130. Book Review: Living Well, Spending Less: 12 Secrets of the Good Life

I was given the book “Living Well Spending Less: 12 Secrets of the Good Life” by Ruth Soukup by a friend this year.  The book cover was cute and I thought "Great, another book that tries to tell people some hidden secrets to financial freedom." I honestly thought this would be yet just another good addition to a growing list of personal finance books I recommend.

However, I really believe this book is fantastic! It is one of the better, real, and life-changing books out there. For anyone thinking of reading this book full disclaimer: This is not a Christian book but yet it is full of Scripture references and points to Biblical truth.

Ruth Soukup is very transparent with the life challenges she faces. The book is warm, earnest, honest, and vulnerable. Ruth allows the reader a glimpse into her own struggles with clutter, generosity, contentment and overcoming those struggles.

While many books I have a hard time connecting with the author, Ruth quickly seems to become our new best friend. She is encouraging, real, and understands life’s struggles. 

Ruth provides strategies and encouragement for:
*Living with contentment in a materialistic world.
*Getting more done around the house and in life in less time.
*De-cluttering your life!

*Re-evaluating your spending habits and spending less than you thought you could.

*Cutting the grocery bill significantly.

*Cleaning the house more efficiently.

*Along with a whole lot more!

I was first introduced to Ruth’s blog www.livingwellspendingless.com at the end of last year through a personal finance group on Facebook. I was particularly interested in Ruth’s series on “31 Days of Living Well & Spending Zero”. In October of 2012 Ruth went on what is often called a “No Spend Challenge” or a “Pantry Challenge”. 

My family personally took the “No Spend Challenge” in October 2014. I realized these ideas needed to be shared with others. So in December 2014 I created The No Spend Challenge group on Facebook. 

Today, there are over 3500 members and while we primarily use Ruth’s blog for The No Spend Challenge we also do various challenges throughout the year. So far this year there’s been a physical fitness challenge and a minimalist challenge. People are paying off their debts, cutting their expenses, living frugally, funding their emergency funds, and so much more! 

What fantastic personal finance books have you discovered lately? Leave a comment!

-----------------------------------------

Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

‪
Also look for the blog's website online: #‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.  

129. The Debt Snowball

If you have been reading Total Money Makoever by Dave Ramsey we recently started Chapter 7 in the Dave Ramsey - Total Money Makeover Facebook group. 

Okay time for the exciting part! Paying off your debt with The Debt Snowball!

So how does the debt snowball work? Once you have your baby step One $1000 in the bank you pay off the account with the lowest balance first:

1. Create a list of all of your debts: credit cards, car loans, student loans, mortgages, etc… (Note: You probably need to exclude your mortgage from the list until you have the other debts paid off)
2. Next to each one write down the total balance owed.
3. Re-order these from smallest to largest debts (use Excel to make this simpler.)
4. Pay the minimum payment on all of the debts – except the smallest one.
5. Put every extra dollar you can find towards paying off that smallest debt. (For an example let's say we have the following debt. We have $125 to put towards our first debt assuming we pay the minimum payments on all of our other debts. See below!)

6. Celebrate like crazy when you get that first debt paid off.
7. Take the amount you were paying towards the first debt and put towards the next smallest debt. Do this until this next one is paid off. (Now we have $175 to put towards our second debt assuming we pay the minimum payments on all of our other debts. $25 minimum payment plus the $150 from our original payment on Credit Card 1. See below!)

8. Celebrate again!
9. Continue this process until each one is paid off!

Of note if you ever use your $1000 fund you need to pause your debt snowball or debt reduction. Then get your emergency fund back up to $1000. Then continue with your snowball.

The reasoning for using this method is to get small wins. Money is emotional. A few small wins builds momentum and motivates people to keep going!

There are other ways out there such as paying the highest interest first (known as the debt Avalanche Method). We will be using and promoting the Debt Snowball (lowest balance first)in this group. Small wins build momentum! But whatever you decide knock out that debt!

Was this helpful? Which method works best for you and your family? Leave a comment!

Source I used.

------------------------------------------

Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

‪
Also look for the blog's website online: #‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.  

128. SAFE Goal Setting

You'll recognize the logical structure of SMART goal setting for its dependence on left-brain logical and analytical processes. But what if you're more right-brain, creatively oriented? That's where SAFE comes in. SAFE is an acronym for a creative goal setting process especially useful for right-brain-oriented people. But left-brain, analytical and logical thinkers will also benefit from using SAFE.

The right side of our brains furnish our big-picture processes, helping us grasp total situations, reach overall insights, and see creative, alternative solutions. The right side also houses our faith-based spiritual thinking. These strengths are very powerful, so it makes sense that we can use them to our goal achievement advantage.

SAFE stands for…

•See the end result

•Accept the end result

•Feel the end result

•Express the end result

See it, Accept it, Feel it, and Express it!

See it: Picture the future as it will be when your goal is achieved. See it in great detail and full color. If your goal is weight loss, see yourself standing in front of a mirror at your new weight. And looking good! See yourself being admired by others for your new appearance. Put yourself in clothing you might never wear now, but looks good on the new you.

Accept it: Accept means that you open yourself to attaining the goal AND you are 100% certain that it will occur. This is critical to goal attainment because it ensures that you have no doubts. You may not know exactly how you'll achieve your goal, but you have no doubt about achieving it; it will happen and you know it. There's some faith and magic at work here, so open yourself to the power of the Universe to bring you what you want.

Feel it: Goal attainment is more about attracting what we want than chasing what we want. Attraction is strengthened by combining the mental power of thinking about the goal (seeing and accepting) with the emotional power of the feelings you'll have when the goal is achieved. As you visualize yourself having achieved the goal, allow yourself to feel the accompanying emotions. The stronger the emotion the stronger the attraction to the goal.

Express it: Use your full powers of expression to cement your end result in place. Describe it verbally, telling yourself all about it. Write about it. Describe in vivid detail every aspect of how your life looks after the goal is achieved. Capture your feelings in words, too. Draw it, paint it, create a collage that describes and depicts it. Place your writing and pictures where you'll see them every day.

Using SAFE brings into play the full power of your brain, primarily building on right-brain strengths, but using left-brain functions too. Using SAFE in goal setting harnesses your full creative powers.

If you're naturally right-brain dominant, using SAFE will build on your strengths.

Are you more right-brain or left-brain dominant? Thoughts on this methodology?

------------------------------------------

Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

‪
Also look for the blog's website online: #‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.  

127. The No Spend Challenge – January 2015: 31 Days Later What We Learned

I can’t believe it’s February! We just finished up our No Spend Challenge for January 2015. Our goal was to save 20% of our regular budget. We are happy to say we saved about 21%! We were relatively happy with the results of this challenge.

Would YOU like support during YOUR No Spend Challenge? Join the Facebook group with over 2300 members: “The No Spend Challenge”. When we started the No Spend Challenge at the beginning of January we had 1300 members!

What we did:

*We ate primarily what was in our fridge, pantry, and freezer.
*We bought very minimal groceries such as milk, eggs, fresh fruit, fresh veggies, etc.
*We ate out 4 times but spent $25 total!
*We were blessed to have family come over with food for meals and also to eat meals with friends or family.
*We spent $0 at Starbucks. We did have a few gift cards we used up though!
*We didn’t buy anything at the mall or department stores.
*We didn’t buy any movie rentals for the month on Amazon or RedBox!
*We bought no home décor.

*We avoided $1 toys at Target
*What was excluded from this challenge: Mortgage, Utilities, Netflix, Giving, Health related expenses, Sinking funds, Diapers, Wipes, etc.
*We gathered a pile of things to give away.
*The blender died and we felt it had to be replaced.
*We really spent a lot of money with online purchases related to the Facebook group: Dave Ramsey – Total Money Makeover. Totally worth it though in helping people on their journey to get rid of their debt, find financial freedom, and change their family tree!

What we learned:

*Some things we thought were needs are actually wants.
*We CAN resist the urge to impulse buy when we have the motivation to do so.
*Instead of a 24-48 hour wait time to evaluate big purchases this was like a 31 day wait period to evaluate large purchases.
*Surprisingly, $20.00 worth of gas lasted for almost three weeks with the civic!
*Probably not a good idea to start a No Spend Challenge the same month we decide to start a group with weekly giveaways.
*January is the first month of the year which means we haven’t met any of our health insurance deductibles. 
*January all of us got sick and had to go to the doctor. We made two visits to the doctor during the month! 

Highlights of Savings for the Month:

*We spent less than $375 for groceries and eating out for the month. Typically, we’d spend double that amount or more!
*We enjoyed some free meals with family, friends, and with our local church.
*We spent $100 for the entire month in gas. Typically, we’d spend double that at least!
*We were able to continue to pay ourselves a car payment for our next vehicle purchase.
*We continued to save for the kids college, vacation, and car insurance coming up.

For Fun…

*Went to the local Zoo a couple of times with our paid for membership. We ate before going so we didn’t buy any food or souvenirs while there!
*We went to the local public library a few times. One time we got to hear firefighters talk about fire safety and the kids got to climb in the fire truck!
*We went to the local Science and History Museum a few times during the month with our paid for membership. We ate before going so we didn’t buy any food or souvenirs while there!
*We went to friends’ houses to play games and the kids got to play together. Had a blast!

January 2015 No Spend Challenge? Done

Conclusions…
Overall this No Spend Challenge, while more difficult than the one in October 2014, was still a good experience. We highly recommend this challenge to others to try out at least once. It has helped us re-evaluate our financial and family priorities.

Maybe January wasn’t the best month to do this challenge. Still, we’re going to take a good portion of what we saved and apply it to our mortgage. The rest will go to giving and savings.

What about you? Have you tried a No Spend Challenge? What did you learn and how much did you save?

#NoSpendChallenge

-------------------------------------------------------------------------------------

Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

‪
Also look for the blog's website online: #‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.  

126. Total Money Makeover - Pay It Forward

One of the keys to financial success is giving. Dave Ramsey talks a lot about giving. Baby Step 7 is focused on it. However, you don't have to be debt free to give. In this group we want to win with money and part of that means creating a culture of giving as well.

Dave says: “Giving to those in need will bring more joy than money could ever buy.”

So what does it mean to Pay It Forward? Paying it forward can be defined as "responding to another person's kindness to oneself by being kind to someone else."

We have experienced this joy. Would you like to experience it to? The challenge is for you to do one of two things:

Challenge 1:

1a. If you don't own a copy of TMM buy a copy for yourself and your family. If you don’t have money to do so, sell some stuff or work overtime so you can buy a total of 3 copies.

1b. Give a copy of the book to someone in this group.

1c. Give a copy of the book to a friend, family member, or acquaintance with a personalized note stating how the book has impacted your life.

1d. Pass the TMM Pay It Forward Challenge on to someone else by sharing this post! Use the hashtag #TMMPayItForward

Challenge 2:

2a. If you already own a copy of TMM, buy and give away 3 copies of TMM to three people. If you don’t have money to do so, sell some stuff so you can buy the 3 copies.

2b. Give a copy of the book to someone in this group. (See the list pictured below)

2c. Give a copy of the book to a friend, family member, or acquaintance with a personalized note stating how the book has impacted your life.

2d. Give a copy of the book to a complete stranger.

2e. Pass the TMM Pay It Forward Challenge on to someone else by sharing this post! Use the hashtag #TMMPayItForward

Note1: You can buy and mail a good used copy of TMM through Amazon for about $10 shipping included! Dave’s website www.daveramsey.com also usually has some good deals as well. This challenge is absolutely optional. Participate at your own risk. :-)

Note 2: If you are doing The No Spend Challenge you wouldn’t be “breaking” your rules by raising your income (making money by selling some stuff, working overtime, etc.) .

-------------------------------------------------------

Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

‪
Also look for the blog's website online: #‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.  

125. The "No Spend Challenge" Day 1 - January 2015

Time for another No Spend Challenge! This month we are challenging ourselves again to cut spending drastically with a “No Spend Month.” Check out our first challenge last year in October 2014, also what we learned 31 days later from our October 2014 No Spend Challenge, and finally some highlights from the month of October 2014. 

We've actually created a group with over 1300 members on Facebook called The No Spend Challenge to encourage and facilitate helping others take the challenge to save. 

This is the first day so simply put we’re making the commitment and setting some ground rules.

I think both of us are a little apprehensive about doing this challenge again. Even more so trying this again on a month that once again is essentially 5 weeks.

Our goal is to save 20% of our budget by the end of the month. We believe this goal is SMART. It’s specific, measurable, attainable, realistic, and time-sensitive.

Please note each family should account for their own circumstances. If there are known events like birthdays, vacations, vehicle maintenance, doctors appointments fit them in the budget and then move on. If you’re doing this for the first time and you don’t have a huge stockpile of food in the pantry, refrigerator, and freezer you’ll probably have to make a few trips to the store and include that in your rules as well.

We’ve set our sights again not to spend money on anything outside of our basic necessities and eat from our food pantry, refrigerator, and freezer as much as possible. We’re limiting grocery shopping to essentials (milk, eggs, fresh fruit, etc.) only.

These are the things that we will seek to avoid this month:

No eating out at restaurants.
No Starbucks.
No shopping at stores.
No shopping online.
No excess entertainment (we already subscribe to Netflix monthly, but no Redbox or Amazon Online rentals). 

No extras. (chocolate, manicures, pedicures, games, etc.)
No home décor.
No toys. (We tend to buy $1 toys at Target)
No crafts or hobbies.

We’ve agreed to a mini-budget to allow for our basic needs  this month. This includes a small stipend for DW, myself, and miscellaneous expenses outside of our normal bills we may incur this month. 

We're also accounting for some free give aways in our new Facebook Group: Dave Ramsey - Total Money Makeover (note the group has no official affiliation with Dave Ramsey). This group was officially launched last night about 9pm and already has 400 members! 

We hope this challenge will help us once again refocus our efforts in reducing our debt. We also hope it will motivate us to be better stewards of the resources God has given us.

We understand that life does not always go according to planned and our experiment may not go exactly as planned. However, we hope once again the discipline will prove beneficial and a good learning experience regardless of the outcome.


Source I used: http://www.livingwellspendingless.com/31-days/livingwellspendingzero/

#nospendchallenge

-------------------------------------------------------

Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

‪
Also look for the blog's website online: #‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.