I Defied The Odds!

 

Single parents tend to get a bad rap and to be honest, a lot of single parents do use their “single status” as an excuse as to why they go into debt, can’t make ends meet, have no savings or fail at whatever “married couples” succeed at so that isn’t helpful.  Dual income families are deemed to be more successful than single income families.  In fact, it is often thought that it is impossible to succeed without two incomes.  Fortunately for me, that hasn’t been true at all.

 

I became a single mom, a very determined single mom, in 1987.  I wanted the best possible life for both of us so when my son was six months old I put him in daycare, enrolled at a technical college and went back to school while working a part time job as a CNA at a nursing home to make rent and pay the bills.  I took out the minimal amounts in student loans I could and practiced super frugality.

 

Once I was out of school and had a job in my chosen field my focus was to pay off my student loans as quickly as possible while continuing to live frugally.  I also participated in my employer’s 401(k) plan as soon as I was eligible.  They matched 3% so I made sure to contribute what I needed to in order to get those matching dollars so I didn’t leave anything on the table.  I didn’t make a whole lot, but I made that and company health insurance benefits a priority.

 

The first thing I did after I got that job and filed my income taxes was to use that money to fund a $200 emergency fund and stock my pantry.  The next year I added to my savings and restocked my pantry and again the following year.  Consistently doing this fueled me to keep going.  After eight years of scrimping and saving I had saved enough for a down payment and I bought my first home.  I continued to save money, upgrade and improve my home and raise my son.

 

In 2000 I submitted my application to adopt my older daughter and three years later I did it again to adopt my youngest child.  I raised three wonderful children, kept them healthy, well fed, provided them with opportunities and extracurricular activities, like tee ball, taekwondo and karate, band, orchestra, dance, etc. and never made excuses.  We had pets, family vacations, camp trips and fun.  All of my children have been to Disneyland.  We didn’t just survive, we thrived.  Bonus points – all of my kiddos have gone to college and have degrees.

 

My parents did not pay for their children to attend college and neither did I, but we all went.  We figured it out on our own.  My parents instilled in all of us kids a strong work ethic and taught us how to be capable, resourceful and responsible adults and I carried that forward when I raised my own kids.  I also taught my children about money and how to save and responsibly spend it.  The biggest thing I did was to set a good example for them follow.

 

In the process I was able to live a thrifty, debt free lifestyle, launch my kids out of the nest with the tools they needed to live out in the world on their own and save for my retirement.  Then I retired early at age 57 after forty eight years in the workforce.  Yes, I had my first job at age 9 and my first savings account at that age too.  Prior to that age I had a piggy bank where I saved my change and squirreled away whatever I could “for a rainy day”.

 

I did a lot of side hustles along the way - babysitting, bookkeeping and tax preparation, graphic design, sewing and alterations, you name it, I did it.  Likewise, from an early age my children did too – babysitting, house and pet sitting, working fast food and at the neighborhood grocery store.  Like me, they all spent a little and saved most of their earnings so by the time they graduated high school they had quite a nest egg to start off with.  They also had a car, bought and paid for along with the basic knowledge to take care of that vehicle.

 

I made no excuses, tried hard, worked harder and always lived well below my means while I saved and invested money for my future.  Now that I am retired I do have a part time job which covers my groceries, gas and monthly expenses so I can continue to grow my wealth and be better prepared for my future when working is no longer an option for me.  As I sit now, if I were unable to work due to a change in my health or a job loss I’d be okay.  Knowing that I am financially set for the remainder of my life because of all the hard work I’ve put in so far is an amazing place to be.  If a single woman can accomplish this on her own while raising a family, then anyone can.  No excuses.

 

Are You House Poor?!

 

The first and most costly monthly expense for most of us is our housing.  How much are you paying for your rent or mortgage?  Is it ever difficult to meet that obligation?  Are you facing foreclosure?  If so, it is time to start looking at alternatives before you are forced to and are at risk of losing your home.  No one ever wants to find themselves at risk of being homeless, but sadly it happens.  More than you might think.  Do you have a backup plan?

 

In a previous post I talked about living within your means as if you are a fast food worker.  This is a really good way to gauge your overall expenses and your spending habits.  It is an eye opener to the importance of getting out of debt, having savings and a stockpile of some sort to help you become financially successful.  Think about it.  At this time could you weather a job loss?  How would you get buy until you found a new job?

 

If you are a homeowner, overwhelmed with debt and need to lower your expenses it might be time to sell your house and move into something far less expensive.  Would the current equity in your home pay off the mortgage and the 2^nd mortgage you may have?  And possibly some other debt?  If so, selling your house and downsizing into a smaller much more affordable home is the best solution to start your debt elimination journey and cut expenses.  Before you consider purchasing another smaller house however, you may want to consider renting for a brief period of time.  This may be a better option as it will allow you the time you need to pay off all debt, build an emergency fund, establish savings and retirement accounts and make better financial decisions.  No need to jump from the frying pan into the fire.

 

Rent the smallest size apartment you need.  If you have children they can always share a bedroom.  Two in a room with twin beds, three in a room with a twin and twin bunk beds and four in a room with two sets of bunk beds is doable.  If four in one bedroom seems a bit much then consider having the children sharing two bedrooms and the parents sleeping in the living room.  There are ways to make it happen.  And families really can share a single bathroom.  It’s been done for decades in the past.  Remember this situation is temporary.

 

While your home is up for sale, or even before while you are considering and researching your options, now is the time to start clearing out the excess.  We’ll be discussing that more as we continue along in this journey to debt freedom and financial success but right now, what can you sell?  Get it listed and use the proceeds to pay off debt.

 

If you are renting perhaps you need to move into a smaller apartment or even a studio.  Or take on a roommate to share the rent and utility bills.  Use the half you save toward paying off debt.  Don’t want a roommate?  Perhaps moving to a less expensive location or the town next door, however don’t move if that area would compromise your safety.  Safety is important.  But if you struggle to make rent and don’t feel a roommate is a good idea you might need to compromise and seek out a studio apartment.  Or, simply rent a room from someone else and tough it out in the meantime remembering this is simply a means to an end.

 

Some people will move temporarily move into their RVs or their automobiles when times get tough and there is no shame in that.  Some find tiny home living is the key to their financial success.  Long term house sitting works too!  Look at all the options and choose whatever is right for you.  Remember this is only temporary until you are out of debt and have made your savings goals.  It’s a means to an end.  An end to stressful days and sleepless nights!  And an end to worrying about your finances.  Change is good.  You can do this!

Live Like You Work At Burger King!

 

Living beyond your means is a recipe for financial disaster.  All of my life, as a single mom, I made it my mission to live so, that if I had to, I could work at a fast food job and still manage to pay all of my bills.  With that in mind, I was careful not to rent too much apartment or buy too much house, too much car, too much anything that would cause me to have big credit card bills and live as simply and economically as possible.  If you, or you and your partner, would not be able to sustain you own cost of living on a Burger King income, then you are probably living beyond your means and your money is not going in the direction it should.

 

The best way to know if you are living within your means is to calculate your income based on the average fast food worker’s wage for the area you live.  In my case the average wage is $15 per hour.  If I calculate that it equates to $600 per forty hour work week or $2,600 a month, which is $31,200 a year before taxes.  If your expenses, as a single worker are more than that you are living beyond your means.

 

The average fast food manager’s wage where I live is $20 per hour, equating to $800 per forty hour work week or $3,466 a month, which is $41,600 per year before taxes.  If you have a partner and one of you is making more than the other or is in a managerial position, take this amount plus the average worker’s salary and that is what you would earn together.  However, there is one caveat when it comes to doing this and that is imagine what it would be like should one of you become unable to work or lost your job.

 

Just because you have it, doesn’t mean you need to spend it.  In fact the opposite is true.  You need to save.  Save, save, SAVE!  If you or you and your partner cannot sustain your current standard of living based on these wages and you have debt with no savings then it is time to review with a critical eye your current standard of living.  If you are unable to live on this lower income you are spending too much.

 

I remember one day picking my daughter up from band practice when she was in high school and she started telling me that her friend was “rich”!  His parents drove fancy cars and they all lived in a big fancy house in a fancy neighborhood and wore fashionable clothes and he had a really expensive clarinet and he had a music tutor, etc.  I listened to her chatter on and then when she was finished I said, “Honey, in all likelihood they aren’t rich they just have a lot of debt.  I’d be willing to wager that I have more money in my savings account than they do, if they even have one.”  I might’ve been wrong about that, but chances are I wasn’t.  She grew quiet and didn’t say anything more.  I thought she might be mad at me for saying that, but as we were about to arrive home she said, “You know, you’re probably right.”  I probably was.

 

Sudden job loss happens.  No one is recession proof or indispensable so don't kid yourself.  We can always be replaced by someone for a lower wage, a robot or even nowadays, AI.  I’ve lost jobs suddenly and unemployment insurance was only a third of my wages at the time.  However, because I was living like a fast food employee it was just enough to cover my mortgage and utilities until I was able to find another job.  I also had a stockpile of groceries and money in my savings account so I didn’t have to worry so much.

 

I’ll be going more in depth on other areas for living like a Burger King employee as time goes on, but for now take a good hard look at your income and how it compares to fast food wages in your area.  If you have one, discuss with your partner how you could manage on lowered wages and if you can’t then it is time to make some changes until you can.  It is important to live below our means and make sure you have some money in savings because you never know what could happen.  Better to be prepared and not need it then to need it and not have it.

 

Vow To Make 2026 Your Debt Freedom Year!

 

If you are carrying any debt whether it is with credit cards, car loans, personal loans or student loans vow, right now, to become a debt slayer in the upcoming year.  Make 2026 the year you decide not only to get rid of debt to but also to stay out of debt!  You can do this!

The rewards for debt freedom are tenfold, not the least of which is the peace of mind you gain from having financial security.  I have tons of great ideas for paying off debt and living debt free and we’ll be exploring a lot of those in the coming year so you will want to stay tuned.

 

As someone who lives a debt free life I can attest to the fact that this is the best way to live.  I work really hard for my money, always have, so I am not willing to waste it on things like interest or transaction fees.  Nothing give me greater pleasure than to pay cash for a car or to know that when the refrigerator died I had the funds to replace it without financing.

 

I am going to show you how to pay off your debt, create an emergency fund, establish a savings account and even save for retirement.  In the process you are going to live well and feel content.  More importantly you will feel relieved not to be burdened anymore with the weight of debt and the fear of what might happen next.

 

Financial security allows us to live life on our own terms.  We won’t have to stay at that dead end job we hate to go to because we can’t afford to leave.  We can work our dream jobs and even work less because we no longer need to earn more, more, more.  We can even make our money work for us instead of us working for money.

 

So what do you think?  Are you in?  Let’s do it!!!

Rethinking Christmas!

 

This year I want to challenge you to think outside the box a bit when it comes to celebrating Christmas so you don’t break the bank and end up with a giant credit card bill come January.  In my opinion, a huge bill is no way to start out a new year.  Instead, let’s get excited about the holidays with no buyer’s remorse.

 

Have The Talk! 

Have a discussion with your family (the Thanksgiving table may be the perfect venue) about scaling back on the gift giving, not just on how much one should be spending, but also on the quantity of gifts you are giving.  Explain your “why”.  Let everyone know that times are tough right now (no one will argue that point) and that you are paying off debt or you are saving for something important. 

Instead focus on experiences, traditions and of course, the food.  As we have looked back over the years at previous holidays we never seem to remember the gifts we were given, but we always remember wonderful food we ate and the fun things we did.  When it comes to the gifts we give our children set a modest budget and stick to it.  I also love this idea – Something you want, something you need, something to wear & something to read.  Simple, easy and more than plenty.

 

Make It A Challenge! 

Nothing fires people up and gets them excited more than a good ol’ challenge.  Whether the challenge is homemade gifts only, food gifts only, experience gifts only, $5 gifts, $10 gifts, white elephant gifts or whatever you decide a challenge can be a fun and exciting part of your holidays this year.  Instead of giving a gift to everybody outside of your immediate family consider drawing names instead or host a gift exchange where everyone brings a single gift.  Rules can vary and “stealing” may or may not be allowed.

 

Shop Your Home First! 

Before you go shopping for baking ingredients or food for holiday meals go through the freezer, fridge and pantry and pull out everything you already have.  Then make a list and fill in the blanks.  Pull out all of the crafts supplies you have squirreled away in drawers and closets and finally put them to good use.  Look at items around your house, even in the garage, and consider re-gifting them to someone you know would enjoy them.  Or, finally get some of those photos on your phone printed up and give them to your loved ones.

 

Decorate! 

Pull out all of that holiday décor and get busy decorating your home.  Most of us will agree that we have way too many holiday decorations and tangled strings of lights.  Challenge yourself to use only what you already have instead of buying new things this year.  Maybe now is a good time to downsize and consolidate what you have and share some of the overflow with others.  Trade your extra string of lights or box of ornaments for a “new” (to you) wreath for your front door.  Make trimming the tree a party event this year.  Consider playing holiday music or streaming a favorite Christmas movie while you decorate.  Kevin!!!!

 

Wrap It Up! 

Chances are pretty good you already have everything you need to wrap gifts, make your own cards or give away homemade cookie plates on a plain paper plate covered in Saran wrap with bow on top.  Every year my next door neighbor gives me a loaf of her delicious pumpkin bread wrapped in foil with a bow on top.  I love it!  One year we received an assortment of cookies on a tray that was made out of a shoe box lid.  Clever!  If you’ve been saving cookie or popcorn tins over the years now is the time to use them up and give them away. 

When it comes to gift wrapping you don’t necessarily need it to be Christmas specific either.  Plain paper will work just fine.  I personally love the look of brown paper with red ribbon so go ahead and cut up that paper grocery bag taking up residence in the bottom of your pantry and put it to work.  Use aluminum foil or colorful tissue paper to wrap small gifts and tie with a ribbon or length of yarn.  Make your own gift tags too.

 

Keep It Simple! 

Keeping it all very simple and basic not only reduces stress, but it also makes the holidays much more enjoyable.  One of our traditions is to drive around on Christmas Eve and look at the lights people have put up on their houses.  One year it was a full moon out so we just bundled up and walked our neighborhood.  It was so quiet and beautiful, downright enchanting.  When we got home I made hot cocoa for everyone and then we scuttled off to bed before Santa arrived.

 

Scaling back and keeping things simple won’t put a damper on the festivities in fact it may be quite the opposite.  You will mostly likely introduce new experiences, new traditions and make a lot of memories along the way.  Your bonus is that there won’t be a big bill waiting for you in January.

 

 

Rice & Beans?!!

 

“Oh no!  Don’t tell me that in order to save money and pay off debt I have to eat rice and beans!”  Ugh, right?  Well, I’m going to tell you to eat them, but not in the way you think.  I keep a variety of dried beans, split peas, and rice in my pantry to use in so many of my meals and I don’t feel deprived or bored.  I personally do not care for lentils, but if you do definitely ad lentils to your pantry as well.  Not only are these items budget friendly, but they are packed with good nutrients too.

 

I will often cook a batch of dried beans in my slow cooker to make chili, homemade refried beans, add to soups and extend ground beef when I make taco meat.  I brown a pound of ground beef with some diced onion, drain the fat and add a cup or two of the cooked beans along with some taco seasoning.  It is perfect for tacos and burrito filling.  I also like to add cooked black beans and frozen sweet corn to my homemade salsa.

 

Rice makes an excellent side for beef and gravy, sweet & sour pork, a family favorite crack chicken, etc.  I like to season my rice with spices or salsa for Spanish style rice or cook it in broth for extra flavor.  Another family favorite is to make rice pilaf to serve next to pork chops or roasted chicken.  We also love pork fried rice.

 

Of course rice & beans is a very delicious meal to enjoy and I to make it from time to time, but there are so many other great ways to use these in a multitude of other meals.  No boredom.  So go through your cupboards and pull out those bags of rice and dried legumes and get creative.  Your budget will appreciate it and I’m sure you family will too.

 

Let’s Get Cheesy!

 

There is no doubt we have seen the price of cheese rise, along with everything else, but I feel it is still a very affordable option, especially if you follow these simple tips.

 

Always Buy It On Sale 

I wait until it goes on sale for no more than $2.99 a pound and then I stock up.  I find those sales tend to cycle around about every six to eight weeks and when they do I pounce purchasing as much as I need to keep me going at least six months, sometimes even a year.

 

Buy The Block 

Cheese that is already sliced or grated utilizes ingredients to keep the slices and shreds from sticking or clumping together.  Some brands of sliced cheese will place a paper in between the slices but they are often more expensive.  To keep it simple and healthier I choose the block.  Then I can slice, cube, make my own cheese sticks and grate it how I like.

Consider It A Garnish 

While I would love nothing more than to nosh on a bunch of cheese, I really shouldn’t.  Instead I use it like a flavor and texture enhancer rather than the main ingredient.  By purchasing stronger flavors of cheese such as medium or sharp cheddar, Monterey Jack in place of mozzarella, I find I can get by using far less than the milder options.

 

Wrap & Freeze 

I find that if I layer sliced cheeses with waxed or parchment paper and place them in a Ziploc bag or wrap with plastic wrap they freeze them just fine.  I also freeze my own grated cheeses by placing two cups of it in a Ziploc bag.  I don’t add anything like cornstarch to the bag and have had no issues with clumping.  To further prevent any chance of freezer burn I date the bags, place them inside a larger bag and make sure I use it up in date order (first in; first out).  Freezing the entire block works too, but it will make the texture more crumbly.

 

A little goes a long way!

Watch for those sales and when they pop up that is the time to buy your cheese.  With a little bit of prep you can have a nice stockpile tucked away in your fridge and freezer saving yourself some big $$!

 

Is It Time To Review Your Spending Habits? Yes!

 

With the current state of our economy prices continue to rise and it isn’t likely to change anytime soon.  We feel it most at the gas pump and the grocery store and it seems like far more is going out than coming in.  Now is the best time to take a good hard look at where your money is going and I encourage you to do so.  Last week I talked about eliminating all fee based subscriptions services and apps.  Next it is important to sit down with pen and paper and write out every expense you have and evaluate it to determine if that is really where your money should be going.

 

Transportation - How much are you spending on fuel for your vehicles, car payments, maintenance, insurance, parking fees, even car washes.  Do you pay for music and navigation?  Look at these expenses and determine how you can lower or eliminate these costs altogether.  Are you able to do your own vehicle maintenance?  Do you need to pay for parking or are there other options?  Where are you buying your fuel and how often?  Could you drive less, take public transportation, walk or ride a bike?  Is your vehicle payment truly affordable?  Do you have too many vehicles?

 

Utilities – How much are your monthly utilities really costing you?  Look it up and write it down.  Are you running the heat or A/C when no one is home?  Could you adjust the temperature and still be comfortable simply by wearing a sweater?  Do you heat or cool rooms you aren’t using?  Are you efficient with your water consumption?  Could you shorten your showers and only run the dishwasher or washing machine when full as opposed to smaller loads?

 

Storage – Do you pay for a storage unit?  If so, you simply have too much stuff.  Most people who store stuff off site fill up a storage unit and rarely go back to get any of that stuff.  If that is the case you obviously don’t need it so now is the time to either sell it, donate it or throw it away.  Storage units are a complete waste of money.

 

Dining Out – If you are struggling to make ends meet stop eating out immediately.  Cancel all meal subscription services, delete your Door Dash and Uber Eats apps, stop ordering pizza delivery or take out.  Make your own lunch to take to work or school.  Not only will all of this save you a ton of money, but your health will also improve substantially.

 

Shopping – Do you shop out of need or for entertainment?  Stop scrolling and shopping online, or if you do, leave items in your cart for at least 24 hours before you check out.  Chances are pretty good you’ll change your mind and decide not to make that purchase after all.  For many, shopping and buying is an impulse.  Avoid buyer’s remorse and overspending simply by giving up the habit of impulse shopping and being real with yourself.  Ask, do I truly need this item?

 

Vacations – If you are in debt put all vacation plans on hold.  Instead create a vacation savings fund and don’t go until one, you have paid off a big chunk of your debt, and two, you already have the money you need saved up to take that vacation.  In the meantime entertain yourself and your family with FREE options.  You will enjoy that vacation a lot more when you know you won’t be facing a big credit card bill once you get home.

 

The only way to live successfully in the midst of rising inflation and secure our future is to rein in our spending, eliminate debt and begin to save.  Living paycheck to paycheck and not being able to pay our bills is exceedingly frustrating and stressful.  It wears on our emotions and makes us miserable.  By reviewing our spending habits and getting a handle on where and how our money is spent we can take the first step in securing our financial future and our happiness.