1. Pay the Rent/Mortgage First: Regardless of your financial circumstances, you need a roof overhead, a place to call home, a sanctuary from the world at the end of the day. So, your housing comes off the top of your check.  If your check is not big enough, you may have to relocate or find a roommate. When applying for a loan, I was told the house payment or rent should not be more than 25% of the monthly income. Any amount above and beyond that percentage and you will surely be financially challenged.

2. Pay the Utilities Next: The roof over your head will be very uncomfortable, if you are freezing to death in the winter, or roasting to death in the summer. You need to keep up with your utilities. If you are ever required to pay late fees or reconnection charges, it will be extremely costly and put your finances further in the toilet.  If your utilities are too high, you must conserve. In the winter, turn the heat down a couple of degrees and wear a sweater, if necessary. In the summer, turn the air conditioning down to a bearable temperature. When you are not at home, keep the house about 10 degrees lower than when you are home. The same goes for nighttime. Crawl deeper under the covers and save.

3. Pay the Remaining Bills: Before you do anything else with your money, pay your creditors. You bought it, your pay a monthly fee for service, or you already used it, and you need to pay. If you do not pay your bills, the cost rises for the people that do, your credit will be ruined, and debt collectors will start to call.

4. Buying Groceries: You have met all your financial obligations, and you need to buy groceries. Now what? You already know you do not have enough to shop for your favorite food items. You need to shop sales, used coupons-even if they may be a pain to collect, buy generic, and cut back on your list.  For example, I love a good steak. However, I am on a hamburger budget. So, I buy hamburger. Sometimes, even when hamburger seems too expensive, I purchase eggs, beans, potatoes, and peanut butter. These are excellent sources of economical protein. What you buy at the store may not be your favorite items, or even your preferred brands, but you are doing the right thing to stay within your budget.

5. Say “No”: If staying within the budget is still impossible, you need to learn to say “no”, even to yourself. Personally, I like to watch television, when I have the time. However, if the privilege of cable keeps me from observing the first four budget constraints, it is bye-bye cable. I would much rather feed my kids than watch the news.  If you have more expenses than you have money, obviously something has to go. You may have to say “no” for many things you or your family want, but it is more important to budget for housing, utilities, absolutely necessary bills, and food.  Anything else is optional.

How to stay on a tight budget, and live within your means…

As a single mother of two growing children, I have a tight budget, even with child support payments. Just when I think I am getting ahead, somebody needs a new pair of glasses or a dental visit. Forget that my youngest is having growth spurts and needs a new wardrobe two or three times a year. With my oldest going to college soon, and still paying off my own student loans, I have tough money decisions to make.

Just like everyone else, I have to prioritize how I spend any income. First of all, the house payment, car payment, and student loan are automatically deducted from my account, so nothing is paid until that money is subtracted from the budget. Next, I pay the utilities. Since my first full-time job was working with the electric company for 10 years, and the fact that the family lives in cold country, I know letting those bills slide will only cost me more in the long run. Then, I am trying to pay off credit card debt, one teaspoon at a time. As you all know, paying the minimum is not an option, if a person ever hopes to get out of debt. So, I try to pay extra, and try to keep up with my debt plan software.

Finally, I can go to the grocery store. Now, I know many will say to go to the store first, feed the kids, and then worry about the bills. Some have even criticized me for doing the opposite. However, it works for us.  Since I have a fluctuating income, some months we have a Mac and cheese budget, and other months we can do better.  I will say this—my family has never gone hungry. We may not always get to eat our favorite foods, but my kids always get filled up.

I know I said “finally” about the grocery store, and some of you may be wondering why I put food after debts.  It’s because I believe food is where we can save the most money, and so it’s the most flexible. Others ask me about the entertainment piece of the pie. Well, going to the movies is a once or twice a year treat. We have a library of movies we can watch on the television. We play games on the computer or get out a deck of cards. Between school, work for my boys, and extracurricular activities, we are not really concerned about an entertainment allowance.  We have decided to set them aside for a higher goal, and as a family, we are all on the same page. I can say that I believe the battles we have fought, and the hard choices we have made, will stick with my sons for the rest of their lives.  I believe that as a Mom, I am teaching lifetime skills, and leaving a legacy that will bless my grandchildren.  This is a huge reward for me.

Ever had a “no-money weekend?…

Think about it—when do you spend the most, during the week or on the weekend?  For most people, it’s the weekend.  So, here are some fun ideas on how to combat the 2 favorite days for overspending.  Take it to heart and try it, even once/month, and what new things you can add to your life.

1. Check out the community calendar. Look at your town’s website (as well as those of cities and towns nearby) or stop by city hall to find a list of events going on in the community, many of which are free. You’ll often be surprised at how many interesting (and free) activities are going on right now in your area.

2. Visit your community library. Not only is a library a warehouse of books, most libraries also have extensive CD and DVD collections you can check out. Many libraries also have “story time” for young children, film nights, book clubs, and many other events that you may be unaware of – completely for free. Stop in and check out what they have to offer.

3. Get involved in community sports. Many towns have community sports fields where both youth and adult sports leagues and activities are regularly going on throughout the weekend. Stop by, watch a game or two, and if something intrigues you, look into joining either as a participant or as a volunteer.

4. Get your financial papers in order. This may not sound like a fun activity up front, but the peace of mind it gives you will make your life a lot more relaxing. Spend an hour or two organizing all of your statements and other financial documents. This is a perfect time to start your own filing system.

5. Check out some podcasts. Podcasts are wonderful things – top-notch audio programs available for you to listen to for free. Give some a sample – you can do it easily by using iTunes. Visit the Podcast section of the store and check a few out. My favorites include The Splendid Table (on food topics), Marketplace (on economics and business), Speaking of Faith (on religion), Fresh Air (interviews of general interest), This American Life (quirky general interest stuff), and This Week in Tech (technology news), among many others.

6. Play board games. We have a pile of board games, mostly received as gifts, that we often pull out and play, plus our closest friend has a few choice ones. Classic games like Monopoly and Pictionary can be great fun, but our favorites are Settlers of Catan, Cartagena, Puerto Rico, and especially Ticket to Ride. Just dig through the recesses of your closet, find an old board game you haven’t played in ages, and bust it open!

7. Bake a loaf of homemade bread. You probably have everything you need to make a loaf of bread in your kitchen right now (except for maybe the yeast). Anyone can do it, and the bread turns out deliciously. Here’s a detailed visual guide for making a simple loaf with minimal ingredients and complexity.

8. Learn how to juggle. All you really need is three balls and a video showing you how to do it. Not only is it a fun activity to learn, it’s something that’s fun to bust out as a party trick on occasion (trust me, you can always get people to smile if you juggle three fruits in the kitchen while preparing something).

9. Teach yourself how to change the oil in your car. If you’re due for an oil change, just bring the oil you need home with you and teach yourself how to do it. All you really need is an old pan to catch the wasted oil and a funnel to pour the old oil back into the canisters for later disposal. Just use your car manual as a guide for the procedure and you might just find that not only is it a lot easier than you thought, but it’s a useful skill to have and it’s cheaper than taking your car into Jiffy-Lube (or wherever you take your car for oil changes).

10. Meet your neighbors. Make an effort to introduce yourself to your neighbors if you don’t know them well. Invite any interesting ones over for a cup of coffee and a chat, just to get to know each other better. Your neighbors can not only become friends, but can also be a valuable resource – a friendly pair of eyes on your property when you’re away or a helpful set of hands when you’re trying to complete a challenging task.

11. Have a “cupboard potluck.” Go through your cupboards and find any items that might have slipped to the back over time. Invite some friends to do the same, then get together for a potluck dinner prepared from only these ingredients and whatever else you have on hand. It makes for a “free” meal and a lot of fun for everyone involved.

12. Clear out your media collection – books, DVDs, CDs, etc. Just go through what you’ve got, determine which ones you’d actually like to keep, and get rid of the rest. You can either sell them at a used media shop or swap them online using services like PaperBackSwap, SwapTree, and SwapADVD. In either case, you’ll get rid of stuff you don’t watch or read or listen to any more in exchange for either some money or new media to enjoy.

13. Make a 101 Goals in 1001 Days list – then start on some of them. A 101 Goals in 1001 Days list is a very effective way to codify all of the ideas of things you’d like to do all into one place, so that when you have spare time, you can just turn to the list and do what’s next on it. Spend some time thinking of things that belong on this list, then when it’s finished, you’ll have an excellent list of potential accomplishments and be ready to go with lots of activities.

Some Inspiring Thoughts on Financial Discipline…

Think about it—when do you spend the most, during the week or on the weekend?  For most people, it’s the weekend.  So, here are some fun ideas on how to combat the 2 favorite days for overspending.  Take it to heart and try it, even once/month, and what new things you can add to your life.

1. Check out the community calendar. Look at your town’s website (as well as those of cities and towns nearby) or stop by city hall to find a list of events going on in the community, many of which are free. You’ll often be surprised at how many interesting (and free) activities are going on right now in your area.

2. Visit your community library. Not only is a library a warehouse of books, most libraries also have extensive CD and DVD collections you can check out. Many libraries also have “story time” for young children, film nights, book clubs, and many other events that you may be unaware of – completely for free. Stop in and check out what they have to offer.

3. Get involved in community sports. Many towns have community sports fields where both youth and adult sports leagues and activities are regularly going on throughout the weekend. Stop by, watch a game or two, and if something intrigues you, look into joining either as a participant or as a volunteer.

4. Get your financial papers in order. This may not sound like a fun activity up front, but the peace of mind it gives you will make your life a lot more relaxing. Spend an hour or two organizing all of your statements and other financial documents. This is a perfect time to start your own filing system.

5. Check out some podcasts. Podcasts are wonderful things – top-notch audio programs available for you to listen to for free. Give some a sample – you can do it easily by using iTunes. Visit the Podcast section of the store and check a few out. My favorites include The Splendid Table (on food topics), Marketplace (on economics and business), Speaking of Faith (on religion), Fresh Air (interviews of general interest), This American Life (quirky general interest stuff), and This Week in Tech (technology news), among many others.

6. Play board games. We have a pile of board games, mostly received as gifts, that we often pull out and play, plus our closest friend has a few choice ones. Classic games like Monopoly and Pictionary can be great fun, but our favorites are Settlers of Catan, Cartagena, Puerto Rico, and especially Ticket to Ride. Just dig through the recesses of your closet, find an old board game you haven’t played in ages, and bust it open!

7. Bake a loaf of homemade bread. You probably have everything you need to make a loaf of bread in your kitchen right now (except for maybe the yeast). Anyone can do it, and the bread turns out deliciously. Here’s a detailed visual guide for making a simple loaf with minimal ingredients and complexity.

8. Learn how to juggle. All you really need is three balls and a video showing you how to do it. Not only is it a fun activity to learn, it’s something that’s fun to bust out as a party trick on occasion (trust me, you can always get people to smile if you juggle three fruits in the kitchen while preparing something).

9. Teach yourself how to change the oil in your car. If you’re due for an oil change, just bring the oil you need home with you and teach yourself how to do it. All you really need is an old pan to catch the wasted oil and a funnel to pour the old oil back into the canisters for later disposal. Just use your car manual as a guide for the procedure and you might just find that not only is it a lot easier than you thought, but it’s a useful skill to have and it’s cheaper than taking your car into Jiffy-Lube (or wherever you take your car for oil changes).

10. Meet your neighbors. Make an effort to introduce yourself to your neighbors if you don’t know them well. Invite any interesting ones over for a cup of coffee and a chat, just to get to know each other better. Your neighbors can not only become friends, but can also be a valuable resource – a friendly pair of eyes on your property when you’re away or a helpful set of hands when you’re trying to complete a challenging task.

11. Have a “cupboard potluck.” Go through your cupboards and find any items that might have slipped to the back over time. Invite some friends to do the same, then get together for a potluck dinner prepared from only these ingredients and whatever else you have on hand. It makes for a “free” meal and a lot of fun for everyone involved.

12. Clear out your media collection – books, DVDs, CDs, etc. Just go through what you’ve got, determine which ones you’d actually like to keep, and get rid of the rest. You can either sell them at a used media shop or swap them online using services like PaperBackSwap, SwapTree, and SwapADVD. In either case, you’ll get rid of stuff you don’t watch or read or listen to any more in exchange for either some money or new media to enjoy.

13. Make a 101 Goals in 1001 Days list – then start on some of them. A 101 Goals in 1001 Days list is a very effective way to codify all of the ideas of things you’d like to do all into one place, so that when you have spare time, you can just turn to the list and do what’s next on it. Spend some time thinking of things that belong on this list, then when it’s finished, you’ll have an excellent list of potential accomplishments and be ready to go with lots of activities.

Related posts:

1. January 2011 NO MORE Mortgage Newsletter
2. November 2010 NO MORE Mortgage Newsletter
3. December 2010 NO MORE Mortgage Newsletter

Let’s look at the how each one comes into play in your quest to eliminate your debt and get back on track financially.

First of all, let’s ask why you may be considering debt settlement. This is the most important step as it tells you which path is best for you. Cash flow is our first comparison.

If you are cash flow negative, cannot cover your bills, and are headed towards losing your home, then you should talk to a bankruptcy attorney and ask about debt settlement and bankruptcy. In some cases, debt settlement is not going to help you and may hurt you more if you are headed into bankruptcy anyway. The attorney is a better place to start as many of the settlement “counselors” want to sign you up and may not be competent enough to give you the best advice.

If you can afford to pay your bills today, want to protect and improve your credit, and get on track to building a bigger and better retirement fund after becoming debt free, then read on and we’ll go over some other differences. Our program isn’t for someone who is cash flow negative. But we could do wonders for you if you are able to pay your bills today.

First, let’s go over why you hear so many ads today for debt settlement and how it is being touted as the “path to being debt free.” Debt Settlement is being advertised in much the same way the option arm mortgage was in years past. It has certain advantages for a small percentage of people, and is easy to sell. Through mass marketing and media advertising it is being offered to anyone who “qualifies” regardless of whether it’s a good choice for them.

Our next comparison is about the type of debt you can “eliminate.” Debt Settlement is typically targeted at someone with heavy credit card debt usually defined as “over $10,000.” Settlement companies target credit card debt because it is unsecured, so they can negotiate with the creditors. If it was secured debt, such as an auto, the creditor can simply take their asset (your car) back. So unsecured debt cannot help you with much of your debt that is secured, such as your home, your cars, and other physical property.

NO MORE Mortgage’s debt elimination plan is designed to help you with all of your debts, regardless of whether they are secured or unsecured. If it is a debt that is paid monthly, and can be paid off (unlike utility bills) our program could be ideal for you.

The next comparison has to do with your credit. Debt settlement can damage your credit harshly for at least 2 years and will likely continue to hurt you for much longer. The short term savings you may gain in settlement could easily cost you that and more over time as you will pay higher interest rates on any credit or lending you need after that. And that is if you can get credit after that for the first few years or more.

With our debt elimination program we don’t do any settlement nor do we contact your creditors. And our comprehensive debt analysis system generally accelerates the pay down of your debt by attacking revolving credit first, such as credit card debt. Revolving credit can make up 30-35% of your credit score. So as your revolving credit is being paid down your score is not only “not damaged,” but you could actually see your credit score improve faster than it would normally based on how you pay your bills today.

Our program does not harm your credit, and should improve it faster. Your credit score and history are used in determining not only whether to provide you with credit, but is often reviewed when considering someone for future employment and in other ways. Your credit score is becoming more important every year. You want to keep yours in the best shape possible.

Let’s compare where your money is going during the programs. With debt settlement, your money is collected and often held in an escrow account, where part of the money is being paid to the settlement company and the rest is held until there is enough to negotiate the first debt.

In our program your money is paid out directly to your creditors each month through our advanced bill pay system that does the work for you. Our system meets all of your obligations while making your payments according to your personalized analysis to save you the most time and money. We ensure on-time payments while working your plan for you. And your money is transferred and paid out to your creditors by a top rated financial institution that handles transfers for many of the country’s top banks.

We’ve helped thousands over the years to get on track to becoming debt free. This is a safe program that works, and does the work for you to ensure your success.

Contact us for a free CD that will further discuss our program; or better yet, call us and ask for a free debt analysis that will show you how much your debt will cost you and how long it will take to become debt free based on how you pay your bills today. It will compare and show you how much sooner you could be completely debt free and how much you could save if you choose to join the thousands that are already on this path.

Everyone should know how much their debt is going to really cost them and how long it will take to pay it off the way they are paying it today. Knowing where you really stand helps you make better decisions and can help you make better choices in your spending. Get your free analysis at no cost and with no obligation. That’s our gift to you for taking an important step and learning something 95% of your friends and family don’t know about their own finances.

You can fill in the form at the top left for a free CD or call us and get your free analysis at 1.800.598.1657

Your friends at NO MORE Mortgage

Related posts:

1. Do you really know how much you owe on your debt?
2. Homeowners Clear All Debt Within 9 Years With Unique Debt Elimination Plan
3. Homeowner’s Debt Elimination Program (Overview)