Money and Tax

All the talk about the lousy economy is getting on my nerves. I don’t mean to wreck anyone’s pity party, but I think we need to take a different view on this mess. It isn’t necessarily going to be the best time of your life, but there are so many things we can do to manage the situation, it doesn’t have to be the worst time for us either.

If you haven’t already moved on to another blog, you’re probably interested in knowing what I’m chirping about. It’s simple: we can cry in our beer, or we can use this harsh lesson in economics to teach us how to live better. That’s right, I said better. Are you with me?

First there is the obvious lesson: don’t live beyond your means by using credit to boost your lifestyle. But beyond that, many of us are finding some pretty innovative ways to live on much, much less and be just as happy – or even happier than we were before. It’s all a matter of perspective.

Although I gave up my credit cards for a cash existence long ago, even I have found new ways (and retreated to some old ways) of living on less and enjoying it. Here are some of the relatively painless things I’ve done or I’ve seen other people doing lately:

1) Spend a few hours each weekend pre-making dinner meals for the week. Freeze the main dish for each night & establish a habit of taking the next day’s meal out to thaw in the refrigerator the night before. The first couple of weeks will be the hardest to come up with: make up index cards listing main & side dishes for each day. After a month you’ll have a ready-made set of menus to choose from when you’re pre-cooking. You’ll be amazed at how much stress and how many trips to the grocery store this will shave off your busy week nights!

2) Spend an hour or two every weekend clipping coupons from the Sunday paper and printing them from web sites like coupons.com. Organize them in a coupon wallet that you take to the store with you. Check your local grocery ad circulars and try to match the coupons to the killer deals offered that week. Plan your menus accordingly.

3) Check with your local utility company to see if they offer any energy-saving packets, CFL bulbs, coupons or rebates for energy-saving devices. Many are treasure troves of free goodies that are there for the asking. If you meet the guidelines for “low income” (this is NOT poverty level – the limits are much higher), there is probably at least one special program offered in your area that will provide free goodies and help pay your energy bill. Your utility company can tell you what programs are in your area.

4) Start paying attention to your energy consumption. Watch for ways to cut back on your energy bills, both summer and winter. Shorter showers, using “no heat” drying on the dishwasher cycle, sneaking the thermostat down just two degrees, and many other tiny changes will make a noticeable dent in your energy bills. Unplug toaster ovens, coffeemakers, phone chargers and other seemingly minor appliances when not in use.

5) Try cutting out every third lunch at the diner or deli counter. Do the same for your daily coffee. Don’t try cutting out all the frills at once unless you absolutely must. Missing every third coffee or purchased meal will hardly be noticeable and you’re more likely to keep the new schedule habit if it isn’t really painful.

6) Spend more time at home. Establish a family game night and a family movie night to replace more expensive activities. Again, don’t cut all activities at once if you don’t need to. Play with your kids more. Start going to the public library once a week with the family to check out books and DVDs instead of buying them. Spend more time reading! You’re already online, so start getting more of your reading done on the Web.

7) Transfer credit card balances to your lowest-interest cards with the smallest annual fees. Fill a coffee cup with water, put all but one or two credit cards in the water and put it in the freezer. Use the remaining cards only for dire emergencies or for purchases you have already set cash aside to pay for when the bill arrives. Make no exceptions. Keeping most of your credit “frozen” will force you to think (and thaw) before using them. Start paying them off instead of using them for things you don’t actually need.

Establish new spending rules as a family. Even a kindergarten-aged child can understand new rules. Let the kids help find ways to save money. You may be surprised at how helpful they can be. Present the new spending plan as a positive challenge, not as a frightening reality. If the kids see it more as a game or competition, they’re less likely to worry that something is wrong. Nothing is wrong: it’s just different.

9) Establish a budget and stick to it. This sounds like a death sentence to many people, but it honestly will be one of the most freeing things you can do for yourself if it’s done right.

10) Watch this blog for the most painless budgeting plan you’ll find just about anywhere. I’ve done all the hard work for you, so all you’ll have to do is fill in the blanks. Coming very, very soon…

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