Spring Cleaning vs. Spring Spending

Good morning! When I previously tried to write this article, my finger slipped and hit the publish button while in the beginning stages of my first draft. It’s definitely not a best-case-scenario for any writer. Lol. This time around, I’m hoping the final draft is what ends up in your Inbox. Thank you for reading… again!

Spring Cleaning is a phrase we’re all familiar with. Some families take it to the extreme … scrubbing every wall, every bit of exposed tile grout, and even the front sidewalk. Others use Spring Cleaning to motivate themselves to get rid of excess by de-cluttering every room. And then, there are the Spring Cleaners who take this time of year to organize, organize, organize by color-sorting bins in the pantry or clothes in the closet, separating mini craft items into jars, and making the laundry room more accessible. Quite possibly, your family does all OR none of the above during this season of sunshine and renewal.

However, there’s one thing that every family likely has in common during the Spring season: an increase in spending. Data shows that this time of year is HUGE for retailers. Unfortunately, I don’t need research to prove this trend to me because I’ve noticed the spending binge in my own household. I’m definitely not alone; this article and associated charts clearly illustrate the significant Spring spending increase across the country. The Wall Street Journal has also predicted a further increase in spending this year, leading into summer.

So, how does a family that’s eager to take advantage of the better weather and longer days minimize this Springtime splurge?

Take Inventory as You Clean

Taking inventory comes up often in my articles… because it works. Just as tracking every dollar helps you save money and tracking calories helps you lose weight, taking inventory reduces your tendency to collect unnecessary items while out running errands. It’s your hedge against impulse purchases. Imagine yourself walking into Target. Do you gravitate toward the dollar spot right away? If so, being hyper-aware of how many coloring books, floral-covered journals, blue tooth headsets, and tiny vases you already own will hopefully make the idea of picking up another one, even if it only costs $3 or $5, cause you to groan rather than grab.

Make a “Needs” and “Wants” List with a Specific Budget

As you clean and organize each room, make a list of your family’s needs and wants. Maybe you’ll recognize that you need to replenish your supply of shampoo and soap while scrubbing the bathroom. Maybe you’ll notice you’re out of cinnamon and baking soda as you re-organize your spice cabinet. Maybe it’ll dawn on you that your kid’s mattress is nearing its 8-year expiration date. Write these items down on a “Needs” list and estimate what they’ll cost you. Then, do the same with “Wants” in each room, such as a new set of bath mats, an upgraded blender, or a neutral set of sheets to cover that new mattress. Based on your monthly budget, assign an amount you’re willing to spend on these Wants. Keep your lists with you, and then when out shopping, stock up on the Needs and vow only to buy the Wants if a current sale puts them within your set budget. You might even jot down in which month you should buy the Want items based on the best time to buy.

Redecorate as You Clean

Make Spring cleaning a lot more fun and interesting by redecorating your home with the items you find tucked away in cabinets, closets, and even your holiday bins. You could also make use of the crafting and paint supplies you uncover to update and/or create your own home decor. Involving yourself in a project, especially if you get to repurpose your own possessions, can give you a true sense of pride and accomplishment, while also salvaging the cash in your wallet.

Sell, Sell, Sell

Sometimes, a Spring shopping spree is just what the doctor ordered. It’s fun! You get out to see what the stores are offering and come home with new things to refresh your space and your spirit. Even the most frugal folks can identify with that! However, if you don’t want to sacrifice your savings rate by splurging on Spring goodies, unload your stuff in a big sale first. As you de-clutter, separate your items into categories, such as adult and kids’ clothing, kitchenware, sports equipment, tools, toys, baby items, linens, etc. Then, identify the best options for selling the items in each category depending on where those items will garner the most traffic and the highest prices. For example, if you have designer clothing items in good condition, try selling through Poshmark. If you have unique collectibles, eBay might be your best option. If you’ve accumulated dozens of products that you’ve never opened, an Amazon shop could give you the highest return. Tools and kitchen items will likely receive a decent amount of interest on your neighborhood Facebook page or Nextdoor site.

But if you have a large variety of items that span multiple categories, a well-advertised, old-school garage sale will earn you hundreds, if not thousands, of dollars to put toward that shopping spree. I just recommend that you pay yourself a percentage (to go toward investing/savings) at the same rate you save from your monthly income (10-25%) before you hit the stores.

I hope this beautiful time of year gets you out and about enjoying the changes this season brings, not just into the stores taking advantage of the advertised sales. However, if you do find yourself drawn to your favorite retailers, let us know what tricks you use to spare yourself from falling into the Spring spending trap.

Too Much Cash: A Good Problem to Have

The pandemic of 2020 has had many unexpected effects on everyone’s finances. One way or another, I’m guessing your financial life has changed since March of 2020.

Unfortunately, many people lost their jobs, their businesses, and their ability to pay their rent or mortgages. It’s been devastating to hear these stories. Thankfully, there’s been relief over the last year in the form of higher and extended unemployment benefits, moratoriums on evictions and foreclosures, stimulus money from the government in the mail, and help from several charitable organizations. I know there are many people still struggling, for whom I pray and have added more in our personal giving budget to go toward.

For many others, though, this past year has allowed them to reassess their spending habits and make major changes toward saving. It’s allowed many to sell their homes for significant profits and/or finance a home with unprecedented low interest rates. Additionally, after its initial fall, the stock market has left many people with realized gains far beyond what they’d imagined.

Because of these significant changes in 2020 that have carried over into 2021, many Americans are finding themselves with a really good problem to have: too much cash and what to do with all of it. Most personal finance experts believe that keeping extra cash under your mattress or sitting in a simple checking/savings account for a long period of time is equivalent to losing on an investment or burning a percentage of that cash in your fire place.

Due to inflation, your dollars today will be worth significantly less than in the future … and I’m not talking about the distant future. According to the rule of 72, at an average 3% rate of inflation, your cash today will be worth HALF its value in 24 years (72/3 = 24). So, if that money you have lying around isn’t making you more money (at a rate greater than inflation), it’s essentially making you less money. Therefore, you need a plan for that cash.

If you’ve unexpectedly found yourself in this position of holding onto money in excess of your emergency fund (or specifically saving for a large purchase), it’s time to figure out where to put it. My husband and I are in this boat with you, so I’ve done a bit of research to determine our best options for what to do with that surplus in the bank account…

Invest in Index Funds

We have seen over 20% returns in the past couple years on our VTSAX (Vanguard index fund) investment. In addition to our monthly contributions, we often invest our family budget surpluses in this index fund through our joint brokerage account (after our ROTH IRAs have been maxed out). This might be the easiest way to invest, and it’s truly passive. But we still have a large cash cushion that we haven’t dumped into an index fund because we’d prefer to diversify and …

Buy Real Estate

I’m not going to lie to you. Buying real estate in this hot 2021 market is TOUGH. We’ve lost out on 5 deals in one town over the past 3 months. However, we’re determined to keep trying, so we have a significant amount of cash set aside to meet our goal of closing on 3 doors this year. Now that we’re already nearing the end of the first quarter of this year and entering the really busy real estate season, though, we recognize that 3 doors might be a pipe dream. So, maybe we can remain involved in real estate if we …

Become a Hard Money Lender

A return of 7-12% sounds pretty promising. This is what most private money lenders charge investors for doing a financing deal without using a bank or typical lender. The hard/private money lender is responsible for vetting the investor he/she is lending to, doing the underwriting, setting the terms of the contract, providing a large lump sum, and chasing the money if it’s not all paid according to contracted terms. So, although private money lending is considered passive income, it still requires quite a bit of work upfront and the possibility of following up afterward if terms are not met. This option still sounds good to us, and we may move forward with the steps to get started soon, but we’ve also thought that another way to diversify our portfolio might be to…

Back a Business

We know of several businesses who have struggled during the 2020 shut-downs, but the ones that have stayed afloat have incredible ideas for reaching more customers and expanding their online presence. They have the plans, infrastructure, staff, and products, but they may not have the funding. With a loan from a local independent investor, like ourselves, they can hit the ground running and pay a contractually-agreed-upon return on our investment when their business plan pans out. This may be one of the riskier ways to invest our cash surplus, so we’ve also considered that we could …

Turn a Fun Purchase into an Income-Producing Asset

Our family often talks about owning an RV for extended road trips or a temporary homeschooling adventure. However, we will not make a large purchase like this without a plan to rent it out when we’re not using it. We could either park the RV on land and rent it out via Air BnB or we could offer our super cool ride to friends and friends of friends at a reasonable rate so they could experience their own road tripping adventures.

Here are a few other ideas to turn a personal purchase into an investment:

  • If you’re buying a heavy-duty truck for work, hunting, or family use, consider renting it out to others to haul items or complete their own home projects.
  • If you’re buying a cool woodworking tool to build furniture or make unique decor as a hobby, consider offering the tool up for a fee to people nearby to prepare for their own projects. (Or sell extras of your creations.)
  • If you’re buying a fancy snow cone or cotton candy maker for a party, use it in the future to sell goodies at local festivals or near the neighborhood pool (with a permit).
  • If you’ve decided to splurge on a commercial-grade carpet cleaner after too many pet and toddler accidents, rent it out to neighbors for a lower fee than what the stores charge. Make your own non-toxic cleaners to go with it as well.

(For each of these ideas, check with your insurance agent regarding coverage/liability before renting out your assets.)

Sometimes, the idea of someone else using an item that’s special can leave us a little unsure, so another option is to …

Invest in Self-Growth

A great way to spend extra cash is to develop more skills that allow for greater income potential in the future. This might include going back to school, taking unique online adult courses, or paying a mentor to teach how to advance in a specific career. These are exciting options and definitely worthwhile if you know you’ll put the skills learned to use right away. My husband and I would love to learn more about renovating an historic home and doing a remodel mostly ourselves. However, we’re quite overwhelmed with raising four kids and keeping up with our current schedules, so this may not be our best choice currently.

There is one investment option, though, that we’ve both agreed is the best for personal growth, community improvement, and living out truths we take seriously, which is to…

Give Generously

I recently heard an amazing sermon by Mike Todd of Transformation Church. He speaks eloquently and passionately about being a purpose-chaser rather than a paper(money)-chaser. He said in his sermon, “God doesn’t have a problem with paper; he just wants priority!“ Our opportunities, finances, and blessings are the fruit after we’ve given His purposes priority.

Most believe that it’s better to give than to receive, and many also believe that true rewards (whether they be money or something even more valuable) only come after you’ve given from your heart. Therefore, this may be the best use of a cash surplus.

There are dozens of other ways to invest your extra cash, and because personal finance is truly personal, each person will likely have a different idea that resonates with him/her. The main thing to remember, though, is that while it’s a huge accomplishment to have saved a large sum of money, you don’t want it sitting around losing value for too long. Every dollar needs a job, and hopefully your surplus can provide more value to you in the future.

Fuel your FIRE

Financial Freedom in 2021! Take Action: Day 30

Wow! We made it to Day 30! I calculated that I’ve written (and you’ve read) over 25,000 words in the last month. That’s enough words to fill 1/3 of a novel, and all of them were about saving money and investing for the purposes of financial freedom.

But why?

In my post titled, What Does Financial Freedom Mean to You?, I summarized what motivated me to jump on board with the FIRE movement:

“Financial freedom allows the ability to let go

of maintaining a specific image; of an addiction to other people’s lives; of the shackles of material goods; of the restrictions placed on me by others; of saying ‘yes’ when I want to say ‘no’; of saying ‘no’ when I want to say ‘yes’; of negative relationships; of working to achieve someone else’s dream.

It provides the option to linger

with a baby in my arms; in bed all morning with my husband; on the floor in my kids’ playroom as they set up a tea party; at church after service or maybe on a Wednesday; on a restaurant patio with a friend; at a beautiful beach all day; in my sister’s living room catching up on a favorite TV show; at my mom’s house sipping coffee; at my children’s favorite museum; on the hiking trail or in the river at a state park.

It affords the privilege of indecisiveness

on whether to build a forever home, buy an investment property… or both; on whether to volunteer in local church ministries, start the business I’ve always dreamed of… or both; on whether to do travel homeschooling, keep my kids in public school… or both; on learning to play golf, participating in an over-40 soccer league… or both; on whether to write a book, start or podcast… or both.

It commands the responsibility to give

financial literacy lessons to my children; personal finance advice to the young and old; donations to charitable organizations; more time to important projects; opportunities to the underprivileged so that they can break the cycle of poverty; gifts to my church; more of me to those I love.”

It’s this final paragraph that makes the FIRE movement especially appealing, not just for myself, but for the entire community too. I recently heard that while others might see an individual’s push toward financial independence and early retirement as a selfish, greedy move, the truth is that most people in the community want to use their freedom for greater good.

Those who’ve reached FIRE write blogs to help others improve their money situations. They host podcasts and share the best tips available. They write books to make investing easier. They teach classes for free to the under-privileged, under-educated, and under-represented. They run fix-it clinics, start buy-nothing sites, and inspire minimalist movements. FIRE people don’t keep this to themselves; they share what they know and encourage others to make the best use of their money as well.

Consider the type of people who truly subscribe to the Financial Independence Retire Early life. These people are often intelligent, motivated, educated, persistent, goal-driven, risk-tolerant, and innovative. When people with these qualities are freed from the daily grind, their talents can then be put toward philanthropy and changing the world we live in.

Take action today on Day 30 by determining what fuels your FIRE and decide what good you could do in the world if earning a regular paycheck was no longer a top priority.

Thank you so much for going on this 30-day journey of action steps toward financial freedom with me! I truly hope it’s been helpful and that you’d be willing to share these tips with others.

I invite you to subscribe to this blog and follow Frugal_with_Four on Instagram. I’m looking forward to sharing so much more on living this frugal yet wonderful life with you.

Thanks for reading!!

DIY, RRR+R, and Buy-Nothing

Financial Freedom in 2021! Take Action: Day 28

As you get better and better at finding ways to reduce your expenses, make use of what you’ve got, and save a lot of money, it can become a fun game to spend as little as possible on just about everything. This is not a push for becoming cheap, though. Frugality is the goal. A frugal person lives simply and economically, focusing on value over price and quality over quantity.

I watched a few episodes of Extreme Cheapskates with my daughter over the weekend. Every time I watch one of those shows, my jaw is on the floor almost the entire time. Reusable toilet paper?! Cooking a lasagna in the dishwasher?! Using one lightbulb for the whole house?!

I can’t imagine that these “tricks” actually amount to significant savings, and at that point, quality of life is surely affected in a negative way. To me, financial freedom is about living life to the fullest now while also setting ourselves up for an even better future.

Not only does this require a change in mindset, lifestyle, and habits, but it can also require a new set of skills and a bit of ingenuity. While walking this journey, an appreciation for what I already own and a desire to maintain it have truly developed.

DIY

What can you do yourself to reduce large (and small) expenses? With the help of free books from the library, countless blogs, Pinterest hacks, and You Tube videos, your options are endless. You can do home repairs and full remodels yourself. You can build anything from gardens to treehouses to furniture. You can sew your own clothes, make your own gourmet meals for date nights, decide on investments without professional help, and even provide music and dance lessons for your children in your home. All it takes is finding the best method of learning for yourself and the confidence to try.

Reduce, Re-use, Recycle, and Rent

A few key aspects to frugal living are reducing what you need/want, reusing what you have, and recycling goods between yourself and others. It sounds so simple, but this shift in lifestyle can be very difficult to make.

I have to admit that I am not very good at the first R. I tend to have multiples of many items. I have dozens of serving dishes and platters, at least 6 cookie sheets, 2 coffee makers, over 30 adult plates and at least as many kids’ plates, plus 3 cabinets full of a variety of cups. And that’s just in my kitchen! I don’t even want to admit how many toys we have or how much clothing (mostly hand-me-downs) we’ve collected for our children. I will admit, however, that at one point, I had 8 strollers in my garage! Because of this slight tendency toward collecting (ahem… hoarding), I plan to challenge myself this year to work on purging and living a more minimalistic lifestyle. Plus, I’d like to reduce as much food waste as possible in my home.

On a positive note, though, I LOVE re-using/repurposing. We have salvaged so many valuable items by finding another purpose for them, another location in the house, or another look for the items.

I have a particular dining table in mind. It was purchased at a reasonable price about 12 years ago, and it served its purpose in the dining room for many of those years. However, its style and color were somehow not changing with my tastes. A few coats of chalk paint and a coat of wax brought that table (and 6 chairs) up to date with the rest of my home decor, giving it a few more years in my dining room. Then, we moved… and my table got damaged. My tendency was to give it away or trash it, but I’m so glad I didn’t. We repaired the table to the best of our abilities, and then we moved it outside. It now serves as our patio table, and my husband built a new, bigger, sturdier table for our dining space, which only cost a few hundred dollars to build. Had we decided to trash the original table and not considered DIY-ing a new one, we would have spent a whole lot of money to buy one table for indoors and one for out.

If you don’t feel particularly skilled at repairing or updating your own items, there are actually some groups willing to help you for free out of the kindness of their hearts and their commitment to zero waste. Look up “Fix-It Clinics” in your town. (You might also look into whether you qualify for grants or very low interest loans through the government to make repairs on your home that are related to structure or safety.)

With regards to the third R, I am so fascinated by the push toward zero-waste in many communities and the trading that goes on between neighbors. “Recycling” doesn’t have to refer to dumping your item in a bin and hoping that a large corporation can make use of the scraps. With sites like Freecycle, you can recycle your items by letting someone else in your community have it and make use of it. Bonus: you may find an item yourself that you’ve been searching for.

I’ve added a 4th R to the famous trio to represent “Rent”. Instead of buying a large ticket or rarely-used item, such as a tool for a specific project, a kayak or tent for a camping trip, a bike for an upcoming race, or furniture for a short term living arrangement, consider renting or borrowing instead. It saves money, saves storage space, and saves you the headache of selling or giving away that item when you realize you may never use it again.

Buy Nothing

As mentioned in the previous paragraph, there are many groups and websites dedicated to passing items along rather than throwing them out and/or buying new. If you haven’t already, join a few Swap or Buy-Nothing groups in your area. You can usually find multiple options in Facebook Groups.

Today’s action step is to make a commitment this year to live a lifestyle with less waste, less hoarding, and more repurposing.

Take a look around your home. What could serve a different purpose? What could serve a better purpose for somebody else? What can you clean or repair to make it last that much longer? What skill can you develop to save money and/or add value to what you already have?

Travel Well on a Budget, Part 3

Financial Freedom in 2021! Take Action: Day 27

Today’s post is all about maximizing vacation fun without blowing your budget. After putting in all that time to get the best value on transportation and lodging, you don’t want to let activities put you over the top. The good news is that every town and city has free or cheap things to do. You just gotta know where to look.

Check Local Blogs

Bloggers offer all kinds of information for free. 😉 You can find the best playgrounds, hiking spots, beach access points, climbing hills, swimming holes, and bike trails by reading a local blog. If you search “free things to do in _____”, scroll down past the Google maps, Trip Advisor, and big magazine publisher suggestions. You wanna hear from the locals! Once you find blog articles, check the dates to make sure it’s a recent post. It’d be pretty disappointing to head to a local swimming hole only to discover it’s been covered by a parking lot since the article was written. Also, search for a few other kid-friendly favorites, such as “free museum days in (location)” or “free festivals in the month of ______”. If you’re traveling to the Austin area or Texas Hill Country, I recommend Dripping with Kids!

Use the Yelp App for Dining Out

I don’t usually use Yelp when I’m at home, but I find it useful while on vacation. Not only does it help me to find restaurants that are highly recommended or great for a family, but because these are places I’d be checking into for the first time, I might get a free appetizer or BOGO offer for trying them out.

Order the Souvenirs in Advance

If you know your kids will want a sweatshirt or a magnet or a stuffed animal as a souvenir from the amazing place they’ve visited, look for great deals online BEFORE you go. The souvenir shops are usually over-priced, and once you set foot inside, you’ll likely cave and buy a lot more than you budgeted for. Who can really resist a cheesy painted sign that says, “Resting Beach Face” or an ornament with Santa riding the ski lift??

Deals on Tickets

This is a tough one! If you’ve planned your vacation around going to a theme park for several days or a week-long music festival, you have no choice but to spend a big chunk of your travel budget on tickets. Right?

I’m still working on how to get the best deals in these areas, but if I can’t find discounts directly through the venue’s website, I always check Groupon. It often offers discounted tickets for festivals, small amusement parks, museums, or concerts.

I’m also a big advocate for zoo memberships if you’re like us and enjoy checking out the local zoo while visiting a new city. Most zoo, botanical garden, and aquarium memberships offer reciprocal admission, saving you 50% to 100% on admission fees.

Another tip is to check with other memberships you have, such as PTA, AAA, AARP, etc. or with your hotel concierge. My final tip is to compare the cost of a season pass to day passes. If you’re planning to visit an attraction or resort (such as for skiing, fishing, or boating) for more then 2 days, it might be cheaper to buy a season pass.

Save on Parking

Many attractions charge high parking fees. Look for ways to skip that added expense. Your hotel may have a shuttle or public transportation nearby. Or there may be street parking a little further away, so most of the family can get dropped off at the front and then Mom or Dad can go park the car.

Save on Food

Check the food and drink policy for the venue or park before you travel. Many will allow you to bring in your own snacks and drinks. If not, though, most have picnic tables for you to enjoy a cheap meal just outside their gates and save the rest of your cash for something better.

Today’s action step is to jot down on your travel budget spreadsheet some of the activities you would want to do on vacation. Place a star next to the ones you could potentially do for free (or really cheap). Then, do a little research to estimate costs of the other activities. When you actually book the trip, do a deep dive to try to find discounts on them.

Pick the Right Credit Card

Financial Freedom in 2021! Take Action: Day 24

Many personal finance gurus recommend not having any credit cards at all, but I subscribe to the newer recommendations… get the right card and make the most of those rewards!

Disclaimer: The credit card suggestions linked below will ONLY be beneficial if you are in a financial position to pay off your balance each month on time.

When it comes to choosing the right credit card for you, it’s best to decide what you’d want to use card rewards for. Travel (airfare, hotels)? Cash back? Restaurant gift cards?

Once that’s been identified, check out these websites for a full comparison of the best cards out there this year.

  • The Points Guy will break down the best cards per category, based on what benefits you’re hoping to get from your card.
  • Nerd Wallet shares their top 8 choices for 2021.

If you’re ready to take the card rewards game to the next level, you can try travel hacking. Many travel/credit card hackers claim to have traveled the world for free. Early last year, we earned tens of thousands of bonus miles through the Capital One Venture card by enrolling when there were multiple offers overlapping. The points we quickly collected covered airfare and part of our hotel stay for a family trip to Disney Land and Universal Studios (before the pandemic hit)!

Today’s action step is to audit your wallet. Get out all of your credit cards and determine whether they’re carrying their weight by providing you the rewards you’re seeking. Put the ones you rarely use or that don’t fit the bill in a drawer. It’s ok to keep the account open if you’ve had the card for a long time because that can help with maintaining a high credit score; just don’t use it anymore.

Also, if any of your current cards carry a balance or if you have a card with an annual fee, call the number on the back and prepare to negotiate. Ask if you can get your interest rate lowered or your annual fee waived. (You may have to request to be sent to the retention department.) Many companies will offer some sort of discount or assistance if you just ask.

If you have kids, there’s one more action step today. Read about whether you should add your children to your credit card to build their credit scores?

Consider Real Estate Investing

Financial Freedom in 2021! Take Action: Day 21

Don’t wait to buy real estate, buy real estate and wait.

– T. Harv Eker

My husband and I just started our real estate investing journey by closing on our first rental property last year. We decided that because we were starting late in life on maxing out our retirement accounts, we needed to add real estate investing to help us reach FI a little faster. I read, researched, and studied several free resources, such as the Bigger Pockets Podcast and books from the library, for almost a year before we purchased our first (non-primary) residence.

It was not a quick process, and finding our second deal in today’s competitive market is proving to take longer than we had planned as well. We’re determined to add two more properties to our portfolio this year, but we’d rather pass on several good deals than buy one bad one. So, we’ll continue to follow Gary Keller’s advice in The Millionaire Real Estate Investor: “Persistent Effort, Patient Money”.

Although we’ve decided to slowly start with buying rental properties, there are many additional options and opportunities in real estate investing. It can be as easy as selecting a fund through your online broker or putting a couple hundred dollars into a pre-vetted deal on a crowdsourcing website like Fundrise.

Today’s action step is to read about these 5 ways to get started in real estate investing. Determine whether any of these are worth adding to your overall investment portfolio and retirement plan. If so, make a list of resources to dig a little deeper into your preferred method. I highly recommend the book and podcast linked above.

Increase your Income

Financial Freedom in 2021! Take Action: Day 16

The term “side hustle” has become very common in the last couple years. It seems that every other person has a small side business, MLM venture, after-hours hustle, You Tube channel, Etsy shop, home bakery, or blog to try to add to their regular W2 income. If you type “side hustle” into google, there are thousands of articles and websites dedicated to sharing ideas on maximizing your earning power with a second, third, or fourth stream of income. I’ve found a list of 100 side hustles that can make you $500+/month and 50 ideas for a lucrative side business. There are even several weekly podcasts dedicated to making extra cash on the side.

The underlying theme is that in our modern culture, in which 80% of Americans carry debt, people need to make even more money. Sometimes a side hustle is a passion project or a hobby. Sometimes it’s a long-sought-after dream slowly coming to light. Sometimes it’s a way to reach financial independence much faster. However, many times, people launch into side hustles to pay off student loans and consumer debt. With the cost of living (and spending) today, many W2 jobs don’t offer a salary that allows people to get out of debt and get ahead quickly enough.

The ultimate goal of financial freedom is to let your money work for you, not the other way around, but in order to reach that goal, it may be necessary to trade some of the extra time you currently have for some extra cash.

Today’s action step is to review the articles and lists linked above to determine if there’s a way for your family to earn a side income from a side hustle. But before launching into anything, calculate what your time is worth and what you could really earn. Also, remember that it’s usually best to stick with what you know and utilize your current skill set.

Which side hustle seems most feasible for you? Or, if you already have one, what do you love about it? Please share!

Cut Healthcare Costs

Financial Freedom in 2021! Take Action: Day 15

What a whale of a topic, right? Everyone from you to your parents to the members of Congress is trying to figure out how to cut costs on healthcare. On the political side of things, the debate will likely go on and on throughout our lifetime and beyond. On the personal side, thankfully there are a few strategies we can employ to reduce how much we spend on our own care.

Keep in mind that healthcare and health insurance are two different things. Today’s focus is on the cost of healthcare, but there are a few services you can take advantage of by carrying health insurance.

  • Nurse Line – Check to see if your insurance provider offers one; most of the big names do. Blue Cross Blue Shield has a nurse line 24/7/365 to answer questions about wellness, prescription drugs, self-care/at-home treatments, allergies, and even your specific symptoms. And this service is free. So, if you’re not sure whether you should see a doctor or if you might be having an allergic reaction or whether you’re taking the right medication for your symptoms or if there’s a vitamin or supplement that might help with a genetic predisposition to a chronic disease or if you’re unsure as to how two medications might interact or if you’re curious about a weird pregnancy symptom, etc, etc, try the FREE nurse line first and possibly save yourself a trip to the doctor as well as the co-pay.
  • Virtual Visits – If the nurse line doesn’t answer all your questions, try a virtual visit with one of the doctors with the insurance company. Major providers are now offering virtual appointments with doctors working for them. Your co-pay may even get reimbursed by your insurance provider if you use their own virtual medical platform. (Call to check your plan’s benefits.)
  • Benefits Summary – Know before you go. Call your medical or dental provider before going in for a visit or procedure and ask for the specific codes that will be billed. Then, call your insurance company’s benefits line before going to your appointment to ask for the fees allowed in your specific area for each code and how much is covered by your plan. Don’t assume that the doctor’s or dentist’s office quote is exactly right. Also, keep in mind that if you’re seeing someone out of network, that doctor/dentist does not have to charge the contracted rate for your area, and you’d have to pay the difference between what that doc charges and what your insurance company has set as a maximum.

In addition to making the most of your insurance benefits, keep these tips in mind for future medical expenses:

  • Over the Counter vs Rx – The assumption is often that over the counter drugs are cheaper than prescription and that generic is cheaper than name brand. But these are not always true assumptions. You have to ask and compare. My daughter, who has Crohn’s disease, is on a dual-med therapy that requires a folic acid supplement. I immediately decided that I would buy that over the counter, knowing I could get a full bottle for under $10. I assumed a prescription would be more. Then, I asked… and I was shocked! A full month of the supplement only cost us 47 cents! However, for her iron supplement, buying over the counter was half as much as the prescription. You have two resources for this comparison. You can call the insurance company nurse line to discuss the medication you’ve been prescribed to find out if there are generic or over the counter equivalents. Then, you can ask your pharmacist to price them all out for you. (Another option is GoodRx, but I’ve never tried that app.)
  • Shop Around for Non-Urgent Procedures – Need an MRI, a hip replacement, or back surgery? You might find a drastic difference in price across town or across the country. There are now websites that allow you to shop around for the cost of specific procedures, and the variation in price may shock you into medical arbitrage. If you need a hip replacement in the Austin area, you can find prices ranging from $19,000 to $25,000, but if you’re willing to travel a short distance to Baton Rouge, LA, you can find the same procedure offered at half the price. Of course, you want to do your due diligence and make sure that the doctor/surgeon meets high standards and has positive reviews, but when you’re paying a 20%-50% co-insurance, that could amount to significant savings.
  • Negotiate – Everything is negotiable, especially medical bills. You might even be able to use the info gathered above to talk your doctor and facility down in price for the procedure you need to schedule. Even if you weren’t able to negotiate a lower price in advance, you may be able to call the hospital or doctor’s office and negotiate a discount after the fact, especially if you can pay in full or put more than half down right away. I’ve heard that doing these negotiations on your bill before leaving the hospital or surgery center will get you the best results.
  • Pay Cash – Sometimes you can get an even bigger discount when you pay out of pocket instead of going through an insurance claim.
  • Care Credit – If you’re planning to put medical expenses on a credit card, ask your doctor’s office about care credit. They can call to get an authorization on your behalf, and you’ll often be given a 0% interest offer for a certain number of months. Be sure to set up auto-pay to cover the full amount of the bill before the promo period ends. You’ll also earn points for paying your bill each month, and you can trade those points in for gift cards to popular retailers. We’ve been paying down a colonoscopy, and we just cashed in on $200 worth of Home Depot gift cards.

I’m sure there are many other ways to save on medical costs, and I’d love to hear from you on what’s worked.

Today’s action step is to set up a health profile or journal for each member of your family. (If you already have one, take a quick review of it.) This health profile can be a simple binder or spiral notebook with plenty of space for printed doctors’ notes, bills/receipts for procedures, and your own notes on reactions to meds, treatments that have worked well, allergies, common symptoms to common illnesses, dates of illnesses or odd symptoms. Organize it in any way that makes sense to you and decide if you want a separate one for dental and vision care.

I was so glad I had kept dental records on my kids because I received a huge bill from our dentist after my eldest child got a filling. The insurance company denied the claim with the reasoning that the exact tooth had already been filled. I checked the dental records from our previous dentist and was able to determine that that tooth had never been filled. The last dental office had billed incorrectly.

This sounds like a lot of work, but having good records for each family member can save so much money in the long run, and it may help when trying to make tough decisions about proper treatments in the future.

Save on Utilities

Financial Freedom in 2021! Take Action: Day 14

This morning, my husband remarked that our kids are all great at turning lights on yet can’t quite figure out how to turn them off. Another friend had a similar problem with finding her backdoor open throughout the day. She said she’d start charging the kids $1 each time the door was found open. On a podcast interview a few months ago, I heard a great story told by The Budgetnista about her dad’s utility pet peeve and what he did about it. On his daughter’s designated day to buy a treat from the ice cream truck, he told his young girl that he didn’t have any money for ice cream because the water man had come by just before the ice cream truck did. He had to give the water man her ice cream money to pay for the water she had let run for several minutes.

No matter your age or background, I can pretty much guarantee that you’ve heard multiple complaints about water, electricity, and/or gas being wasted, potentially risking your family’s entire financial future. 😉

How much does it actually cost to leave a light or your TV on all night? What if you leave your cell phone plugged in after it’s fully charged or your freezer door open for a couple minutes while you ponder which ice cream flavor you’re craving most?

The answer is: Pennies.

How much does it cost when you keep the fridge door open?

These bad habits won’t break the bank, despite how often your dad may have yelled at you to shut the darn fridge before you let ALL the cold air out! Thanks to energy-saving appliances and light bulbs, our modern homes are costing less and less energy (and cash) to operate, but if you’re clinging to that “vintage” equipment, like an old stereo or TV, those will waste significantly more.

The biggest energy expense, though, is likely your air conditioning or heating, so it’s still ok for you to nag your kids about closing the back door. Check out these recommendations for keeping A/C costs down, and then read through the list below on additional ways to cut costs on electricity, cell phone service, TV streaming, and gas.

  • Get an energy audit. You can call your electricity-provider to analyze your specific home to determine where/how you can save energy and money.
  • Give away that old beer fridge in the garage. It likely sucks more energy than you think. Try moving all of your beverages inside and unplugging ye olde beer fridge for a month to see the savings. In our previous house, that one change decreased our bill by $50 per month! 😳
  • Break free of the old-school cell service contract. Try a more affordable month to month cell phone plan that operates on the same network as the big guys. https://www.nerdwallet.com/blog/utilities/cell-phone-plans/
  • Eliminate bad gas… habits. 😊
  • Conduct a TV Analysis. Keep a record of all TV watched over a 2 week period. Which channels are the favorites? Which streaming service is accessed the most? Once you’ve tracked your family’s TV habits, get rid of everything not often accessed. If you’re hanging onto Netflix because there’s one show you want to binge watch, but you don’t use it much otherwise, then cancel the service. When you get a free weekend to consume all the seasons of that one show, borrow a friend’s access info or do the free trial (then set a reminder to cancel before the month is up).
  • Reduce water use. Cutting down the length of your shower by just 4 minutes can save 200-300 gallons per month. Converting to Energy Star appliances can save 20-30 gallons per wash cycle. (With an older appliance, avoid the permanent press cycle – it uses 5+ extra gallons.) Add aerators to your faucets to save around 20 gallons per day, and switch to low flow toilets to save a few gallons per flush.

Today’s action step is to look up and jot down what you spent on electricity, water, gas, cell service, and TV streaming in the months of Feb and March of 2020. Then, immediately start implementing the above changes to your utility usage. Finally, set a reminder in a few months to compare your bills from this year to last. Hopefully you’ll see a savings, and if you do, keep it up!