I wouldn't be paying nearly as much as I am now.  My student loan debt wouldn't have gone from $65,000 to $90,000 had I not avoided repayment. The same is with credit cards.

There are several things I've done to reduce expenses and they are:

• Bring in a roommate
• Disconnect cable television
• Take the shuttle to work
• Limit spending at restaurants
• Cut the nightlife activities

Securing a Roommate: 
The first thing I tried was having a roommate. I didn't go as well with the last roommate in the beginning but we found a happy medium.  I also recognized that there are a few things I could have done differently when having a roommate.  1. Charge more.  I was not charging enough for the space. 2. Set the ground rules and expectations upfront. 3. Always maintain open dialogue.

I never charged enough for the space I was offering. I also never really used the money "properly".  While I had a roommate, I found myself taking out payday loans.  Why in the hell am I taking out a payday loan regularly when I have extra income coming in that didn't exist before?  So VERY ridiculous.

Round Two of securing a roommate - be sure to cover all of those items mentioned AND treat it as a business relationship.   I have secured a temporary roommate who will be signing a 3-month lease and I am charging the appropriate rent for this area. I will be using this new income wisely!

Disconnecting Cable:
Cable has become like a lifeline for people.  I recognize this as I found it very difficult to "disconnect" myself from the notion that I had to have cable.  Do you realize how much garbage is aired on TV? I went back and forth on whether to disconnect or not.  I anguished over not being able to watch TV programs that only aired on cable.    Prior to "cutting the cord", I did my research.  What would I need to still be able to see local television?  Now that local channels are aired digitally, did this mean I WOULD need cable?  A friend of mine informed me of using an OTA (Over the Air) Antenna.  Once I researched this more, I was sold!  Did you know that the local channels that are aired via a digital signal is picked up via the antenna?  I bet most people did not.  I made the jump and I survive on my FREE signal provided by my antenna and a Roku box - yes, I still have internet service only because I have an online business that I run and I justify it as an entertainment expense.

Before disconnecting, I was paying $125 a month for cable, phone and internet.  Bundled deals always seem to be the best way to go, so yes... I had the phone added for the extra $10 a month.  With cable being removed, I now pay $52 a month plus $7 for HULU Plus (which serves as a DVR for me because I can watch the shows I like whenever I want) and I also pay $8 a month for Netflix - I may ditch this because it's not necessary.  Altogether, my expenses are now $67 per month.

Commuting by Shuttle:
I've always known that there was a free shuttle that goes to my job.  I only considered it as an option if my car needed to go in the shop.  Well, my car went into the shop and I panicked and overlooked the shuttle as an option and looked to co-workers to help get me to work.  It wasn't until after my car was back in my possession that I realized I needed to utilize this financially-freeing goldmine of an opportunity! The shuttle picks up about a half-mile from my house (a 10-12 minute walk for me). By taking the shuttle 2 -3 times per week, I am essentially saving $20 - $30 a week.  AMAZIIIIIIIIIIIIING!  I fill up my tank once every 2 weeks now. I think I can cut costs even more.

Brown Bag Lunch:
I don't really put my lunches in a brown bag but I do bring my own lunch to work every day.  Before all of the reflection of my debt, I would eat lunch on campus once or twice a week, easily spending $7 or $8 (or more) on lunches each time.  My mantra for lunches now stands as this, "No lunch shall be over $5 and most should be closer to the $3 mark!".  It's worked for a while now.  Mostly eating bagged salads, canned soups and leftovers.  Lunch expenditures do not exceed $20 per week.

I LOVED the Nightlife:
And I liked to boogie, however, I like having money even more.  I used to think that I was missing out on something by not going out when friends would invite me.  Honestly, I am not missing anything and have everything else to gain.  I do get text messages each week that invite me to do things but I always turn them down.  I have to worry about making these payments - not about paying $5 - $8 per drink PLUS the tip!   When I did go out I would spend on average, $40.  This didn't include gasoline. Mind you, I live 30 miles from the nightlife. That racks up the total for a night out on the town to be roughly $60 in one night!  Then, when you're inebriated, you tend to make additional poor choices such as eating at a late-night restaurant. Even more money spent!

What are some of the ways you've reduced expenses?

Educate. Empower. Economize.