~~~ Watch The Pennies ~~~

"COMMON SENSE" = FINANCIAL INDEPENDENCE

The keys to financial independence are based on nothing more than common sense. Anyone can achieve their own financial independence, be it the waiter/waitress at the local beanery down the street or the corporate lawyer on his/her way up.

It does take Time, Dedication and Discipline to reach your goals by following a few simple rules of thumb.

#1. Decide WHAT it is that you want. If a home of your own is at the top of the list...you need to sit down with your family and decide just how you will save for the down payment, and also make the payments for the home mortgage. If college expense money for your children is at the top of the list, again, everyone in the family needs to be aware of the goal and have input on how it is to be reached. If putting aside money for your retirement fund is at the top of the list, again, this needs to be addressed as to how these moneys will be accumulated.

Every family needs a set of goals and a roadmap of some sort as to how to achieve these goals. If you write down your goals on a piece of paper and post them where they can be seen on a daily basis, this will help you to stay focused over the long haul. As the money starts to count up...it's too easy to get sidetracked and spend it on immediate "wants."

#2. Learn how to use a checking account and also brush up on basic bookkeeping so you can track income and expenses. So many people just cash their paychecks on payday and then try to make the money stretch to pay all of the bills. They pay the rent, lights, and phone and water bills...if they can, and then spend the remaining cash until it's gone. Three days after payday, they are "broke" and don't have the money for milk for the kids, any other groceries, an emergency, or even gas for the car so they can get themselves to work.

#3. Spend less then you make...
Most people living paycheck to paycheck have a hard time believing this is even possible. Every raise or bonus they earn is instantly swallowed up by some need/want and they never get any extra cushion put aside.

#4. Pay yourself FIRST. This is where that cushion comes from. You can't spend what you don't see. Arrange to have a certain percentage or amount taken out of your paycheck each payday, even if it's only $10 at first. When you automatically send some of the paycheck to savings, you learn to get along with less than before. A general rule of thumb is to save 10% of your net income (that's what is left after you pay federal, state, and local taxes). Some folks have a certain set amount sent to a company-run 401K every pay period. These are great if you have access to them. You reduce your income and your taxes by deferring to a savings plan that usually offers a variety of investment options AND some folks companies will match their contributions...up to a point. It's usually about 5%.

#5. Pay off any outstanding credit card balances. The interest on credit card loans (and that's exactly what they are...a high priced loan) is no longer tax deductible. Those 18 to 22 percent interest rates are NOT in your financial best interests.

#6. Get started today. Your biggest enemy is tomorrow..the world is full of procrastinators who always will "get around to it" tomorrow.

After all...it's your money AND your future! 

WATER/SPORTS DRINKS

Put a filter on your faucet and invest/use refillable water bottles.  Water bottles can run $1.19 per bottle -- This is a good investment.  We all most likely have drinks containers in the house to use.  Buy large contianers of juice or sports drinks and fill bottles at home.

COFFEE

Make your own coffee and take it to work instead of grabbing a cup some place.  There are several different flavors or flavored creamers and you can design your own special blend.

SLOW COOKER

Dust off your crock pot and you will be able to use cheaper cuts of meat and make all kinds of meals.

One big way to help cut back on expenses is to rethink breakfast. Nutritionists tell us that breakfast is one of the most important meals of the day, but for a lot of folks, it's an afterthought or at best a hurry-up affair as adults and kids bolt out the door each morning to jobs and school. Expensive cold cereals at $4 to $5 per 12 to 14 ounce boxes are common. Those fruit-filled pastry squares and breakfast bars (loaded with fat and sugar) are also popular because they can be eaten "on the run."

On a blustery winter day, why not consider some kind of hot cereal? It takes less than five minutes for most kinds...either stovetop or microwave. If you don't have that much time, consider using the slow cooker...all you do is serve. Oatmeal, Farina (wheat) or hominy grits will offer a welcome change. They don't have to be plain either. Add a handful of chopped, dried fruit. Raisins or apricots are favorites...nuts, applesauce, brown sugar, honey or molasses are others that add a little zing. Some folks like the dried fruit cooked along with the cereal..."rice 'n raisins"...others add their goodies later.

You can cook the cereals in skim or reconstituted non-fat dry milk for that extra nutrition. Cereal grains are naturally low-fat as well as inexpensive. The leftover cooked cereals need not be wasted. Cold corn meal mush can be sliced and fried in a little oil and then served with syrup for another breakfast. (some folks give it a fancy name..."Polenta.") I add the oatmeal or farina when I make homemade bread. I add the cereal to the warmed liquid and then proceed as usual. It doesn't take as much flour that way either.

If hot cereal isn't your family's choice, then consider various kinds of muffins, pancakes, waffles or French toast. They can all be made up ahead of time and frozen...ready to pop into the toaster or microwave and at much less cost than the commercial variety. Even the lowly peanut butter sandwich can be a healthy choice and kids love them.

Studies show that people who eat a good breakfast burn more calories in the morning and throughout the day than people who skip the meal. They also show that people who skip breakfast have metabolic rates 4 to 5 percent below normal which can result in a weight gain of several unwanted pounds a year even if the calorie count is the same. In addition, when you miss breakfast, there is a good chance you will be even hungrier when lunch time comes around and overeat. If you are concentrating on eating healthy, breakfast offers an easy way to include those whole grains and fruit in your diet.

A serving of bread/cereal is...

1 slice of whole grain or enriched bread
1/2 cup cooked oatmeal, pasta, rice or grits
1 small bran muffin or 1/2 of a small bagel or English muffin
1 ounce...1/2 to 1 1/2 cups cold cereal

When I did the math on breakfast...there is a big difference.

Cold cereals cost between 22 and 35 cents and more per serving
Muffins, waffles, pancakes etc. run from 4 to 7 cents per serving
Saving just $1 per day on breakfast can mean an extra $365 per year to use for something else you really need!