Living on Less – Debt and Savings

It has been six weeks since Christmas.  So, in January were you facing some credit card bills from Christmas spending?  Are you going to be paying over the next several months for a holiday that is now well in the past?

A big part of frugal living is learning to live below your means and thereby being able to put money into savings and towards debt repayment.  But how do you do it?  How do you refrain from buying stuff and put as much money towards savings and debt repayment?  Well, look around your home.  My guess is that you have all that you really need.

I can give a lot of tips on how to save money, but you really have to reach a point that you want to buckle down and save money and pay off debt.  It’s like losing weight, you won’t be successful until you reach that point that you can’t live with the extra weight and want to get healthy.  The same is true of money.  You have to reach a point that you choose to no longer live above your means, on credit.  You need to take all of your expenses and face them, make a conscious decision to “lose the debt” which means you will need to go on a money diet.

It won’t be easy, but if you take 1 day, 1 week, 1 month and year at a time, take it in bits and pieces, it will be manageable.  You can sit and wish that you had money in the bank and no credit card debt or car loans or you can act today to do something about it.

Imagine what your life would be like if you quit spending money on the unnecessary things, quit going out to eat, buying clothes you really don’t need and other items and you bank that money?

I have a blog and many of my blogger friends are taking February as a “No Spend Month.”  They are reducing what they spend on variable expenses, only buying what is absolutely necessary, and putting as much in savings as possible.  This is becoming a trend to jump start a savings account.

Begin with writing down all of your expenses and total debt amounts along with the payments.  Divide your expenses into fixed (mortgage, car payment, utilities, debt payments, etc.) and into variable expenses (food, entertainment, clothing, etc.).  Look at those variable expenses and see if you can cut back on spending in order to put money into savings for an emergency.

I have given tips over the past several months on how to save on groceries and entertainment.  Those are two areas that you can really cut back on to save money.

This week make up some menus before you go grocery shopping.  Make your menus from items that are on sale in the grocery ads to get the most value for your dollar.  Then go to the store, alone, and buy only what you need.  Try store brands.  You may be surprised to find out how good they are.  Most importantly, do your best to only go to the store once this week.  If you plan ahead, you won’t have to keep going back.  Each time you enter a grocery store, you are tempted to buy more stuff.  The money that you save, put in the bank for your emergency fund. 

Then after you have some money in savings, start working at making extra payments on one of your debts, perhaps a credit card with the lowest balance, and get it paid off.  Then take the money that you no longer use for that expense and add it to pay off the next debt.  Tackle one debt at a time, being cautious not to add any more debt along the way.  After seeing credit card balances go down and being paid off, you will be motivated to buckle down and do more.

It really is as simple as that.  But like a food diet, it takes willpower.  The payoff is peace of mind, which to borrow a phrase from a commercial, is Priceless.

I love Saturday Night Live.  I was in High School when it debuted.  Yes, that was a long time ago.  Many of the sketches over the years have become legendary.  My favorite is Peyton Manning dancing in the locker room.  However, this sketch about money is funny, because we can see ourselves in it.  Go to this link (be patient – it takes a moment) to enjoy Steve Martin and Amy Poehler in “Don’t Buy Stuff…..”

And —- here is a great chicken recipe.  I know that this recipe is going to sound weird, but this is the most fabulous chicken recipe and the sauce is to die for.

Company Chicken

6 boneless chicken breasts

6 pieces of dried beef or beef lunch meat (such as Buddig) (I have also substituted ham slices.)

6 slices bacon

1 can Cream of Chicken soup

1- 8 oz. carton Cool Whip

Pound the chicken pieces til they are flat.  Lay a piece of dried beef or beef lunch meat in the center and roll up the chicken breast.  Wrap a bacon strip around the rolled up chicken breast and secure with a toothpick.  Place these 6 chicken breasts in a 9 x 13 inch pan.

Fold the soup (undiluted) into the cool whip.  Then spread the cool whip mixture over the chicken.  Bake at 350 degrees for one hour.

Serve with carrots and wild rice or mashed potatoes.