Oriental Stir Fry
One of the simplest recipes that are incredibly satisfying is Oriental stir fry. You can make an Oriental stir fry with chicken, pork, beef or without any meat. Using one simple frying pan or wok, a variety of vegetables (fresh, canned or frozen), some stir fry sauces and a side of rice- you’ve got a great supper.

Ingredients:
1 pound of chicken breast (cut into cubes or strips)
2 cans of oriental style vegetables (usually includes water chestnuts, green beans, broccoli, baby corn, carrots, etc)
4 to 8 ounces of stir fry sauce (sweet or salty your choice)
4 servings of rice
Olive Oil

Directions:
Cook boil in bag rice on the side as directed. In an oiled frying pan or wok add cut chicken, cook moderately and then mix in vegetables. Stir frequently with a wooden spoon adding a few spoonfuls of sauce every few minutes. Stir fry for about 10 minutes or until cooked completely through. Serve on a bed of rice.

Maple Ham Steak
Ham steak is incredibly easy to make and for many families an awesome meal. You can buy individually cut ham steaks sold in many grocery stores. Or if you prefer, you can buy a big ham and slice it into ½ to ¾ inch thick steaks.

Ingredients:
4 Ham Steaks
4 ounces of brown sugar
8 ounces of maple syrup
4 Yams (sweet potatoes (fresh or canned)

Directions:
Rub 1 ounce of brown sugar into the ham and set it in an oven for about 25 to 30 minutes at 400 to 425 degrees F. (or as directed). A few minutes before the ham steak is complete, you can drizzle some maple syrup on top of the ham steak or cautiously warm the syrup in a microwave and serve as desired. Ham steaks go great with yams (sweet potatoes). You can cook them in an oven with your ham steak, starting them about 15 minutes before you begin cooking the ham.

BLT Sandwich
One of my family favorites is the BLT sandwich. While bacon is perhaps not the healthiest food available, you can choose to swap good old fashioned bacon with turkey bacon or even chicken bacon. These products have come a long way since they were introduced and your family may actually prefer them to traditional bacon.

Since the BLT sandwich is very easy and only includes bacon, lettuce, tomato, bread and mayo, make sure you buy only top quality ingredients including nice thick bread (my family loves “Dave’s Killer Bread”) and fresh lettuce and tomatoes.

Ingredients:
1 Loaf of White, Whole Wheat or Rye Bread
1 head of lettuce
4 beefsteak tomatoes
1 pound of bacon

Directions:
On a griddle cook one pound of bacon. Pat dry removing any excess grease. Now add mayo to two pieces of bread and then top with a sliced tomato and some lettuce. Garnish with a pickle, some olives and some pretzels or chips.

Christine Steendahl Is The Founder Of Dine Without Whine – A Family Friendly Weekly Menu Planner. Eliminate Your Dinner Hour Stress And Re-Discover The Pleasure Of The Dinner Hour! Get a Free Sample Menu at Christine’s site. Happy family eating!

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Simple Recipes Your Family Will Love

They have a complete Holiday Recipe Guide that you can download (email requested) or have mailed to you. If you don’t want to give that info, you can also download a few sample recipes and then decide.Grab your free recipes here..

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Sample Carnation Holiday Recipes Or Guide

Question: I always seem to have car emergencies. Isn’t there a better way to live?

Answer: Create an “Anti-Emergency Savings Fund “for normal and necessary expenses that do not occur every month. For example, you can pay your property taxes with your mortgage, save 1/12 of it every month, or just have an “emergency” when it shows up every year. By saving small amounts every month, you will actually have the money available to pay your property taxes when they are due. No more surprises!

The same is true with other types of normal expenses like car repairs, home repairs, school fees, holiday gifts, medical bills, etc. Even vacation!

I like to keep my funds in the best bank on the planet – ING Direct. ING lets you have as many accounts as you want without any minimums or fees – and they best just about the highest interest rates out there! And the best feature is “nicknaming” them all. That way I can look at my “home repair” account or “vacation” account and know exactly how much I have available! Of course, they’re FDIC insured. Get their Electric Orange high interest savings account.

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Emergencies!

Question: Cindy, can you give me some specific ideas for how to save money on everyday stuff? Thanks. ~ Janice

Answer: Sure, Janice, frugal living does not have to be about a life of deprivation. The frugal life is one of thrifty shopping, careful choices, and a saving mindset. Making just a few adjustments in five areas of your normal life will help you become a frugal person. Readers: if you have ideas, please add them to the comments below.

Groceries are one of the most expensive items on any budget.

• Be sure to take a list with you to the grocery store; this will help to cut back on impulse items. If you are still concerned, then why not take a friend shopping with you. Exchange lists at the store and each of you can gather up the other’s groceries, virtually eliminating all impulses.
• And don’t forget to cut out coupons. It may take some time, but it will add up in the end.

Menu Planning Central can make your meal planning a pleasure and save you hundreds of dollars and precious  hours you can spend with your family. Get your free Menu Planner and Shopping List!

Frugal people still vacation, AND they do it wisely.

• You can really stretch the vacation dollars by traveling during the shoulder season or off-season, although it’s a good idea to check to see if local attractions will be open if you want to attend.
• Since much of a vacation budget goes to housing, why not spend your vacation visiting family? There is the joy of bonding with relatives, but you also get to stay for free.
• Being frugal doesn’t mean that you have to stay home all the time. If you do a little looking around, you are sure to find that many of the museums, zoos, botanical gardens and other places offer free or discount days. For those that don’t offer the free days you can check to see if a group discount is available and then call up your other frugal friends for an outing.
• For movie nights, check with the local library to see if they have movies available to check out. There are lots for you to do, and you can do much of it without ever spending a dime.

Clothing is one of those items that civilized society has deemed necessary. The clothing manufacturers, who realize our dilemma, often charge outrageous prices.

• Buying out of season (buying winter clothes in the summer and vice versa) will help to cut this item in your budget.
• Instead of buying new, check out your local thrift store or second-hand store where prices are a fraction of the retail (and sometimes the clothes still have the original tags). Consignment stores in big cities often have lots of great bargains.
• An even better way is to just trade with friends. Hand-me-downs are the frugal person’s best friend.

One item that it is not always wise to buy new is the automobile.

• While there is nothing wrong with having a nice car, if you can’t pay for it with cash then it is probably not worth it. Drive what you have while you save up, and then purchase with cash. Just having the money in hand will give you a lot of negotiating power. Today, many of the used car dealers include some type of warranty with their cars, making the purchase even more secure.

The frugal lifestyle can be more enjoyable than any other. There is money for the things you truly want to do and there is no worry about how the bills will be paid each month. By being a little thrifty here and there, by thinking about your choices before you make them, and by developing a mindset of savings, you can live a fulfilled frugal life.

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5 Areas in Your Life to Live Frugally

Categories keep expenses organized. When you look back at ATM receipts, you can tell when you withdrew the money but not what it was for. The same goes for entries on a statement. Paper and online statements don’t put deposits and withdrawals into categories. The added information lets you know where to subtract the money from in your budget.

Start with a few simple ones. Don’t make things complicated right away. Most people are already less than enthusiastic about putting together a personal budget so the more painless the better.

List all of the income and expenses from the last full month. Go one by one and decide what would best describe that item in a budget. Here’s the basic list I use:

• Income
• Savings
• Anti-Emergency (see Create your own Anti-Emergency Fund)
• Fun and Self-Development
• Charitable Contributions
• Home
• Food
• Clothing
• Dependent Care (all the kids and pet expenses)
• Insurance
• Health Care and Self Care
• Personal Business (stamps, paper, ink cartridges, bank fees)
• Transportation
• Old Debt Repayment (the balances you’re paying off on your credit cards)

For example, a payment to the water company would go under “Home”. Your son’s soccer uniform payment can fall under “Dependent Care”. If you have more than one child, you can create a category under each of their names for any expenses related to their hobbies.

Subcategories can be created for each of these to leave a place to record specific bill amounts.

This is actually the fun part. There is no limit on categories. In fact, the more specific you can be the better it will be when the time comes to choose between needs and wants. Unnecessary expenses can be eliminated over time to streamline your spending.

If you use a check register (a “cash register, LOL!) to record ATM withdrawals and checks written, leave a space to enter the category name for the entry. Later, when you review spending, you can pinpoint where the money is going. Finding points of overspending is part of the reason for creating a budget in the first place.

You may want to stick to broad categories if you are tracking spending in a specific area. That one area can be more detailed and the rest of the expenses lumped in bigger categories.

Even if you don’t think that you need a budget because you don’t spend much money, it is a useful tool.

Setting up a personal budget for your home teaches valuable organizational skills. This is a help when tracking investments or growing your business. Bad spending habits here can cost you profit dollars.

Since reconciling categories can be a tedious job, set a time once a week or once every two weeks to enter these figures in a spreadsheet, a ledger book, or into a software program designed for personal finances. After a month or two, when you have started to make changes in spending, you can reconcile your entries on a monthly basis.

If you want Financial Peace, Prosperity and Joy, go to “A Financial Course In Miracles” and download our free Sampler Package with both left brain and right brain tools to help you achieve the financial peace you’ve always dreamed of.

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Categories Rule!

Question: Cindy, do you have any quick and easy ways to make extra money? I’m interested in putting some into savings and paying off some debt, too. Thanks. ~ Jayne

Answer: Good question, Jayne. There are many ways to make extra cash even when you are working full time. One of the best ways to make more money in your spare time is to do something you love and to find someone who will pay you for it. Here are a few and I invite readers to add their ideas in the comments below.

• Collectors, computer savvy individuals, and the natural salesmen can all make a few bucks by setting up an eBay account and selling all the items they have stored around the house. If it’s boxed up and covered with dust then you aren’t using it. Why not send it to someone who will truly appreciate it, and you can appreciate the cash in its place.

• Almost every weekend, somewhere in the United States, some city or town is holding a fair or festival that offers booth spaces for crafters. Get your hobby to work for you by attending some the festivals and selling the items that you have been giving away as gifts. It might help to visit a few first to get a feel for the different crafting trends and the best locations for your booth space.

• Digging in the dirt is not for everyone, but almost everyone loves having a beautiful yard. If you have a green thumb, then why not offer to share that with others. It might be surprising how many people will take you up on the offer. It will probably be downright shocking how much they are willing to pay for the service. I know I’d love to have some help in this area!

• If you don’t want to labor away in other people’s yards, then why not sell the fruits of your labor from your own yard. Pot up some of the multiplications your plants have grown and sell them at the local flea market. Find a local farmers’ market to sell excess fruits, vegetables or flowers.

• Take seasonal or temporary work - as long as it doesn’t interfere with your full-time job and you still have some time to yourself. A part-time job can be the perfect way to make that extra income you need for a special goal.
• Affiliate yourself with a great product like Send Out Cards which I use to generate more referrals for my work as well as offer it to others who want to use it (and I make a commission). Do you have anyone who needs a special thank you or congratulations or just a “Hi”, go to https://www.sendoutcards.com/cindymorus to send them a card on me.

If you need some extra income or just want to make some quick or easy cash, then look at what you have. Sell off anything that you don’t need or want, use your skills or talents to meet needs that others may have, or take a part-time job to reach the financial plans you have for your future.

Good luck to you, Jayne!

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Quick and Easy Ways to Make Extra Money

Of course, these don’t have to be done in any particular order!

Just pick one or two that particularly apply to your situation.

1. Create your 2009 filing system. This might include new file folders, a new box to hold them or space in a filing cabinet with easy access.
2. Set up a folder to collect all the important 2008 tax documents which will be arriving soon. Sure to arrive at your house are W-2s, 1099s, mortgage statements, etc.
3. Set up an appointment with your tax professional early so you get the appointment of your choice. This also gives you a deadline to get your information ready! If you’re self-employed, the next quarterly estimated tax payment will be due on January 15.
4. Review last year’s investments especially in your 401(k), IRA’s etc. Find out what financial planning resources your company or 401(k) plan administrator offers and set up an appointment to talk to them. For non-company portfolios, talk to your investment advisor. You have until April 15 to make contributions to IRA type accounts (check with your tax preparer for eligibility).
5. What about Quicken or Microsoft Money? If you don’t use software to balance your checkbook, pay your bills and keep track of your savings and investments, this is a great time of the year to get started. My personal favorite is Quicken Online and it’s free!
6. Medical Insurance reimbursements: If you haven’t submitted all your medical bills to your insurance provider, now is the time to do so. If you have a Health Savings Account, you may also be able submit those.
7. Will and Estate Planning. No one likes to think about dying, but the best thing you can do for your family is to make sure they are taken care of by creating a will and making sure you have adequate life insurance. Think how easily you’ll sleep knowing you have provided for your family even if you are no longer there. Visit Nolo’s Online Will Maker to make a legally valid will directly online.
8. Speaking of insurance… If you haven’t reviewed your health or home and auto policies in the last couple of years you might find you can save money and/or have better coverage. For example, if you still have a $250 deductible (which was my first deductible in 1979!), you will probably save by increasing it to $500 or $1000. Try to set aside some of your savings for deductibles in case you need them.
9. Create your own Anti-Emergency Fund! We all know those car and home repairs, school fees, medical expenses and vacations are going to happen. Why not determine how much you’ll need and save 1/12 of it each month? To read more go to: Create Your Own Anti Emergency Fund.
10. Holiday Bonus or Money Gifts: If you received a financial gift this holiday season, hold on to it for at least 30 days while you decide what you really want to spend it on. All too often financial windfalls are spent before they even arrive. Consider dividing it into thirds: 1/3 to the past, 1/3 to the present and 1/3 to the future. Past might include paying down debt, present could be something you need or want now and future could be retirement, college savings, or a special vacation.
11. Financial Goals for next year: Think about where you want to be next year at this time financially. If you want to save $1000, put aside $2.74 each day and you’ll be there! Break down your financial goals into monthly, weekly and daily amounts and watch how quickly your savings will grow. Read more about it at: The PDQ Factor. Visit ING DIRECT to set up an Orange Savings account now!

Happy New Year!!!!!

Credit card companies work hard to keep you in debt. If 2009 is your year to reverse the vicious cycle, grab your Powerful Debt Reduction Strategies Guide to help you start conquering your debt in 4 simple steps. A $67 value, it’s yours free at Pay Debt Quickly.

(c) Mend Your Money – All Rights Reserved

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Top 10+ Ways to Jumpstart your New Year’s Finances!

Have you ever heard of the PDQ Factor? Probably not, but you probably have heard of the acronym PDQ, which means “pretty darn quick” and that can be expensive: think fast food, fast cars, and fast women. This PDQ, The PDQ Factor will save you money. In fact, it can even make you wealthy over time.

To illustrate…take an empty glass and set it under the water faucet. Now turn the faucet to a single drip, or a slow trickle if you’re really impatient, and watch the glass fill up. It takes a while but it does get full. If you were thirsty, it wouldn’t have been nearly as fast as turning the faucet to full force but it was just as effective. The PDQ Factor is the slow trickle equivalent in the world of money. It stands for Pennies, Dimes and Quarters. Nickels count too, they just messed up the snappy title so we left them out; but don’t you leave them out of your investment toolbox.

Here’s an easy plan to make an extra $1000 this year. It won’t take much time or energy-really none at all. By investing just $2.74 a day - the cost of a designer coffee drink; a bad drive-thru meal; or 8 quarters, 5 dimes, 4 nickels, and 4 pennies, in just 365 days you will have an additional $1000 in the bank. Did you know that accumulating wealth is this effortless? Make a plan, stick to it and watch success sneak up on you in teen-tiny increments.

With no pain and all gain you’ve just set a financial goal; a goal that can be effortlessly reached by making a very minor tweak or two in how you live your daily life.

Break down your goal and see how many PDQ’s it takes! And don’t forget to start today!

I like to keep my funds in the best bank on the planet – ING Direct. ING lets you have as many accounts as you want without any minimums or fees – and they best just about the highest interest rates out there! And the best feature is “nicknaming” them all. That way I can look at my “home repair” account or “vacation” account and know exactly how much I have available! Of course, they’re FDIC insured. Get their Electric Orange high interest savings account.

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The PDQ Factor

• Check with utility companies about payment plans.  When you enter into a plan, your monthly payment is calculated according to the average of your bill for the last twelve months.  The monthly payment may be above or below what the actual amount of the service is.  At the end of the year, your account will be credited for the average, or you will be billed for any excess charges.  As far as budgeting on a monthly basis, a payment plan ensures that you can count on a constant payment.
• When you use hot water, energy is needed to heat the water to a certain temperature.  Using a lot of hot water will not only raise your water bill but also the gas or electric bill.  Cut costs and save money by washing in cold water.
• As far as water goes, investing in faucet aerators and low flow shower heads reduce the amount of water that is used.  My kids like to take long showers.  A low flow head gives better spray using less water.  
• Yippee! Using a dishwasher also reduces your water bill.  A dishwasher uses a certain amount of water to wash a load of dishes.  When you wash by hand, more water is used because you fill up the sink or basin once for dishes and once for pans.  You also run the faucet to rinse them.  As long as you have a full load, you waste less water in a dishwasher.
• Lowering the temperature on your hot water heater is a good way to cut back on heating costs.  It takes less energy to raise the temperature twenty degrees instead of fifty. Your family will get used to a lower temperature pretty quickly (and get out of the shower faster!).
• Purchasing energy-efficient appliances saves money.  On the front label it details how much money you save each time you use it compared to an appliance that is not energy efficient.  If it is time to replace your old appliances, remember to go green (and check with www.freecycle.org to see if someone handy can take the old one off for repair or parts scavenging).
• Contact the local power company for a free home efficiency assessment.  They can tell you where you are spending big dollars and suggest ways to save on energy. Some will even provide you with free fluorescent bulbs!

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My Utility Bills are Killing Me!

Now you can pay your mortgage or rent in the beginning of the month and the rest of the bills later when you have another pay check.

If you have uneven income, you might want to read my “Roller Coaster Income?” post.

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Simple Savings Tip #1: Change Billing Date

2. Buy a home and pay off the mortgage before you retire. The largest asset of most middle-income families is their home equity. Once these families have made their last mortgage payment, they have far lower housing expenses. They also have an asset that can be borrowed on in emergencies or converted into cash through sale of the home.

3. Participate in a work-related retirement program. Many employees turn down free money from their employer by not signing up for a work-related retirement program such as a 401(k) plan. If they did participate, with a dollar-for-dollar match they would likely receive an annual yield of greater than 100% on their investment.

4. Outside of work, save monthly through an automatic transfer from checking to savings. These savings will provide funds for emergencies, home purchase, school tuition, or even retirement. Almost all banking institutions will, on request, automatically transfer funds monthly from your checking account to a savings account, U.S. Savings Bond, or stock mutual fund. What you don’t see, you will probably not miss.

5. Calculate your risk and return. If you earn 4% interest, your money will double in less than 15 years; at 7% it will double in about 10 years and at 10% it will double in 7%. Use Asset Allocation to reduce your overall risk.

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5 Easy Ways to Save and Build Wealth

Are you losing your home because you can’t afford to pay your energy bills and your mortgage? If you aren’t facing foreclosure can you afford temperature settings that keep you feeling comfortable inside your home?

During the recent U.S. housing boom, builders completed homes quickly. Interest rates were low and investors eager to cash in on high returns on investments. Unless you were knowledgeable about energy-efficient home features and made sure they were included during construction, chances are your new home wastes a lot of energy. It’s also likely you don’t feel comfortable in your home due to uneven room temperatures, drafts, cold floors, etc.

There was a time when home air conditioning was a luxury. Now it seems more like a necessity. Average temperatures in North America have risen over the last 20 years, remaining high for longer periods and forcing people to turn on air conditioners powered by electricity to survive excessive exposure to heat.

Rate caps that once held down electricity costs are ending countrywide. Maryland residents recently experienced the shock of a 70% electric rate increase. Pennsylvania residents will receive the first of several rate increases starting in 2008.

The mortgage industry facing huge losses from foreclosures is working with homeowners to reduce monthly mortgage costs. A reduction in mortgage costs may help, but this is only a temporary solution. Moving to another home, unless it is energy efficient will not solve the problem.

The best solution is to implement energy saving features in your home as quickly as possible. This will not only be good for you financially, it will also be good for the planet.

Siti Crook, 2007

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Foreclosures Caused by Rising Energy Costs

Sometimes the desire to buy the amazing things you see in the home improvement stores can be almost overwhelming. There isn’t too much that you can do about that except to move on as quickly as possible on to the next item on your list.

That said, decorating on a budget can be quite fun if you can manage to loosen up a bit and not drool all over the expensive items. There are many inexpensive items you can buy that will look like their expensive cousins if they’re displayed properly. And that’s really the challenge of decorating on a budge, the ability to take an inexpensive item and be able to disguise its true worth and make it look like a hundred bucks instead.

Then you also have the challenge of actually staying within your budget. For me now, that’s more of a challenge than anything else as I regularly tend to go overboard. Unfortunately if you’re decorating on a budget then the very last that you want to do is to go overboard.

If you do spend more than is feasible on one particular piece then you can be sure that everything else on your list is going to get thrown off and no matter how hard you try it will be difficult to get everything back on track.

The only way that you could even justify going way over budget for one piece of furnishing is if the quality is exceptional and you’re thinking of making it the key piece of the room. If that’s the case then you can always get away with something as your other pieces will necessarily be less expensive. In this case what you need to do is to highlight this expensive piece and use the other pieces to enhance it.

Decorating on a budget need not mean that you have to cut down on quality to get everything that you want. As you are decorating on a budget it can also be fun, and creatively undertaken, it can also be done with flair.

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Decorating On A Budget

Dear Cindy,

I am recently divorced and just purchased a house. My problem is this. I make an annual salary of approx. $56k. I currently owe approx. $l0k in credit cards and am just paying the minimum amount. I have $20k in retirement and also have a piece of jewelry that I would like to sell that is worth approx. $10-$15k. What would be the best approach in ridding myself of debt? Should I suffer the loss of liquidating a portion of my retirement, sell my jewelry or would the bank make a loan against the jewelry or retirement? I am 48 yrs. thank you for your help. I feel I’m working to pay interest. ~ Nancy

Hi Nancy, the most important thing for you to do is to really sit down and get a clear picture of all of your debt including minimum payments, balances and interest rates (you can use my Debt Payoff Spreadsheet).

Next, determine what your true, after-tax income is and your total expenses including those that don’t happen every month like Property Taxes, Insurance payments, Gift purchases, Home and Car repairs, Medical, Vacation, etc.

When you have determined what your true situation is, you will know whether or not you can pay more on your credit cards.

Selling the jewelry would be preferable to liquidating your retirement. Banks will probably not make a loan against the jewelry and cannot against the retirement (although if it is a 401(k) you may be able to take out a loan). If you liquidate your retirement there will be penalties and taxes to pay and you will be “eating your seed corn”.

If you do take out a loan, getting clear on your real expenses will be even more important so you don’t end up in this same situation a couple of years down the road.

Another thought is to see how you can turn a hobby into a business (which may also be tax deductible). Is there anything you do well that you could charge others for?

Hope this helps!

Warmly, Cindy

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Annual Salary = $56k & Credit Card Debt = $10k

If some unexpected event interrupted your next paycheck, would your household’s financial balancing act come crashing to the ground? Would you be forced to resort to debt to fill the money gap?

Financial emergencies happen to just about everyone at one time or another — and usually when you least expect them. Prevent an emergency from turning into a disaster by building your own Safety Net Savings. A Safety Net account is a reserve of savings that allows you to pay your normal expenses in the event of a sudden drop in income. And it helps avoid the need to turn to credit as a solution, which can result in a perpetual cycle of debt. Resorting to debt to cover lost income can mean years spent digging yourself out of debt.

The Safety Net account is the second step in a three-step savings program for financial freedom, that also includes your:

Anti-emergency fund^TM: Money set aside monthly to pay for the non-monthly expenses that often get left out of our financial equation, such as quarterly insurance, car repairs, appliance replacement, holiday spending, taxes and the family vacation.

Investment savings: Money set aside for retirement, college and other long-term financial goals.

Build Safety Net Savings by setting aside a specific amount from your paycheck each pay period, with the understanding that the money will not be touched unless a justifiable financial need arises. How large a safety net account should you build? That depends on your personal financial situation.

• Are you self-employed? Or does your income fluctuate seasonally or due to commissions? Do you have a medical situation that could cause added expenses or loss of work income? You may need to plan for a larger safety net.

• Are you well-settled in a stable job? Do you have plenty of sick leave or vacation built up? Does your company provide a good severance package in the event your job is eliminated? You may be able to get by with a smaller fund.

Most financial planners suggest a fund cover three to six months of normal and necessary expenses. The most important thing, though, is to just get started!

Use your monthly spending plan to determine the total of those normal and necessary expenses. You don’t need to include everything from your monthly spending plan — in times of lost income you probably shouldn’t be thinking about new clothes, vacations or entertainment expenses. Do include costs of food, mortgage or rent, household utilities, credit payments and other necessary expenses (DON’T forget non-monthly expenses such as insurance, car maintenance, and taxes). Multiply that figure by three or six months — or whatever period you’ve decided is necessary — to arrive at your Safety Net Savings goal.

Now start saving — emphasis on the “now!” One of my favorite phrases is “Save early and often”. And pay your savings first. If you don’t, you’ll likely find some other way to use that money. If you think all your income is going toward necessary expenditures, try recording your spending. You’ll probably see that some of the things you spend money on really aren’t that necessary and may not even give you any real pleasure! Cut those out first and put that money toward your safety net.

Safety Net Savings is intended to be accessible in the event of an emergency, so don’t sock it away in a long-term investment. Keep it in money market funds or short-term CD’s. Of course, you won’t earn much interest, but the point of the Safety Net Savings is to avoid having to use credit cards at much higher interest rates. I keep my Safety Net Savings at ING Direct. I started out putting $100 per month into CDs and have gradually added to them over the years so that now I have $600 coming due each month should I ever need it.

Safety Net Savings offers benefits even when you’re not using it — the benefit of security and peace of mind. Knowing that you’ll be able to take care of your needs, and those of the people who depend on you, can relieve a huge mental burden you may not be aware you’re carrying. Experiencing that sense of security may also make you feel more comfortable taking a few personal risks to enhance your quality of life, like changing jobs or starting your own business.

Remember, when you have a safety net beneath you, you can be a lot more fearless walking a tightrope!

Warmly, Cindy

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Safety Net Savings

That happened to me this week and I thought I would share it because it makes for such a great story.

I was talking to my pastor, Andrew Wendle (Our Redeemer Lutheran Church, Hood River, OR) about his just completed vacation. He said it had been great but that their less than 3 year old fridge stopped working while they were gone. Fortunately, they had a neighbor collecting their mail and looking in on their house and she caught it in time to move everything to her fridge.

As soon as they got back, they called Maytag to find out if it was still under warranty – “No“. Next call was to the local appliance store (Ballingers, The Dalles, OR) and paid $90 to find out it would cost $700 to fix it. They decided it would be better to purchase a new one (around $750) and Andy was bemoaning that he and his wife would have to use their Economic Stimulus money for a new fridge AND pay Home Depot $50 to haul the old one away.

I suggested that he at least offer the fridge up on Freecycle and maybe someone handy would be able to take it away and fix it. Andy thought that was a great idea and had one response to his offer. The man who came to pick it up actually worked for Ballinger’s and even came to pick it up in a Ballinger’s truck. When he took it in to Ballingers to get it fixed, they discovered that it was covered under warranty.

When the employee told Ballingers that Andy was the original owner, they called to find out why he was just giving it away. They said they could fix it and return it to him for just another $60! So through an online but local connection Andy was able to avoid having to purchase a new fridge and instead was able to repair his old fridge. If it were not for the highly ethical decision of that employee (Andy had legally given the fridge away to him) to return the fridge, Andy and his family would be out over $600.

It is amazing when the normally anonymous internet can be used to not just save money but strengthen local communities and enhance lives.

Share your “Community Karma” story below or clicking the comment button above. It’s a great way to start your day!

Warmly, Cindy

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Community Karma – It’s More Than Money

Question: Is there any place besides eBay where I can get rid of my old stuff like books, CDs and movies? ~ Michael

Answer: Hi Michael, great to recycle and get something, too. There are lots of places out there. Here’s a few:

• Books: Paperbackswap.com is a site on which members can trade paperback and hardcover books for the cost of postage; Bookmooch.com where you give books away and get books you want.
• CDs: SwapaCD.com and DVDs at SwapaDVD.com – Members can swap CDs and DVDs for the cost of postage (CD site also has a $0.49 charge)
• Freecycle.org is a membership organization with thousands of local chapters, helps people give away unwanted goods, such as brand-new baby clothes, computers and furniture, to other “freecyclers” so that it won’t end up in landfills. You can “ask” for something specific, and often, you’ll get it. People frequently ask for exercise equipment, like treadmills, and find treasures within a day. Several years ago, I got a great HP laser printer that was in perfect working condition but the person had upgraded to a color laser. I’ve also gotten rid of a large freezer, lawn mower, old print cartridges, a vacuum cleaner and more. In some cities there is a lot of email traffic and dealers may haunt the list. If it’s too big or too busy, start one for your neighborhood.
• Craigslist.org always a great place to find or get rid of bargains.
• Swap-bot.com: Create your own swap spot or join others such as Art, Bath and Body, Fabric, Movies and Music.

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Don’t Throw It Away!

Question: Cindy, I just received a letter from my bank that they’ve frozen my home equity line of credit. I have great credit and always make my payments on time. What’s going on? ~ Sally and Jim

Answer: Dear Sally and Jim, I think many people are going to be hearing this same line from their bankers because of the sub-prime mess.

When you apply for a home equity line of credit (HELOC), the bank will look at the value of the property and allow you to borrow a certain amount of the equity. (Equity is how much you own in the property). However, if home prices in your area are dropping (and who’s aren’t?), then you may not own as much equity. As a matter of fact, if you owe more than you own, it’s known as being “under water”.

This all makes lenders very nervous and they’re response is to freeze your line of credit. But, you can ask your lender to review your individual situation. If you still have lots of equity in your home, are paying on time and have a good credit score, they have the option of unfreezing your home equity line of credit for you.

The other alternative is to seek out a new lender. I highly recommend ING Direct (www.INGDirect.com) for equity lines and savings accounts.

As a home owner in these tough times, you (and the bank) want to make sure that you don’t owe more than your home is worth and that you don’t get into a situation where you can’t pay your mortgage.

If you are in either of these situations, call me for a consultation so you can get back into positive territory and protect the investment you’ve made in your home.

Warmly, Cindy

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They’ve Frozen my Home Equity Line of Credit

Question: Do you have any good tips for saving money on my phone bill? How about my cell?

Answer: Sure, here are a few:

• You may have several telephone service providers in your area. Spend a few minutes with each of them to find out who offers the best price for the services you need.

• Call you own service provider and find out if they’ve lowered the rates. Mine had cut the rates in half without notifying me!
• Check with your internet service provider and cable TV company to see if they can bundle your telephone in with your other services (you’ll pay less taxes, too).
• Consider eliminating your land line. I’ve noticed more and more people just relying on their cell phones for everything.
• If your family uses a lot of text messaging, it may be cheaper to add unlimited family texting to your bill rather than paying for individual messages.
• With 1-800-FREE411, it’s the end of pesky 411 charges and the beginning of free directory assistance. Need the number for that great pizza place or local florist? Just pick up the phone and dial 1-800-FREE411. Put 1-800-373-3411on your speed dial.

Warmly, Cindy

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Lowering your Phone Bills

Question: With summer coming up, I just dread my electric bills. Isn’t there any way to keep them low? ~ Thomas

Answer: Thomas, what a hot topic!

The key to achieving maximum energy savings in your home is to create a whole-house energy efficiency plan. View your home as an energy system with interdependent parts. For example, your heating system is not just a furnace-it’s a heat-delivery system that starts at the furnace and delivers heat throughout your home using a network of ducts. Even a top-of-the-line, energy-efficient furnace will burn a lot of fuel if the ducts, walls, attic, windows, and doors are not insulated and leak. Taking a whole-house approach to saving energy ensures that dollars you invest to save energy are spent wisely.

Easy low-cost and no-cost ways to save energy.

1. Set your thermostat comfortably low in the winter (68-70) and comfortably high in the summer (78-80). Install a programmable thermostat that is compatible with your heating and cooling system.
2. Use compact fluorescent light bulbs. Don’t just throw these in the trash because they have mercury in them. Contact your recycling center to find out how to dispose of them properly.
3. Air dry dishes instead of using your dishwasher’s drying cycle. If your utility company offers off-peak rates, use your dishwasher (and washing machine/dryer) at night.
   
4. Turn off your computer and other home electronics such as TVs and DVD players when not in use. Smart power strips are will turn off electricity to appliances and electronic devices that are not in use.
5. Lower the thermostat on your hot water heater to 120° F.
6. Take short showers instead of baths.
7. Wash only full loads of dishes and clothes. Use cold water for clothes washing and hang your clothes to dry.
8. Look for the ENERGY STAR^® label on home appliances and products. ENERGY STAR^® products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.
9. Have your air conditioner tuned up annually and change filters on both your air conditioner and furnace monthly when in use.
10. Use your furnace fan to circulate air throughout your house. This can make it seem cooler without running the air conditioner.
11. Install attic fans to push out that super hot air in the attic (up to 130 degrees!). I did this a few years ago and my upstairs is a lot cooler and I don’t have to use my air conditioner as much at night to get to sleep. Ask your electrician to install the quietest fan available.
12. Open your windows and curtains at night when it cools down and close them in the morning to keep the heat and beating sun out.
13. Install insulating clear film on your windows. You won’t even notice it but it will keep both heat and cold out.

Warmly, Cindy

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13 Ways to Lower Utility Bills

Question: I’m in my 40s and have for the past 15 years saved a sizeable amount, however, in one bad investment lost nearly all of it. I even lost my job, now I’m in a low paying job (secretarial), please advise how I can start again. Just thinking of all the meticulous saving and budeting I did all these years leaves me depressed! Carmen

Answer: Hi Carmen, my condolences on the loss of both your investments and your job. That’s a really tough spot to be in.

From your question, you already know the answer here. Start saving again! The longer you stay in the depression about it the less time you will have to actually do it and the more disempowered you will feel.

The lesson here may be in how you handle your portfolio in the future. There are a number of strategies which can protect you from near total loss: these include diversification, determining what percentage of your portfolio you want in different instruments and staying with those percentages (this is especially hard to do when things are going up, up, up), having stop/loss orders on stocks, etc.

Warmly, Cindy

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Restarting After Job Loss and Bad Investment

Question: How can I save money on my groceries? Everytime I go to the store my bill seems higher and higher! ~ Melanie

Answer: Everyone wants to save money, but few want to spend weeks eating nothing but beans and rice. You can cut your grocery bill without cutting your variety. One of the quickest way to cut your spending is by cutting out the meat. It’s amazing how many meat free meals you can find that your whole family can enjoy. Here are some suggestions:

1. Quiche can make a great dinner, especially when paired with a cup of fruit or applesauce. This is a dish made with just four eggs, some milk or cream, and whatever additions you may want to make. This is a great way to use up some of those “back of the fridge” items. I made one the other night with cheddar cheese, parmesan cheese, fresh spinach and basil, mushrooms, onion, garlic, and some leftover asparagus. The kids ate it right up! Also good the next morning for breakfast.

2. Breakfast – it’s what’s for dinner. Not many moms have the time to put a large, hot breakfast on the table for the family. Save time and money by preparing pancakes and eggs, or French toast with a fruit topping for your family. Add in some frozen berries, bananas or apples.

3. Noodle and egg soup is a warm and satisfying meal for a cold day. Start with two cans of condensed chicken noodle soup. Add four cups of water and bring to a boil. Add two cups of egg noodles (preferably the short, thin soup variety). In a separate container, mix three eggs with a tablespoon of water. Slowly pour the mixture into the boiling soup so that the eggs cook up in strings. Serve with a grilled cheese layered with sliced tomatoes for the perfect meal.

4. Manicotti is an easy meal that looks like you spent hours cooking. Mix together a 12 oz container of ricotta cheese, two eggs, a tablespoon of sugar, and a teaspoon each of garlic and onion powder (you can also add any precooked veggies you might have, like spinach, mushrooms, or roasted red bell peppers – finely chopped). Spoon the mixture into uncooked manicotti shells, and then place the stuffed shells in a casserole dish that has a thin layer of spaghetti sauce already in the bottom. Cover the shells with the remaining spaghetti sauce, top the whole dish with shredded mozzarella cheese and cover it with aluminum foil. Bake in a 375 degree oven until the shells are tender (about 35 minutes). For a change of pace, you can use the giant shells instead — even easier to stuff than manicotti shells.

5. Refrigerator vegetable soup can serve up a quick and nutritious meal that’s different every time. Get out all the vegetebles in your fridge (check the freezer, too) and dump them into a large pot. Cover with water (or use chicken broth), add some italian spices, a can or two of beans and your family will be well fed. Bake up some biscuits or rolls and make a salad while the soup is cooking and dinner will be ready in a flash.

6. Fried rice to the rescue. Heat 1 Tbl of oil in a skillet or wok, add an egg or two plus leftover rice and pasta chopped vegetables for a quick and satisfying fried rice dinner.

You can save a lot on groceries by staying away from the meat department. Keep your variety by making meatless versions of your favorite meals, and you will probably never even notice that the meat is gone.

Warmly, Cindy Morus

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Cheap and Easy Meals

Question: I have a financial question (this is one of those ones I think I’m “supposed” to know the answer to, and yet, I don’t, and I’m having trouble finding someone who does know the answer, so I thought I’d ask you. When budgeting books and programs say “Pay yourself first” what does that mean? Does it mean pay your savings account and keep it there? Give yourself treat money to go spend? Pay your rent before paying anyone else who might want your money? Buy food before spending more money on your buisness? I keep running into that phrase, like I”m supposed to know what it means, and I simply don’t know and no one seems to be explaining it. If you’ve got an answer, I’d love to hear it! ~ Marianne

Answer: Hi Marianne, I’m sure you’re not the only one who has this question!

“Paying yourself first” is putting away money for your Financial Freedom/Retirement.

This would include money saved in an IRA, 401(k)/403(b), SEP (for self-employed people) or a Roth IRA. This money will begin working for you in the form of compound interest, dividends, interest and investment growth (depending on what you invest it in). That’s how people really get wealthy — making their money work hard for them instead of working hard for their money!

A recommended percentage is 10% or more. Of course, you want to have your debts paid off, too. After that you can set aside money for other things you want or to play with as well as necessities, etc. Women are encouraged to set aside 12% because we often make less, take time off for kids and parents and live longer.

The best time to start saving for retirement is the day you get your first job, the second best time is right now!

Warmly, Cindy

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What does Pay Myself First really mean?

Question: Why should I have emergency savings when the interest rates are so low? What’s the use?

Answer: When you have savings, you can be your own banker and not have to use your credit cards for things like car repairs or medical bills. Even if you have a little bit of money set aside, you will feel so much better having even some money to put toward a “crisis” situation.

Your Emergency Savings money isn’t really designed to make you a lot of money — it’s supposed to keep you out of trouble! If you have your emergency money invested in stocks and need it when the market is down, you’ll be hurt. You’ll may also trigger capital gains taxes.

I recommend ING Direct (http://www.ingdirect.com/) for your all your savings needs. It’s an online bank that is very easy to work with and pays some of the highest rates around.

Warmly, Cindy

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Low Rates for Emergency Savings?