The Dollar Stretcher

Did you ever stop to think that maybe success isn't a destination, but rather a mode of transportation? To me being successful isn't a matter of getting somewhere (the land of 'Success') and then living there the rest of your life. If that were true I would be un-successful until I reached that destination.

I'd much rather think of success as taking a trip down a good path. A path that's taking me where I want to go and providing me with a pleasant journey along the way. With this view I can be successful wherever I am, just as long as I'm headed in the right direction.

Don't know about you, but I like that concept much better.

Keep on Stretching those Dollars!

Gary

This post originally appeared in Financial Independence. FI is a daily message designed to help people take control of their financial lives. To find out more check out the Financial Independence page.

Hello Gary,
I am trying to keep track of every expense and I'm doing pretty well so far.  However, I'm having trouble finding a location to put all this information.  I was trying to handwrite it and it seems like I have so many categories.  Do you have a free or inexpensive computer program you'd suggest?  I don't have Microsoft Office, I use Open Office.  I can't really afford Quick Books either.
Marti

Marti,
Good question. I was working on that right now. We'll have a page for the cash expenses soon. We'll be recommending the following systems for tracking:

Paper and Pencil Tracking - just keep a sheet of paper in your pocket. Make columns for date / amount spent / store / item purchased / category of expense. note: we'll have a free pdf available shortly.

Spendtracker - A pocket-sized electronic device to help you keep track of your budget in real time. Exclusive Dollar Stretcher member discount: $5 OFF. (use coupon code: STRETCH5).

mVelopes - An award-winning online envelope money management solution. Mvelopes takes an age-old principle and applies it for today's cashless world.

Quicken Online - See all your bank accounts and credit card balances in one place on your computer and on your mobile device - for free.

As to categories, if you have too many just narrow them down. Any category that only has a few dollars in it should be grouped with another category. The goal isn't really getting detailed information. The goal is to know where you're spending the most dollars, so you can determine if you're spending the right amount or too much. If done right you'll be able to use it as a management tool.

Gary

note: Marti is asking about our program to help you set and achieve your financial goals called "Financial Independence". You can learn more about it here.

Hello to all my Frugal Friends!

Wanted to take just a couple of moments to mention some friends.

Last week I spend time time visiting with the Editor (Cara Newman) and CEO (Ben Levy) of YoungMoney.com. Had two good conversations. One thing that all 3 of us agreed on was that the level of financial education that young people are getting is woefully lacking. And we want to do everything within our power to correct that. If you're in your teens or twenties, you'll want to check it out. And, if you're older than that, you'll want to pass the URL along to those you know who are still in that age range. I'll pass along a teaser to pique your interest. Right now they've got a video asking student whether *** ed or financial ed is more important! Fortunately, I'm too old to have an opinion on that question! Oh, and you might want to take their Financial IQ challenge. Look for the discounts and incentives that could save some money or even add some money to your bank account!

The other friend I'd like to mention is Mary Hunt of DebtProofLiving.com. I'm sure that many of you recognize her name since she's been a leader in frugal living for quite awhile. I've read quite a few things from Mary. And I can pretty much say that if Mary wrote it, you can count on it. So, if you haven't already, take a look at her site. It's goes great with what you get here at The Dollar Stretcher.com.

Hope that you're enjoying some wonderful fall weather!

Keep on Stretching those Dollars!

Gary

Often I'm asked where is the best place to try to reduce spending. And, my answer is always the same. You'll probably spend the most on housing and transportation. But, the best opportunity to affect your expenses is in the area of food and groceries.

That's true for 2 reasons. First, because most families spend a lot on food. Generally between 15 and 20%. So, if you're able to save, it's enough to make a difference.

Second, because you're making purchasing decisions often. Not just the trips to the grocery store, but decisions on using restraurants and daily snacks and workplace food purchases. So there's many opportunities to save.

Finally, the savings doesn't have to negatively impact your lifestyle. Skipping the takeout window could actually make your life better.

To help you reduce your food/grocery bills we've accumulated a variety of resources (and we're working on more). The "Groceries and Food" section of the library contains dozens of helpful articles.

You'll find free downloadable price book pages that you can print out at home. Or if you prefer to use something fancier there's a nice little iPhone price book app.

And don't forget to use your coupons. We have printable coupons available from Smart Source  and from MySavings.

Using a variety of techniques we hear of readers who have reduce their grocery bill by 20%. That would be the equivalent of reducing your overall expenses by 4%. And, that's a major savings!

Keep on Stretching those Dollars!

Gary

 If you ask people what the word 'dreams' means you'll probably get two different definitions. The first will be practical. It'll relate to what our mind does while we're asleep. I freely admit to knowing almost nothing about those dreams.

The second will relate to what we commonly think of as 'daydreams'. Those I'm a little more familiar with. To me a daydream is thinking about something that you'd like to see happen. It could be something big or something small. It might be easy to make the daydream a reality. Or it could be something that's highly unlikely to happen in our lifetime.

But regardless of what forms daydreams take, I believe that they're good for us. They give us a chance to think beyond ourselves. An opportunity to consider how our life could be different (and quite possibly better).

That's another reason why I believe in goals. It seems to me that goals are a little bit like dreams taken a step further. A daydream isn't fully formed. But a goal is. It has been thought out. Plans have been made. A commitment, too. In short, you've decided to make that dream into a reality. And, the goal is just a step along the way.

So enjoy your daydreams. Savor them. Some might even make good goals for you.

This post originally appeared in Financial Independence. FI is a daily message designed to help people take control of their financial lives. To find out more check out the Financial Independence page.

Does anger ever cause you to go shopping? After a fight with a spouse or co-worker do you ever spend money impulsively? Almost as if you're going to show them something?

If so, you'll want to go back and consider what was happening with a few purchases. Often an argument will make us feel a specific emotional need. For instance, if we feel that our boss doesn't value us we may feel that we need to prove to him and the world that we indeed valuable. One way to do that is to purchase something flashy and expensive. I bet quite a few dresses and cars have been bought in just that way!

The sad thing is that the purchase will not prove our value. To ourselves or anyone else. It's only a temporary feeling that quickly dissolves after the shopping and purchasing are over. Then we're left with the same feeling of not being valued plus the credit card bill or car payment. And, that can even make us feel less valuable.

If you notice a pattern of angry spending you'll want to take care of it. Perhaps even seek professional help. At the very least know the pattern and have a plan for stopping it as soon as you recognize what's happening.

Keep on Stretching those Dollars!

Gary

This post originally appeared in Financial Independence. FI is a daily message designed to help people take control of their financial lives. To find out more check out the Financial Independence page.

 

Do you think that it's virtuous to be poor? Many people do. In many religious traditions holiness is in part accomplished by turning your back on material things.The idea is that to appreciate the spiritual you need to totally forsake the material. Or at least get as close as possible. Many have taken vows of poverty to pursue this goal.

But, I'd argue that it's a not quite that simple. Money is just a tool.You wouldn't say that a person was bad because they had too many tools. Money is just a way that we have of exchanging things. By itself money has no value. It's not necessarily good or bad. It's what people do with money that is good or bad. So the problem is with the way money is used. Not the money itself.

One of the most misquoted verses in the Bible is that "For the love of money is a root of all kinds of evil" (1 Tim 6:10). It's the love that causes the problem. When you place your affection on money you become vulnerable to troubles. The mere fact that you have accumulated some wealth does not make you bad.

So what does this have to do with achieving Financial Independence? Good question! Actually, quite a bit.

First, to be financially independent means being in control of our money. Not to have our money control us. So we need to be careful not to fall in love with our money. If we do, we'll begin to let money have too much influence over us. Just another way of saying money is in control.

Secondly, a belief that money is bad could be sabotaging your desire to build wealth. If subconsciously we believe that all money is evil, then we'll push it away from us. We'll find it hard to do the things necessary to build a savings account or IRA. I've even heard people say that they have a way of 'repelling money' or that they're 'alergic to money'. We can't see our subconscious, but it has a large impact on what we do and say. Sometimes it even ruins our own plans.

So what do you think about money? Do you have a good relationship with it? Or is it time to reconsider what you believe?

Gary Foreman is the editor of The Dollar Stretcher.com a website devoted to helping people "live better...for less". This post originally appeared in Financial Independence. FI is a daily message designed to help people take control of their financial lives. To find out more check out the Financial Independece page.

This may seem strange, but I like failure. No, not because I'm some loser. I actually think that failure helps me get closer to success.

How? That's simple. If I study my failures I'll learn about myself and the world around me. If I can get over the hurt, step back and study what happened I can learn a lot.
A lot that help me make the changes needed to be successful next time. And, that's something that I like: success!

Keep on Stretching those Dollars!

Gary

Gary Foreman is the editor of The Dollar Stretcher.com - a website devoted to helping people "live better...for less". This post originally appeared in Financial Independence. FI is a daily message designed to help people take control of their financial lives. To find out more check out the Financial Independence page.

Have you ever been driving down the road and been distracted by something on the roadside? If you look in that direction for more than a second, you'll find that the car is drifting in that direction. In effect you're steering towards what you're looking at on a subconscious level.

The same thing is true of goals. Part of the reason that goals work is that they stay on your mind and almost pull you towards your destination. So, knowing that, it's a good idea to keep your goal in mind. One way to do that is to write the goal down on a slip of paper and stick it in your pocket or purse. Then pull it out a few times during the day and read it. Just that simple act will increase the probability of reaching your goal.

Oh, and if you haven't gone public with your goal you can do that in The Dollar Stretcher Community.

Keep on Stretching those Dollars!

Gary

Hello to all my Frugal Friends!

For awhile I've been hinting that we were working on something new. Now it's time to open the curtains and let everyone get a good look.

Let me begin with the background. From the start I felt that The Dollar Stretcher didn't need to remind people to be responsible with their money. That they already knew that and didn't need us to bug them. Our job was to give them the info/tools to go do that job.

But over the years (we're in our 14th year now) I've seen that model doesn't work for everyone. Guess that's no surprise. We're not all alike. Some people know what they should do and just can't seem to do it. At least not consistently. Something disconnects along the way.

What I've come to believe is that money is often a symptom or a substitute. It's more than just a way to buy things. Intellectually we know that we should plan our grocery shopping and only buy what's on the list (i.e. nutrition for our family). But, when we get to the store our emotions kick in telling us that we deserve that expensie premium ice cream as a special treat. Many of us succumb to that emotional pressure.

If you're just buying premium ice cream it's not so bad. But if you're cruising the malls/eBay/QVC regularly, or find yourself buying expensive toys (wide screen tv anyone?), that's something different. And, in either case you are NOT in control of your finances.

So we're introducing a new short daily email called "Financial Independence" that's designed to help people take control of their money. Nothing too fancy or complicated. We'll try to help you accomplish a number of things:

• Build money good habits
• Understand how you relate to money and how that affects your money management style
• Provide reminders to eliminate the 'I forgots'
• Share success stories and quotes that will encourage you to success in your financial journey
• Look for ways to build up your financial perception AND capabilities

 I'm convinced that there are a lot of people who would like to take control of their finances, but just can't seem to get there by themselves. Our goal is to provide them with a short daily email that can give them the tools to take charge of their money.

Best of all for you, it's free. And, private. All we'll ask is your email address so we can deliver it. No personal information.

Some of you will ask how we'll profit with "Financial Indpendence". Good question. We need to stay in business, too! Occasionally we'll include some resources that could help you on this journey. For instance, we have an affiliate arrangement with SmartSource and Coupons.com. If you're going to use grocery coupons we hope that you'll get them from our site. Other times we'll suggest a book that could help. Check the library first, but if you need/want to buy it we'd like to help connect you to Amazon or the publisher.

So why not join the growing ranks of those who choose not to be under someone's financial thumb. Today is a great day to declare your financial independence!
You can sign up by sending an email to or visit here. Watch for the 'confirming message'. You'll need to respond to it to activate your subscription.

Oh, and one last thought. Don't worry if you've failed before. This time you will succeed!

Keep on Stretching those dollars!

Gary