12 Ways to Save Money on Your Electric Bill

The ridiculously high cost of gas may be what’s got everyone grabbing pitchforks and torches and calling for a revolution, but gasoline isn’t the only utility draining money away from your weekend entertainment fund. Electric bills are set to jump this summer as well. And powering your 42″ plasma and the rest of those high-tech gadgets you bought back when you actually had equity in your home to borrow against, is gonna cost you. Especially if you’re not watching how you use it, or don’t realize where it’s being wasted.

According to recent studies, the Environmental Protection Agency (EPA) estimates that the average family household is spending nearly $2,000 per year in utility costs. And wasteful kitchen appliances alone are at fault for almost half of these costs. That’s a whole bunch of Benjamins that could be back in your pocket. So here are some tips to help you reduce your need for the juice, and give you a greener (as in more money) summer.

Clothes Washer:
1 - Only use your clothes washer when you have large loads to do and avoid using warm/hot water unless necessary. And if that means buying more boxers to make it to the weekend, so be it.

Refrigerator:
2 - Avoid overheating by allowing a space of at least one inch between the wall and the back of the refrigerator. This will help allow air to circulate and control the temperature.
3 - Try to steer clear of placing your fridge by areas that produce heat. Radiators, vents, heat ducts, stoves, and even sunlight from your windows can cause the unit to use more power than needed.
4 - Check the temperature of both your fridge and freezer regularly. Keep the fridge between 35 and 38 degrees and your freezer at 0 degrees.

Dehumidifier:
5 - Make sure your door and windows are closed while the unit is running.
6 - Change your filters on a regular basis. A build up of dirt can hinder its performance causing the unit to use more energy to do its job.
7 - Keep it in a centered area by making sure it isn’t near walls, furniture or dusty areas.

Dishwasher:
8 - Try to prevent washing small loads. Larger loads will use less water and electricity.
9 - Only use standard options. Pre-rinse, heat-dry and rinse-hold are simply extra features that tend to use more energy.

Air Conditioner:
10 - Make sure that any way for air to escape is closed off. This would include open windows and doors. And check for, and seal off, any large gaps in doorways and windows.
11 - Set your timer for temperature control. No need to keep the place cool while you’re at work.
12 - Select the correct unit for the size of your room. Going bigger is not be the best choice here.

And if you’re in the market for some new appliances… Realizing something needed to be done about rising energy costs, the EPA along with the US Dept of Energy (DOE) created a classification system called Energy Star. (The government actually helping? I’m stunned.) This system is designed to pinpoint domestic appliances that are more energy efficient, boost air quality and decrease utility bills.

Although appliances equipped with the Energy Star label can potentially cost up to 40% more than standard models, they can save up to half of the daily energy you use. So not only are you saving money in the long run, but you’re helping to protect our environment.

Here’s the 411 for qualified models to help guide you before you buy:

Energy Star Clothes Washer:
While using 50% less water, these washers also extract more water from your clothes in the spin cycle to help reduce drying time, as well as reducing normal wear and tear. Up to 40% less electricity and $110 can be saved each year.

Energy Star Refrigerators:
The energy these refrigerators consume is at least 40% less than standard models and that means you can save nearly $150 every year.

Energy Star Dehumidifier:
Save up to $30 on your yearly costs while using approximately 20% less power.

Energy Star Dishwasher:
You can save $90 over the dishwasher’s average lifetime and by using half the water of regular models, reduce over 40% of the energy used.

Energy Star Air Conditioner:
Over its lifetime, you can save $250 while using 10% less energy than standard models.

How to Start Living a Debt Free Life

A Debt Free lifestyle is easier to attain than you think. It doesn’t matter how much money you make or how in debt you are. Once you learn how the only bills you’ll pay are utilities. No mortage, no car payments.

Steps

1. Stop adding to your debt. Cut up the credit cards and throw away the checks so you can’t bounce one. Do not sign up for any more credit cards or loan offers. Stay away from Pay Day Loans. Remember - If you can’t afford it today, you can’t afford it tomorrow (meaning don’t expect to pay tomorrow for debts incurred today at the gaming store).
2. Admit you are in debt and start living like it. Did you know that most millionaires live in modest homes and drive used cars? That’s why they are rich. Don’t expect to eat out at fine restaurants. You can’t afford it, get over it. You will be able to go someday soon but not now. Don’t buy new clothes for a while. There is nothing wrong with what you already own. Saving that money for a few months will help get you back on your feet.
3. Total up your debt. Go ahead and face the music. You need to open all those unopened bills. Make a list of all your debt, big and small.
4. Pay with cash only. While debit cards are OK to use once you get in control they can still allow you to spend more than you should but at least it’s not like a credit card.
5. Talk to your creditors. Don’t ignore them, they won’t ignore you. If you keep in contact with them, they will be more willing to work out a plan with you. If the first person you speak with is unwilling, then ask to speak to their supervisor and just keep going until they are willing to work with you. Be honest and pleasant, no one wants to help you if your nasty.
6. Make a plan for which debts to pay first. You need to pay everyone something every month even it’s it’s only a dollar, but you need to have one debt that you are going to get rid of first. Target the one(s) with the highest interest rate, which is called “Laddering”. Which reminds me … Call them and ask them to reduce your interest rate - many times they will do this, just because you asked! Alternately, you can use a “Reverse Laddering” approach, where you pay your bill with the lowest balance first, then the next lowest balance, and so on. This frees up more cash in hand to start chipping down the higher balance debts you have. This method is effective because instead of paying small chunks of money toward those high interest bills, you can throw large chunks of money at them, reducing the amount of time needed to pay them off. Also, your attitude will be better because you see the results of your progress faster, and therefore aren’t discouraged as easily. You must be careful though, because sometimes the money you pay on the higher interest is more than the money you free up each month when paying off the small balances. Review your finances thoroughly, crunch the numbers, and see which method would be the most effective for your situation.
7. Roll over the savings. Once you have one debt paid, apply that money to the next debt you are trying to pay off and just keep going. This is an integral part of the “Reverse Laddering” method mentioned above.
8. Get frugal. So you don’t like cutting coupons? Too bad. If you could save $10 on your shopping next trip why wouldn’t you? Buy a cheaper brand of toothpaste. Use half the toothpaste you currently do - the size of a pea is all you need. And think about it, that $4.00 tube is now really only $2.00 … because you are making it go twice as far! it’s the little things … lots of little things add up. And even though it may be kind of “nerdy,” it is actually fun to think of all the little ways you can save money. Food shopping, buy whats on sale and learn to live with it. You’ll save and not starve. Go to matinées instead of the nighttime movies. Make your own lattes instead of Starbucks. Think to yourself what it is you really like … and then think of a way you can do it cheaper! Homemade chili is so much tastier than canned. And you can add all the things you love … Beer? Cilantro? Jalapeños? Cheddar cheese? Just the way you like it! Drink allot of bottled water? Refill them at home. The savings will rake up. Take your lunch to work, eating at the fast foods and deli’s cost a lot of money.
9. Be conservative with your utilities. Lower your thermostat in the winter. Spend the evening at the library instead of heating up your place. And read their magazines and drop your subscriptions. Fix leaking faucets, turn off unused lights, etc.
10. Change your way of thinking. Instead of saying that something only cost a dollar think of it as keeping that dollar instead. That dollar will grow interest for you. So that item doesn’t really just cost a dollar it costs you your future!
11. Learn how to invest … not just save … but invest. Think of every dollar your money is not earning as future money just dribbling out of your pocket. Look up an investment class at your local university. Or check Craig’s List. You will find something if you really want to. (Talk to a teacher or a librarian if nothing else is working.) Then make your money work for you! Yes it takes time. But you can either have $100,000 (and easily more!) when you are 40, or not! Just check out those compound interest tables. You cannot believe how easy it is if you just get started now. If you are young, you have time on your side … and time is one of the major factors with compound interest. If you have a 401K at work, put in 1% if you can, just to start it. You really wont miss the money, but you know in the back of your mind that you have something good going for yourself.
12. Save for a rainy day. Old cliche I know, but it’s true. Try to put away 10% of what you make into savings. If you can’t do that then put away whatever you can. Even if it’s .50 cents. Make this your first bill that you pay. Because you are the most important thing you need to take care of. Then learn how to make your money work for you (tip: The stock market is the fastest and surest way to make the most money - over 10% over the long haul - no kidding - look it up!
13. Combine your errands together. Don’t go out for just one errand, do them all at once, Get gas, stop at the post office, drug store and grocery shopping. Try to combine some of those before and after driving to work. You’ll save more each month than you think.
14. Get rid of the stress. Being in debt is not normal or healthy. Take some time out for you to just relax. You will be better able to handle the debt when you are rested. Check out a library book or two - something light or humorous. Make popcorn (cheap) and have a wonderful, carefree evening.
15. Don’t ever think that your alone in this. So many people are trying to get back on their feet. Yes it’s hard to give up a lot of the things that in the past have made you happy. Doing all the things above, as hard as it is, will help you in the long run.

Tips

• Think before you buy anything. Do you really need it? If not put it back.
• Be strict with yourself.
• Be strict with children, the I Want’s have to go away even if it means crying through the whole store (I’ve done it)
• If you think you “need” something, wait one month (or six months, or whatever works for you) before you buy. If you still believe you need it, then get it.

50 Tips for Frugal Living

Confession time: I’m a cheapskate. Some would say frugal, which sounds much more positive, but in reality I can be a real cheapskate.

I am fairly frugal (though not always), but sometimes I take it too far: I have T-shirts with holes in them, I never buy new clothes, we’re shopping for a new couch because our current one has holes in it, and I ran my current pair of running shoes until the soles fell off.

However, I have gradually learned to be frugal in many ways that I would recommend to others. I don’t think you should have holes in your couch, and you should definitely replace your running shoes more often than I do, but there are many ways to cut back on spending and live a more frugal lifestyle.

Why live frugally? First, because it allows you to spend less than you earn, and use the difference to pay off debt, save or invest. Or all three. Second, because the less you spend, the less you need to earn. And that means you can choose to work less, or work more but retire early. Or take mini retirements. You have more options with a frugal lifestyle.

I know what I’m going to hear in the comments, because it’s been done repeatedly with my other frugal articles: I have no life. This is boring. I might as well live in a box. You have to enjoy life sometimes.

All of which you might believe, but I believe I do have a life. A great one. One where I spend time with my family, where I have conversations and read and get outside and do things that are fun and exercise and focus on what’s important and spend my free time the way I want. This is a good life.

So, if you’d like some tips on frugal living, here are just a few, from a cheapskate. I should note that I do most, but not all, of these tips.

1. Go with one car. Many families have two or more cars. Besides your house, your car is probably your most expensive item. If you can do with one, you should. My wife and I both work, and we have six kids, and yet we have learned to manage with one car.
2. Go with a smaller house. Just because you can afford a larger house, doesn’t mean you should live in one. Live in as small a house as you can and still be comfortable. I don’t mean you should live in a one-room apartment with a family of four … you know what I mean. You can save thousands a year with a smaller house. Many times, if you get rid of a lot of clutter, you don’t need a large house.
3. Go with a smaller car. Again, you can save thousands by going with a smaller car. A car instead of an SUV, for example, is a big savings. Be comfortable, but don’t overdo it. You’ll save a lot on gas this way too.
4. Rent rather than own. This will probably spark a huge debate, as it always does. The thing is, just don’t assume that buying is the better investment. If you calculate the interest you pay on a mortgage, the cost of insurance and maintenance, buying is often much more costly than renting … and if you rent, save money, and then invest the difference, you can actually end up well ahead in the long run. Now, it’s not a given, so do a comparison, factoring in all expenses.
5. Look for used first. If you need something — I mean really need it, not just want it — see if someone you know has one that they don’t use or need anymore. Send out an email to family or friends, or just ask around. You might be surprised. I was about to buy a printer, and then found out my mom just bought a laser printer and didn’t need her old inkjet … saving me close to 100 smackeroos. If no one you know owns one, try freecycle.org or craigslist.org. Then look to buy used, at garage sales or thrift shops. You can find a bargain if you look around.
6. Eat out less. One of the biggest expenses in our daily lives is eating out — the average person spends well over $2,000 a year on eating out. Restaurants are expensive, including fast-food (not to mention the health hazards). It’s much cheaper to cook your own food. Our family creates a weekly menu, then we buy the groceries, and cook dinner (and lunch) each evening. Lately I’ve even been prepping it in the morning, so it’s a snap when we get home.
7. Eat out frugally.
8. Brown bag it to work. Instead of eating out for lunch, bring your lunch.
9. Adopt a minimalist wardrobe. This tip won’t be for everybody, but I try for a minimalist wardrobe. I generally wear jeans or casual pants, a T-shirt or Polo-type shirt, and sandals or shoes. Plain, solid colors are my favorite. Everything goes with everything else, and I don’t have too many clothes. This saves me the stress of picking out an outfit, and I don’t need as many clothes.
10. Stop online impulse buys. This was a problem for me before I canceled my credit card. I used to buy online a couple of times a week. Now I buy maybe once every couple of months, using PayPal or someone else’s credit card. I’m not saying you have to go to this extreme, but realize that online buying can be way too easy (you don’t even have to go to a store) and therefore, we make too many impulse buys. Buy online if you really need something and it’ll save you money, but beware the impulse buy. See 30-day list tip below.
11. Don’t shop. Don’t go to the mall or other shopping area or department store to look around and shop. Go to a store if you know what you need, and then get out. Many times people go shopping, with a vague idea of what they want, and get caught up buying much more. Or they go just for fun, as a form of entertainment. That ends up costing a lot. It can really add up. Instead, stay away from shopping areas and find other ways to have fun (more below).
12. Use a 30-day list. To curb impulse buys, create a 30-day list. When you want to buy something, other than a true necessity (medicine or food, for example), put it on this list, with the date you added it to the list. And make it a rule that you can’t buy anything for at least 30 days after you put it on the list. And stick to it. You’ll find that you buy a lot less with this system.
13. Cut out cable. I’ve talked about how I cut out cable before. It saves me money every month (in my area, about $60, or more than $700 a year), and also forces me to do things like read and have conversations and go outside. Win win.
14. Use the library. Instead of buying books, check them out. The library often also has a great selection of DVDs (depending on your area), saving you even more. Now who needs cable?
15. Find free entertainment. Find cheap ways to have fun. Entertainment often ends up costing a lot of money, if you go to the movies, buy concessions, or go out at night, go to the bar, etc. The average person spends about $1,800 a year on entertainment (not including eating out). Now, I’m not saying you shouldn’t have fun … but there are cheaper ways to do it.
16. Frugal exercise. Exercise is important, but it doesn’t have to cost a lot of money.
17. Stay healthy. Easier said than done, I know, but staying healthy can save you tons of money on doctor’s visits, hospital bills, and medicine over the long run. An ounce of prevention, and all that. Eat healthily, and exercise. Simple and effective.
18. Commute by bike. Even if you own a car, commuting by bike will save you gas, and get you in shape at the same time. I highly recommend it.
19. Carpool or ride the bus. OK, you don’t want to bike it. So find a friend or neighbor who works near you, and arrange a carpool. Or take public transportation. Simple advice, but something a lot of people ignore.
20. Walk. Often we drive to the corner store, or to a school that’s less than a mile away. Leave a few minutes early, walk, burn some calories, and save gas.
21. Sell your clutter. This is not so much saving money as making it, but the frugal, simplifying cheapskate, like myself, will want to declutter and make a few bucks doing it. Hold a garage sale or sell it on eBay. It’s amazing what some people will buy.
22. Frugal gifting. Gifts can cost a lot of money over the course of a year. Look for ways to do it cheaply. Make a gift, or give a consummable. My family enjoys getting and giving cookies, for example.
23. Quit smoking. Not the easiest way to save, I know. It’s hard. But I did it, and so have many, many others. Not only will you save on cigarettes (which are expensive over the long run), but also associated costs (I used to buy a soda or beer to go with my cigarettes) … and of course the huge, long-term medical costs. In less than 2 years of not smoking, I’ve saved well more than $3,000.
24. Alcohol in moderation. If you drink one beer or a few beers a day, that adds up to big money each month. Some drink even more than that. It’s expensive. If you can cut your drinking to the occasional party, and once in awhile with friends (not all the time), you’ll save tons.
25. Sweets in moderation. Desserts and sweet snacks give us lots of calories with no nutrition. And we pay a premium price for that, in dollars and in our deteriorating health. Cut back on sweets (don’t eliminate them entirely of course) to save money and cut calories.
26. Drink water. Often we drink lots of calories through sodas, coffee, alcohol, juices, tea, etc. And that costs a lot too. Drink water, save money, save calories.
27. Batch your errands. Instead of running an errand or two every day, batch them into one errand day, and plan your most efficient route, to save gas and time. Also do as much bill-paying online as possible, to eliminate some errands.
28. Stay home. Becoming a homebody might not sound like a lot of fun, but it really can be. I love staying home with my family. We can do all kinds of fun things at home. Or I can spend a day alone, if the family is at school, and really enjoy it. It’s quiet and peaceful, I can read or watch a good movie or respond to comments on my blog or write. Staying home can save tons, in eating out expenses, shopping expenses, gas, and incidentals.
29. Stop using credit cards. Credit cards are not evil. And before you flame me, once again, I realize that they can be used to good purpose. If that’s how you use them, then that’s good, skip this tip. For others, credit cards make buying too easy, and end up making them buy too much.Not only that, but if you don’t pay your bill in full each month, they will cost you a lot in interest. The average American with at least 1 credit card has more than $8,500 in credit card debt. Don’t make that mistake.
30. Cancel subscriptions. With the wealth of information and entertainment online, do you really need magazine subscriptions? With all the news online, do you really need a newspaper subscription? If you can get DVDs for free or cheap, do you really need a Netflix subscription? Don’t flame me if you think you do need any of these — I’m just asking you to consider whether they’re really essential — the answer might be yes. Also consider other subscriptions you might be paying for — I’m not saying you should cancel everything, but seriously consider whether they can be canceled without much loss of value.
31. Make your own. I won’t go into all the possibilities here, but many times we buy things when really, we could make them ourselves for much cheaper if we get a little creative. Now, this might take a little more time and effort, but it can be fun, especially if you make it a family project. We recently made our own (very simple) bookshelves with only a couple of pieces of lumber, instead of buying them. If you don’t know how to make something, search for it online. You’ll most likely find some instructions.
32. Do it yourself. Instead of hiring someone to do something, try doing it yourself. Sure, it takes some time and effort, but it’s satisfying, and of course cheaper. It’s also educational, if you don’t know how to do it — again, do an online search, read up on it, and give it a go. Frugality freaks are DIYers.
33. Stop paying interest. I mentioned the interest of credit cards, and auto loans, and mortgages. I consider them a waste of money. I’ve talked about how to live without credit before, and I recommend it for a frugal lifestyle. Consider any other accounts or loans where you pay interest, and see if you can eventually eliminate as much of these as possible.
34. Reduce convenience foods. Frozen foods, microwaveable stuff, junk food … anything that’s packaged and prepared for our convenience is not only more expensive than something you cook yourself, but also most likely less healthy. I’m not saying to eliminate these completely, but reduce consumption.
35. Travel frugally. I actually don’t travel (or haven’t for years), but if you do have to travel, some advance planning can save you money. Airfare is most expensive, usually, so look to buy your ticket in advance, and look for deals. Also consider train travel. Shop around for car rental rates, as they can vary greatly (or use public transportation). Look for cheaper accommodations, or stay with a friend or relative. Just a note: I do plan to travel, but not until I finally eliminate all of my debt.
36. Cut the cell phone. This will not be a popular suggestion either. If you don’t like it, move on to the next one. It’s not for everybody. But think about this: 20 years ago, most people didn’t have cell phones. And miraculously, they survived. A cell phone is not a necessity. It’s a convenience. When people needed to make a call, 20 years ago, they either waited until they got to a destination (wait to make a phone call?! omg!), or pulled over and used a pay phone or a phone in a business establishment.
37. Cut your own hair. Again, this one isn’t for everybody. Personally, I use electric clippers to shave my head. It’s easy, it’s cheap, it’s minimalist, it’s care-free. I don’t worry about my hair getting messed up, or having to fix it in the morning. However, I’m not saying you should shave your head. Many people cut their own hair, in many simple but nice hairstyles, long or short. Saves money, and time.
38. Maintain stuff. This is a no-brainer, but we don’t often think about it: if you take care of what you have, it will last longer. You’ll then spend less on buying new stuff. When you buy something worth maintaining, take a few minutes to read the maintenance manual, and create a maintenance checklist that you can attach to the item. For important things like your car’s oil changes or tune-ups, put them in your calendar.
39. Save energy. There are little things we can do to lower our power bill. I don’t use a dryer or hot water heater, although those are a little extreme.
40. Save gas. With the rising price of gas (and no end in sight), fuel has become a major monthly expense for many people. Small things can add up to big savings.
41. Only buy bargain clothing (when you need clothes). OK, so you’re a cheapskate like me who only buys clothes when the old clothes have too many arm or leg holes. But now you need new clothing. I mean really need it. So instead of buying new, look for thrift shops with good clothes. Or buy new, but only buy the stuff that’s 50% off. Look for the bargains, and you’ll save a ton.
42. Telecommute. Telecommuting doesn’t necessarily give you your dream job, but it’s definitely a step in the right direction. But in addition to allowing you to work in your underwear (and who doesn’t have that dream?), telecommuting saves money on gas, on eating out (if you eat lunch at a restaurant), and on buying expensive work clothes (all you need to buy is underwear, right? And no, don’t buy used underwear).
43. Plan ahead. Sure, easy to say, hard to implement. But if you make it a habit to think ahead to things that are coming up in your life, you can save a lot of money. For example, if you think about where you’re going to get your meals when you go out to do errands, you can pack a lunch or dinner instead of eating out. If you pack a big container of iced water, you don’t need to buy expensive bottled water. If you know that a birthday is coming up, you can buy a gift on sale instead of spending more at the last minute.
44. Cook ahead. If you have one free day a week (or even a month), cook food in big batches and freeze in dinner-sized portions. I don’t do this all the time, but I have done it and it saves money (buying big can often save) as well as time. You have to plan it out a bit, coming up with a menu and shopping, cooking enough meals for a week or a month. But once you’re done, your meals each night (and for lunch if you like) are quick and easy. This saves you from eating out or eating convenience food when you’re hungry but too tired to cook.
45. Wash clothes less. Some people wear clothes and then wash them, but I’ve gotten into the habit of wearing my clothes more than once if they’re not really dirty. I use my nose as a test — I don’t want to wear clothes that smell, but most times the clothes are still perfectly clean. This saves on washing.
46. Sun-dry clothes. When my parents were young, everyone used a clothesline to dry clothes. Now dryers are ubiquitous, because they’re fast. But if you don’t wash a ton of clothes, it’s not that hard to take a few minutes to hang them up. You’ll save a lot in electricity, plus your clothes last longer.
47. Eat less meat. I’m not saying you have to become a vegetarian (although you could always give it a try), but once in awhile, eat meatless dishes. Pasta, vegetarian chili, vegetarian Indian or Thai dishes, falafels with hummus and pitas and tomatoes and lettuce … there are plenty of tasty dishes without meat. And as meat is expensive (well, the fresh kind is … Spam is cheap), you’ll save money on meatless dishes. Again, I’m assuming you cook with fresh meat, not canned.
48. Save on groceries. For my family of eight, groceries is a major expense. With some simple habits, we’ve been able to save a lot of money.
49. Frugal Christmas. Christmas is expensive, especially in America (if you live in an area that doesn’t celebrate Christmas with a huge amount of buying, or doesn’t celebrate it at all, skip this tip). People go on crazy shopping gorges. It’s insane. While it makes the retailers and manufacturers happy, it doesn’t make our bank accounts happy. Break out of the cycle and find cheaper ways to celebrate Christmas.
50. Eat a cheap breakfast.

How to Cut Credit Card Debt

Most Americans have too much credit card debt. We’ve all heard that before, right? Only now it’s gotten a bit personal… right again? You personally have too much credit card debt and it’s about to drive you crazy. Reduce your debt now by following these steps.

Steps

1. Keep in mind that your creditor is probably very willing to work with you. It’s in his or her best interest to have you making some payment versus no payment. So here are a couple of points to help you deal with your credit card debt.
2. Contact your creditor and explain your situation. Ask for a lower interest rate or a repayment plan.
3. Stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them out of your wallet or purse, do it!
4. Pay off the cards with the highest interest rate first and work from there. How do you do that? Call the companies and pin down exactly what rate you are actually paying on each card. This is called “Laddering”. Alternately, you can use a “Reverse Laddering” approach, where you pay your bill with the lowest balance first, then the next lowest balance, and so on. This frees up more cash in hand to start chipping down the higher balance debts you have. This method is effective because instead of paying small chunks of money toward those high interest bills, you can throw large chunks of money at them, reducing the amount of time needed to pay them off. Also, your attitude will be better because you see the results of your progress faster, and therefore aren’t discouraged as easily. You must be careful though, because sometimes the money you pay on the higher interest is more than the money you free up each month when paying off the small balances. Review your finances thoroughly, crunch the numbers, and see which method would be the most effective for your situation.
5. Keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card debt by following the common sense steps outlined above. You can do it too. Good luck.

Tips

• You might not have thought of it because you’re just naturally so polite, but it’s a very good strategy to be courteous at all times when negotiating with your creditor. Polite, but firm. Come across as one who knows what you’re asking for and expect to get it.
• If you’re not sure what you’re asking for in the first place you might consider a reputable credit counseling service. There are many honest organizations out there whose mission is to help you work things out with your creditors.
• Avoid the temptation to keep adding to the problem by running your debt up any higher. This is actually one of the hardest parts of cutting your credit card debt. It’s like you’re addicted to spending money you don’t have. So go cold turkey and drop the habit.

Warnings

• Pay more than the minimum balance each month. The minimum is designed to keep you on the hook longer. The credit card companies are in this business to make a profit and want to have you paying them for years to come. Even a little extra each month makes a big difference in the long run and may cut years off your payments.

How to Survive a Recession

The economy always has and always will have its ups and downs. It’s easy to coast through the good times, but how do you come out of the tough times unscathed?

Steps

1. Talk it over. Sit down with every member of your household and go over your finances.
   • How you resolve and differences in your approach to money will have a profound effect on your relationship’s chances of succeeding: Take a Healthy Approach to Finances in Your Relationship
   • Now is the perfect time to set an example of your children, and show them how a family can pull together during tough times and everyone can chip in: Teach Your Child About Budgeting and Get Adult Kids to Pay Their Share
2. Set financial goals. Focus on paying off debt and saving an emergency fund. If you don’t already have you an adequate emergency fund set aside, specify a goal for how much money you want to add to it every month, and put an equal amount towards paying off your highest interest debt. Pay yourself first.
   • While normally, it’s recommended that a two-income couple keep three months’ worth of expenses in an emergency fund, during a downturn the recommended time is six months instead, especially if you’re in an industry that gets hit hard by a recession (construction, financial services, food) and if you’re a one-income family. If you’re self-employed, you should set aside up to a year’s worth of expenses.^[1]
3. Cut costs. There are a number of ways to reduce expenses.
   • Cut discretionary spending. Buy nothing. Resist sales pitches. Don’t even think about using that new credit card offer in the mail, even if it does have a low APR and no payments for two years–evaluate it carefully. When you do need to buy things, haggle. But this is a good time, overall, to determine the difference between what you want and what you need, and reconsider your values - is your current standard of living really worth hanging onto?
   • Transportation - Carpool as much as you can. Consider commuting by bicycle or even living without a car. But if that’s not practical, look for ways to save money on gas, even if it means hypermiling.
   • Housing - Get a roommate or consider relocating to an area with a lower cost of living. Maybe you can move in with family members until the economic downturn blows over. Keeping the peace in a multigenerational household isn’t always easy, but it has its own rewards.
   • Food - Stop going out to eat; instead, try to cook at home from scratch more often. Consider the benefits of the slow food movement. If you don’t have enough time to cook, try doing it just once a month. Find good deals at a local farmers’ market.
4. Keep the money flowing in.
   • If you have a job, be an amazing employee. Now is not the time to slack. Show up early, stay late, and volunteer for projects. Pick up the slack for other workers; it’s what will happen when people get laid off, anyway, so now is the time to prove yourself. Look for ways to save your employer money, especially if you see your employer doing little things to that effect, like encouraging employees to turn of their computers. Try to quantify your efforts in terms of how you’ve raised profits and cut costs. Start networking so that in case you still get laid off, you have a safety net of contacts who might be able to help.
   • If you own a business, develop a risk management plan if you haven’t already. Find ways to reduce expenses, e.g. Virtualize Your Workforce. Improve Service Quality at Your Business so that budget-strapped customers will want to use your products or services through tough times.
   • If you don’t have a job, find other ways to make money fast. Focus on cutting your expenses, as described in the previous step, and consider volunteering; if you’ve got the spare time, there are organizations that will need your help, and you could establish good karma in your community.
5. Enjoy life. In order to avoid recession depression, don’t let fear control you; an intense feeling of paranoia can make you an inflexible employee and also strain your relationships. Be thankful for what you have, and make sure to have fun. Instead of not taking a family vacation, for example, take a Staycation or Exchange Your Home for Free Vacation Accommodation instead; invite your family to think of creative ways to save money without skimping on happiness. Accept difficult times as a challenge for your fortitude and adaptability.

The Financial Crisis Diagram

If you’re like most people, you don’t really know what’s going on with the economy. You know there’s something to do with loans and payments and what not, but not much else. Mint (the financial management app) and Wallstats (the guy who does the Death and Taxes poster) put together a “visual guide to the financial crisis” - or a flow chart, rather - to clear up some of those cloudy details. It goes back to 2003 after the dot-com crash up to the recent government bailout.

How to Be Happy

Everybody gets moody. That’s why people go on diets, spend too much money for clothes, or suck up to popular people - because they think it will make them happy! Instead of striving for happiness it often comes to us! However, the more you get to know people around you, the more you will see what makes even the happiest people crazy.

Steps

1. Keep your thoughts reasonable and think positively. If you catch yourself thinking that things aren’t going to work out, then think again. Remember that most things work out better than you fear - so imagine that your fears are ungrounded and success is real. Rather than thinking of the problems and getting desperate, imagine the best outcome and then work out what you need to do to make that happen. Follow your instincts. If the thoughts you are thinking are not giving you that ‘good feeling’, then think about something else that will make you feel good in that moment. Observe your thoughts and ideas consistently throughout the day (diary/journal if possible). Sometimes this may not be as easy as you think if you are stuck in a “negative” train of thought and your brain chemicals are getting fired up and forming “anxiety or anger” thoughts. Anxiety, fear and anger patterns can be interrupted by focusing on something else. This will dissipate the rush of chemicals that are making you feel bad. Immediately then go back to picturing scenes/remembering things/imagining, planning stuff that makes you feel ‘good’.
2. Be a big giver. It is possible giving time and resources to others who need them will contribute more to your happiness and creative outlook on life than almost anything else. The key to successful family relationships is giving time to others. Give your time and give yourself up for friends, family and others who may be in need. Spend time with your family and other positive people in your life, and recognize they are your most valuable worldly asset. The happiest days of our lives, when we really dig down deep, is when we see the smile on the face of a child who has nothing and you have given them something of immense value to them such as reading them a book, it means you love them enough to give of your time. Serve at a rescue mission and you will learn the meaning of “I cried because I had no shoes and then I saw a man who had no legs.” Give and it will be given unto you. Isn’t it true the happiest people we know are typically the ones who for some foolish reason are always ready to give you the clothes off their back? And frequently it is true that the most discontented people are the ones who are selfish, demanding, and inconsiderate of others. So form the habit of being a Big Giver and you will know one of the secrets to successful happy living. In media, common terms include: ‘you are what you radiate’, ‘you live what you give’ and ‘everything comes back to you’.
3. Don’t lie to yourself- see everything for exactly what it is. You have friends and family who love you. Learn how to be thankful. Think of all the things you have to be happy about. Relax, calm down, take things slower. No one has everything, and everyone has something of sorrow intermingled with gladness of life. The trick is to make the laughter outweigh the tears. We cannot change the past, but we can enjoy today, and look to the future. If we are prepared to take ownership for the past and accept that everything that’s happened in our life, good and bad, has made us the person we are - the battle is half won.
4. Lighten up. Don’t take yourself too seriously. Try not to over analyze things. Stress can cause many mental, physical, and spiritual problems in your life. One of the major causes of stress is worrying about things that are out of your control. Learn to recognize these things and if you can truly do nothing about them, then just let them go. Take time to laugh at yourself and the situations you find yourself in. Laughter is a powerful, positive medicine and the calmer and more peaceful you can take things, the happier your life will be. It wouldn’t be life if some bad things don’t happen.
5. Be yourself. You can’t please everybody. Much criticism is caused by people who are discontented with themselves, not you. Comparing yourself to others is rarely accurate in your personal life. In the first place, no one knows what other people are going through. More importantly, when you compare yourself to other people, you often see yourself on the “short end”. See how this is not helpful to you or your goals. One way to get ‘in touch with yourself’ is through journaling, diaries or (lately) blogs. Your goal may be to open up completely to yourself and learn to be your best friend by knowing that the truth (to yourself) will set you free from fear! Practice self-acceptance - or learn to transform from mistakes. Find ways to enjoy things you are uncomfortable with. You’ll respect yourself for getting through challenges, and that self-respect will make you happy.
6. Make a scheduled time every day for relaxation. This is a good time to go over any therapy that you’re working on. Having a “relaxation/meditation” time or a “quiet time” every day strengthens you, allows the stress and tension in your life to evaporate, and keeps you more in a positive frame of mind.
7. Get a job you love. Some research says 80% of people dislike their jobs! Having a job that makes you look forward to your day when you wake up in the morning is important to a happy, fulfilled life. Making special time to enjoy interests, hobbies, and family, makes life happier.
8. Develop a strong relationship with your family. That includes trust. If you are in an abusive family, you must find a way to stop the abuse and that may include separation. If you want a stronger relationship with your family, you’re going to need to be honest with them. Tell your family about your life and don’t insult them - it hurts them just as much as it hurts you to be insulted.
9. Choose the right companion. Get involved with activities that reflect who you are, and get to know people who like the things you do. When forming relationships with new people, take things slow.
10. Choose your friends carefully. Nearly everyone needs someone who cares for them and treats them well. If you have friends who are treating you badly, or are not supportive of you and your goals to improve your life, then ditch them and find friends that do care about you. If you can’t find any friends like that in your current circumstances, then look elsewhere. If you’re feeling sad, there’s nothing like going out with your friends to make you feel better. Surround yourself with friends who are positive, encouraging, and helpful. We all need this continuing, positive encouragement to make solid positive progress in life.
11. Do what you can for those less fortunate than yourself. Volunteer at a hospital or be a part of a program, which takes care of patients in some way. When you leave the hospital, you will be so much happier knowing that you’ve done something meaningful, something someone else can appreciate. (mentioned above).
12. Wish the best for others and mean it. It is so easy to be jealous and petty and forget to celebrate the good fortune of your peers, friends and family.
13. Keep learning. Whether it is a new hobby or a new dance, just keep learning something that interests you. Just find a new interest and go for it! It will give you something to keep you occupied, and a new outlook on life.
14. Set goals. Live up to them. When you accomplish a goal, it’s a great feeling. If you put all your failures down to other people, you put yourself in their power. Take responsibility for when things go wrong in your life, and do things different next time.
15. Be healthy. Give your body and mind what it most needs in order to function in an “optimal” way. “Optimal” in this case means being the healthiest you can be, and the most balanced you can be. Eat healthy, with lots of fresh fruit and vegetables. Get plenty of exercise.
16. Strive for long term goals rather than short term satisfaction. It’s very easy to gain short term satisfaction, a quick high, a fast relief from your current problems (such as drugs, alcohol, sex). But it is what it is, a “short term” satisfaction, its effects die out very soon, leaving you again with this empty feeling. Set long term goals, set goals which take time, thought, and effort to achieve. This will make you continually work towards improving yourself bit by bit and will give you the satisfaction of bringing a permanent change in your life.

Tips

• Try thinking of a creative vow and write it down. Make it something like: I vow to give at least one compliment to someone each day and I’ll try to control my anger by counting in my head before reacting.
• If you have problems saying your feelings and opinions to other people, learn the techniques of self-assertion, rather than using anger or avoidance by holding your feelings and thoughts inside you.
• Take up a spiritual practice. Research shows that people who meditate have a somewhat detached approach to the problems of this life, and are calmer, happier and more contented than usual. Turning to a higher power, closing your eyes and thinking of artistic images, doing deep breathing, etc. can give you a sense of peace.
• Try to make someone else happy and you will feel happy for achieving something!
• Research suggests that happy people have a simple mental strategy towards life. When they think about something good that happened to them, they explore how they personally contributed to that good feeling and feel happy about themselves.
• Listen to music that makes you feel good. When you wake up, put on some uplifting / upbeat music.
• Be honest with yourself. Is there something that is keeping you from being happy - an addiction, a bad habit, or insecurity? Acknowledge it carefully first - then take action to change it!
• Smile! It’s contagious and takes less effort than frowning. Stressing about things out of your control rarely makes things ‘better’.
• Get the correct amount of sleep every night. This varies depending on age, gender and exercise - but too little or too much is hard on your body. Practice good sleep hygiene
• When you receive a compliment from others, accept it and say “thank you”, with a smile.
• The true key to happiness is acceptance - learning to be grateful for what you have. A lot of people know it but don’t keep it in their minds. Comparing your life with others is dangerous. Accept the gifts you have and know that no one is better than or less than anyone else.
• Make new friends and communicate with them. Talk to them about your life and Listen to them talk about their life.
• Get out of the house - hang out with positive people, do something outdoors, visit a park… Variation in your routine will break up monotony and relieve boredom.
• Even in the most terrible times, do not turn to alcohol, drugs, internet, or anything else that is addictive, abusive to the health of you or others. Bad habits grow like weeds - they are easy to get, but hard to get rid of. Many addictive ’solutions’ can make your problems much worse.
• Keep a “Gratitude Journal”. Every day write down a few things that you are thankful for and then review what you have written in past entries. It’s a great way to remind yourself to be thankful for what you have and to boost your mood! For extra challenge, find creative ways to give back to these situations or people.
• Remember a happy thought is ‘creative’ and ‘powerful’. A negative thought ‘destroys’ and reduces power. Find out where you would rather keep your mind.
• Create something: some artwork, make a scrapbook of pictures, sing your heart out, dance manically until your feet and body give way or perhaps cook a delicious meal for people you love.
• Learn how to feel and experience all your different senses in the best possible way: sight, sound, taste, touch, smell (relaxation & ‘full minded’ meditation practice).
• It is always good to live in the moment-if you have a big stresser coming up, you may be really worked up about it. For example, if you are at Cedar Point for the day, but are too worried that you failed your Algebra exam, you may be too nervous to enjoy your ride on the Raptor. Just put off worrying until you have access to your grades. Often times you get too worked up about it and realize that you got a B.
• Never ever be bored: always have something to do, somebody to talk to or hang out with. Listen to music and dance your heart out. Live your life the way you want to. Not somebody elses version of living, but instead, your own. Be yourself, no matter what. That’s the most important thing.

Warnings

• Happiness begins from within. If you don’t accept what you have or who you are, then you will never be truly happy with anyone else.