Is there a difference between being thrifty and being cheap?

Is there a difference between being thrifty and being cheap?

By: Nathan Bush

The Law of Thriftiness

The the value of your decisions minus the cost of the decision equals the quality of the life you live. 

What is the difference between being thrifty and being cheap?

The Dictionary defines cheap as of poor quality; shoddy! Probably more importantly it defines thrifty as rare thriving or prospering.  Although people commonly associate thrifty living with being cheap, a thrifty is a fundamental principal if you ever want to obtain any kind of financial security. A  lifestyle of thriftiness  involves using strategies to reduce financial waste not purchasing low-quality no value products.

Does thriftiness matter?

Thrifty living can help you to save money and allow you to find additional discretionary income that is vital in saving, paying down debt, investing, and giving to charity. Thriftiness can maximize your ability to buy necessities and luxuries.

Who can be thrifty?

Anyone can be thrifty. Being thrifty means looking for ways to cut down on your spending. It implies living within your means and avoiding buying cheap things that you do not need.  This might sound like a difficult way to live, but a thrifty lifestyle does not have to be drab.

“If you want to have what the rich have then you need to think like the rich think.” With creativity and imagination, it is possible to reduce your expenses and continue to live well.

What steps can I take to be thrifty?

Step one is to know where you are at. Peter Drucker says, “if you can track it you can manage it.” Track your spending for at least 1 month. You won't really know how to live a thriftier lifestyle until you know where your money is currently going. Write down every bill and everything you buy. Then  take a look at it at the end of the month. You will see obvious categories to reduce the small daily expenses that many of us accrue.

Step two is to reduce your electric bill: Turn off the lights. Open a window and let in the natural light instead. Unplug laptop, desktop and cell phone power cords when not in use. Computers on standby can waste energy. Cell phone chargers can also waste electricity even when you are not charging your phone. Leaving electronics on can use a tremendous amount of extra energy, costing you money.

Step three is to do your homework before you purchase. With the new apps on smart phones scouring the Internet when you have to make purchases has become easy. You can compare prices from more stores in less time. Check your local stores as well as online sites such as craigs list and ebay to find the best price. Use coupons when you do your regular grocery shopping. Many websites offer free printable coupons you can take with you to the grocery store. Your local grocery store has coupons, as well as the manufacturing company’s, on their websites. At places you shop often enroll in their rewards programs. Do research on their websites for a variety of name brand product’s coupons. Coupons with store discounts can lead to major grocery savings.

Step 4 is to reduce your food cost. Eat at home most nights. When you do go out, look for available deals and discounts. If you are a frequent restaurant diner, consider purchasing an Entertainment Book for local restaurants (see link in Resources). These collections of coupons typically cost around $30, but provide 2-for-1 deals at local restaurants and places of interest. Preparing meals at home instead of taking the family to a restaurant can be a very thrifty idea. If you have to order our opt for take-out meals saving $3-$5 on the tip and $4-$10 on drinks.

Step 5 is to be creative. One article I read suggested organizing a barter exchange in your neighborhood instead of paying for services that your neighbors can perform for free. For example, you could mow a neighbor's lawn in exchange for her babysitting your child for an evening so you and your spouse can enjoy a movie or a quiet dinner. Another article suggested using a bicycle for short trips instead of driving. Bicycling not only saves fuel, but it can also help keep you in shape without an expensive gym membership. I even found this tip that is rather creative: purchase children's clothing at a consignment shop or on an online auction instead of buying these items new.

Step 6 is to organize your life and avoid waste. Things will last longer and this will reduce the number of shopping trips you make. For instance, it is tempting to use several sheets of paper towels to clean windows and mirrors. Instead, use one sheet, rinse it out let it dry and reuse before throwing the towel away. You may also want to reuse bath towels and try washing them once a week. Dry off and hang up your bath towel.

In conclusion being thrifty comes down to be resourceful and responsible with the small things in life, then you can go on to do the big things with the difference.  

10 Absolutely Accurate Steps to Setting up a Personal Budget.

10 Absolutely Accurate Steps to Setting up a Personal Budget.

According to the Social Security Administration: “ASEC's 2000 Retirement Confidence Survey reveals that 45% of American workers have not tried to calculate how much money they will need to save for a comfortable retirement. In addition, 69% of savers say they could save an additional $20 per week. "Americans need to be active participants in their financial future," commented Commissioner Apfel. "We want to help everyone make informed choices with their money and encourage all workers to begin saving today."

In addition, with the current economic situation many households find themselves in the situation of having too many bills and not enough income. As a result, many people think to borrow money, typically on credit cards, to account for the difference.

Budgeting your household bills can help you begin to save for your retirement.  This article will help you understand your household cash flow and adjust your spending to avoid taking on any additional debt. The goal is to create a budget, where all of the expenditures and bills are less than the amount of income you make.

Lets get started:

Step 1: Income

What is your income? Calculate your net monthly income. Gather your pay stubs from the past three months and look for the net pay, or the amount of the paycheck after taxes and deductions. Add up the net pay on all of these checks and divide by three to find your net monthly income.

Step 2: Bills

What are ALL your bills? Make a list of the necessary categories in which your household spends. These include rent or mortgage, utilities, car payments, car repairs, gasoline, groceries, insurance, student loans, credit card debt and any other necessary categories you can think of.

Step 3: Receipts

What did you spend money on the last 3 months? Gather all of your receipts and bills for at least the past three months.

Step 4: Spending

What is the average of your last 3 months spending? Calculate your average monthly spending in each of the categories you listed by adding the amount spent over three months in each category and dividing by three. If you spend in cash, estimate your spending in the category.

Step 5: Necessities

What are your necessities? Add up the total average monthly spending on your necessities and subtract this amount from your net monthly income.

Step 6:  Allocation

How are you allocating your resources? Allocate your remaining money into the other categories in which you would like to spend money. These include cell phone, cable, savings, entertainment, eating out, vacations, clothing, new furniture, home improvement, gifts, charitable donations and other personal luxuries.

Step 7: Tracking

Do you constantly run out of money? The next step is to track your spending for the next month to ensure you are sticking to your household budget. Whenever you make a purchase, decide what category it fits into and subtract the amount from what you had allocated for that category. When you run out of money in a category, stop spending. This discipline separates the rich from the poor!

Step 8: Adjust

Are you adjusting? Adjust your allocations after the first month if you find you ran out of money in a category. For example, you may choose to allocate less money for eating out so you have more money for new clothing purchases.

Step 9: Balances

Have you written down all the balances of the money you owe to others? Write down all the money that you owe on all of your loans include car balances, student loan balances etc. Make sure that you write down the entire payoff balances on all debts you owe to others.

Step 10: Determination

Are you determined to get your finances under control? Next to each of the balances write down the monthly payment that is associated with the loan.

This will give you a very real understanding of where you are currently! Knowing where you are starting is the first step in knowing where you are going.

The Law Of Reciprocity

The law of reciprocity states that whatever you do will be returned back to you. In other words, if you want to create success for yourself, help someone else become successful. As one successful business networking organization puts it "Givers Gain." 

It is important to take the focus off yourself for a while and look for ways to give to others.  

Save $100 a Week with These 20 Tips

Save $100 a Week with These 20 Tips

With the dramatic increase in gas and food prices, most of us can barely make ends meet, let alone think about saving money. The good news is, with a little imagination and perseverance, there are still plenty of ways to pocket extra cash.

Follow these 20 simple tips and save at least $100 a week:

1.     Buy a Water Filter Purchasing bottled water hurts not only the environment but your wallet as well. According to the Learning Channel, a family of 4 can save up to $55 a week by making the switch from bottled water to water filters.

2.     Take Advantage of Power Strips You can cut down on your utility bill by unplugging your appliances when you aren't using them. Make the unplugging process easy by purchasing a power strip for your appliances.

3.     Make Shopping and To-Do Lists Make a list of everything you need before you shop. Make sure your list only consists of needs, not wants. Then, be sure to stick to your list. You can also use to-do lists to save a ton of time. By grouping together all your errands, you can get everything done in one trip, saving you valuable minutes and gas money.

4.     Stay Away From "Foreign" ATMs We've all done it: using our bank card at another bank's ATM to withdraw some extra cash. But every time we do this, we get hit with a wonderful little fee. Now, there is no reason not to use ATMs owned by your bank when apps like ATM Hunter can help you find the right ATM in seconds.

5.     Buy Generic You can save 30 to 60 percent by purchasing generic brand food and drugs. According to a study by Consumer Reports, 80% of the time trained tasters cannot tell the difference between store and national brand food products.

6.     Cancel Your Landline In an age when everyone has a cell phone, landlines are not necessary. You can also utilize free computer-to-computer calling via Skype, which beats using the phone because if you have a webcam, you can see the person you are talking to.

7.     Utilize the Library Instead of hitting up Netflix or Blockbuster every time you want to watch a movie, head to your local library for your movie rental needs. Or, if there is a new book you want to read, borrow it from your library instead of purchasing it at the bookstore.

8.     Bye-Bye Gym Membership Most exercises you do at the gym can be modified and done at home. Better yet, the most beneficial exercises out there are walking, pushups, and squats, all of which you don't need a gym to do.

9.     Take Your Lunch to Work Instead of going to the deli down the street for lunch, brown bag your lunch. You can make a week's worth of sandwiches on your own for the price you would pay for one or two sandwiches at the deli.

10.  Carpool With gas prices on the upswing, filling up the tank can be a huge money drain. Organize a carpool with your coworkers to save money. If you can't find any coworkers to carpool with, check out Zimride to find a carpool buddy.

11.  Walk or Bike To find out how walkable your city is, check out Walk Score. Ditching your car completely will save you a ton of money not just on gas but also on wear and tear on your car.

12.  Avoid Convenience Wash your own car, cut your own fruits and veggies, and clean your own house. If you don't think you have enough time to wash your own car, remember that there are 24 hours in the day. Even if you spent 10 hours at work, 8 hours sleeping, 2 hours cooking, and 2 hours hanging out with the family, you would still have 2 hours to wash your car or clean your house.

13.  Pay Bills On Time Most banks offer free electronic bill payment services that will automatically pay your monthly bills. It only takes a few minutes to set up. Do it today and never pay a late fee again.

14.  Make Your Own Pet Toys Try to steer clear of Petco and Petsmart when it comes to your pet's toys. It is easy to make pet toys on your own for a fraction of the price you would pay for them at a pet store. Beautify Yourself Instead of hitting up expensive salons, try trimming your own hair or getting a value haircut from a beauty school.

15.  Pre-Game If you are going out for a night on the town, pre-game before you leave. This way you will spend less money on expensive drinks at your favorite hot spot. You can spend up to $5 for a beer at the bar or find a 12 pack that's on sale and pay just over $1 per beer.

16.  Cancel Cable With the ability to watch TV shows online for free, the need for cable is virtually nonexistent. Yes, it may be nice to see a show as soon as it airs, but it's much nicer to have extra money in your bank accounts. Try using Hulu for your TV viewing needs.

17.  Make Your Own Food While it may not be as convenient as going to the drive through or having food delivered to your house, making your own food can save you a ton of money.

18.  Stay In Sure, it may be mellower than going out, but cooking your favorite meal, making your favorite drink, and watching a DVD can be just as fun as a night on the town.

19.  Make Your Own Coffee This is a tried and true money saving technique that we have all heard, but it bears repeating. Make your morning cup of coffee at home instead of paying way more than you should for a cup of Joe at your favorite coffee shop.

20.  Avoid Bank Fees Setting up direct deposit for a certain amount can often eliminate fees associated with keeping an account open. You can avoid paying overdraft fees by linking your checking and savings accounts, or by signing up for fee e-mail alerts that tell you when your account is getting close to the limit.

Use Coupons A tried and true money saving method: before you head to the grocery store, check the ads to see if there are any coupons for the items you need. Or, go online and check out CouponMom or The Daily Deals Blog to find the latest d

The Law of Attraction

The Law of Attraction-  The mind is powerful; Thoughts become feelings; Feelings become physically represented through actions. The real question is what are you thinking about daily. What you think about is what you receive more of.

This is easy to see through out your life, for instance when you were younger and liked sports or race cars what did your parents get you? let's say you loved barbies what did the law of attraction bring you. An example of this principal is eating...... Consider hunger. When you think about eating you begin to feel hungry; Next you go get food... Right?

What are you thinking about?

The Law of Compensation

Ralph Waldo Emerson

Explained the law of compensation in very clear terms: “for everything you have missed, you have gained something else; and for everything you gain you lose something else.”

The whole of what we know is a system of compensation. Every defect in one manner is made up in another. Every suffering is rewarded and every sacrifice is made up; every debt is paid. It is best to overcome these difficulties by forgetting them for a time and helping others who have greater problems.

This is a great principal to live by. Understanding the deeper meaning alows you to begin to shape your thoughts around this information. Memorize the qutoe and begin to look for it in your every day life.

The 3 Habits That Keep People Poor And The 2 That Can Make You Rich

If you haven't noticed there is a major difference between the rich and the poor. This blog is designed to assist anyone who would like to raise thier financial IQ and understanding of some of the practices that the rich utilize that the poor and middle class over look.

.... Wait I'm not poor!!!! That's right, you may not be, however the ideas and tools of this site help to increase your financial IQ even if you are "rich."

.....Ah I don't want to be rich!!!! If this is you that's okay! The following principals are a series of tips a techniques that are sound financial principals and life skills that anyone can use to protect thier family financialy.

.....No no no, I get it you want my money you would like to sell me some thing that you will make your millions, but I will stay poor!!! I hope this is not you! I intend to provide value for you that you can take immediatly and implement to improve your financial situation. 

...... Are you rich? That's a great question.. and truthfully at the date of this post the answer is not yet... I am on the same journey as you. I am right there with you!


...... What makes you qualified to teach people to raise their financial IQ..... Another great question.... I have 3 great mentors in my life that have given me the information/ tools and understanding to reach financial security. One of my mentors is an employee. He has over 1 million dollars in the bank.  The second, is a business owner that has built multiple companies and bought lots of realestate. The third mentor is mostly an investor in realestate. 

I will be sharing the information they passed along to me with you.  Raising people's financial IQ is a passion of mine. I enjoy the financial aspect of life. Believe me it's not that I love money, I love my wife; it's that if I can help even one person bust through the wall of poverty and become wealthy (along with me) I feel that all the content that I shared along the way will be a legacy. I can leave behind a road map. This roadmap is weekly step by step guide to understanding wealth building. If you would like weekly, somethimes daily, wealth building tips make sure to give your email address at the top right of the page and then go into your email and confirm your subscription!

Now I'll bet you would like to know the foundation of budgeting and getting an handle on those 3 things that keep people poor and 2 things that can make you rich!

Thee habits that keep people poor:

1. How much money are you spending on each meal you eat? Poor Habit 1. Spending too much money on food. I know this sounds simple however I america we have this tendency to overspend on food! Let me assist you with one tip that added $3,000 a year to my budget. Try to drive the average dollar you spend on your meals down! This can be done in very simple ways let me provie you my 7 step simple plan I drove my average meal down.

• Keep track of the cost of each meal
• Recduce the number of times you go out to eat for breakfast, lunch, and dinner
• Stop shopping at the major supper marktes I personall reccomend Aldi
• Keep your grocery bill every to weeks to 3% or under of your budget
• Keep track of what you are eating to ensure nutrition
• Take your lunch to work every day (invest in a cooler or thermos if need be)
• If you do go out to eat use it as a reward for hitting financial goals or as a celebration for a loved one.

2. How often do you write down and measure your financial goals? Poor Habit 2. Not measuring your financial progress. Peter Drucker one of the world's best management consultants said if you can't track it you can't manage it, and I say if you don't manage your financial responsibilities you are going to be poor. There are a lot of financial tracking systems one I recommend to start with is www.mint.com but you don't have to good old pen and paper works just fine. I also recommend using and understanding on-line banking.

If you don't have a bank with the capabilities in this day and age I recommend switching to a bank that does. Lastly, about tracking, I believe it is important to have goal tracking system visible at a moments glance. Using visuals when hitting financial goals is very important. However, you track your financial goals make sure that if you have a partner you have joint goals.

3. What is your most important bill? Poor Habit 3. Paying for your housing "when you get your paycheck!" This is one of the most missed habit in succeeding that is paying your bills when or before they are due. I know what you are thinking right now, "I live paycheck to paycheck right?" Not as of now your are going to start cutting your food budget and setting financial goals you will find between $10-$200 I recommend using that extra to save $1,000 first as an emergency fund and then learning to save the money in an account until bill time to get your self out of the hole.  If you don't get paid for two weeks that's fine you don't have to spend the money think to your next set of bills. having the thought one paycheck for housing and one paycheck for me is a poor thought process!

Now with out further ado....Two habits that can make your rich:

How often do you give money to people who say "they need the money?" Rich Habit 1). Giving 10 % of their money to charity. This is a great when practiced properly.  If you are like me and come from a family that never had much money, then now that you are starting to build some progress you are likely to have someone in your family,or friend, come asking you for money.

This is a great time to say to that person, "I would love to help you however we have a financial plan and we are giving our money to X charity that helps people in your situation. I'm sorry we just don't have the resources to help you that organization depends on donations to : {then state their mission}."  You have to be able to turn people who need help to the charitable resources avaiable to them... For a complete list contact me at northcountyapartments@gmail.com

What do you do with $1.00 Rich Habit 2). 10% to savings 10% to investing & 10% to charity. This is a great budgeting tool to instill in your family, value to even teach your children, What to do with $1.00. the answer is try to put .10 in savings .10 to investing and .10 to charity and live off the rest. Maybe, you are saying right now that living off 70% of my income is impossible. That maybe true you may need to make some changes for that to be possible, however  could you save .01 or .02 or .03 in each of the categories? most people tell me of course they can save $0.01 for every dollar they make.  Well it is not the amount that is important it is the habit of putting the money in the right account each paycheck. By doing this habit you are living exactly like my mentors have disciplined me!