One Month Down

As you may recall, my wife and I have declared this the year of getting out of debt. January has come and gone, and it has been an interesting ride thus far.

I cannot say we made significant progress in decreasing our liabilities. This is mainly due to the fact that our businesses are extremely seasonal (winter being our low season). And, while our income is at a minimum, our bills and expenses continue to be the same. Add to this some advertising opportunities we wanted to take advantage of.

Therefore, this month's focus was on monitoring our spending. We only spent money on that which was necessary. We kept a very close eye on our grocery budget and only ate out (fast food) when we had no other choice.

This month we said "No" to:

A Friday fish fry (and going out to eat in general) x10
New cell phones
The Wynn's $109/night deal (not really!)
Arby's
Drumstick ice cream bars
Going to the movies
A Juicy Couture swimsuit (for Monica)
Using a really good coupon to Express for Men
Bath & Body Works hand soap
A couple books

We've found that staying out of the malls and stores has helped a lot. Even staying out of the grocery store has kept us from buying unnecessary food, thanks to Peapod.

I have been working a part-time job and am also working on a new business idea that should help us make significant strides.

This month has taught me the importance of discipline. In order to balance everything I have going on in my life while keeping a close eye on our spending, I need to keep a thorough calendar of each day's events. I'm trying the block schedule approach suggested by Liene from The Smart Planner.

It's hard to say what February's focus will be. My income will go up this next month compared to January. With this extra income, I think the trick will be deciding how much should go toward our debt and how much should be saved for future expenses.

How has your year started financially? Have you been monitoring your spending more closely?

$$ for your old ink cartridges

You may already be familiar with Office Max's incentive program MaxPerks. If not, it's basically a card you swipe with every purchase and you receive 5% back to spend on more office supplies. (The shopping list is always endless, right?) Occasionally, they will offer up to 25% back on certain brands or items. If this isn't worth it, the valuable coupons they send out definitely seal the deal.

Also, I found out the other day that for every empty ink or toner cartridge you turn in at the store, they put a $3 credit on your reward balance. You can turn in up to ten cartridges a week. This can really add up over time - especially if you have access to some cartridges from the office or elsewhere that are getting thrown away anyway.

Don't Buy Stuff You Can't Afford!

I'm sure you've noticed all of the deep discounts in the stores. But take this into account.

Sometimes things can be confusing when they are put into the simplest of terms. Hopefully, we as Americans can let this one sink in...

Extra Holiday Cash

So I said I would give my own suggestions for making some extra cash in hard times. This was in response to the ridiculous article I read in Travel & Leisure. Running a seasonal business, my mind is trained to think outside the box on how to produce additional revenue streams. Here are a few ideas...please feel free to suggest your own in the comments section.

1. eBay, eBay, eBay. A marketplace to the world. Search your basement for things you can get rid of. I recently pulled out the Handspring Visors my wife and I had in high school. (Trust me, they were cool back then!) I can't say they will bring a lot in an auction, but the longer I wait, the less value they will have. After you sell off your extra possessions, think about other things that would sell on eBay. Last year, there were some very popular Sports Illustrated Magazines featuring Brett Favre. These were in high demand in Wisconsin at the time, and I took advantage of that. As I found them on the magazine rack, I bought them all and sold them on eBay. It sounds pretty crazy, but I made a mortgage payment in the process. What's in high demand right now, and in your specific area? Nintendo Wii or Wii Fit? The latest Barbie? Think about it.

2. Deliver pizzas. For you Dave Ramsey fans out there, you know exactly what I'm talking about. The holidays are a perfect time to pick up this short-term or maybe long-term position. If you work a 9 to 5 this will work out even better. You might argue that you won't have any time for your spouse if you take on this extra job. The two of you can do this together! While this isn't the most practical method, at least you can spend this time with each other. Play some podcasts of Dave Ramsey in the car while you're at it.

3. This falls close in line with number one, but consider how popular Craigslist is. For those bulkier items or even pieces of furniture, offer them for sale in your local community. You don't have to worry about listing fees or shipping. They can pick them up right away and you'll have cash in your pocket.

4. On the flip side of selling stuff on eBay and Craigslist, think about all the things you can purchase on these sites. I challenge you to take inventory of everything you purchase in a two-week period and then search for those items on eBay. You will be amazed at the savings. You will certainly have to think ahead on some purchases, but it won't take long to get into the habit. An example I have of this are my Gillette razor cartridges. At Target they sell for $15.50 for a 5-pack. I can get them on eBay for under $1 a piece. Considering they last me less than a week, this adds up fast.

I will leave you with these four ideas for now and add more in the future. The opportunities are out there. But it won't always be a breeze. As I like to say, if it were easy, everyone would be doing it. It's simple to talk about doing one of these things, but go ahead and take action. Your work will pay off in the end.

Need cash now?

I was reading the latest issue of Kiplinger's Personal Finance magazine today and came across an article that discusses "A Dozen Timely Ideas on How to Pay Unexpected Bills and Weather Tough Times". I must say, I was actually excited (in an extremely nerdy way) to read the article and was hoping to read about something I never thought of. After all, it is my slower time of year and extra cash is always a good thing.

To my extreme disappointment, the article was full of unwise and impractical solutions. Six of the twelve "ideas" involved borrowing money in some way. What a novel idea--If you need some extra cash to pay your bills, ask your friends and family. Or better yet, idea #10--Borrow From Strangers. They then went on to describe a kid who mass emailed 10,000 people (illegal) and asked them to each donate $2.50 for his college tuition.

Other ideas involved taking money out of your retirement funds (which you can do, but for a penalty) and selling your investments (horrible time for that). And the worst idea of them all--Cash Convenience Checks. You are setting yourself up for disaster by using one of those blank checks that come with your credit card statement. The interest rate is usually very high and there is typically a fee you need to pay just for the convenience (around 3%-4%). And in some cases, when you pay credit card company back, your payment will be applied to your normal credit card purchases first, then toward the convenience check.

Number 12 on the list was "Sell Your Stuff". Finally, something that makes sense. I'm pretty sure I would donate plasma before doing anything else on the list. This article got me thinking and I will be working on my own list of things you can do to make some extra cash for the holidays or just to help make ends meet.

Smart Couples Finish Rich

I would like to recommend a great book for those couples who are ready to do what it takes to get out of debt and do what it takes to have a bright financial future. Smart Couples Finish Rich, by David Bach, helps couples learn how to work together with common goals. Bach shares practical ways to save today and how to build those savings into future wealth. You'll love the simplicity of "The Latte Factor" and you'll be intrigued by the chapter entitled "Increase Your Income by 10 Percent in Nine Weeks".

This isn't just for people who own their own businesses. In fact, if you receive a weekly or bi-weekly paycheck, it should be even easier for you to budget your dollars and start putting away savings today.

Go on and take the challenge. Your patience and determination will be well worth it. If not for yourself, do it for your kids and future generations.

Cost to Drive

I came across this website today that calculates the cost (of fuel) to drive from one point to another. Enter the start and finish addresses and your car model and it calculates it all for you based on the distance travelled, fuel efficiency of your car, and the average price of gas in your area. It isn't exact, but it's close enough to possibly give you a new perspective on travelling across town to enjoy your favorite barbecue joint...

...then again, maybe not!

An Excuse to Drink Starbucks

I cannot say I am addicted to coffee or ever need a Starbucks "fix". But I do enjoy a caramel macchiato every once in a while and I definitely fall for the overall atmosphere of the place.

What's more is I don't feel guilty about spending the extra $3.50 because of my Starbucks Duetto Card. It's both a Visa card and Starbucks card in one. 1% of all purchases is loaded onto the "Starbucks side" of the card. If this isn't enough of an incentive, you automatically receive $25 loaded onto the card after your first Visa purchase.

I only recommend this, of course, to someone who plans on paying off the bill every month. I certainly don't condone a credit card bill that rolls over each month. So please, use with caution.

There are obviously other credit cards with cash-back and other perks available. This just happens to be one that works with my lifestyle.

Do any readers use this card or use other credit cards with points or cash-back? Please share.