Debt Free Living Guru - Blog

I love going to garage sales. I've learned that buying other's "junk" is my treasure.

This weekend my daughter and I went garage sale hopping. My husband packed us a cooler with water and snacks we went on our journey. Our sole purpose was to look for a few items for her room since we are redecorating it. There were so many garage sales my daughter said we were in "Garage sale heaven."

For $11.25 we walked away with the following: a floor lamp -$1.00, a fuchsia colored picture frame - $.25, DVD player - $5.00, pink book holders from Bombay and Company - $4, hair blow dryer - $.25, bulletin board w/diamonds around it - $.25, insulated lunch bag w/shoulder strap - $.25, and a black wood 14" x 20" picture frame - $.50

We probably saved $150-$200 by purchasing items at garage sales. The plus, everything was in like-new condition.

When is the last time you went to a garage sale? Did you get great bargains?

There is a lot of hype about the before school sales tax-free weekend for school supplies and clothes. I for one do not get hyped up or excited when everyone else does. We actually went school shopping over a month ago. We went to an outlet mall an hour from our home with 140 name brand stores. We purchased around 10-12 items of clothing for around $110. Then the next weekend we went garage sale hopping. At the last house of our trip, we came across a goldmine. A teenager that only wore name brand designer clothes who hardly wore them or they were still new, was selling them per bag. So for just $5.00 my daughter walked away with 11 items that would have easily cost over $300.00-400.00 if purchased brand new.

Sales tax-free weekend just ended this weekend. The malls were packed and people were buying like crazy. My daughter decided to return a couple of the outfits from the outlet mall, and take the money to get more stuff at garage sales. When we went into Children's Place, Justice, and Osh Kosh I didn't see any bargains or sales. I saw jacked up prices with huge signs advertising a "sales tax free." What a rip off! And, people buy into the media hype.

I asked my daughter if she would rather have a bag full of name brand clothes for $5.00 or to spend $100-$200, and still need more clothes. She said, "A bag of designer clothes for $5.00." The money we saved on her clothes we are using to redo her room.

Was the sales tax-free weekend a bargain or rip-off for you?

I just got off the phone with MTV. They're doing a documentary on newlyweds that are having financial problems, and are looking for couples that are interested.

Requirements:

* Young couple having money problems
* Married - less than one year
* Age - 18-27 years old

If interested call:

Gina - 310-752-8253 or
Email - newlywed@mtvn.com

I've been away for a really long time. I wanted to give you an update since my last blog. Well, on April 1st we put our rental property on the market to sale. I've sold three of our homes before, but this is a different economy and market. After two months showing the house three times, and getting around eight phone calls, we put it on the market to rent.

I put the ad on Craigslist, and got my first call within two minutes, literally. After that I showed the house almost daily. It was rented in three weeks. I'm not mad!

I know the ecomomy will change, and our home will be worth even more. Which means we'll have a bigger paycheck from the sale. You can't get discouraged, frustated, or defeated with the economic climate. Just go with the flow and be patient.

Are you trying to sell or rent? How's it going for you?

We're selling our rental property. Yesterday I met with contractors to get estimates on multiple projects in order to put the house on the market. I received three quotes to paint our 1900 sq. ft. rental property. One was $1,900, $3,000, and $3,800. The house is in pretty good condition and so are the walls.

I usually do not choose the cheapest price. I believe you get what you pay for. However, in this case the one for $1,900 and $3,000 both have outstanding recommendations and testimonials from a third party website. The highest bidder has zero testimonials online, but was recommended by a realtor. I think I'll go with the $1900 estimate. Get this, the estimate for $3,000 doesn't even include painting ceilings.

The depressing part, that price is only for the paint job. I still need carpets installed, and around eight small projects done. Oh well, such is life. Why complain? It has to be done, right?

We are selling our rental property. Yeah, yeah, yeah the economy, housing, lending and everything sucks, but I don't care. My trust is in God. Okay, so I've sold all four of our homes by myself in the past and never had a problem.

This time, I was thinking of using a realtor because I now work and felt I probably wouldn't have the time. But when I found out the fee was 6% and that would cost $10,000, I said, "I will take the time to sell my home myself."

I kept asking the realtor, so what exactly do you do that I can't do? We make flyers, show your home, and market it. Well, okay, I can do all that for less than $10,000. Nobody know and cares about my house more than me.

So our tenants move out officially tomorrow. I will get some work done in the next week, and then the house will go on the market. Yeah, the economy sucks but who cares. I'm excited, I have a new challenge to sell our home. I can't wait to see what happens, can you?

Yes - for free. Is your adjusted gross income (AGI) less than $56,000? If so, you can prepare your taxes for free. Go to www.irs.gov.com to prepare your federal taxes for free.

To get your state taxes prepared for free go to your state income tax website. There you should be able to prepare and e-file your taxes for free, if they offer it. Most states offer the free service. If you prepare your state taxes on the "free" federal website they will charge you for preparing the state taxes. If you are expecting a refund, you can e-file for free, and get your refund deposited into your bank account within 10 days.

Truth -- this world's system is set up to separate you from your hard-earned money, so keep as much as you can.

Do you pay to get your taxes done or do them yourself?

I went to the Dollar Store yesterday, and was shocked to hear the cashier, while ringing people up, screaming for the manager -- loud. The manager came, and the cashier told him a worker was driving up in the parking lot, and she was 20 minutes late. Then loudly she continued to complain about the worker, while ringing up customers, and told the manager to call the worker on her cell phone to turn around and go home. For a few minutes they both argued about who should call her, while she continued to ring up her customers. Finally, the manager went into a little office with no ceiling, called the worker -- yelling, and told her to turn her car around and go home. He said, "This time he wasn't playing."

By the time he came out I was in the cashier's line. She now was on her cell phone, while ringing up customers, loudly talking to someone saying how tired she was since she started work at 5:00 a.m. Of course, she had to tell the person on her cell phone about the worker that was 20 minutes late, and how she had to now work double shift and how unhappy she was. Then she told the person on the phone she would call them back in 10 minutes, because she had a long line of customers waiting for her. I was the third and last person in her line.

The cashier is now breathing hard, signing, huffing, puffing, and just plain irritable as we stand in her line. Once the cashier was off the cell phone, she asked the manager about his conversation with the late or fired worker. Then they talked about how strifling she was for always being late. They stated that traffic lights and getting gas is no excuse, and those things are apart of getting to work on time.

When I got to her I said, "Wow...Looks like you've had a really rough day. You've been here since 5:00 a.m.; you must be really tired, huh? I really hope your day gets better and you get some rest. Have a great day."

Geez, and retailers are wondering why they are losing business?

I know it may sound crazy, but I really am excited about 2009. I'm healthy, will be starting a new job, I'm still coaching clients, and I feel like I have a balanced life.

I am refusing to participate in the gloom and doom the media loves to program into us. I see many possibilities for great financial gains and accomplishments in 2009. When the average person is allowing anxiety, worry, and fear to consume their daily thoughts and actions, I choose faith and hope.

Of course faith, hope, and preparation is a major key to weathering this economic storm. I believe since we've been so frugal and have stored away in our time of harvest, we are prepared during this time of famine.

All in all, I'm excited about 2009 and I am looking forward to what the future holds.

What about you, are you excited about 2009 or not?

We have electrical car problems. The inside light stopped working about 3-weeks ago, and this morning we found out the tail lights weren't working. We were so scared the cost would be a thousand or so. I mean come on it's electical work, right?

Well my husband took the car in this morning, and before he left we prayed for an honest person, and that the total bill would be no more than $200.

We got the call a couple of hours ago. The total bill is only $133, and the rental car we will need until Tuesday is only $66.70. Did you know if you put your rental car on your visa, insurance may be covered. Our Marriott Visa covers comprehension, theft, and liability.

Total bill $199.70 (repair and rental). Prayer really does work, and we are so thankful!

Thanksgiving was wonderful as usual. We went to Augusta, GA to spend time with my 4 brothers and sisters, and eight nieces and nephews that live in Georgia. The rest of my brothers and sisters (3) and parents live in Oregon/Washington area. Anyway, our tradition each year in Georgia is to spend Thanksgiving in Augusta at my sister's home. Like usual, we ate so much and it was so good. We all spent the night, woke up early, and cooked a huge breakfast. The breakfast, like usual, was incredible. What I love most is just the hanging out, laughing, talking, reminiscing, and time with a fun and loving family.

Then I started thinking about how thankful I am for the little things in my life. For my husband of 16 years, our daughter, a job, our homes, good health, food, transportation, a loving extended family, healthy parents, clothes, and money to pay bills. I'm just "thankful" for blessings that so many do not have. Yes, the blessings seem simple and basic, but what if you didn't have them? Yes, I am truly thankful that I'm thankful. And in this economy that is saying a whole lot!

I don't know how much you spend for Christmas, but more then anything I hope you don't get into debt. A time that should bring happiness and cheer, can be diminished because of debt.

For that reason, the best way to not get in debt during the holidays is to prepare at the beginning of the year, like January. That means changing your habits. The best method to achieve this is by developing a Christmas list in advance. Matter of fact, set up a saving's plan just for Christmas spending from January to November. Next, determine the amount you want to spend on gifts, and divide it by the number eleven. For example, if the shopping amount is $500.00 divide it by eleven, which is $45.45 per month. Lastly, set up a separate bank account to deposit the $45.45 automatically, or set the money aside in an envelope each month and hide it. If you stick to your plan, by December you will have $500.00 set aside for Christmas shopping!

A few additional ways to enjoy a debt-free Christmas is to use a piggy bank to store spare change. Let the money accumulate, then deposit it every month into a bank account. At the end of the year you will be surprised to see how much you have saved. Finally, use your God-given talents for gifts: bake goodies, do hand-made gifts, or cook a meal for a group of family or friends.

There are so many other ways to walk away debt free at Christmas. What ideas do you have?

Today is my 16th year anniversary and my daughter's 11th birthday. We actually celebrated my daughter's birthday yesterday and had a great time. We took her to see High School Musical 3, had lunch at the Cheesecake Factory, took her shopping for clothes, and brought her two finches as pets. Okay, that is way more than we usually spend on birthdays, but she's doing so good as a home schooler and becoming so responsible. We decided to do more than less.

Okay, so today is my anniversary, 16 wonderful years that went incredibly fast. My husband said, "Let's just give each other the gift of time." I thought what a wonderful idea -- time. And, it's free. So we have been enjoying the day reminiscing, laughing, talking, and just having "together" time, ah.

What I know for sure, having all the money in the world or receiving the most expensive gifts will not bring me happiness or keep a happy marriage and home.

Ah, the "simplicities of life" really do work!

Yesterday after having a fun day out and about, we stopped to get gas. Surprisingly enough, the prices were quite low compared to just 3-weeks ago. Yes, $2.34 a gallon mid-range.

I told my husband 6-months ago that just before Election Day the prices would start dropping. And, yes they have! I've always felt the whole gas thing was rigged and crooked.

How low are your gas prices where you live? Do you feel the whole gas thing is rigged and crooked?

I've worn Mary Kay products since I was 17 years old. I've loved their makeup, skincare, and even perfumes for years. However, while evaluating my financial priorities and needs and wants, I'm staying focused on what is real important.

Yes, I need makeup, pretty skin, and to smell good, but also I need to re-evaluate if I can get all those things and save money too. I can and have!

Thank God I've found alternative products that I am happy with that have saved me a fortune. You know every penny really does cut. I don't think my face and body knows the difference. They're just happy someone takes the time to care. Thank you Wal-Mart and Sally's Beauty Supply!

What changes have you made to save money on makeup and skincare products?

My daughter loves American Girl (AG) products. She is 10 years old. If you aren't familiar with AG, their stuff is good quality but very expensive. My daughter gets paid $10 from our neighbor to vacuum her home most weeks. She saves her money and when she gets $30-40, what does she do? Spend it on AG.

Okay, the dolls cost $90. Thank God her grandma gave it to her for a birthday gift last year. However, my daughter brought her doll a tennis outfit that came with a visor and tennis racket. It cost $48. I told my daughter I wouldn't pay $48 for an outfit for her, let alone for a piece of plastic.

Anyway, obviously our daughter is a great saver. But once she saves her money, it all goes to this pretty plastic non-human thing. I've started to take 50% of her earnings to go towards her savings account.

Funny, my husband and I are so frugal, and our daughter loves saving for pricey frivolous things. Hopefully she'll grow out of it.

Have your kids picked up your frugal ways?

Do you live your life saying, "I'll be happy when?" One thing I know for sure, happiness is a choice and so is worrying.

Regardless of our current economic crisis, I have made the decision to be happy and continue to enjoy life. Yes, we have lost plenty of money, too. However, I've been there and done that before. The season passed, we kept on living, and continued to save. You just do what you can do, right?

When you realize that you have absolutely no control of what will happen in the world and even your life, you just learn to ask God for his favor and blessings.

In spite of the economy I am happy and not worrying. I am doing better than some and worst then others, but I'm happy and okay with life and me. Are you?

With the economy as it is, we are watching every penny. We're very frugal, but sometimes I just want what I want when I want it. You know what I mean?

Okay, so we just discovered this wonderful cuban restaurant five-minutes away. Hadn't tried cuban food before that, but basically it's just caribbean or island food. I LOVE it! I actually dream about it, and they have a great dinner special for $6.99 before 4:30pm.

So one thing we have decided to do to save money is to get food to go (no tip), and we are ordering a regular entree and two kids meals. Come on, I'm a kid at heart, right? Anyway, kid's meal portions can be bigger than adult meals at times.

I'm too excited!

What is it that you want when you want it, and sometimes you just got to have it?

The end of the year is almost here. All through the year my family collect things that are still in good condition, but we have outgrown, do not need or want. We give our items to the Goodwill.
The great part, we are helping someone in need and we also get a tax deduction.

What do you do with items you do not want? Do you give them to others in need?

Wow...times are pretty rough for most people. If you have not made adjustments to your way of life by now, I'm not sure what to say. We're frugal, but we've become even more frugal since June. These are a few things we've changed since June.

- went down to one car instead of two
- home school our daughter (hubby does that)
- have limit our 1-2 hour one-day-get-aways to once a month or every other
- haven't went on as many 2-4 day vacations. Have only went twice this year. Usually go 4-5 times.
- go out to eat around two times a month with coupons
- eat more salad and soup dishes with very little meat
- pay bills online or via phone to cut down on stamps
- our entertainment is more parks, walks, board games, and videos
- do not go out of our area to visit people, mainly talk on the phone
- do more home-churching than going to church (been doing that for years anyway)

What have you done to cutback on spending?

I have a baby shower coming up Saturday for a client. I just found out about the date this Friday, so I probably won't be able to attend because we already have plans. However, I do plan to purchase a gift, hopefully, going in on half with my sister (she's her friend too) who will probably attend.

Because most of my clients are all over the country, I never meet them face-to-face let alone ever see them. But this is a client since 2005 (off and on), before I made the rule of coaching clients over the phone, only.

I usually spend $10-15 dollars on baby shower gifts, but I will probably spend $15-25 for this client. However, since we're not a big gift giving family, it will throw us off our budget some. But I will take the cash out of another of our envelopes.

Are you a big gift giver? If so, do you have a budget, and how much do you usually spend in a month or year?

In this economy with people being laid off left and right, how do you cope if both people in a household lose their jobs? That is a very difficult situation to be in. In 2001, my husband and I moved to Washington state. Unfortunately, 9/11 happened a few months later. We ended up living on our savings for 2-1/2 years. It was really really hard.

Now we are back in Atlanta, but I really feel for people in that situation. Especially if they do not have money saved. Here are a few suggestions to make ends meet and bring in extra income, if you are in that "season" of no income.

- Still track your expenses and budget your money
- Rent out a room or two if you can (do you have a basement?)
- Sell things you do not want, use or need
- Get part-time jobs and still look for full-time jobs
- Have garage sales
- Baby sit kids for money (if you love kids)
- Try to get contract work

Have you ever been in that situation? What did you do?

There is a common pactice currently going on in the restaurant industry. In the last month or so I have noticed consistently that all their menus have changed. The prices have increased. Some much higher on average then others, but what they all consistently have in common is smaller portions.

I understand raising the prices. I mean, these are hard times. But, come on, smaller portions, too? I mean we do notice things, most of us.

I work hard for my money. I want to get what I pay for. High gas, food, energy, and everything else personally affects me too.

Eating out is a choice. I've decided to eat out one time a month. Our solution: we decided to increase our grocery spending to accomodate the things I like when I eat out. Also, we will get food to go, so we do not have to leave a tip, and use coupons (like buy-one-get-one-free).

I'm trying to hold on to as much money as I can. The world indeed wants to separate us from our money, but they will have a hard time getting mine.

I just called my investment company to inquire about our money market account being FDIC insured. It isn't. Then I asked if our IRA's were insured (I thought they were). I was told that only banks and credit union's money is FDIC insured. The Merrill Lynches, Lehman, Vanguard, and Fidelity types are not. So if something happens, all your money goes bye-bye. I'm not trying to cause panic, however I do want you to be informed.

I'm transfering our money over to our credit union today. Better safe than sorry.

Are your investments FDIC insured? You better find out quick!

Within the last 3-4 years, I've worked at the voter registration booth on election day. Actually, I've done it a total of three times. I did not work through the state office, but through a temporary service.

The first time I did it, they paid me $340 for the day. The last two times I worked, I got paid $400 for the day. I just called and left a message to see about doing it again this coming election. I just got signed up, and they will let me know the pay once it is approved.

Yes, that $400 was the easiest $400 I've ever made. The day is long. It starts at 6am and ends around 8pm. I got two breaks and a one-hour lunch away from the booth. The state workers can't leave the premises. I brought plenty of books, magazines, and newspapers to read.

My job? If a machine doesn't work; I unplug it from the outlet. If it still doesn't work, then I called technical support to come fix the machine. In the interim, I put a sign "out of order" on the machine. I was praying for machines to break I was so bored.

I hope they are paying $400 or more this election. $400 to sit and read, and make sure the state workers are doing their job, only in America.

Yesterday my family went to the Tennessee Aquarium for a quick one-day get away. When we arrived we needed parking. Surprisingly enough, there was alot of spaces available in the paid lots and on the street.

I told my husband parking on the street was free because if was Sunday. Of course he didn't believe me, and decided to ask a local person. Well, the local person told him parking wasn't free on the street. So my husband spent 10-15 minutes driving around to see how much different lots were charging. One was charging $8 for the day, another $5 for the day, and another $4 every 1.5 hours.

I kept assuring my husband the meter actually said "parking was free on Sunday," but that wasn't good enough either. Then my husband went inside a restaurant to ask. Yeap, she said, "parking was free on Sundays."

Finally, we found a spot right in front of the Aquarium on the street for free.

The moral of the story. Husband's listen to the counsel of your wives, and don't always go with the first parking lot price. The price is always cheaper somewhere else.

I talked to a friend a few days ago, and she told me she had a new phone service called "Magic Jack." With Magic Jack for only $39.95 you get free local, long-distance, directory assistance, phone number, call waiting, voicemail, caller id, and you get a free trial for 30-days to try it.

She said, it's great, and their bill is only $39.95 a year. The only downfall, you have to change phones numbers. Their website is www.magicjack.com.

Have you heard of Magic Jack? What do you think?

I'm happy. For the last 3-4 days the weather has been in the 70's and we haven't had to turn on the air. Our home is all electric, so our bills range in the amounts of $80-$140 depending on the time of year. However, when I see Spring or Fall coming, I'm so happy. Lower bills!

To save, we just open the windows and let the cool breeze come through. If it gets a little bit stuffy, we turn on the ceiling fans. At night, it's even cooler so we open the windows just a little. Uh, how nice. We are heading towards the time of year that we will not need to turn on the air or heat. Probably for around 2 months.

It's nice being able to appreciate the simple things in life, isn't it?

I stopped buying magazines years ago. However, whenever I would visit friends and family, instead of talking, I spent my time devouring their magazines. I absolutely love to read.

Then one day Delta Airlines sent me a letter saying 14,000 of my frequent flyer miles had expired. Huh? Because I had not accumulated new miles in three years. However, I still had 4,000 miles left. I was mad as I don't know what. Also, my husband and daughter had around 4,000 miles each, too.

I had an idea, we'll use up all the points and get something we want. Well, the only thing we had enough points for were magazines. Now, we get around 10 magazines a month. I love laying in bed just reading. The best part, it didn't cost me a dime. I now have enough reading material to last until I retire.

Do you know ways besides the library to get free magazines?

Some days just before grocery shopping, when the food is getting low, and you're too tired to cook, a breakfast dinner is the solution. It beats going out to eat and spending money, right?

For "breakfast dinners" we may cook omelets, pancakes, grits, biscuits, cereal w/fruit, turkey bacon, and eggs.

Do you ever have breakfast dinners? If so, what do you cook?