Kill-A-Watt Device Helps You Save Money on Electricity.

I bought a Kill-a-watt electricity monitoring device about a year ago so that I could really see where I was wasting money.  This cool device will tell you just how much electricity each appliance or device is using.  Is that old refrigerator costing you a ton?  All those chargers plugged into the wall will surprise you on how much electricity they are using EVEN when you are not charging anything.  Check to see how much juice those Christmas lights are using.  I soon became a Kill-a-watt junkie and was checking everything in my house & garage.  After making a few adjustments to what I kept plugged in, I figure this little device paid for itself in about 2 months.  The big payday came when I adjusted my pool pump to run about 1 hour less each day.  The savings really add up when you calculate it over time (months/years).  I highly recommend everyone getting one of these to open your eyes on electricity usage.  When you are done using it (not that you will ever be totally done), let a neighbor or friend borrow it to help them save some money. 

The Best Vaccuum Cleaner I Ever Rated! This Hoover is #1 Value and Performance Leader.

Our old Hoover vacuum cleaner had seen better days and we were tired of using vacuum bags so the other day I did some research to find the best vacuum cleaner I could at a good price (around $100).  After reading many reviews, I settled upon the Hoover Elite Rewind Bagless.  This would be our first ever bagless model.  I found the best price for a new (non-refurbished) unit on Amazon.com.  It was $92.51 with free shipping.  I ordered it and it was promptly shipped and received in about 3 days.  My wife had just finished vacuuming with the old one when FedEx delivered the new Hoover.  She assembled it (just putting the handle on) and tried it out.  She immediately called me at work and said "Oh, my goodness, I can't believe how much stuff it picked up AFTER I had just vacuumed with the old one".  She was very happy with how well it performed and really liked the cord rewind feature.  When I got home, I had to try it out.  I re-vacuumed the room that she already had done only I went much slower than she did.  It again picked up a ton of dust even though this was already vacuumed several times already.  Wow, vacuuming is almost fun when you can see how much you're actually picking up (I'm sure that feeling will wear off quickly).  Overall, we really like this new vacuum cleaner and hope it is durable enough to last for several years.

Recycling Aluminum Cans for Money AND Love.

I have fond memories of when I was a kid out collecting aluminum cans.  I used to walk the ditches behind my grandparent's house because they lived on a busy road.  Back then (late 70's/early 80's) it seemed like everyone littered...it was no big deal.  I would find pretty much anything you could imagine tossed in those ditches.  Lots & lots of empty beer cans as drinking and driving was pretty much the norm.  I started a beer can collection and probably had about 50 different cans that were pretty cool.  Some cans were made out of tin and some from this new fangled aluminum can.  The aluminum ones would be tossed into my giant Hefty bag after crushing them with a good stomp.  I would keep gathering cans all summer and toss them into an old giant metal drum that my dad had behind our shed.  I don't remember how much money I used to get when we eventually took the cans in for recycling but I do remember how excited I would be when we we driving to the recycling place.  MONEY, MONEY, MONEY.  I couldn't wait.  I probably recycled cans until I was about 13yrs old, then it just didn't seem cool anymore.

Time lapse to 2009.  During a beer drinking session with my neighbor, I commented on how ridiculous it was that we threw all our cans in the recycling bin to be picked up every week AND we paid for this privilege.  The recycling company made money from the monthly fee and they also made money off of those aluminum cans.  Hello, Bueller...Bueller.  The next day I grabbed a big old Hefty bag and started tossing in our empty beer cans (and soda).  I then went out and bought one of those nifty (and fun) wall mounted can crushers.  The kids couldn't wait for the next empty can, they loved to crush.  I saved cans for about a year until I just got tired of looking at the eye-sore of big black bags sitting by my wood pile.  I took the cans to the local recycling plant and they kindly gave my $30.  I went right over to the grocery store and picked my "free" (minus my $30) two cases of beer.  What a country!  Free beer.....well not really, but it felt like it.  So now when my wife asks if I've been drinking, I just reply:  No, I was out recycling.

How Much Emergency Fund Do I Need? Transform Debt to Wealth.

The rough economy the last few years has really brought many Americans back to the basics.  Back in the day, people used to actually have money sitting in the checking account (or under the mattress) "saved for a rainy day".  That whole emergency fund idea kind of went by the way-side when the spending/investing era took off (mid 80's).  Sometime around the collapse of the Berlin Wall, people decided that it was foolish to save money in a liquid account for emergencies.  It was so popular to just spend it and enjoy yourself (after all, money was so plentiful), or go for the "big gains" in the stock market.  Wake up call---jobs are scarce, debt is huge, housing market tanks, oh no!  When a real financial emergency does happen, you may need several month's worth of expenses to be available.  Most financial experts agree that at least three to six months of expenses are necessary but how much that means for you is the question.  First, you need to know how much you really spend each month.  You'll need to track each expense daily for several months to get a good idea of just how much you spend.  Keep a running log and don't forget the little spends (magazines, coffee, vending machine snacks, etc.).  Once you have a good idea of how much you spend each month, figure out how much of that you would actually HAVE to spend if a real emergency took place.  For example, even though you might have spent $800 a month on groceries, if a financial emergency took place you could definitely cut way back if needed and maybe only spend $500 or less.  Add up all the "needs" and get the cut-throat total.  Multiply this by whatever makes you more comfortable (3-6 months) and you will have a good idea on just how much money you need to save in the emergency fund.  Keep saving until your fund is fully funded...making sure to keep it liquid.  DO NOT TOUCH this money for anything except a full blown emergency!  No, Christmas is not an emergency.
I was once a non-believer in accumulating an emergency fund.  I figured that if the worst happened and I was really strapped for cash, I would just have to pull out the old credit card (dust it off) and live off it temporarily.  But now that I have drank enough debt-free kool-aid, I am a believer in having a fully-funded emergency fund available as MY BAIL-OUT.  I've seen the light at the other end of the tunnel and no, it's not from the locomotive coming towards me.

Where is my Alabama State Tax Refund Delay.......2010 Just Like 2009!

Still waiting on your state tax refund? I'm not, but many in Alabama still are. I don't live there but I do have relatives who do. They are getting quite used to the fact that their state tax refunds never seem to show up. How frustrating that must be.
There are several states that would be on the brink of collapse if they were actually corporations. California, Illinois, New Jersey...the deep in debt list goes on. Fiscal responsibility needs to be at the top of the "must have" list when deciding who should be the governor running the state. Some of the governors have never even been in financial control of their own households let alone multi-billion dollar industries/state. If they have never had any real experience running a successful organization (budgeting), do they really need to be running the state? I promise to stay away from the political aspect on this blog, but come on people....WAKE UP! I vote Dave Ramsey for Governor of common sense.

Saturday Night Live Deals With Debt. How to Retire Early.

This video from an old Saturday Night Live skit is pretty much all you need to know about personal finance.  Too funny, truth is always funnier than fiction.  Click on the top left arrow to start.

The Simple Life to Stop All Creditors.

If I were going to sum up the whole "live debt free and prosper" theory, I would do it by simply saying "SPEND LESS THAN YOU EARN.  That's it, simple huh?  Too bad so few actually do it.  You've all heard the saying "it's not how much you make, it's how much you keep", so why hasn't it sunk in yet?  Figuring out all the logistics involved with spending less than you make is the difficult part.  Keep your life simple by not getting involved in all the shell games (credit cards, zero percent interest, etc..) that make it seem like you really can afford that new something or other.  If you want or need something, pay cash and move on.  What's that, you don't have enough cash to pay for it right now?  THEN DON'T BUY IT, you can't afford it.  Credit cards are designed to allow you to spend money that you don't yet have.  It is a trap, steer clear.  Don't try to out smart the credit industry, it's like playing with snakes...eventually you'll get bit.  I bet everyone knows someone (or is someone) who is flat broke but has a 46" LCD TV, a $100 cell phone plan, expensive rims on the car, etc..  Notice anything wrong with the situation.  Pay yourself first, then you can spend the rest of your cash on your needs/wants.  So simple, yet so difficult.

Why Dave Ramsey? Is John Cummuta a Scam? Where's Suze Orman?

I often talk about Dave Ramsey's plan to become debt free, but I also think that another guy's program is really pretty good.  John Cummuta has a plan that has gone by several different names over the past 15 years (currently it is called "Transforming Debt into Wealth")Update: Now calling it the Debt Free Bible.
 
I actually enjoy listening to Cummuta's audio book more than I do Ramsey's.  I guess I follow a hybrid of both of their programs and have changed a few things that fit my situation a little better.  Both Ramsey & Cummuta have VERY similar backgrounds, stories, and books.  Below are some highlights of each and some differences:

Dave Ramsey's Baby Steps:
1) $1000 in Savings - Mini Emergency Fund

2) Pay Off All Debt (except the mortgage) using the debt snowball

3) Save for Fully Funded Emergency Fund (3-6 months of expenses)

4) invest 15% into 401k or Roth IRA

5) College Savings (529 accounts)

6) Pay off home early

7) Build Wealth & Give
 
John Cummuta's Transform Debt into Wealth:

Stage 1: Stop Using Credit - Operate 100% on cash
Debt is not a useful tool in building a successful life, credit makes things cost more, so why would you want to use it?

Stage 2: Pay off ALL your debts, including Mortgages.
Simultaneously with a cash-based lifestyle, we'll begin eliminating your debts. The first step in that process is the creation of what Cummuta calls your Accelerator Margin (TM). This is an amount of money that will help you accelerate your debt-elimination.

Stage 3: Focus All available cash on wealth-building
After your debt is paid off, it's time to start the first step of the wealth building phase. That first step is create an emergency savings fund.


Some differences are that Dave Ramsey says to create an emergency fund first where Cummuta says to pay off all debt before saving an emergency fund. . Another difference is that Ramsey separates the mortgage from the rest of the debts and says to pay that off at a later time, while Cummuta says it's all debt so it all needs to be eliminated.


I enjoy listening to Dave Ramsey's podcasts from his daily radio show.  He is much more accessible than Cummuta and seems to be more on the up and up.  Cummuta has a good program but has very questionable marketing tactics and many people think he is a borderline scam artist.  I have never purchased anything from him (the program was a gift) so I really can't confirm or deny his practices.  I would highly recommend  starting either one of these programs asap.  Both will get you the desired results...DEBT FREE...but only if you stick with it and persevere. Is John Cummuda a scam? No, Commuta is legit, but the plan is not much different that Ramsey's. Can you pay off house in 2 years? Not likely. Who is better, Dave Ramsey or "John Cummuta"? Both have value. What is best way to eliminate debt? Don't acquire any more, pay off the existing. Is the Debt Free Bible a scam? "Debt Free Bible" is Cummuta's newest name for his program. Oh yea, what about Suze Orman....I don't know-sorry. Is she a lesbian? Who cares.

Debt Elimination Secret Update. Getting Out of Debt: See Dave Ramsey/Cummuta/Suze Orman

My debt elimination update is a secret only because about 6 people will view this (my hit rate is not too good, huh).  Here is my update for May: 
Drum roll please.........

 Total debt as of May 9th is $53,616.


  On August 1, 2008 we owed $100,332.  We have payed off $46,716 in 22 months!  My new DEBT FREE date is August 1, 2012.  Only 27 more months until the house is paid off and we are totally debt free (how weird is that?).  The Dave Ramsey plan does work. 
It is like every other thing worth doing...it takes time and consistency.  You need to be committed to stay on it for the long haul.  I keep thinking about how I will feel once all debt is gone and everything I earn goes to my future and not the bank/creditors/drug dealers.  Just kidding on the drug dealers (although credit is consumer cocaine).  Dave Ramsey is right when he says that following the program is not complicated, but it is difficult.  It's difficult because it takes dedication, commitment, perseverance, and a bunch of other long words.  Stay the course and to the victor goes the spoils. Don't ever try and keep up with the Joneses, they're BROKE!

Free Money!!! Ebates is Cool as Swag.

I finally used ebates last week for the first time. I have bought things online for many years, but I never have used ebates to get money back. Ebates is a really easy way to get a little money back when you buy on their approved sites (many, many sites). I used it for Travelocity and ebay and will get back about 1% on each purchase. I recommend using it for all qualified purchases because...why not!  I meant to use it several times in the past few months but kept forgetting to go to ebates site first.  I wonder just how much money I lost out on over the last few years by not participating in this.  It is really about the easiest thing you can do.  Give it a look, you will love it too.  Click to check it out!   Some purchases at certain sites will get you 15%-20% back.  Hey, I like free money......