Over the weekend, while packing, I came across a handful of change. With my coin jar already packed, and time running out to move, I felt like tossing the change in the trash bag and moving on. But that would have really hurt me!  After all, the $1.30 I collected under sofa cushions represented about a year’s worth of interest on a $100!

Can you believe some people actually throw money away? Don’t believe it? Check out the fifth article below.

The Frugal Roundup

7 Critical Ways You Need to Take Your Life Off Autopilot. Here is a great list of things that you should really focus on. (@ My Super-Charged Life)

Redbox Testing $2 Per Night Rentals. Redbox has started testing $2 per night rentals. Will you still rent from them with that type of increase? (@Your Money Relationship)

A Little Food Planning Goes a Long Way. It’s always a good idea to plan your meals ahead. You can save a ton of money and always have what you need. (@Million Dollar Journey)

Master Your Money with a Financial Health Day. When you have your financial health day, make sure you involve you spouse in the decision. (@ Get Rich Slowly)

Why Throw Money Away? Yeah, this person really throws money in the trash. Seriously. (@The Suns Financial Diary)

How to Become a Successful Secret Shopper and Supplement Your Income. Need some extra cash to beef up your budget? Become a secret shopper! (@Generation X Finance)

Best of the Rest

• The Productive Art of Positive Thinking
• How to Find More Time During the Day
  
• The Bucket List
• Why Lottery Winners Go Broke: Prospect Theory at Work
• My Grandfather In-Law: A True Veteran Hero
• House Hunting Tips For Busy Parents
• Frugal Ways to Celebrate the Holidays
• Have You Ever Taken Risks to Try and Improve Your Career?
• What’s Luck Got to Do With It?
• 31 Days of Organizing for a Better 2010
• Interview Your Interviewer
  

Post by Frugal Dad

Several weeks ago a young couple visited my office. Their situation wasn’t all that unique.

He’s a teacher and she’s a CPA. Together they take home about $100,000 a year – not too shabby.

They had a little under $10,000 in credit card debt – mostly from their wedding. They also had a $20,000 car loan and $65,000 in student loans. Not the end of the world.

They had about $20,000 they saved since before they were married. I suggested they take $10,000 and get rid of the credit card debt pronto. They agreed to do this.

Up until this point of the story – I liked what I was hearing. After all, they are a young couple with plenty of upside income potential. I wasn’t crazy about the credit card debt they had accumulated but it only came about as a result of the wedding – not a slow creep of living beyond their means on a monthly basis. I wasn’t too concerned.

However, I started to sweat when we went through their monthly expenses.

While they were in deed paying down their debts, they had the option of doing so much faster and weren’t taking advantage of that opportunity.

Instead, they were spending $400 a month on personal trainers and a whopping $1200 a month on dinning out with friends. This $1600 was only the tip of the ice berg. Together we figured they could easily cut a total of $2500 off their monthly spending.

I showed them that once they did that, they’d be completely out of debt (including the student loans) in about 3 years. Then we looked at what their financial life would look like if they continued to save that $2500 a month. The picture looked very rosy.

So why was I sweating it?

Because they didn’t seem all that interested.

They came to me looking for a solution to their debt problems. I showed it to them and they shrugged. I just didn’t get the feeling they were willing to roll up their sleeves and really do the work.

Forgive me, but I think part of it has to do with their youth. They were enjoying life and maybe they figured they could always get out of debt and cut their spending “manyana”.

This was frustrating to me because I know that for many people, “manyana” never comes.

I couldn’t find the right words to get them interested in taking action to get out of debt and on the path to financial freedom.

Was there something I could have said? What would you have said in order to motivate this couple? Is it a case of leading a horse to water and therefore, a lost cause? What’s your take?

Post by Frugal Dad

“Sadness” by Eric Perrone

While all those factors have conspired to affect motivation in several areas of my life, what has really suffered is my writing. Thanks to a number of close blogging friends, I have had no shortage of guest posts to present here at Frugal Dad (Neal from WealthPilgrim.com is sharing another great one with us this Friday!) since they learned of my mom’s passing. These breaks in the action are welcomed, but I do feel a little guilty for not cranking out material at the pace I once did.

Just yesterday I missed my first Monday post in nearly two years of blogging. I wasn’t motivated to write. I had an incredibly busy weekend of packing and moving boxes, etc, and when I finally sat down late Sunday night at the keyboard there was nothing left. No witty budget concepts. No rants about self-reliance. No new reviews to tell you about. Had I finally run out of things to say?

Fortunately, not yet. I had simply run out of steam. I was losing focus, and not just with my writing. I am not sure if it is depression or just the normal grieving process, but after losing a parent (who also happened to be my best friend, besides my wife), you sort of go through a period of just going through the motions.

I wake up, eat a quick breakfast, kiss the wife and kids and drive to work. I check my email, my to-do list, keep busy, leave in the evenings, play with the kids a while, work on the blog and go to bed. But when I go to bed feeling completely exhausted I can’t recall the specifics of the day. Did I even ask my kids how their day was at dinner? Did I remember to send that status email on the big project at work? Did I remember to pay the utility bill online? And for just a moment, just a split second, I don’t even care. I just want to go to bed to put this day in the books and do it all again tomorrow.

The problem is when you find yourself in one of these funks the days just start to slide by. Life starts happening to you, instead of you being in control. The budget gets relaxed. Old, bad spending habits come to the forefront again. You stray from healthy eating and start refueling on crap from fast food restaurants and vending machines. You distance yourself from loved ones. And the worst part? When you are going through it, you aren’t even aware it is happening.

At some point you snap out of it; like a fog lifting in the middle of the morning. Things start to become meaningful again. It is at this point that you recognize the days have been sliding by, and you start grabbing for moments before they can get by you. Yes, I’ll be at my son’s next football game, and instead of watching alone at the fence down from the bleachers, I’ll be among the other fans cheering for our kids’ team. Yes, I will again be my former productive self at work. Yes, I will balance my checkbook and take a stab at a new budget for the next month. I will re-engage life.

This was really just a long way to say thanks for sticking around during this tough time. I have some exciting ideas for the blog in the coming months, including a few spring projects I think you will enjoy (mostly related to square foot gardening, living off the grid, etc.). I’m going to rededicate myself to getting back to my frugal roots over the next few weeks, and hopefully my writing will reflect that focus.

Finally, if you are reading this and feeling blue, or more than blue, I suggest you talk to someone. It doesn’t have to be a professional, though I would certainly recommend one if you are experiencing signs of depression. Go out to lunch with a close friend and open up about what you’ve been feeling. Sometimes it helps to simply get things off your chest, and let someone else know what you are going through. Whatever you do, don’t ignore the symptoms and let too many days slide by.

Post by Frugal Dad

If you encounter personal conflicts at work – I think I may have stumbled upon a major contributing factor and how to solve most (or at least some) of these challenges.

Ready for the root cause of most of your work issues?  Here it is:

You (or the people you work with) forget why you go to work.

This may sound overly simplistic but let me share a story that will illustrate how powerful this really can be.

Tim, an old friend of mine has a long history of short stints at work. That frustrates me. He is a super-qualified, high-profile media guy.  He’s personable, intelligent and……can’t keep a job.

He’s been married for 2 years.  His wife Patti is working her tail off trying to keep them afloat and she’s just about had enough. She sees how qualified Tim is but thinks he gets himself fired (on purpose or subconsciously) because he’s lazy.  She doesn’t want another 40 years of this kind of life.  She’s threatened to leave if Tim doesn’t get it together.  If that wasn’t enough pressure, the couple is just about to lose their home to foreclosure.

You can imagine that Tim was really relieved two weeks ago when he got hired at one of the most prestigious media companies in the world.

I asked him how it was going when we spoke a few days ago. His answer knocked me out of my chair.

He told me that his boss made a slight “remark” and it really made Tim angry.  He was already complaining about his new boss and was “re-thinking” his decision to take the job.

Tim may have had a justifiable gripe but I didn’t think it mattered. I just couldn’t believe he was complaining.  Here he had an opportunity to work again – and the alternative was foreclosure and divorce.

It occurred to me that Tim was either completely insane or he was going to work for the wrong reasons.

I asked him to tell me why he goes work and this is what he came up with:

a.   To support his family.

b.   To be of service to the company he works for.

c.   To contribute to the world.

Intellectually…very nice.  But to me, his answer wasn’t complete.

I asked him if there were other reasons. He couldn’t come up with any so I suggested he also goes to work to be:

a.   Important

b.   Right

c.   Liked

d.   Looked up to

e.   Taken care of

f.    Powerful and strong

I gave him examples of how he sought out those payoffs time and time again.

For example, I asked why he reacted so strongly to the remark his boss made.

I suggested that it was because we wasn’t getting what he wanted – which was to be important, strong, looked up to etc..

If all he wanted to do was to take care of his family and contribute to his new firm and the world, he would have let that remark made by the employer roll off his back…right?

Tim takes what other people do and say personally – especially at his job.  As a result, work… doesn’t work.  That’s why he usually finds himself unemployed shortly after he lands a job.

I suggested that he has a real opportunity to turn this situation around once and for all.  If you struggle with the people at work, this exercise can help you too:

1.   Write down why you think you go to work.

Like Tim, this list probably includes paying your bills, taking care of your family, doing a good job for your employer, advancement etc.

2.   Write down all the social and psychological payoffs that you don’t want to admit to.

This is show time.  You have to be honest.  Part of the reason you go to work is because you have social and personal needs that have nothing to do with money.  Nothing wrong with that.

You probably want to enjoy yourself.  Why not?  You spend more of your waking time at work than any other place….right?  You want to be liked and respected…..who doesn’t?

In moderation, these are all just human needs and they won’t get you into trouble.  The real rough water starts when you want to be “important”.

This is something you may not want to admit to – I certainly don’t.  But if you find yourself at odds with others, it may be something you need to look at.

This is all about ego.  It has nothing to do with why you are really go to work.  If you allow your ego to call the shots at work – always looking for a way to be revered by your co-workers or employer, you’ll alienate everyone around you.  Just don’t be surprised when you don’t have a job.

Even if you are the smart one, it doesn’t matter.

If you go looking for worshipers at work, you’re going to tick people off.

You may not realize what you are doing but other people do.  Need proof?

When the guy in the next office is positioning….you see what he’s up to…right?

Well…guess what……he knows it when you are doing the same thing.

3.   Keep this list on your desk at all times.

You’re only human.  You aren’t perfect.  You have character flaws; everyone does.  Review this list often and it will help you remain aware and “awake”.

Don’t beat yourself up – but it’s time to put a leash on your ego.

When you catch yourself trying to flex your muscles for all the wrong reasons, call it out.  Laugh at yourself and tell your co-workers that your ego must have gotten the better of you – then get back on track.   Don’t have a 3-day seminar on the subject but don’t try to cover it up either.  If you make a mistake, be honest about it and then move on.  Believe me, the people you work with will be amazed and appreciate your honesty.

4.   Don’t expect the world to be perfect.

Believe it or not, not everyone is going to read this post.  Your boss might be a huge ego freak and you can’t change it.

Realize that it’s not about you.  If she’s looking for ego strokes and by so doing, puts you down, she probably does that to other people too.  Don’t take it personally.  I know that’s easy to say and hard to do.

If it gets to be too much, you’ll need to look for a different boss somehow.  I’ll leave that part to you.  Just don’t allow someone else to push your buttons if you can.

What make me such an expert on this subject?

I spent years trying to make sure everyone know how smart I was.  When I didn’t get what I wanted, I went ballistic.  I had to do a lot of work on myself in order to stop doing that.  I’m not perfect…but I do it considerably less now.

That old behavior cost me so much time, life and love. It almost cost me everything.

That’s why this is such a hot button for me.

I still blow it from time to time.  When I do, I try to call it out and move on.  When people at work try to prove how important they are, I just try to remember that I have the same character flaw and it helps me stay calm.

Pardon me.  After all the years I spent making this mistake, I just think it’s really dumb to struggle when you don’t have to. If you are clear about why you go to work and get back on track when you forget……..most of your work challenges will disappear.

How about you.  What do you think is the main cause of trouble at work? How does it impact you?  What have you done about it?

Post by Frugal Dad

Just yesterday we rounded up all our old clothes, jackets, etc. that we no longer wear and plan to give them away to shelters, and other charitable organizations in our area that may need them (there is particularly high demand in the winter months). I’d encourage you to go through your closets and find an old jacket, or set of blankets that you no longer use, and find someone who could use them. A good place to start is with churches, missions, shelters, and organizations such as The Red Cross and Salvation Army.

The Frugal Roundup

The Argument Against Frugality. Not on the frugality bandwagon yet? These reasons for not being frugal may change your mind. (@The Sun’s Financial Diary)

100 Goals. I came across this site the other week and thought it was pretty cool. It chronicles a guys attempt to complete 100 goals he has for his life. Check it out! (@Hundred Goals)

“What Works For You” Can Be a Trap. The personal finance theory of “do what works for you” comes into question. (@Consumerism Commentary)

Ditch Productivity For A Day: 12 Great Sites To Kill Time & Have Fun. Sometimes it’s OK to sit down and unwind. (@Dumb Little Man)

Avoid a Financial Holiday Hangover This Year. Great steps for avoiding the dreaded holiday credit card bills in January. (@Generation X Finance)

Best of the Rest

• How Working Overseas Helps Your Career
• How One Homeless Person Lives: Coping With Homelessness
• Adventures in Dallas (How We Saved Money There)
• Why Canadians Don’t Redeem Coupons
• Year End Tax Tips 2009
• Understanding Health Savings Accounts
• Choose Your Words Carefully… You May Have to Eat Them
• Survive a Financial Crisis: 12 Tips For Married Couples

Post by Frugal Dad

However, there are good reasons to keep at least one bank account, and one credit card, that you don’t use often for physical transactions. These two tools make up your personal finance firewall, and provide a layer of protection between you and those trying to separate you from your money.

I first heard of a bank firewall account from Jim at Bargaineering. Since, like him, I complete a number of transactions online each month, I thought it sounded intriguing. I’ve implemented something similar in my own finance life, and even taken it a step or two further.

First, so you can get an idea where I’m headed with all this, check out the following video from Jim as he explains the concept of a bank firewall account. If the video doesn’t display for you, you may need to click through to the site to view the embedded video.

Jim Wang provides an excellent overview of the bank account firewalls concept.

Like Jim, I also think ING Direct is a great place to set up such an account because of their interface for transferring money, and the ease of creating multiple accounts. Of course, there are plenty of other top online banks to choose from.

Most fraudulent activity associated with vendors such as PayPal involves a thief obtaining the user name and password for a PayPal user’s account, and initiating withdrawals from the user’s primary bank account tied to that account. By only having one account associated with various online payment vendors, and keeping a very low balance in that account, you can minimize the amount of money exposed should your online payment account become compromised.

When the couple online deposits associated with business activities hit my bank firewall account I immediately initiate one transfer to my self employment tax sinking fund for roughly one-third of the gross amount. The remaining amount is transferred to my business checking account in the form of profit, from where I write myself a single check at the end of the month (after business expenses are paid) as sort of a bonus salary.

In addition to maintaining the firewall bank account for accepting electronic deposits, I also held onto a single low-interest, high-reward credit card to use specifically for making online purchases and regular monthly subscriptions or recurring bills (Netflix, cell phone bill, etc.). For these types of purchases, I prefer to use a credit card because I am exposing about 99% of the risk to the bank, rather than my personal bank account.

At the end of the month I receive a single statement for the credit card, review the list of transactions for accuracy, and make a single online payment to pay off the card. I choose to make the payment manually, because if fraudulent charges appeared and I did not yet have the transactions in dispute when the bill cycled, an automated payment for the full balance could easily wipe out my associated bank account.

Another benefit of using a single credit card is that I’m able to easily see a consolidated view of my recurring, monthly transactions. I like to play a little game each month and try to bring that total bill down as far as possible.

What extra service can I cut from our monthly routine? Which subscriptions are we just not fully utilizing? How can I shave more off my cell phone bill? The utility bill? It becomes a challenge each month to try to come in under the previous month, and having all the charges billed to a single card helps me see at a glance whether or not I’ve been successful.

If you work online, or receive online payments from a variety of sources, I’d encourage you to set up a bank firewall account to provide a buffer between you and your primary banking sources. Also, consider hanging onto one credit card once you are debt free, and simply running all recurring charges through the card. It makes for a simple billing process, and it allows you to play with house money, rather than your own.

Post by Frugal Dad

Hi Frugal Dad,

I have a question that maybe your readers can help me with. I have been freelancing from home for over 10 years and have made a comfortable living at it. There have been bumps along the way, but for the most part when I lose a client, one seems to appear to fill the gap. I have been very blessed that way. It has also allowed me to stay at home with my kids, and I currently homeschool them as well. My husband works a full-time job with outstanding benefits, so we have that covered.

On a whim, I applied for a “real” job in another state which I didn’t expect would really play out, but surprise– it did. There is a very attractive salary offered, outstanding benefits, a ridiculous amount of vacation time,  and a pension (which I don’t currently have, though we do contribute heavily to my husband’s 401K). Part of the perks would be a free college education for my kids, who are currently in middle school. Even though they are currently homeschooled we had planned, and I know they want, to go back to “real” school next year.

So, what to do? Part of me likes the idea of job security — no more clients, no more constantly thinking about work. The other part of me is loathing the thought of giving up my my freedom of being self-employed. Housing in the other state is quite a bit more expensive than here, though we would stand to make a substantial gain on the sale of our current home.

To throw in another wrench, I was just awarded a very lucrative contract for my freelance business that would keep me solvent for the coming year. (I was getting a little nervous as work was seeming to dry up) After that, it would be up to me to find more work, though I do have a quite a few irons in the fire. Doing both would not be an option — there are only so many hours in a day, and I need to be a mommy to my kids too.

I have thought about just trying it out to see if it is a fit, but that would mean uprooting my kids and losing the contract as well.

What would you do? What other things should I consider that I haven’t?

Sandy, a few questions come to mind. What happens to your husband’s job if you relocate? Is his industry/expertise fairly transportable, meaning the likelihood of him finding a comparable job fairly high, even in this market?

I might be reading between the lines a bit here, but I don’t think you really want the new job. You have been a successful freelancer for a decade – not many people can say that. There is no shortage of people who start freelancing, but very few survive on their own for ten years.

On a related note, I would point out what is obvious to an unfortunate number of people these days – there is no such thing as “job security.” In fact, you may have more security, more stability, in hunting down work on your own using the experience and networking you already have in place as a freelancer. If you rejoin the corporate world, you are dependent on them to continue to find you work. If they fail, you will be unemployed, and will have given up a lucrative freelance contract.

The decision is yours and your family’s, as you recognize. But since you asked for my opinion, I’ll give it. If I was in your shoes, and my spouse had a stable job to cover benefits, and I had enough work to stay covered up for the next year, it would take a truckload of money to uproot my family and turn in that freedom for an employee badge. Whatever you decide, I wish you and your family well.

Ask the Readers: What would you do if you were in Sandy’s shoes?

Post by Frugal Dad

In the 1800s, job-seekers were exhorted to ‘Go West, Young Man.’

In these recessionary times, it’s become ‘Go Anywhere, Young Man.’

As the unemployment rate climbs and it takes longer to find a job, more people are being forced to consider relocation to a new town for better job opportunities.

In fact, if you’ve been job-hunting for a while, you’ve likely expanded your search to cities far enough away that you’d have to make a move.

However, this long-distance job search can only go so far – travel expenses for interviews can add up, and you miss out on crucial face-to-face networking opportunities.

Plus, employers don’t want to pay relocation costs, so they’re less willing to talk to someone from out of town. Also, an out-to-town hire can take a while to start work, and there’s always the possibility the candidate will get cold feet and back out.

That said, moving to a new city without a job can be downright terrifying: you don’t have a regular income stream, and you won’t have as many friends or family nearby.

Still, a job’s a job.

If you want to move to a new town to help your job search, here are some ways to maximize your chances for success, while leaving some wiggle room in case it doesn’t work out — it’s not about taking a risk, it’s taking a calculated risk.

1. A cushion

Budget at least 8 months’ worth of expenses, including deposits for an apartment and rent.

The need for savings is obvious, but don’t forget the confidence factor: Getting a job is a lot about confidence, and having a nice financial cushion will help you come across as more confident (and less desperate) to a prospective employer.

It will also let you job-hunt without having to pick up a part-time job – you can throw yourself 100% into looking for a job in your field.

2. Using that couch?

If you have any friends or relatives in the town you’re looking to move to, ask if you can crash at their place for awhile. You might be surprised about how willing people are to help, particularly in this economy.

Not only will this allow you to save money, it will also give you more time to look for your own place eventually – don’t rely on the kindness of friends and family for too long.

3. Account-ability

One of the first things you should do when you get to a new place is open a bank account. You don’t want to fritter away your precious savings on ATM fees, and it’s much easier dealing with a local bank should you have issues with your account. You also might be able to find deals for people opening a new account.

And if you’re looking for rental housing, having a local bank will put a landlord more at ease.

4. Plant light roots

You’re more likely to rent than buy at your new place, so make sure you understand any ramifications from breaking a lease, just in case things don’t work out.

Also, consider keeping a storage space in your old town. This will lessen your need for a big apartment, while also helping you save on your moving costs.

This is also a good time to do an inventory of the possessions in your life, and whether you really need them – will you ever wear that high school letterman jacket again?

5. Plan B

Think about money-making opportunities if you don’t find a job right away. Consider part-time work in retail or any other field that you have experience in. If you frequent any retail shops regularly, get friendly with the staff in case you ever need to ask about work.

However, don’t plan out TOO far in advance. Life has many twists and turns that you can’t anticipate, so be careful of over-planning.

6. Network

Now that you’re on the ground, go go go – meet as many people as you can, join networking groups, industry groups, and attend any social media meet-ups you can find for the area.

When you meet people, be clear about why you moved, and what kind of job you’re looking for.

Remember: Finding a job is now your job, and networking is the best way to do that.

7. Get to Know the Town

Your time there shouldn’t be all work. Get involved socially – play recreational sports, find some hobbyist groups, join a church or synagogue.

Hopefully you’ve chosen a town that you’ve always wanted to live in. Get out and enjoy it – feeling more optimistic about your new home will make you more optimistic and confident in your job-search.

8. Start a Blog

Start writing about your adventures in your new town, and writing about issues in your field. You can impress potential employers with your attitude, your knowledge of the field, and your gumption at starting a whole new life in a brand new city.

And remember to keep it local. Blogging about local events and Tweeting with the locals will introduce you to people who can help you with the job search.

9. Talk to Those Who’ve Been in Your Shoes

You’re not the first person who’s made this kind of leap. Look for other people who’ve made similar moves, and talk to them about their experience.

Just knowing that someone else did this before – and succeeded at it – will make you feel better.

10. Taxing time

Don’t forget that some job-hunting expenses are deductible, as are moving costs in certain situations. Find out what you might be eligible for come tax-time, and make sure you save receipts for documentation.

If you’ve had some taxable income in the year, getting a fat rebate will be a welcome influx of cash.

Post by Frugal Dad

Photo courtesy of Hey Paul

It is that feeling you get just before your car has crested the top of the roller coaster’s tallest hill. When everything opens up in front of you. When the long, anxiety-filled climb is almost behind you. It’s an exciting time, and oddly enough that euphoric feeling in the pit of your stomach is nearly identical to the one you feel just before sending in your final debt payment.

By the end of November, we will have crested that hill. A hill that has taken us over two years of blood, sweat and tears (well, at least a lot of sweat and tears) to climb. And as the landscape opens up in front of us, our only regret is that we didn’t get on the roller coaster sooner. We wasted nearly a decade when it came to finances. Yes, we accumulated some debt, but we committed no real financial sins. We just didn’t buckle down like we should have.

I’m not going to rehash how we wound up in debt, or the financial mistakes of the past, because I don’t want to miss the view from the top by looking back the entire ride. The point is, we are where we are, and how we got here has been important in shaping our personal finance belief system going forward.

That’s part of living with no regrets. You accept the mistakes you’ve made along the way as learning opportunities, and keep moving forward. So much of our lives is wasted rehashing over and over again the mistakes of the past, rather than living in the present, and planning for the future. Well, a couple years ago we decided enough was enough. We were sick of being in debt, and we wanted out. So we finally got busy making changes and stopped making excuses.

We developed a plan to boost my income. After dabbling in a number of part time job opportunities, and even resorting to mowing lawns on the weekends, I decided to try my hand at writing. Of the few people I shared this idea with, only my wife and my mom didn’t laugh out loud in response. They knew my passion for writing, and believed in me. One of the things I’m proudest of was that Frugal Dad did become a relative success before my mom passed away, so she was able to know that my perseverance paid off. I only wished she had lived to see us cresting the hill.

Getting the blog off the ground wasn’t easy. I had a $0 marketing budget, very little experience in the online world, and no friends or contacts in the field. I started with a brand new domain name, FrugalDad.com, rather than buying an established name with page rank and traffic. I bought a $5 theme, and had one of my new blogging buddies work up a logo (he’s gone on to become very successful at logo/graphics work for other bloggers. Check out his work at LogosforWebsites.com).

For the first year all I did was write an article every single day and comment on as many other blogs as possible. Some nights I stayed awake well past midnight writing the next day’s blog. Other days I woke up at 4:30am to answer emails, comment on other blogs, and try to network with others. It was an all-out guerrilla marketing assault! My plan was simply to out-hustle everyone else, both with my blog and at my full-time job – the two fastest ways I could increase my income short of selling my own plasma (believe me, I considered it).

In addition to boosting our income, we had to get control of the other side of our personal balance sheet. Our expenses were out of control. At the time we had two car payments, a small pile of credit card debt, student loans, and even medical debt left over from the birth of my daughter. We took vacations when we couldn’t afford them. We shopped when we didn’t have money. We were basically living paycheck to paycheck.

We decided to draw a line in the sand. No more increases to the monthly budget. If we signed up for a new membership, we’d have to cancel another one (or two) to offset the new expense. We started clipping coupons, and actually thinking about ways to save money on groceries. We stopped going to movies, and started using our previously underutilized Netflix account. I sold my beloved Chevy Silverado and drove a 19 year-old van. We basically committed ourselves to a frugal lifestyle at a time when living frugal was not yet very popular.

The result of all this hard work? We now find ourselves less than a month from being debt free. My wife and I have a new motto: “Never again.” Never again will we go back to owing money. Never again will we limit our opportunities, and our choices, by being servants to a lender. Never again will we be at the mercy of bankers’ whose whims exerted control over our lives with FICO threats, interest rate spikes and ridiculous practices such as universal default. We plan to make ourselves immune from such policies in the future.

Our hands are in the air. Our eyes are open wide. This is going to be a fun ride!

Post by Frugal Dad

“Firing” myself was the very best thing I ever did – and it might be the best thing that you could do for yourself too.

Before you conclude that I’m completely out of my mind, let me ask you a question:

Do you continue to disappoint yourself in some aspect of your (financial) life?  Spending, budgeting, saving, investing, earning?

If so, you may want to “fire” yourself like I did and “hire” a more qualified manager. The good news is, life will improve tremendously.  Even better, it may not cost you a cent to do it.

Let me explain.

I have a small business and (at times) I’ve suffered from the “Superman Syndrome”.

I used to think that I could do everything better, faster and smarter than everyone else.  I’m not proud of this but it’s true and it’s cost me plenty

Of course, as time went on, the facts and results got in the way of my ego.  There were certain things that I did very poorly and even though I knew it, I continued this self-destructive behavior.

Let me give you an example.

I love to tinker with the computer and many years ago, I designed a system to automate a part of my business.  It worked….to a point.  But it had some flaws that continued to pop up – and each time a flaw did come up, it cost me time and money to fix.

Rather than realize what was going on, I threw myself into the problem.  I spent more and more time trying to improve the program I wrote.

Finally, after months and months of wasted time and money, I “fired” myself and hired a programmer to do the job for me.

As a result of his work, I’ve saved countless time and money.  In fact, the money I invested in him was paid back in the first month just in reduced errors.  “Firing” myself turned out great.

Of course, the idea of “firing” yourself goes much further.

I’d like to give you another example:

When I first started my business, I was full of fear.  My wife was working in our home.  Since I was the only one bringing in money, I was deathly afraid of what might happen to our family if the business didn’t make it.

I experienced real financial terror growing up (since I was homeless for a short time) and I was fully committed to making sure that wouldn’t happen to my wife or kids.

Nothing wrong with motivation….but I became obsessed.

I refused to spend money on anything other than the bare necessities.  Keep in mind that we weren’t in debt at the time and the business was generating a decent income.

Even after the business established itself, my tight-wad ways continued.

I stayed in the fear-mode much longer than even I could justify.

I wouldn’t go out to restaurants or movies.  I wouldn’t buy anything and I would “encourage” my family to live the same empty life I imposed on myself.

I was miserable and I’m sure my wife was too.  It was no way to live.

Fortunately, I “fired” myself before my wife did.

“Firing” myself saved my family and made my life enjoyable again.

I’m pretty passionate about this because I think it’s terrible for anyone to struggle when they don’t have to.  If you face similar issues, here’s how you can “fire” yourself:

1. Write down what part of your (financial) life is out of control.

What problem do you find yourself confronting all the time?  What comes up? Are you constantly taking the wrong jobs?  Do you have the wrong spending habits?  Do you promise to track your spending….but never follow through?  What is it?

How do you hold yourself back? How do you sabotage yourself?

We all have character defects. What are yours? Are you lazy? Is that why you stopped tracking your expenses? Is that why you’re sitting on the couch rather than looking for work?

Do you fight with your partner about money because you are selfish? Have you stopped investing because of your fear? Does your arrogance alienate others who might otherwise provide good counsel?

2. How does it make your life unmanageable?

What is the result of your “best efforts”?  For example, as hard as I tried, I couldn’t stop worrying about money.  I couldn’t stop clamping down on my family – even thought I knew it was wrong.

Do you or your family go without? Do you constantly fight?  Are you making your partner’s life miserable?  Are you stressed constantly – no matter what you do? Do you spend recklessly and then wonder why you have a huge credit card bill (and then repeat this process over and over again)?

If you really want to get to the next level financially, be honest. It’s this lack of honesty that keeps people buying financial books and systems. They keep looking for the magic bullet that’s going to fix their problems. Instead, look for your own character defects and become willing to do the work.

3.   What have you done to try to get this under control and what was the result?

Have you made promises to others (or yourself)…..only to break those promises sooner or later?  Have you signed up for classes that might help you get a better job – only to not show up?  Have you installed budget tracking software, and then failed to use it?

This reminds me of the smoker who explains how easy it is to quit smoking; it’s so easy he quits once every day.

If the result is always the same – failure – you need a different solution.  And here it is:

Fire yourself

This advice may sound strange but think about yourself as a business.

If you had an employee who continued to mess up time and time again, you’d fire him, wouldn’t you? If someone demonstrates a complete lack of ability to perform a given task, she’s gone. Right?

Let’s say you’ve tried and failed several times to track your expenses. You’ve made promises to yourself that you break time and time again. You’ve failed yourself once too many times— so fire yourself.

Hire a better manager.

One way to do this is to “hire” an accountability partner and “report” to her.  It can be a friend or your spouse.  Anyone who has the qualities that you want.  Someone you trust and respect.  Someone you are willing to take direction from.

Keep in mind, that when you “fire” yourself and “hire” another person, your mind will play tricks on you.  There will be a little voice inside that will keep lying to you. It will tell you that you don’t need to follow direction.  “You are a grown up and you can decide things for yourself” the voice will say.

This is a lie.  You’ve already proven that.  That’s why I asked you to write down all the steps you’ve taken to try to correct the problem and what the results were.  There is no shame in asking for help – but that little voice inside your head will tell you that there is.

Don’t listen.

You “fired” yourself.  That’s all you have to remember.

Don’t be embarrassed to ask for help.

Look around. There are plenty of people in your life who would be happy to be on your team. Tell them what it is you want to do and do it. Tell them you want them to be your accountability “boss”. Tell them the problem you are trying to solve, be honest about it, and commit to take action and report daily or weekly, as the case may be. Tell them that they can “fire” you if you fail to live up to your promises.

This one idea has helped millions of people overcome serious problems such as substance abuse, and it can be invaluable to you as well.

Stop thinking and take action right now.

If you’ve gotten this far, you know what to do. Get a piece of paper and go through the action steps I outlined above.  Go “hire” your new accountability partner. Make the call now.

Don’t think about it anymore. Do it.

Fortunately, these techniques work for me. I have to keep doing the work by checking in with my accountability partner but it does work if I do my work.

Do you need to “fire” yourself?  Have you already done so?  What has been the result so far?

Post by Frugal Dad