The rich ruleth over the poor, and the borrower is servant to the lender. ~ Pr. 22:7

Many families are struggling to live within their means, either because they have already accumulated too much debt, or because their spending habits are uncontrolled and they simply don’t know how to manage their money.

Here are a few quick tips on how to live within your means and keep yourself debt-free:

1. Cut Up the Credit Cards. Credit cards create a huge temptation to spend money you don’t have. If you must have one card, leave it at home while shopping and place it in the care of the person most responsible for your family’s financial health.  Never use it except for emergencies that may occur such as while traveling.  If you must use your card in the case of an emergency, put top priority on paying back the charge within a very short time to avoid the extra expenses of credit card fees.

*Note: If you already have credit card debt and are carrying large payments at high interest that are crippling your budget, talk to a community credit debt counselor. There are many groups that offer this service for free. They’ll help you to understand how your debt can be cut down faster, and whether a consolidation loan is a good idea.  Also, consider grabbing a copy of  The Financial Facelift for helpful guidance and information on eliminating debt.

2. Create a Simple Budget Plan to Follow. Even a simple budget written down in a notebook will work, or you can go the extra mile by creating a spreadsheet on the computer.

Start creating your budget by gathering all your bills, and calculating your monthly expenses, remembering to include a 1/12 portion of any annual expenses. (Also, it’s wise to create an emergency fund by setting aside a small amount each month to place into savings.)  Next, take your gross income and figure out how much should be set aside per week for absolute essentials.

Whatever remains after your necessary expenses is what you have for additional options such as saving for vacations, education or retirement funds and entertainment.

3. Consider the Question, “Can I Live Without It?” Before you buy, always determine if you really need it. Thinking of buying a new stereo system or a new car?  Ask yourself if it’s worth going into debt for, or just how far it will stretch the family budget.  If it’s something you feel that you absolutely need, do some price comparison shopping first.  To save even more, consider buying “used” items at thrift stores, garage sales and from your local classified ads.

Above all, don’t forget to pray about your needs!  Remember, when you live within your means, you eliminate financial stress and enjoy the many blessings from God who will faithfully supply all your needs.

*Click here to get:  The Financial Facelift, Christian-based information on eliminating debt.

There are two ways to save more money on your groceries:  buy less or pay less.  The good news is, there are several ways to do both of these things.

Buying less may sound like you have to cut down on what you’re buying,  but this isn’t always true. Spending less always sounds like going into the supermarket with a bag full of coupons.  It’s true that these are both ways to cut down on your grocery shopping bills but with a little bit of thought you could probably cut down your spending many other ways as well.

1.  Save More Money on Groceries by Using Less.

- Reuse some items more than once like plastic bags and containers.

- Make some items last longer such as diluting fruit juices.

- Be smart with your purchases.  Think about all the things that you might be wasting because they’ve gone bad or expired before it gets used. Large quantity items that are perishable and some fruits and vegetables can cause this problem.

- Replace some disposable items with permanent ones.   For example: permanent coffee filters, plastic food containers instead of disposable bags, razors for shaving, even water filters. There must be tons of people throwing money away because they buy bottled water instead of using a water filter at home.

2.  Save More Money on Groceries by Paying Less.

- Buy the items on sale, buy cheaper brands, or buy in bulk. Often items that are reduced on clearance are perfectly suitable to consume it’s just that the store has to sell them quickly or face throwing them out.

- Avoid impulsive buying. Many people buy impulsively because the products are there on the shelf in front of them. You know what they say, “never go grocery shopping when you’re hungry or without a list.”

- Shop around different stores to find more bargains.  You might be surprised by how much you can save.  Also, you can inquire whether the store will match prices from other stores which will save on gas from running around.

- Beware of supermarket tricks. Watch for common practices such as raising the price of a popular brand for about two weeks and then ‘”price cutting” to just below the original price to make it look like it’s on special offer.

-  Consider the value of the sale. When supermarkets place items as special offers, such as “buy one and get one free” people believe it’s a great deal. It often is, but this may cause you to consume more than you normally do.  So to optimize your savings, use your normal amount and save the “one you got free” for the next time you would normally use it.

*The best “two for the price of one” offers are on items that you can only consume at a certain rate like bathroom and cleaning products, another other items such as toothpaste and soap powder.

- Be careful with your coupons. Sure coupons are a great way to save money on groceries, but if you’re buying things you normally wouldn’t buy or twice as much to get the special sale price then you may actually end up spending more. Often times the coupon offers are higher priced items than the store brands.

- Be careful of store brand or value products that are cheaper imitations of the real thing. Buying lower quality can be a money saver if you choose wisely, but if you end up using twice as much and the product lasts half as long, then you might as well enjoy the real thing.

Proverbs 31:13 says, “She seeketh wool, and flax, and worketh willingly with her hands.”

One way we can save more money at home is by expanding our knowledge and abilities.

With 3 boys and 1 husband, I knew the cost  of haircuts would really add up over a year’s time.  With much practice, I have learned how to cut hair decently enough to pass as a fair haircut.  Perhaps there’s something that you can take time to learn to do that would save money for your household.  There is a wealth of information and numerous step-by-step videos online for almost any project you would like to conquer.

Save money by challenging yourself to “do it yourself”.

Sometimes, we already have the knowledge and ability to do more things than we do.  We  just need to roll up our sleeves and do a little extra W-O-R-K.

I faced this challenge this week.  My husband likes something for breakfast that he can grab and go.   We usually picked up a box of muffins each week at the grocery store so that he could toss them in with his lunch stuff in the mornings.  Because we’re also trying to eat healthier, he discovered that the ingredients in the muffins were not that good for him.

I decided to rise to the challenge to find a healthy version of oatmeal muffins that I could make for him and my boys.  The fact is, I had already been thinking on conquering this issue as a weekly project to save money on muffins.  So one evening, I rolled up my sleeves and set out to make some muffins.  I doubled the recipe and then stored them in the refrigerator for the week.  Surprisingly, it really didn’t take me that long to do…I just hadn’t taken the time to do it.  Now we have healthier muffins for breakfast and we’re saving money too!

Take the Thrifty Challenge!

I want to challenge you ladies to find just ONE extra thing to do this week that can save you some money.  Make it a goal…and please do share a comment with us below.  (Making your goals public can help you commit to accomplishing them!)

As I was praying today what I should write about for “Thrifty Thursday” (as sort of my weekly theme),  the Lord brought to my mind Proverbs 12:27 which says, “The slothful man roasteth not that which he took in hunting: but the substance of a diligent man is precious.”

How does this verse tie in with thriftiness?

Have you ever brought home a bag of potatoes and then ended up having to throw half of them out because you avoided peeling and cooking them?  How about a meal that you actually made and you put some of the leftovers in the back of the refrigerator and completely forgot about them?

Every time something like this happens to me…I feel the conviction in my heart… “the slothful man roasted not that which he took in hunting.”

The things that the Lord has provided for us should be precious.  We should strive to be good stewards in the way we use our money and our possessions.

I believe the first step to becoming a thrifty wife and mom is being diligent with the substance that the Lord has already given you.

1. Try to stretch that dollar you have in your wallet. Take notice on the best deals when you’re shopping…ounce for ounce, pound  for pound, etc.

2.  Use the last drop. Scrape the peanut butter and mayo jars for one more sandwich.  Add a little water to those shampoo and dishwashing soap bottles for one more wash, etc.

3.  Use it again. Before you throw something out, determine if you can use it for something else.  It’s fun being creative.  While growing up, my mom and I used many throw away items for projects and crafts.

I encourage you to become a thrifty wife and mom.  And, by the way, I really love hearing from my readers.  Please share your tips and ideas with everybody!

Every month one must sit down to pay the bills.  (Nothing too  enjoyable, right. lol)

Do you ever wonder why you’re spending so much?  It’s a common scenario for most families. The good news is there are a few things you can do to cut your monthly bills down.

Here’s 10 tips to help reduce monthly bills:

1. Shop Around

Always shop around. Utility companies are in fierce competition with each other, use it to your advantage and shop around for the best savings. Don’t think you have to stick with a supplier you’re not happy with.

2. Leave the Car at Home

Don’t pay the outrageous fees for gas. If possible try to walk, you can also consider taking the bus or carpooling.  You can even consider bicycling and get your daily exercise at the same time.  When filling up the car, shop around for competitive rates.

3.  Lower Your Thermostat

If it’s cold in the house don’t just automatically switch the heating to high. Put on an extra sweater and pair of socks instead.

4.  Avoid Using Your Dryer

Dryers waste a lot of electricity which means higher bills for you. Try to hang up your clothes instead. This not only saves you money on electricity but will help some of your clothes last longer as well.

5.  Make Sure It’s Full

Don’t use your washing machine or dishwasher when it’s half empty. Play around with the temperature settings to see if a lower temperature will do the job just as well as the pricier higher one.

6.  Turn Off the Lights

Your father was right. Turn off the lights you’re not using to save electricity. If you’re just relaxing try lighting candles instead, this will save money and create a nice atmosphere (make sure you follow all safety guidelines).

7.  Lower Your Water Bill

Try to take showers instead of baths. Turn off the water while you’re brushing your teeth. Collect rain water and recycle it to water the plants. Make sure your faucets aren’t dripping. Use a bowl full of water when doing the dishes instead of leaving the tap running.

8.  Change the Settings

Set your thermostats a couple of degrees lower in the winter and a couple of degrees higher in the summer for a big savings on your utility bills.

9.  Filter Your Water

Investing in a good water filtering system can save you money on buying bottled water. It will also help you save money by making your appliances last longer due to lower lime scale buildup in hard water areas. You can even use less detergent when washing clothes or using the dishwasher.

10.  Don’t Buy Disposables

Try to cut back on your shopping bills by not buying disposable items such as paper towels; use a clean dish cloth instead. Try to reuse your aluminum foil or sandwich bag containers or better yet buy plastic containers you can wash and reuse.

By following these tips above, you can reduce monthly bills significantly.  As an added bonus, you’ll also be contributing towards a healthier environment for your children and grandchildren to enjoy.

I recommend looking at Reduce Your Electric Bill for more savings.

7 Tips to Cut Costs at Home

1.  Make an itemized list of all your expenses for the month and then decide where you can cut costs.

2.  Keep a weekly tally on all your expenditures.  Go through your receipts and find where the little pocket change is vanishing.  Those little extras really add up.  Try to eliminate them.

3.  Keep your trips to the store at a minimum.  On average each trip will mean that you will pick up a few extra unplanned purchases.  Try to plan your weekly shopping with a written list of all your necessities.

4.  Shop quickly without much browsing and make sure you’re not hungry before you enter the store.   Snacks are costly and when you’re hungry, you can easily toss in several extra purchases that would have been avoided if you had only eaten before you went in to the store.

5.  Be patient.  If there’s something you really want but don’t really need right away, watch for sales.  Try to avoid buying things at full price.  With food, learn to stock up on essentials when there’s a good sale.

6.  Stay organized at home.  When you can’t find something that you really need at the last minute, you may end up running to the store and purchasing another one.  Organizing your stuff really can save cash!

7.  Do it yourself.  Stretch your knowledge and learn to do more things yourself.  The local library and the internet has an unlimited resource of knowledge.  You can learn to do about anything you want to accomplish and save tons of money doing it yourself.

*Check out Pay Debt Quicly

By Cindy Morus, Creator of the Pay Debt Quickly System

I counsel a LOT of people about money. I see the same mistakes being made over and over again.

If you’ve made ‘em, don’t worry. I’m here to help you do it right THIS year! The fact is, moneymakers need a money coach, just like gymnasts need a gymnastics coach.

As your Money Mending coach, here are the mistakes in thinking and behavior I want you to avoid:

* Don’t think of your refund as free money – or lottery winnings. It’s not! That refund is your hard-earned dollars that you loaned Uncle Sam interest free – all last year.

* Don’t spend the refund – or OVERSPEND it – when you haven’t gotten the cash in your hands yet.

* Don’t spend the whole refund to pay down debt.

OK. So now you’re Money Smart about what NOT to do with that refund in 2009.

Next, here are my EASY Money Smart moves that YOU can make to best handle your income tax refund this year.

First, divide your refund into thirds – 3 equal amounts.

Why 3 equal amounts? Because we want to use that refund – however small or large – to handle the past, the present and the future.

Use one third to handle the PAST by paying down debts. Start with your most pressing debt…either the one with the highest interest rate, or the one with the biggest consequence for not paying it down.

Use one third for something you need or want in the PRESENT. If you can, use that money to have some FUN. Do something that is NOURISHING to you – something that makes you feel GOOD. How about a mini-vacation, or an evening of fine dining and great entertainment, or a day at the spa?

***Of course, if the brakes on the car are shot, or you have some other pressing need, you’ll need to do that FIRST.***

Finally, use one third to handle some aspect of your FUTURE. Here are several Money Smart suggestions for you to think about.

*Put money in your Anti-Emergency Fund.

*Put money in your Sleep EZ Fund or save for your retirement through your 401(k), 403(b), IRA (traditional or Roth).

*Put money into college education funds (Coverdell IRAs or 529 plans) for your kids or grandkids.

Why is this “thirds” approach such a great idea? Because you’ll be taking care of a variety of wants and needs – AND taking several easy Money Smart steps forward towards your BIG goal of financial freedom!

THAT is how you can have MORE fun with YOUR tax refund in 2009.

Now is also a GREAT time to “check out your paycheck”:

* Re-evaluate how much money you are contributing to your 401(k) or 403(b).

* If you got a whopping refund, remember you were just sticking YOUR money in Uncle Sam’s pocket. No point in giving Uncle Sam an interest free loan! Adjust your deductions so that you have just enough taxes withheld from your paycheck.

For more help from Cindy:

Trouble with debt? Eliminate your debt and save your money using the Pay Debt Quickly System. It comes with the software and strategies you need get rid of your debt without making an large payments or making any significant lifestyle changes. Click here to learn more and get started right away or sign up for her free Powerful Debt Reduction Starter Guide.