Key to Financial Success is Understanding and Managing Your Spending

Jane Young, CFP, EA

Jane Young, CFP, EA

Sometimes the simple things can make the biggest impact on our lives.  One of the most important steps toward achieving financial success is to fully understand where you spend money.   Increasing your awareness of how much you have available to spend and where you spend this money helps you become more intentional in your spending.

Studies have found that many of our actions are based on habit rather than conscientious decisions.  This is true with the food we eat, our daily routines and our spending habits.  By tracking your expenses you may discover spending patterns that are preventing you from achieving your financial goals.

This may seem obvious, but if it’s been a while since you took a serious look at your spending habits, it may be time to track and evaluate your spending.  You don’t need an expensive software package, just a pen, paper, and a calculator.  Review your credit card statements and bank statements over the last 6 months and track your monthly expenses.  If you spend a lot with cash you may need to keep a journal, for a month, to monitor where you are spending your cash.  Don’t leave out the quarterly and annual expenses in your review.  Compare your expenses to your net income to determine how much is left at the end of each month.

This exercise should be enlightening and you will probably be surprised at the amount you spend in certain areas.  Think about your financial goals and evaluate how you are actually spending money in the context of your goals.  Are you maintaining an emergency fund and saving money to meet long term goals such as retirement, a new home, a new car or college education for your children?  Create a spending plan that supports your financial goals.

You may find it helpful to systematically set aside or invest money to build an emergency fund, invest for retirement or save for college tuition.  If this money is put aside, it may be easier to become accustomed to living on the remaining funds.

Regardless of your income level, the secret is truly understanding how much you can spend and being intentional about how and why you spend your money.   Budgeting is about setting financial goals and priorities, not keeping you from doing what you love.   If it’s a priority to spend a lot of money on eating out, taking a vacation or buying a new car and it fits within your financial plan, then enjoy yourself.   Alternatively, if you are spending too much in one area consider enjoyable alternatives.   For example, meet friends for happy hour rather than dinner at an expensive restaurant.

Being aware of your spending helps you spend more intentionally and weigh the trade-offs of every purchase.  The simple act of reviewing your past spending habits will make you stop and think before making spending decisions in the future.

The Secret to Financial Freedom is Living below Your Means

Jane Young, CFP, EA

Jane Young, CFP, EA

Over the years I have observed that a comfortable retirement and financial security can best be achieved with reasonable lifestyle choices.  One of the biggest detriments toward reaching financial independence is spending beyond your means and spending on things you don’t really need.  You don’t necessarily need millions of dollars to retire comfortably but you need to follow a lifestyle that minimizes your living expenses while allowing you to indulge on things or experiences that are really important to you.  Good financial planning requires a balance between current expenses and saving for the future. 

Many Americans have a habit of systematically increasing expenses in lock step with salary increases.  Along with a big raise or promotion comes the inclination to buy a bigger house or a new car.  As we progress through our careers, earning a higher income, we continually take on more financial obligations becoming hand-cuffed to our jobs and our bills.  By increasing your lifestyle every time your income increases you can get caught up on an endless treadmill, trapped with a lot of debt for a house and cars that may be more than you really need.  I’m all for enjoying some of the benefits that come from all your hard work but it’s prudent to spend below your income.   Avoid the temptation to live an extravagant lifestyle and compete with your neighbors, colleagues and friends.  Instead, take pride in following a solid financial plan by saving for the future to achieve greater financial freedom.

As a rule of thumb, save or invest at least 10 – 20% of your income and maintain a buffer of 4 to 6 months of expenses to cover emergencies or a change in your ability to earn a living.  Try to keep your housing expenses below 28% of your gross income; this includes your mortgage payment, insurance and taxes.  Avoid systematically increasing your expenses.  Give yourself some breathing room in case you want or need to make a career change.  Save for the future and keep your options open.  As your income rises automatically put a larger portion into savings and retirement.

To keep expenses under control, examine what is important to you and set some priorities.  You have worked hard and you deserve some of the nice things in life but spend your money on things or experiences that genuinely make you happy.   If you want a really nice house you may decide to spend less on vehicles, vacations and clothing.  If you love taking extravagant vacations consider buying a smaller home and less expensive used vehicles.  Never buy on impulse – always look for ways to save money on the purchase of things you decide are important to you.  

Prioritize your spending to live below your means, save for the future and focus on what truly brings you joy.

Save Money in Retirement

Jane Young, CFP, EA

Jane Young, CFP, EA

There are many ways to stretch your retirement dollars without dramatically impacting your lifestyle.  Start by evaluating what is of great importance to you.  Create a plan that encourages you to spend on things and experiences that are important to you and helps you reduce expenses in low priority areas.

Depending on your priorities, a decrease in housing expenses may provide tremendous cost savings.   If you live in a city with a high cost of living, consider relocating to a lower cost city – ideally one closer to family.  According to Forbes, some of the most affordable cities in 2014 include Knoxville, Birmingham, Tampa, Virginia Beach and Oklahoma City. 

Downsizing is another great way to reduce expenses.  Now that you’re retired, your housing needs have probably changed.  Downsizing can help you reduce expenses on mortgage, insurance, taxes, utilities and maintenance.  In addition to saving money, you may be ready for a different lifestyle, a new floor plan (living on one level) and a new neighborhood that better meets your needs throughout retirement.

In retirement there are opportunities to save on vehicle expenses.  Assuming you are no longer commuting to work every day, you should be able to save on gas and maintenance for your vehicle.   Additionally, many retired couples don’t need two vehicles, selling a second car can save on car payments, insurance, taxes and maintenance. 

Vehicles are a depreciating asset where you can lose thousands of dollars by simply driving a car off the lot. Save money by resisting the temptation to buy a new car.  Internet sites such as Edmunds.com and Kelley Bluebook (kbb.com) make it easy to research prices to negotiate a good deal on a used vehicle.   Additionally, where possible, buy your vehicles with cash and avoid high interest car loans.

In retirement, you have more time to focus on saving money. Use this time to shop and compare, watch for specials and utilize coupons.  Evaluate your home, auto and health insurance and compare prices and features provided by different companies.  Save on cell phones, internet and television by comparing service offerings and negotiating prices.  Consider doing chores around the house that you previously hired someone else to do and cook more to save on eating out.

Having more time can also result in saving on travel expenses.  A more flexible schedule, allows you to avoid peak season and get reduced rates on airfare, lodging and restaurants.  May and September are great months to travel and get some good deals.  You can also save by flying during the week.   Travel sites such as Tripadvisor.com, Cheaptickets.com, RickSteves.com and Vacation Rental by Owner (VRBO.com) can also help maximize your travel dollar.

Finally, avoid the temptation to over spend on children and grandchildren.  You will probably need most of your money to cover retirement spending needs.  Give your family the gift of your love and time rather than your money.

Financial Pitfalls to Avoid

Jane Young, CFP, EA

Jane Young, CFP, EA

Below are some common pitfalls that I have observed over the last seventeen years as a financial planner.  You may have a smoother journey toward reaching your financial goals if you can avoid some of the hazards along the way.

Living Beyond Your Means – Take the time to review your monthly expenses and compare them to your income.   Establish a budget where you spend less than you earn.  A good way to deal with unforeseen financial issues is to always save at least 10% of your income and avoid unnecessary debt.

No Emergency Fund – Everyone should maintain an emergency fund of at least three months of expenses.  This should be higher if you don’t have a lot of job security or your income fluctuates.  Without an emergency fund, large unexpected expenses can quickly throw you into a negative debt spiral.

Too Much Debt – Avoiding debt is a mindset.  There is good debt and bad debt – it may be wise to secure a low interest, tax deductible mortgage when purchasing a home.  This enables you to start building equity and reap the benefit of appreciation as the value of your home increases.  However, it is generally not advisable to finance personal items such as furniture and appliances.  If you can’t pay cash, you should probably wait and save up for the purchase.   Avoid credit cards if you can’t pay off the entire balance at the end of the month.  

Overspending on Vehicles – Financing the purchase of a new vehicle can negatively impact your monthly budget.  I have seen clients and friends take on car payments in excess of their home mortgage.  Vehicles are depreciating assets and they are not a good investment.  When possible you should buy a used vehicle and save your money to purchase your car with cash.  Unless you have a lot of disposable income, minimize your vehicle expenses and buy with functionality in mind.

Putting Kids Through College at the Expense of Retirement – I know you love your kids and you want to give them a good start in life but don’t sacrifice your retirement.  There are many ways to minimize college expenses and finance a college education.  You can’t take out a loan to finance your retirement.

Get Rich Schemes – I’ve heard them all – every few months someone will ask me about some new product or investment scheme that promises low risk, double digit returns.  There is no free lunch, if it sounds too good to be true, it is! 

Emotional Reaction to Movements in Market – Stocks are long term investments, you need to be willing and able to ride out the fluctuations in the market.   Over long periods of time, the stock market has trended upward; however, there will be periods with negative returns.  Avoid the natural tendency to react emotionally to market downturns.  Stay the course and follow your long term plan.

Save Money by Focusing on Problem Areas

office pictures may 2012 002Probably the most important step toward saving money is making the decision to focus on your spending habits.  We frequently over spend when we are in a hurry and don’t have time to plan.  If you are serious about saving money slow down, get organized and devote some time to making a plan.   You can save a tremendous amount of money if you think about what you really need, make a list, compare prices and avoid impulse purchases. 

Start by reviewing your spending habits over the last year.  Calculate what you have been spending in relation to your income.  You may discover a gap in what you thought you were spending and the amount of money left at the end of the month.  It may be helpful to keep a spending diary for about a month to see where all that money is going.  Review your spending over the past year for obvious problem areas.  It is common for many people over spend on eating out, clothing, electronic toys and tools.

You may be very good at setting a budget and tracking your expenses. However, if this approach is too time consuming for your busy lifestyle, consider what we call creative budgeting.  Focus on one or two problem areas and develop creative ways to reduce spending in these areas.  For example, if you have a tendency to over spend on eating out, think of some creative ways to reduce spending in this area.   Some creative ideas may include preparing breakfast and lunch at home the night before and taking it to work with you.  When you are preparing a meal, make extra to freeze or eat for lunch the next day.  If you enjoy going out with friends, consider eating something before you leave and then eat something small like a side salad or cup of soup when you meet your friends.  Instead of going to expensive restaurants, organize a potluck dinner or start a gourmet club and rotate going to one another’s home.   Restaurants generally provide very large portions.  Consider taking half of your meal home, to be eaten later, or share a meal with a friend.  You can also save money by meeting at someone’s home for appetizers, desert or drinks before or after dinner.  There are many ways to reduce money on eating out that may result in more enjoyment, better food and less calories.

 Continue working on fun and creative ways to reduce spending in your initial target area.  The key is to substitute what you are giving up with something equally or more satisfying and less expensive.  Once you feel comfortable with your level of spending in this area, identify another place where your spending could be reduced.  After going through this process a few times you should become more focused on where you are spending money and your spending should be better aligned with your goal

European Travel Can Be Affordable, With Some Planning

Jane Young, CFP, EA

Jane Young, CFP, EA

The cost of a European vacation may seem daunting. However, with some careful planning you can travel to Europe for little more than the cost of a domestic vacation. Two major factors in saving money on European travel are when and where to go. Several countries, such as Romania, Slovakia, Hungary, Portugal, Greece, Spain and Poland can be considerably less expensive than others. If you are trying to save money, avoid Norway, Sweden, Switzerland, Finland, Denmark and Luxemburg. Consider avoiding the big touristy cities such as London, Paris, Amsterdam, Geneva, Rome and Venice until you have more money to spend.
You can reap tremendous savings by avoiding travel during the peak summer season. Airfares and lodging prices are generally very expensive between mid-May and mid-September. You can find great deals on airfare and lodging between October and April. You can also save money by flying on a Tuesday or Wednesday.
Additionally, you can save money by flying across the Atlantic into less popular European cities. Once you arrive in Europe, you can take a train or a discount European airline to your target destination. It is also easier to use frequent flyer miles for flights to less popular destinations. Frequent flyer miles can be a great way to save money on air travel.
Once in Europe, it is inexpensive to get around using trains, buses, subways and discount airlines. If you have a long distance to travel, consider a sleeping train or a discount airline such as easyJet or RyanAir. You will be pleasantly surprised by how inexpensive airfare within Europe can be. A sleeper car enables you to cover large distances while you sleep and save the cost of a hotel for the night. There are places that you just can’t reach by train or bus. In this instance, rent a car for a day or two to visit these special out of the way places.
Save money on lodging by staying at an apartment, Bed and Breakfast or locally owned hotel. You can get better deals by staying in small towns or just outside the city center; this works well in cities with a good subway system. There are numerous resources on the internet to research and read reviews on lodging options. Some of my favorite on-line resources include TripAdvisor, VRBO (Vacation Rental by Owner), Fodor’s and Rick Steve’s.
Finally, don’t pay unnecessary fees to convert money or to pay for travel expenses. Many credit cards charge between 1-3% on European purchases. Use a credit card, such as Capital One, that doesn’t charge extra fees for European purchases. Generally, you can get the best exchange rate on local currency by using your ATM card at a major European bank. With ATMs, you are charged a fee every time you pull out money, so minimize your transactions. Avoid Change Bureaus; they usually have unfavorable exchange rates.

Tips to Acheive Financial Fitness

Jane Young, CFP, EA

Jane Young, CFP, EA


The first step toward financial fitness is to understand your current situation and live within your means. Review your actual expenses on an annual basis and categorize your expenses as necessary or discretionary. Compare your expenses to your income and develop a budget to ensure you are living within your means and saving for the future. The next step is to pay off high interest credit cards and personal debts. Once you have paid off your credit cards, create and maintain an emergency fund equal to about four months of expenses, including expenses for the current month. Your emergency funds should be readily accessible in a checking, savings or money market account.
Now it’s time to look toward the future. Get in the habit of always saving at least 10% to 15% of your gross income. Think about your goals and what you want to accomplish. If you don’t own a home, you may want to save for a down payment. When you purchase a home make sure you can easily make the payments while contributing toward retirement. Generally, your mortgage expense should be at or below 25% of your take home pay.
Contribute money into retirement plans, for which you qualify. Make contributions to your 401k plan, at least up to the employer match and maximize your Roth IRA. If you are self-employed, consider a SEP or a Simple plan. If you have children and want to contribute to their college expenses, consider a 529 college savings plan. Do not contribute so much toward your children’s college fund that you sacrifice your own retirement.
As you save for retirement, be an investor not a trader. Investing in the stock market is a long term endeavor, forecasting the short-term movement of the stock market is fruitless. Avoid emotional reactions to headlines and short term events. Don’t overreact to sensationalistic stories or chase the latest investment trends. Establish a defensive position by maintaining a well-diversified portfolio, custom designed for your unique situation. Slow and steady wins the race!
Don’t invest in anything that you don’t understand or that sounds too good to be true. If you really want to invest in complicated products, read the fine print. Be especially aware of high commissions, fees, and surrender charges. There is no free lunch; if you are being offered above market returns, there is probably a catch. Keep in mind that contracts are written to protect the insurance or investment company, not the investor.
It is impossible to predict fluctuations in the market or to select the next great stock. However, you can hedge your bets with a well-diversified portfolio. Establish an asset allocation that is aligned with your goals, investment timeframe, and risk tolerance. Your portfolio should contain a mix of fixed income and stock based investments across a wide variety of companies and industries. Rebalance your portfolio on an annual basis to stay diversified.

Attend a Financial Fireside Chat with Jane and Linda on December 2nd to discuss “Year End Financial Planning Tips and Money Saving Ideas for the Holidays”

 

You and a guest are invited to a Financial Fireside Chat with Jane and Linda at our office, from 7:30 – 9:00 am on Thursday, December 2nd to discuss “Year End Financial Planning Tips and Money Saving Ideas for the Holidays.”

A Financial Fireside chat is an informal discussion over coffee and donuts, where our clients and guests can learn about various financial topics in a casual non-threatening environment. This is free of charge and purely educational. There will be absolutely no sales of products or services during this session. We will provide plenty of time for informal discussion.

The Fireside Chat will be held at the Pinnacle Financial Concepts, Inc. offices at 7025 Tall Oak Drive, Suite 210. Please RSVP with Judy at 260-9800.

We are looking forward to seeing you on Thursday, December 2nd to learn about and discuss some great year end financial planning ideas.

A Money Moment with Jane – What Are You Spending Today?

8a8_9449-x2-x100 

By Jane M. Young, CFP, EA

The first step to any solid financial plan is understanding your current situation. How much money is remaining after paying your non-discretionary expenses? If you don’t know, then you need to review your expenses over the last few months to better understand your spending habits. How much do you spend on non-discretionary items and how much do you spend on discretionary items. Are you happy with how you are spending your money? Are you saving as much as you could? Are you spending too much on frivolous items? Do your spending habits align with your goals? Have you set some financial goals?

Take Control of Your Life with a Personal Strategic Plan

8a8_9449-x2-x100

Jane M. Young, CFP,EA

At least once a year we need to step back from our daily routine to look at our lives from a broader perspective. We get so bogged down with daily responsibilities we lose track of where we are, and where we want to go. Take the time to do some personal strategic planning. Start by looking at what you are actually spending and saving. How much do you spend in a typical month, how much is necessary spending and how much is discretionary? How do your expenses compare to your income? How do your expenses and your savings line up with your goals?

Maybe you haven’t thought about your long range goals for awhile. I challenge you to make a list of 30–50 goals that you would like to accomplish over the next five years. I know… that’s a lot! Think of this as a brainstorming exercise. Don’t evaluate the importance of a goal, just write down what comes to mind. If you are having difficulty thinking of 30–50 goals, try thinking of goals in the following categories: friends and family, health, career, social and entertainment, money and finance, spiritual, education, and community. Once you have created your list, prioritize your goals by importance and timeframe. Develop an action plan for your high priority goals.

Now go back and review your expenses. Are your spending and saving habits congruent with your long term goals? Use the information you have pulled together to develop a spending and savings plan that supports your personal strategic plan. Once you have a clear picture of where you are and where you want to go, you can take control of your life.

“The future belongs to those who believe in the beauty of their dreams.”
– Eleanor Roosevelt

Combine Your Financial Goal Setting with a Romantic Valentine’s Day Retreat

8a8_9449-x2-x100

Jane M. Young, CFP, EA

Valentine’s Day is a time for showing love and appreciation for someone special in your life. It’s also a good time to work on your relationship and work on issues that cause conflict. One of the biggest sources of conflict and disagreement in relationships is money. Money itself isn’t the cause of our disagreements; we fight over our divergent goals and priorities for money. Many fights arise out of the lack of communication about our wishes, hopes and dreams. If you and your partner are constantly squabbling about money and how you spend your household income, I have a fun Valentine’s Day solution for you.

I suggest you take a romantic, strategic planning retreat. Block off a full weekend for you and your partner – no children allowed! Select a romantic Inn or Bed and Breakfast somewhere within a reasonable driving distance. The only requirement is a private area with a writing surface. Spend Friday night and all day Saturday discussing your values, sharing dreams, setting goals, creating a budget and making specific plans for the future. Reward yourself with a nice dinner and a romantic evening Saturday night, then play all day Sunday! Make this your Valentine’s Day gift to each other, this year, and every year.

10 Great Money Saving Ideas for the Holidays

8a8_9449-x2-x100

Jane M. Young, CFP, EA

1. Make a plan – who will receive a gift and how much do you plan to spend. Stick to your plan, keep track of your spending, and don’t spend on impulse.

2. Start early and give yourself plenty of time to select gifts and compare prices. We always over buy and spend too much when pressed for time.

3. Find creative ways to reduce the number of people for whom you plan to give gifts. Instead of buying gifts for friends make arrangements to make each other dinner or meet for an inexpensive happy hour. Remember that receiving a gift can be stressful and a nice a card or gesture may be more appropriate

4. Suggest that your family or group of friends draw names instead of buying gifts for everyone. It is difficult and expensive to buy gifts for a large number of people who already have everything.

5. Exchange white elephant gifts or favorite used books instead of expensive Christmas gifts. This is especially fun in conjunction with a Chinese gift exchange where everyone gets a chance to steal a gift from the other participants.

6. Gift a homemade present such as a homemade sauce, stew or soup, a painting, a knitted scarf, cookies, or a pie. You can capture a special moment by framing a photo or post card or you can create a calendar with some sentimental photographs.

7. If you have more time than money gift your services such as babysitting, home maintenance, faux painting, cooking a meal, house cleaning, shoveling snow, decorating advice, cooking lessons, a musical performance, or computer instruction.

8. Rather than providing all the food for your holiday party, ask your friends to bring a dish and a bottle of wine. Co-host a party with a few friends and share the cost. If you are planning a neighborhood party, consider a progressive party where each course is served at a different home.

9. Avoid purchasing expensive new holiday clothes. Make your existing wardrobe more festive through the use of inexpensive accessories and scarves. If you really need a new outfit check out your local consignment stores. Holiday and formal attire isn’t worn very often and is usually in good shape at consignment stores.

10. Lower the cost of Christmas cards and postage by using post cards, e-cards, e-mail or a simple phone call. It’s the thought that counts.

How to Save Money on European Travel

Jane M. Young, CFP, EA

I have decided to focus on a topic that is near to my heart and for which I have a great deal of first hand experience. Although in some cases you should do as I say and not as I do. I have a terrible weakness for European cafés and therefore spend too much money on meals and wine. We must choose our battles.

1.) Take the time to research air fares; it helps to be flexible on dates, times and locations. On my last trip we were able to save about $500 by trying a wide variety of routes and destinations – all within southern France. It is generally much cheaper to travel in and out of the same city and to book round trip tickets. If you need to travel one way within Europe there are several low cost, regional, airlines. If you don’t have too much luggage, consider a high speed train. I found train travel to be easy, fun, inexpensive and reliable. However, it can be difficult with a lot of luggage. It’s great for a day trip!

2.) Avoid travel during peak season, June through August. I usually travel in May or September to avoid the huge summer crowds and get better prices. Most hotels charge higher rates during the peak summer months. The service is also much better when there are fewer people to deal with. I also found that several historical sites don’t charge admission until June 1st.

3.) Save money by eating fewer meals in restaurants. Buy some bread, wine and cheese at the local grocery store and have a picnic in the park or at the beach. Reserve a hotel with a refrigerator to keep food fresh for breakfast and snacks. Most hotels offer breakfast but it can be very expensive, pick-up a baguette or a sandwich on the go and eat it as you stroll through the city. If you are limited for time, eating all your meals in a restaurant can use up a lot of valuable time.

4.) Save money when eating in restaurants by ordering the special of the day, sharing a meal or eating the seasonal local specialties. You can also save money by ordering the fixed price menu. If you are traveling to several towns in a region eat in the smaller less touristy villages. In addition to being less expensive, the food is better and the proprietors are more open. Seek out restaurants that are off the beaten path or ask a local for a restaurant recommendation. The prices will be lower, the food will be better and the ambiance will be nicer. You can eat with the Americans at home.

Save on wine by ordering a half liter or small pitcher of house wine. Most restaurants in France and Italy serve a half liter of house wine for about 5 euros; it’s the best deal going. The house wine is usually produced locally, many restaurants serve only regional wines. As they say, when in Rome….

5.) Take the time to research your lodging. You can save on lodging by staying in lesser know towns and staying in small locally owned Inns or Hotels. If you have the time, book an apartment for a week or two and take days trips from your base location. Another great way to save money is booking a business hotel over the weekend or a holiday; this can be especially helpful for airport locations.

There are several internet sites that can help you select good quality, inexpensive hotels such as Tripadvisor.com and Hotels.com. You can read reviews written by the people who have recently stayed there. A good guidebook on the region you are visiting can also be very helpful in selecting a hotel. Check out your selection with several sources to make sure the reviews are consistent.

6.) Think about what site-seeing you plan to do and what is really important to you. Admission into museums and various historical sites can be very expensive. When you visit cities with several sites that you want to see ask the tourist office if there is a museum pass or some kind of package deal that you can purchase. Be selective on what you pay to see – the inside of one mid-evil castle looks about the same as the next. You have limited time and there is so much beautiful scenery and architecture available to see absolutely free.

10 Ways to Save Money on Food

Jane M. Young, CFP, EA

1. When grocery shopping, select items from the lower shelves, the more expensive items are usually placed at eye level.

2. Stock up when durable goods that you always need go on sale. Don’t buy something you wouldn’t otherwise buy just because it’s on sale.

3. Reduce impulse purchases at the grocery store – go less frequently, make a list and eat before you go. I know, I know, those strawberry shortcake cookies, with the cream filling and chocolate swirls looked so good. But a few days later …… what was I thinking??

4. When comparing prices check the unit price not the total price. You may pay less but you are probably getting less for your money.

5. Eat smaller portions of meat – you might even lose a little weight. Meat is very expensive, use more vegetables and less meat in you recipes.

6. When eating out, eat half of your meal at the restaurant and take the rest home with you. Most restaurants serve very large portions.

7. When eating out limit yourself to one glass of wine or drink tap water instead of coffee, tea or soda. Beverages can be very expensive relative to the cost your food.

8. If you are having an entrée avoid ordering appetizers or desert at the restaurant. Have drinks and appetizers at home before you leave or coffee and desert at home after dinner.

9. Eat something at home before you go out to meet friends. Limit your order to an appetizer or a side salad to be sociable.

10. Rather than celebrating at a restaurant, organize a potluck or take turns hosting a dinner party.

Painless Money Saving Ideas

I am starting a new on-going feature that will provide money saving ideas.   My goal is to contribute something on saving money about once a month. In the current economy we need all the help we can get. If you have any money saving ideas please send them to me and I’ll include them in the blog. I’ll start with a few ideas that have worked for me.

• Start shopping for clothing at consignment stores. I love good quality clothing but hate to pay the price. For years I’ve been meaning to stop by this cute little boutique on the west side of town and I finally did. Three hours later and two hundred dollars poorer, I walked out with what would have cost me at least $1000 in a regular retail store.

• Save your change. Do you have loose change all over your house and car? I started putting all my loose change in a jar and I had over a hundred dollars saved up in no time!

• Identify and focus on one or two problem areas. We all have areas in our lives where we spend too much. Mine is spending too much eating out. I am trying to focus on this area by keeping groceries in the house, taking breakfast and lunch to work, going to restaurants when they have special deals, sharing a meal and going to a nice restaurant and eating at the bar (same chef ).

• Lengthen the time between personal care appointments such as hair-cuts and manicures. I used to get my hair cut every 4-5 weeks. I found I could go about 6-8 weeks without any problem. Do some of your own personal care and limit that professional manicure or pedicure to once a month or to special occasions.

• Take the time to really shop around for airline tickets. We recently saved $400 per ticket by shopping around and checking numerous different possibilities. Take advantage of opportunities to get airline miles on your credit card. I have two cards that give me airline miles and I make a point to put all of my large purchases on a credit card to get the mileage credit.