"Home, Debt-Free, Home"
Chapter 3
4 Keys to Find Cash and
Make Your Money Work for You
During the first challenge I mentioned that I took on a personal challenge where I could only spend $250 for one month. I invited you to do the same. The details were:
1) Exceptions: the mortgage payment, bills that need to be paid. But I wrote down those bills in detail. This will help you face the reality of your debt.
2) Each week: Everything else came from that $250. I wrote down how much I spent and what I spent it on. At the same time I was determined to pay attention to what I was really doing.
It really was a tough challenge & I learned a lot about my spending habits, which honestly were pretty good. After the challenge I was able to see I normal bought too many things I didn't really need & I ate out too often.
The bonus of taking the challenge was I actually found I could live on about 20% less if I simply curtailed these habits.
KEY 1: I started paying cash for everything, when I ran out of money, I had to stop spending. That extra 20% went to paying extra money on a credit card. I basically found extra money.
We had already been focusing on paying off our credit cards, this finally put us over the top. The only exception to this is I have one cash back credit card that I use on Amazon. It's the Amazon card & even before I hit the order button, I pop over to my bank account and make the exact payment online before I purchase the items in my cart. This keep in line with if I don't have the money in my account, I don't buy at that time.
Once we pay our basic bills, we pull all the cash out of our accounts and save that money at home.
Once we pay our basic bills, we pull all the cash out of our accounts and save that money at home.
EXAMPLE: I am purchasing two medium sized storage units for my new bathroom from Amazon. 1) I took money from home, 2) went to the bank to deposit the cash, 3) so I could make this purchase and 4) paid the purchase off immediately from my account.
Why does this help? I really had to determine that this was what I needed and these extra steps made me far more thoughtful about my purchase than if I was simply plunking the purchase a credit card.
KEY 2: Make your money work for you. If I am making a purchase from Walmart, I go through a site called Shop at Home.com. I can get 3-5% back on purchases. This takes awhile to accumulate. But for me, every little bit helps. This week I am receiving a check back for $20, which I will cash and put it in my cash at home savings.
About having my information out there; unfortunately that boat sailed a long time ago. I will be reevaluating this after I move. On will only make a purchase after I reach the $35 free shipping level. Some other little tips:
- Learn how to do it yourself
- Buy used, save the difference
- Have a yard sale
- Sell stuff through local on-line resources
- Learn to repair something instead or running out and buying something new.
- Start a garden, even if it is in containers on your porch
- Use Coupons, but actually put that money aside that you save.
Key 3: Find anyway to get rid of stuff you don't need and take the cash and apply it to paying down your debt. I am currently selling all sorts of stuff I really don't need like those Beanie Babies I talked about in the last post for cash to add to my “savings”.
KEY 4: Plan every single purchase you make. I basically put off going INTO a store, until I have to & I plan every single purchase I make.
See so far there is no magic trick to getting out of debt.
While you are here, if you put that $20 bill in the envelope on your fridge like I asked, add another one.
Under the category of learn how to do it yourself, here are some items that I use and find helpful. Maybe you will too.
Feel free to join our community at Perky Gramma Teaches on Facebook. We have a nice little group of people and we share various vintage skills & tips. It's all about the journey of farming/homesteading.
I participate in the Amazon Associate program, where I receive a small % commission for linking products that I recommend. I only recommend products I personally used and like. Your support is very appreciated, anything you choose to purchase from Amazon through my link, is helping me to be able to share more things that I do with you. Perky Gramma Teaches Amazon link, Since I don't receive the commission on my own purchases, I actually gift them to another blogger.
"Home, Debt-Free, Home"
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