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Debit Cards and Motorcycles Just Aren't Safe
For decades, I've pleaded with you to not use debit cards because they are not safe. And for years, I warned my sons about the dangers of riding motorcycles because they are not safe.
Has anyone listened and taken heed? Debit cards are more popular …Read more.
Overspent and Overloaded? You Need Margin
Bill Smith sits down to his most dreaded chore — paying bills. Every month, it's the same story: Pay the most urgent, and leave the rest. There's never enough money, no matter how hard he works.
Jane Miller flies into the school office …Read more.
Bounce Back From Bankruptcy
Dear Mary: Please give me some pointers on bouncing back from bankruptcy. Will this have any effect on future employment opportunities? — Henry, email
Dear Henry: Live on cash. Have only one credit card, and if you use it, pay it in full every …Read more.
With Knowledge Comes Savings
Many things that we buy are simply not negotiable. The salesperson at Macy's won't negotiate with you over the price of that newly arrived collection. The supermarket checker won't haggle with you over the price of eggs. But a ring at your local …Read more.
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Life's Money Rules -- Rule 4: Anticipate Your Irregular ExpensesIf I asked you to stop what you're doing, add up your monthly expenses and deduct the total from your monthly income, I can nearly predict the result. You'd look up with a big smile on your face. There it is, proof that you spend less than you earn. Your income is greater than your outgo. You've nailed Rule 1 in my book, "7 Money Rules for Life: How to Take Control of Your Financial Future." At first glance, your list looks reasonably thorough. But it is not complete. The mystery for many people is if their spending is so much lower than their income, why can't they get through an entire month without using credit to cover unexpected expenses, like medicine for a sick child, a semi-annual insurance premium or a family birthday party? Most people, without actually thinking things through, assume their necessary expenses are those they pay every month. But not all necessary expenses recur as systematically as the rent, grocery bills and car payments. And that is why Rule 4 in my book is: Anticipate Irregular Expenses, Then Prepare Accordingly. Monthly expenses we pay for every month are generally not the problem. Somehow the rent and utilities get paid and the family gets fed. The problem is irregular expenses. The purpose of Rule 4 is to plan ahead for irregular and even unexpected expenses in the same way you anticipate the expenses that you are keenly aware of each month. But if these expenses are irregular or intermittent, how — you ask — can you anticipate them? The way to do that is by looking at the past year.
The next step is determining how much you'll need to save to fund these expenses throughout the year. As part of the debt-proof living plan, I created a budgeting tool that works on the same principle as a Christmas Club Account. I call it the Freedom Account. Once you determine how much you will need for your yearly irregular expenses, you divide that number by 12. Each month one-twelfth of that total gets deposited into your Freedom Account. I can't tell you how many people I've heard from who tell me the Freedom Account has truly brought freedom to their financial situation. Instead of being surprised by things such as car repairs and Christmas, they're prepared, funded and ready to go. And all because they're smart enough to plan ahead by saving just a little bit every month. If you missed reading about the first three rules, Spend Less Than You Earn, Save for the Future and Give Some Away — visit my blog at EverydayCheapskate.com, and click on "Mary's Perspective." We'll be talking about each of the seven rules over the next couple of months. Mary Hunt is the founder of www.DebtProofLiving.com and author of 23 books, including her 2012 release, "7 Money Rules for Life." You can email her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2099, Cypress, CA 90630. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com. COPYRIGHT 2013 CREATORS.COM 
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