Many years ago, but still within the last 60 years, only 50% of our GDP was based on spending. People purchased less and still lived well. Savings accounts were flush. Stress was a word most people didn’t hear very often. The middle class made up the majority of people in the country. Those were the good old days that everyone talks about. Many people want to return to the kinder, gentler days of yore.

Is it possible? Yes, if you embrace frugal living. Our government wants us to spend, spend, spend  in order to end the recession, forgetting that spending is what got us into this mess in the first place.  Frugality, however, is the new buzz word among fiscal scholars (regardless of the fact that Uncle Sam is spending beyond it’s means). Our economy needs to recede. We need to build our exports and curtail our imports. Many businesses must fail, weeding out the good from the bad, the necessary from the frivolous.

I find it interesting that so many people go on vacation in order to slow down their pace of life. They seek out the life of long ago in old Tuscan hill towns, the ambiance of sidewalk cafes, the solitude of unwalked beaches, when they have to ability of creating exactly the life they seek here and now if they would only adapt a frugal lifestyle.

Frugality does not mean cheap.  It doesn’t mean depriving oneself. It is, in fact, almost the exact opposite. Purchasing one coat of exceptional style and quality that will last for a long time as opposed to buying four cheap coats that wear out in two years is an example of frugality. Taking the time to plant and grow a vegetable garden in order to reap it’s rewards is being frugal. Purchasing a fuel-efficient car to save money and the environment is being frugal. Less shopping, less stuff means more time and money to spend enjoying life every day, not just on a vacation.

So, if you’re not doing so already, why not join those in the know and get frugal. If you’re not sure where to begin, Frugal Living for Dummies will help get you started.

Happy Savings,

Candee Lynn Wilson
The Saving Lady

www.101WaysToSaveMoney.com
www.SaveMoneyOnAutoInsurance.com
www.Save-Money-On-Groceries.com

Have you been considering a home purchase? Are you trying to time the market waiting for prices to bottom out? Do you know what your risks are?

If you’re in the market for a new home and are sitting back waiting for home prices to fall even further, you may be cutting off your nose to spite your face.  The risk that you take by waiting is that interest rates will rise one point or more wiping out whatever savings you may have realized by waiting for home prices to go down. In addition, higher interest rates, when they do arrive, will no doubt be with us for a long time.

If you are a first-time home buyer,  you may never have another chance to  rake in the windfall that Uncle Sam is so generously providing — the $8000 tax credit which, as of May 20, 2009 can be applied toward a down payment. You must buy, however, before January 1, 2010.

So, should you buy a home today or now, if your finances are in order and your debt under control, the answer is an unequivocal “YES!”

Bad Credit Home Equity Loans is another site that preys on the consumer with poor credit. These sites abound on the Internet because it’s so easy to sucker someone into a bad loan or mislead someone into a credit repair scam.

The site has very little useful information and appears to do nothing more than redirect a visitor to affiliate sites. Unfortunately, even the links to the affiliate sites are mostly broken.

Had the owner of the site put more effort into developing good content and steered clear of the pure profit motive that is the obvious intent of the site, the subject matter might have been truly appreciated in today’s economy.

As both a real estate broker and mortgage broker, I know the importance of good credit in securing any kind of financing, especially today. Lenders have pulled in their horns on most loans even for people with fairly good credit.

For people with bad credit, now is the time to sit back and determine what caused the credit problem and work over time to repair it — not through some scam credit repair service, but with good credit practices and time. For those who can’t manage their debt, Consumer Credit Counseling Service is a reputable organization that has been around for a very long time. They can’t improve your credit score, but they can help you get out of debt if you’re unable to do it by yourself.

Happy Savings,

Candee Lynn Wilson
The Saving Lady

With the credit crunch having hit hard, everyone is feeling the pinch. Prices for everything from living costs, to food and fuel are steadily rising and as a result, people are finding it increasingly difficult to make ends meet. However, there are a few things that you can do to ease the strain and make your money go that bit further.

First things first, you need to get your personal finances in order. This includes ascertaining exactly how much you bring in every month and balancing it against your outgoings. It is important here to prioritise your expenditure, so make sure you write down any bills that have to be paid, like your mortgage or debt repayments.

Indeed, it is vital that these are paid first, since neglecting to settle the mortgage or rent on time, for example, could see you lose your home.

The next step is to see what hidden extras you can cut out of your monthly outgoings, i.e. coffee on the way to work, buying lunch everyday or going out at the weekends. These types of activities can be considered luxuries, and it is far cheaper to make a packed lunch at home, or a flask of coffee. Equally, inviting friends over to your house is a much more cost-effective option than heading to a restaurant or going to the pub.

There are, however, certain things in life that you simply cannot prevent purchasing just because money is tight. This includes such items as car or home insurance, credit cards if you have existing debt on them, or gas and electricity; however, it is still possible to pay less for such items. Take your car insurance policy, for instance. When was the last time you actually reviewed your current package to see what exactly it is you are paying for?

The internet is a great tool for searching for such things such as online car insurance quotes. In fact, not only can you obtain a number of quotes but you can also save money by applying online.

So, by spending just a little bit of examining your finances, as well as conducting time for a bit of research, it is easy to take control of your cash.

About The Author
Victoria Cochrane writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

Do your children nag you constantly…… “Mummy, buy me this!” “Daddy, buy me this!”
Many children imagine that money grows on trees or magically comes out of a wall. Parents need to plan ways to teach children about money at an early age. It’s one of the most important skills in life. Start inculcating values in them early at an early age. The average child starts to learn about the value of money from as small as four or five or even younger.

Some parents provide their children with pocket money to teach them its value, to be responsible and develop important skills such as learning to budget and save.

Teaching Children to Save

Teach your child to save part of their pocket money each week. For young children a piggy bank is a fun idea or for older ones, a bank account. Learning to save for purchases teaches the basics of life - the need to save for things.

Parent’s examples and decisions are also an excellent teaching aid. If you’re always spending, children will automatically to do the same.

Young children do not realise the financial commitments you have and these need to be explained. Shop with your children - let them know why you decided not to buy a certain item that tempted you. Explain that after considering having to pay for the groceries, rent or mortgage and petrol, there was not enough spare money left. You have taught them the valuable lesson of budgeting and delaying self gratification.

Talk with your children about advertisements on the TV and in the junk mail. Teach them the purpose of advertisements - to get you to spend money. Reason with them that they can’t always have everything they see.

How much Pocket Money?

Some psychologists suggest $1 per year of age but this is excessive for large families or low income earners unless you expect your child to pay for certain things.

Teenagers are often paid an allowance by parents but are expected to pay for their bus fares, clothes, toiletries, mobile phones and entertainment for example, teaching them financial skills. Their spending needs to be monitored by the parents and when they overspend let them know you’re not always going to bail them out - therefore teaching them very valuable lessons.

When your child is old enough, open a bank account and encourage goals to save up for something. Kids in their late teens may want to save for a car.

In a Nutshell

Many young people have no concept of money or very low financial skills with debt becoming more prevalent amongst them.

Ultimately it’s the parent’s responsibility to teach children the most important skills in life - the value of money.

About the Author
Jennifer Steenland is the Director & Manager of Savings Mart, a money savings tips website for Australia, providing Bargains, Discounts, Cheap Holidays in Australia, Eating Out in Australia, Affordable Accommodation and much more. Find out more at www.savings.mart.com.au