CUTTING BACK TILL YOU GET
BACK ON TRACK
(A handy guide to living well on less)
A Short Blurb About The Author
Whitney James has been writing and giving lectures on thrift and saving money for several years. Whats unique about her is her gift of telling it how it is and not superlatives of what it should be. Sit back and not only enjoy but put to practice some of her timely ideas which work.
Legal Disclaimers
This book and all it's contents are a copyright product of Whitney James and may not be reproduced for any other means other than intended. Nor may this product be resold without the written permission of Whitney James
Table of Contents
Chapter 1 SO HERE YOU ARE…….
You are used to spending like a drunken sailor with a fist-full of credit cards. But now, even you see these over-priced designer jeans and expensive electric toys just languishing in the kid’s room and gathering dust as extravagant and unnecessary purchases all while the kids play happily with the boxes.
Your credit cards are maxed out or even canceled. Your credit rating is rapidly declining. Your income is decreasing. The bills are piling. What now? You’re going to have to face reality and learn to live well on a lot less money. At least until the economy improves. It’s not going to be so bad. It can be done and you can do it. All you have to do is have a plan.
I have an aunt who married at 17 went on to raise three great girls and take care of a lovely home with a beautiful garden. She was very happy until she was suddenly widowed at 62. On finding herself short on money and somewhat bored she ended working at a local 7-11. Was she hired because of her extensive resume? I doubt it. She was probably hired because of her sunny smile, friendly disposition, and willingness to be there, dressed appropriately and ready for work at 4 am., six days a week.
So if you haven’t worked in a while or indeed never worked at all you may be more qualified than you think. Don’t worry what people may think or say about you. I am sure my aunt’s country club friends had a few minutes of gossip. But they soon moved on to someone else. You will be making money no matter how little and doing all you can to hang on to your house while they will be losing theirs.
GET A JOB
When you are knocked down - get up; don’t give up. So you are a first-rate computer programmer or editor who has just been downsized out of a job. Get another one. None available? Nonsense. None available in your field, maybe. Take yourself immediately to your local Wal-mart or McDonald's. Money is money. There is just less of it. If you really can’t get a job, volunteer until you do. There are many organizations that may need your help and your special skills. No matter what they are. Plus, you are far more likely to hear about some interesting job leads while you are “out there” doing something productive rather than hanging around your living room watching T.V. in your pajamas, worrying.
So until something better comes along………..
DON’T THROW MONEY AWAY
If you have lost your job you don’t need expensive transportation. You may not even need it at all. I have always been a big believer that cheap reliable four wheels and an engine beat over-priced style any day. Sell all of the expensive cars and SUV’s in your driveway. Buy yourself some cheap transportation. Use it when necessary. Otherwise, for short trips simply take a walk or get a bike. Save some gas and you will get healthy too. Sell off power boats, ATV’s and motor homes. They won’t be littering up your driveway and your garage. You won’t worry over payments, taxes, insurance and up-keep. If you really “need” a new car consider buying a nearly new low mileage, low warranty vehicle and you’ll save thousands over a brand new model.
While your in your garage - what’s in there?: power tools that are still in the boxes or little used; baby furniture, even though the kids are in kindergarten, or even college; kids outgrown bicycles, wagons and toys. Sell it all. Wherever you can advertise for free in local newspapers or community bulletin boards, do so. If you have magazines, how many arrive at your home that are opened, flipped through once and then tossed aside? Cancel them. If there is an article you really want to read then make a trip to your local library. While you are there pick up a few videos for the kids and a good book for yourself. The library is a wonderful and under used resource of free entertainment for the whole family.
What else are you paying for unnecessarily?
TUITION
Are you in a near panic when your children’s tuition is coming up? You don’t have to send your kids to a private institution when you can look around for a comparable free public school. I know you want your kids to attend a private or religious institution, but, I want to be a multi-millionaire. We don’t always get what we want. In these hard economic times, we all must make some sacrifices. Your children are not doomed to an inferior education. There are excellent schools in your area and it might only be for a year or two. They will survive.
COLLEGE FUNDS
Do you still have college fund money you have been saving a little at a time to help your kids’ education? Better they eat and have a roof over their heads now than money for school later. There are student loans, scholarships, community colleges, trade schools, and working at McDonald's. There are many ways to ways to get money for an education. Where there’s a will, there’s a way. Anyway, by the time they need the money the economy may have changed and you may be able to help them. But, for right now you need that cash.
JEWELRY
Sell any diamonds or gold those years of credit card spending have produced. That diamond bracelet or gold watch that you got for your anniversary may have great sentimental value but what you need now is cold hard cash. What good are they doing lying in a jewelry box anyway? You can buy them again when times are better and they will be. Obviously, hang on to wedding rings and family heirlooms. Although eventually, they may have to go too
LESSONS
I have nothing against Gymboree. My own granddaughter went and loved it. But if money is tight, entertaining your toddler can be done just as well for free instead of spending money to teach your children how to play.
Get a small group of peers together and once a week meet in a park or at another’s home for a very low or no cost at all. The only cost to you may be the occasional expense of providing snacks. Music lessons, ballet, tap, gymnastics, cheer, and ice skating may have to be let go for a while. Some children will seem devastated. Others will tell you they didn’t like any of those activities. They would rather watch TV or play their video games, anyway. Either way, it’s all for the greater good.
Now we come to you and the sacrifices you may have to make. Expensive gym memberships you don’t need. Your health doesn’t need state-of-the-art equipment. Walk around the block, jog in the park, and borrow an exercise video from the library. Sell that treadmill that you hang your clothes on. Cancel your gym membership. If you have to swim, find a public pool.
UTILITIES
I am somewhat opposed to automatic lawn sprinklers. As I drive along my street I have see them running whether it’s raining or not and watering concrete pathways and driveways with the water running down the street. What a waste for the environment and your pocketbook. If you can’t put in a drip system right now, at least check all of your sprinklers to make sure they are not watering asphalt.
When growing up in England, we didn’t have the luxury of central heating. The individual rooms were heated but the hallways were always freezing.
My children, on the other hand, were raised in Texas where they spent their early years leaving the doors open and air conditioning the front yard. After being transferred to England my kids shivered “Its freezing in here, turn the heat up!” I would say “Of course you’re freezing. You’re in a t-shirt and thin socks in England in November. Put a sweater on. That’s what they’re for!!”
To save money you need to turn the heat down. Way down. Put layered clothes on indoors and dress your children warmly. Watch TV under a cozy covers. Put extra blankets on the beds. Sleep in flannel pajamas with wool socks and put flannel sheets on the bed.
Wash clothes only when there is a full load. No more letting your teenager dry one pair of jeans. Line dries all sheets, towels, pillow cases using the dryer only for the last few minutes if you really require softness.
Only run the dishwasher when it’s full to capacity. Mark the kid’s cups with a marker in the morning and have them use that same cup throughout the day
You can no longer afford the luxury of meditating in the shower.
Turn the water on, soap up, rinse off. Get out.
PLANT A GARDEN
You don’t need a lot of space. A small plot or even your patio can produce many vegetables of the smaller variety to feed your family.
Carrots make an excellent border. A barren fence can be easily covered with peas and green beans. Your small patio with containers even filled with potatoes planted in layers can be a great source.
When we lived in England, we had a large, very abundant garden with mature and very productive apple trees. I loved to spend my free time working in my garden. My elderly neighbor loved to spend her free time working in her kitchen. I had endless ingredients and she had endless time. A match made in heaven. I gladly provided all of the produce plus the flour and butter, etc, that she needed. She in turn, got to bake to her hearts content. We split the finished products.
She got pies, soups and stews to share with her family. My family got to eat really well while I still enjoyed my free time in my garden and not in my kitchen. I had fresh and canned fruits and vegetables, year round, as well as fabulous jams and jellies. It was perfect.
INSURANCE, BANKING and other fees
Don’t drop medical or dental insurance especially if you have children. Children have a bad habit of breaking a bone, running a high fever or developing a really strange rash the minute you have no insurance. A trip to the ER can be incredibly expensive. You can however, save a little bit by increasing your deductibles.
Most people are under insured. It doesn’t hurt to check yours. Remember, if your home burns to the ground or crumbles in an earthquake the land it was built on, will remain. You don’t need to insure for the appraised value which includes the home and the land. You do need to insure for replacement value and contents and a little to clear the land. If you do have a mortgage, your lender will insist that you keep this coverage so that his investment is protected.
Your children’s teeth are very precious but never more so then now when expensive dental work is not in your budget. Cut down on sticky sweets and make sure your children brush well after each meal and teach them how to floss. Mix baking soda and water into a paste. It doesn’t taste good so follow with a mint - it contains the same whitening ingredient your dentist is charging you a fortune for.
Since you will be selling your expensive car you don’t have to carry so much car insurance. You can save money by driving your cheaper car and increasing your deductible. Check with your insurance agent since you are no longer commuting. You may be eligible for a deduction. When you have decided exactly what you need bundle your insurance under one carrier. Check around for the very best cost.
Bank fees and overdraft fees can cost you. Especially, when you have the money but you just haven’t gotten around to either depositing or transferring them. Look around for a bank or credit union that has free checking. Don’t pay ATM fees. Always pay with cash.
Don’t keep those library books and videos beyond their due dates. Don’t park illegally.
CLOTHING
Do you have clothes in your closet that you meant to return but you never got around to? Are there clothes that leave the closet a few times, becoming out-grown, long before they are out worn either because you or your kids don’t like them or they simply have too many clothes to begin with? Well, you are about to become a better shopper.
What fit your kids last week has now suddenly become out grown?
Children grow. Fast. So it’s off to the local thrift shop for you. Garage sales are also a wonderful source of all kinds of kid’s clothes cheap. But it isn’t worth wasting time and gas driving all over town trying to find the right size. Better you find “nearly new” shops close to home. There is a difference. The thrift shop accepts all donations and although some sorting takes place, a lot of junk remains on the racks. You are going to have to take the time to find what you are looking for. The “nearly new” store has already done the work for you. Usually they buy or take on consignment only the best nearly new clothing, neatly organized. It’s a perfect way for you to buy great new clothes for your kids while selling their out grown ones.