Excepts from In The Trenches by Free Money Finance

Freemoneyfinance offers many articles and tips from investments to job search tips to other financial ideas and opportunities.  My favorite part of the blog is the authors personal story of his childhood through his adult life and how he was able to start with difficult challenges and through education and hardwork was able to accomplish what is known as The American Dream.  It is an inspiring no excuses approach that can encourage us all.  I have placed a link below: 

My Story from Rags (Kinda) to Riches (Kinda)
http://www.freemoneyfinance.com/2007/10/my-story-from-r.html

The links below are from In The Trenches - Financial Survival During times of Hardship.  If you have not purchased the book yet it gives an idea of what you are in store for.  Especially interesting is the comments of freemoneyfinance readers.  Add your own on their blog or this one.


Millionaires Among Us
http://www.freemoneyfinance.com/2010/05/millionaires-among-us.html

The Annual 50%
http://www.freemoneyfinance.com/2010/05/the-annual-50.html

If Shopping is Your Passion, then Get Another Hobby
http://www.freemoneyfinance.com/2010/05/if-shopping-is-your-passion-then-get-another-hobby.html

To order the book just click the book on the left and it will take you right to Amazon.

Happy Mother's Day to all and hope you had the opportunity to spend some time or talk on the phone with your most valuable assets in life.  And, thanks to all my kids for calling!

Reading the signs.

Imagine driving down the road.  Not quite sure where you are going you take a couple of side streets than get back on the main road and keep going.  There are lots of other cars going the same direction.  Along the way the tire blows and a kind motorist stops and helps change the flat.  Onward you go.  Hundreds of miles pass, lots of ground is covered and the car sputters to a stop.  Oh no, out of gas!  A neighbor spots your predicament.  He brings out a five gallon gas can and gets you to the next gas station.  After your pit stop it's back on the road for hours more until you finally reach your destination.  A DEAD END SIGN!

What?!  How could you have come this far only to reach a DEAD END SIGN? 

How many millions of people have reached their dead end sign with using their credit cards?  In doing so they have messed up their credit ratings, run out of money, and finally gotten themselves to the end of the road.  Now it's time to turn around.

Unfortunately the farther down the road you have traveled the farther it will be to get back but there are lots of others that can help and will keep you company along the way.  They can also show you the shortcuts. And as they are passing many are rolling down their windows and telling you "Turn around, dead end ahead, turn around".  Some of their blogs are listed at the left.

Have you cut up your credit cards yet? 

The ostrich syndrome

You know what I'm talking about.  The money is spent for the month and the bills keep coming in.  What do you do?  Throw them in a pile and don't open them of course.  It's just too depressing to open them and you don't have any money to pay them anyway.  Yes, it's a big temptation.  I've been there, I've done that.  I call it the ostrich syndrome.

Now doesn't that look silly?  Yes, that's how silly it is to not open the bills.  Sometimes we can avoid big consequences by making small phone calls.

Open the bills. You may find a pleasant surprise in that you may have already paid the bill and can throw the bill away.  Other possibilities are that your payment did not get applied and you need to review your account to see if the check has cleared and call immediately.  If you are unable to make the payment than add it to your list for monthend (or next payday).  You may need to call the company and make arrangements.  While you are In The Trenches I cannot overstress the importance of you taking charge of realistically deciding what you can and cannot pay.  You may need to disconnect the cable for a few months to get by.  Unless you have a clear and specific plan you may feel like someone with a tennis ball machine shooting out balls at you and will not know which one to hit first.

Checking accounts.  When you are In The Trenches it is even more important to watch everything closely.  Often times your account is carrying a very low balance and one fifty cent mistake can cost you $34 in overdraft fees.  And, if you are not watching closely these will mount up quickly costing hundreds of dollars that could have been used on bills or food.

In my experience it is best to not use a checking account (or debit card) for all your small daily expenses.  Better to use the account for bills only and do one withdrawl for cash expenses such as gas, a loaf of bread, or other in between times.  When you are looking at $20 and need to make it last though the month being aware of every dollar is important.  You've never been in this position?  Try it.  True frugal living comes from closely watching every expense.  If you are not doing it by necessity than try it by choice to establish the disciple needed tighten the belt.  Just like counting calories will help you lose weight, counting your dollars will help you become more economically aware.

Whether you are managing hundreds of dollars or thousands and whether you are doing it by necessity or choice it is important to watch every expense and catagory of expense closely to manage to your priorities and master your frugal living strategies.  Soon you will reach your goals if you do not put your head in the sand.

In The Trenches - Decorating

There can't be anything much more fun than picking up a friend and hitting the garage sales early on a Friday or Saturday morning.  The treasures are out there for you to find if you are willing to search for them.  This cannot be more true than in the area of decorating.  Sure it's easy to go into a store and pick out a whole new room of furniture but how much more fun to contemplate each individual piece and apply your own personal artestry to make the room a masterpiece.  Each piece has a story to tell.  Here are some of the places you can begin your hunt.

• Ads in the paper.
• 2nd hand stores
• Antique Stores
• Garage Sales
• Auctions
• Family attics and give aways
• Ebay
• Trade with friends
• Gifts
• Swap meets
• Estate Sales

One of my favorite pieces of furniture is a triple dresser that I picked up when I was about 20.  The piece is so heavy that it takes three people to move it and the mirror is huge.  The style is Asian.  The garage sale wanted one hundred dollars and at the time all I had was eighty.  I made the offer and they took it and I about jumped for joy for the beauty of it.  I still have it all these years later and it looks as good as it did then except for the corner our big dog took a chew on, God rest his soul.

Whether you like antique or ultra sleek it's all out there and someone wants to get rid of it. 

In The Trenches - How did we get here?

It's easy to talk about financial changes when we are looking for ways to cut back, move forward, or  accomplish our goals.  The truth is that many people get  in this position through a jolting life change  that can come without notice.  This may be a  pink-slip at the job, catching your spouse in an affair, a flood, or the death of  a  family member.   These are the times when our finances are turned upside down along with the rest of our whole way of life. We cannot answer any questions about goals because we don't even know what or where we will do next.  These are the tough times.  Amidst our shock, grief, and confusion  we as responsible adults must figure out how to keep going and take care of those who look to us for provision.  It can be overwhelming.  On top of that we may  even have those who we feel want to push us under as we swim for our lives and futures.  We get so much advice or not enough. These are the realities of life and few of us can get through without one or two times of these major life changes.