Well, I’m tired of not caring, and I am more tired of paying so much money in interest to people who care little about me. And, I’m really tired of living paycheck to paycheck! Most importantly, though, I want to leave a positive legacy for my children. No, I’m not talking about a grand inheritance. I’m talking about the legacy of knowledge & self control as it pertains to finances.

In Budget Boot Camp, the first step is to figure out where you are with your bills, your bank account, and your finances in general. You know that dark, creepy drawer that you call a “junk drawer” but it really holds all the bills? It’s time to let a little light into that cave, and dig out the artifacts. Go grab a piece of paper, and a pen, and write down all your bills. Write down how much is past due, what the current amount due is, and the due date. Then, add them up. Scary, huh? Not this time!

Now, I want you to go through and figure out your square. Food, Clothing, Transportation, and Housing make up the four corners of your square. Right now, we are not going to look outside the box – not until we get the necessities taken care of. What does this add up to? Can your income handle your necessities? If so, great! If not, then you seriously need to consider scaling back your lifestyle. Driving a new care is great, but not when it is near repossession. Sell the car and buy a used one. Right now, we have a paid for newer truck, and a 1985 (yes, 85!) Dynasty – do you know why? Because we can afford them!

So, what is next? Debt. There is no easy fix for the debt. You are not going to win the lottery, and most people are not going to get an inheritance from a long lost cousin! YOU have to pay the debt. We will get deeper into the subject of debt at a later time, but for right now, figure out your minimum payments. Can you make them? Great! No? Well, call the creditors and let them know that you are working on a payback plan, and right now you can only afford to send them X amount. Make sure you keep in contact with them, and when we get our plan going, make sure you let them in on your plan.

Phew! That wasn’t so bad! Well, it probably hurt, because I know I said “ouch” a couple times. This is your beginning – facing the problem head on instead of hiding. You are in control of your money. You are developing a plan that will not only get you out of debt, but allow for money in the bank, and a future. There is nothing like the confidence in knowing you are in control.

All I want for Christmas is to be debt-free.

To be debt-free. Yes, to be debt-free.

Gee if I would only be without that debt. Then I would have a Merry Christmas!

It seems so long since I could say,

“See I sent those silly bills off right away”

Gosh oh gee how happy I’d be,

If only I’d see that day

This year I’m gonna buy just a little less,

won’t buy a dress, there’ll be less mess!

Then I’ll stop and think before I charge a storm.

Then I can have a Merry Christmas!

Christmas! Christmas!

Oh for goodness’ sake

Happy New Year!

1. Do treat investing as a vital, non-negotiable budget item. If you make it a priority, it becomes one.
2. Do aim to save at least 10% of your gross income across all your accounts. If you can do more than 10%, that’s even better.
3. Do get rid of bad debt (credit cards), which can trap you in a vicious cycle.
4. If it’s a choice between saving for retirement or college, do save for your retirement first. Loans and scholarships can always help Finance College. You can’t borrow to pay for your retirement.
5. Do make sure you have wills, and adequate life insurance for both you and your spouse.

5 Financial Don’ts

1. Don’t wait until you think you have a “stash” of money to invest. Invest to create a stash.
2. Don’t waste money on lottery tickets. Your chances of being hit by a bus are greater than winning. Take that money and put it into savings (emergency fund) or invest it.
3. Don’t listen to what everyone else is doing. Focus on your goals and your situation. Most people aren’t honest about their situation anyway, so don’t apply their strategies to your situation.
4. Don’t forget that if you are financially irresponsible, your children will feel the effects – today and tomorrow. Do you really want your children to have to kick in to pay your bills when you’re retired, at the expense of their families?
5. Don’t buy an investment that you do not understand how it works, and how the person who sold it to you is compensated.

• If you really need to send out invitations, why not do them over email? They are cheaper and there are hundreds of websites to create e-vites on for free!
• Forget the theme! Who cares if your serving food on regular dishes (or heaven forbid, paper plates!) instead of out of a ceramic pumpkin dish that would have cost you fifty dollars? They’ll be more impressed with your homemade treats than your presentation!
• For easy Halloween treats, make a batch of cookies, use up that canned pumpkin and bake some pie, and for a really cheap trick, purchase dry ice from your grocery store to add to any simple fruit punch for a spooky effect!
• Decorate in budget! Use white sheets to cover tables and sofas. Dim the lights. Write spooky messages on the bathroom mirrors with bar soap. Be creative!
• Trouble thinking up activities? Scary movies of course! Pull out your favorites tonight. Old classics or new horror films. Better yet, throw on something spooky and funny so the kids can join in!

I am asking you to stop being a habitual spender. Start to become a habitual saver! But, first, you need to really be honest with yourself and know financially where you stand. Your goal is to start telling your money where to go, instead of the other way around.

So, go grab a pen & paper. Open up your kitchen cupboards, desk drawers & purse and dig out those bills you have been fearing for way too long. We aren’t going to react to them; we are just going to grab the information off of them! If you want to take an easy approach, you can download my spreadsheet to use. Right now, you want to concentrate on the things that you need in order to live.

1. Know what you are paying and what you are getting. Are you getting extra services/features that you don’t need or use? Can you go with a more basic package?
2. Know what the going rate is and how the service is at the competition. Ask your friends who they use and what they pay for their cell service, or their internet service. You’ll find out how satisfied they are and whether or not the “biggest deal” is really the best deal.
3. Talk to your service provider; ask if there are any specials or rewards for loyal customers. Ask them if they can do better for you. I did this last month and I was pleasantly surprised. We wanted to add a new phone line to the house, and I asked my provider (who also provides my cable TV and internet connection) if that was the best they could do. I also mentioned that I was looking into moving my business. I ended up getting the new phone line added, and my bill was reduced to less than what I was spending when I only had one line. All I did was ask.
4. Bundle services. If some of your services can be had at one provider, find out if they offer a discount for ordering more than one service from them. If they do, you win. If they don’t, find someone who does and at a better rate.
5. Rethink your needs. Cell service can be a really big expense. Why not see if you can get rid of your land line and just have a cell. Or, if you use your cell only to have an emergency line, consider getting a pay-as-you-go type cell phone, which is designed for just this kind of use.

Find out what his greatest financial worries are and what his greatest financial dreams are. Then write down all the things that you can think of that you could both do to ease these worries and work toward these dreams. Once you write something down, it becomes a goal that you will actually try and work towards. Let him know that you are on board and that you want to be his partner in making the most of the household income, and in solving the challenges that lie ahead.

Saving your green and going green can go hand-in-hand.  Here are three energy saving tips that are good for the environment and your pocketbook!

1.  Power Down.  We all know to turn off lights in empty rooms, but did you know that even when an appliance is plugged in and turned off, it still consumes power?  Power down appliances, televisions, and computers when they are not in use by unplugging them.2. Fill’er Up. Before you start the dishwasher or washer machine, make sure you are running full loads.  Speed up drying times by placing a dry towel in with a wet load of laundry. Did you know that a full refrigerator runs more efficiently and uses less energy?  So make sure to load up the refrigerator and freezer!

3.  Get Road Ready.  Routinely maintaining your car, and keeping your tires properly inflated can dramatically improve your gas mileage.  Also, make sure that you are not lugging around any unnecessary items in your car.  Extra weight costs you in terms of fuel efficiency.

Are you worried about your husband’s job security, rising taxes, debt you already have? Uncertain times — they’re always just a heartbeat away. What can you do? Are there things out of your control? Sure. But there are things you can control. Don’t miss this opportunity to take a good, hard look at your financial situation and improve it before you are in emergency mode.

Budget Wisely. A budget is only as good as the information you put in it. That is why you have to keep track of everything that you spend and everything that you make. Only by tracking every little expense can you see where the “fat” is. Saving/investing must be a line item in your budget. Make room for it by cutting unnecessary expenses. Any contributions to an employer sponsored retirement plan would count toward the 10%.

Increase Job Security. One of the greatest fears during a recession is lay-offs. In addition, there are jobs that are being exported overseas. We can worry about this, and complain about this, but the situation won’t change. Take this time to formulate a Plan B, and be wise to the writing on the wall. If your husband’s job is always dangling by a thread, it’s time to look at the skills he has acquired and the contacts he has made. Can he transition into something else? Do his skills translate in another industry? Are there freelance or consulting opportunities available for either of you? Would an investment in more education or training improve job prospects? Look at the job classifieds for ideas on what is in demand and what qualifications are required. Is there a side business that can be started with little or no capital that you can help out with? Brain storm together, writing down everything you can think of, no matter how far-fetched it may seem. You may end up with a clear idea of where you both should be personally and professionally.

Pay Down Credit Card Debt. Get healthy and shed as much of this debt as you can. You should aim to pay off more than just the minimum and look to consolidate the debt to one lower rate card. Talk to your card company and try to negotiate a better rate. If you still have high rate cards, be sure to pay them off first. Of course, stop using credit cards for any new purchases.

Improve Your Credit Score. Lenders are more particular about who they are lending to and your credit score is more important than ever. Make sure to pay your bills on time, reduce debt as a percentage of your credit line, and pay more than the minimums. When the economy does recover, you will be in a stronger position — but, either way, this is a sound way to treat your credit no matter what the economy is doing.

Delay. Again if you are nervous about job security, or debt is creeping up on you, put off purchasing anything you don’t really need. Don’t eat out, don’t go on a vacation, don’t buy a new car, don’t indulge in anything that you would consider something you want (a manicure) versus a need (an annual check-up).

Like any time there is crisis, there’s a chance to examine your life and to truly grow and benefit from the experience. Make the most of this time; work with your husband to get your lives on track. It just may recession-proof (and divorce-proof) your life.

Developing healthy money habits early on can set your child’s financial compass for life. Parents are best able to encourage financial self-reliance in their children by paying them an allowance – as long as it’s implemented effectively.

Anton Simunovic, Founder & CEO of ThreeJars.com leads the way with a site that teaches kids how to be responsible with money and opens their hearts to others. Here are some effective allowance tips to get you started.

1. EMPOWER OUR CHILDREN. Responsible experience is the best teacher, so let our kids practice with real money. Truth is, when the kids spend their money and not ours, they get thoughtful – and fast. And if “mistakes” are to be made, isn’t it better they are made when dollar amounts and consequences are low? So let them practice money, just as they practice sports or instruments.

2. KEEP IT BALANCED. Allot a portion of every dollar your child earns to three jars: one for saving, the other two for spending and sharing. 50% to the save jar, 40% to the spend jar and 10% to the share jar is a good rule of thumb. This establishes healthy money patterns before they leave the family nest.

3. BE CONSISTENT. Pay the right amount on time! Three dollars may seem trite to an adult, but to a young child, it’s their source of independent income. Give allowance the proper respect and attention it deserves. It’s a parent’s best tool to teach kids about money.

4. HOW MUCH. Consider the age of your child, your expectations of what the allowance will be used for, and what your family budget can afford. Before high school, kids are often paid their age or half their age in dollars per week.

5. EMBRACE TECHNOLOGY. This generation responds well to the modern uses of technology and it has revolutionized the way they learn. The internet allows kids to connect the dots between earning money, understanding the tradeoffs between spending and saving, and developing a balanced relationship with money by sharing some of it. Tracking decisions gives kids a picture of how money works.

6. ALLOWANCE AND CHORES. Kids who live in the house, have to help manage the home. That’s what it means to be part of a family – case closed. To ensure follow-through on chores consider revoking TV, internet or cell phone privileges. This way kids are still given the chance to work on their all important money management skills.

ThreeJars.com is a first of its kind, online allowance system that teaches kids the smart way to manage money. Funds are divvied up into categories: Save, Spend, and Share. Kids decide (but parent’s have to approve) how much to store up, what to spend, and how much to donate to charity. www.ThreeJars.com