The last few days we’ve gotten a lot of rain here in Central Florida and according to the local weather forecast, it looks like we will be getting a lot more rain soon. We’re spending the weekend getting our hurricane supplies in order just in case we need them. We’re keeping our fingers crossed that Fay will head elsewhere….

From the Frugal Blog Network this past week:

Tight Fisted Mister is having a charity drive. Frugal Babe is working on some rainy weekend projects. Almost Frugal writes about five frugal toys using food. Antishay Ventenne was taking a break this past week.

We participated in the Carnival of Personal Finance this past week which was hosted on No Debt Plan and in the Festival of Frugality which was hosted at MoneyNing.

If you liked this article, please
Subscribe

Share This

One of the hardest parts of learning to being fiscally responsible is breaking free from the payment mentality. Becoming mired down in monthly payments creates a cycle seems almost impossible to break free from. Because you always have a payment to make, you are never able to save up enough money to pay cash for your next big purchase. Then, when the time comes that you have to make a large purchase, you are forced to finance it and begin the whole cycle again.

How many times have you decided if you could afford something based solely upon whether or not you could afford its monthly payment? You didn’t stop and evaluate whether or not you could afford to spend $2,000 on a new television. Instead you considered the $50 payment. “I can do that,” you thought to yourself. Never mind the fact that you’ll be making that $50 payment for the next four or five years.

To help you learn to get away from the payments mentality here are a few things you should consider before you finance any purchase:

You should never finance something for a longer length of time than you will use it. If you typically like to change cars every four or five years, you shouldn’t take out an auto loan that extends into six years. Likewise, you shouldn’t finance the purchase of a new computer in a way that will make the payment stick around longer than the computer’s technology.

Determine how much you can afford to pay for an item without regard to the cost of its monthly payment. Everything sounds affordable when you break it up into tiny monthly payments. When shopping for a large purchase, don’t be tempted by the payment amount. Know how much you can afford to pay for the item and resolve to stay under that amount.

Financing yet another item will require you to wait even longer to rid yourself of those pesky payments. Imagine this scenario for a moment. After struggling for a year to pay off all of your debt, you’ve finally made some progress. You only have one monthly payment left. Then, in a moment of weakness, you succumb to temptation and finance the purchase of a new range. You could have bought a slightly less flashy model and paid cash, but you decided to go all out and buy the latest and greatest version of range. Now, you’re locked into another three years of payments. You’ve just derailed an entire year’s hard work.

If you liked this article, please
Subscribe

Share This

It’s been a busy week getting the kids ready to head back to school. We’ve had fun shopping for school supplies and checking out the store sales to see who has the best prices. I noticed that my local Target has all but cleared out the patio furniture and the clearance sale on the toys is in full swing. On to the weekly roundup.

From the Frugal Blog Network:

Kelly from Almost Frugal launched a new blog, Almost Frugal Food. She’s going to feature an ongoing recipe exchange and is kicking things off with a contest. Looks like fun…..er, I mean yum!

Shanti shares how she bought a motorcycle and is so happy she has learned to buy things with cash…You go girl! Enjoy that bike without letting the feeling of debt drag you down.

Frugal Babe lists the ways her family has been thrifty and green. I haven’t tried using baking soda to wash my hair, but I think I may put that on my list of things to try. We have lots of allergies in our family so fragrance free and chemical free products are greatly welcomed here.

Tight Fisted Miser tells how to see movies cheaply or even free. I especially like his idea of using store promotions to score some cheap tickets.

Not Made of Money participated in the Carnival of Personal Finance this past week with our article, Storing Your Financial Documents: What to Keep and What to Shred. The carnival was hosted at Squawkfox with a theme of “City Slickers”. You have to visit the carnival to read the plethora of personal finance articles as well as to see the fabulous pictures of farm life. Reminds me of the good days back on the farm. Here are my top picks from this week’s carnival:

Cathy at Chief Family Officer provides yet another example of why everyone needs an emergency fund. Emergencies come in all shapes and sizes; it’s better to be prepared for whatever life is going to throw your way.

Michael at Beyond Paycheck to Paycheck answers a reader’s question regarding saving on one income. I agree with his reply 100%. We’ve been living on one income for 12 years now and savings are built right into our budget.

We also participated in the Festival of Frugality hosted on Frugal Homemaker Plus. Our entry “Five Fun Things to do on the Weekend That Don’t Cost a Dime” was included in the festival. Here are my favorites from this week’s festival:

Restoring Your Finances writes about a topic close to my heart: using coupons to save money. Of course, it helps to always have those coupons ready as you never know when a great deal will present itself in the clearance aisle.

Gather Little By Little shares a handy little list of money saving tips. I especially enjoyed the tips on remodeling and home maintenance since we are considering some home improvements here in the NMOM household.

If you liked this article, please
Subscribe

Share This