Thrifty Thursday

I have to admit, financial prowess has never been the number one talent on my resume of life.  I'm the type of woman whose heart goes all aflutter and chills run up my spine at the thrill of hearing someone whisper those three little words in my ear:  “It’s on sale!”  I’ve learned (and continue to learn) over the years that on sale doesn’t mean free.  One major department store has a wonderful marketing tool – at the bottom of the shopping receipt it shows how much money you have saved.  It’s designed to make you feel like the most proud and prudent purchasing agent of the day -- “Oh look, I saved $30!”  Cool, but was the $50 you spent to save the $30 in your budget to begin with?  Honey that just don’t make cents! 

I’ve been investing in (yes, pun intended) research and study on finances  - reading, talking with financially savvy friends, and learning all I can about spending plans and matters of the pocketbook.  In fact, I just got a Coach bag yesterday at a consignment shop that originally sold for $350 and I got it for $30.  Ah, got to love those field trips about pocketbook matters!  But, that being said, I need to make certain that (a) I have that $30 in my budget to spend, and (b) that I have a cash flow that I can put in that wickedly wonderful purse.  Did I mention I got it for $30?!?!?!?   I’m still giddy.

The bottom line is - we need to step back, get a rock solid grip on our money, and put a plan into action to do everything we can to be sassy and SOLVENT wild women!  Savings are sexy!  These are some hard times for many of us, but even if you can get a mason jar and put your change in it at the end of the day, that’ s a start.  My Mom always said if you can even put $5 a week away, that’s $5 more than you had last week and at the end of the year, you’ve got $260 more than you did at the beginning of the year!  Every little bit adds up.

Today begin to exercise your financial muscles and acumen – below is a very good article from the financial website The Motley Fool.  It’s quite an eye-opener, and I hope it will catch your interest on all levels.  You can also read it at their website by clicking HERE.

And always, always invest in yourself and spend your most precious commodity -- time -- with those you love.  That’s priceless!

Blessings,

Linda

P.S.  Did I mention my fabulous new purse?  Just sayin'...

Step 1: Change Your Life With One Calculation If there were an eighth wonder of the world, we'd nominate the equation for compound interest: Your money x (1 + i)^n. (If you're not a math geek, don’t worry; we're going to decipher that for you.) Albert Einstein (or maybe it was Yogi Berra) called this deceptively simple formula the "greatest mathematical discovery of all time." We call it your ticket to financial independence. That's right, just three straightforward inputs can change your life: the amount of money you invest; the rate of return you get; and how much time you have to let your money grow. Hate math but like money? Read on. Since words cannot adequately describe the magical nature of compound interest, let's try a few visuals. Here's how a single $1,200 investment grows over time in four savings scenarios. How a single $1,200 investment grows Savings Account (0.5%) Money Market Fund (2%) Certificate of Deposit (5%) Stock Market (9%*) Initial investment $1,200 $1,200 $1,200 $1,200 5 years $1,230 $1,325 $1,532 $1,846 10 years $1,261 $1,463 $1,955 $2,841 15 years $1,293 $1,615 $2,495 $4,371 25 years $1,359 $1,969 $4,064 $10,348 30 years $1,394 $2,174 $5,186 $15,921 35 years $1,429 $2,400 $6,619 $24,497 40 years $1,465 $2,650 $8,448 $37,691 *Based on the stock market's historical rate of return. As you can see, simply socking away one lump sum and leaving it put could turn $1,200 into nearly $40,000 over 40 years. Not only have you earned interest, but you've earned interest on your interest. And all you had to do was invest your first paycheck. That said, let’s be honest: $37,691 ain’t what it used to be. So let’s make one small revision and invest $1,200 every year. Behold compound interest in a mildly caffeinated state. A more compelling table than the previous one Savings Account (0.5%) Money Market Fund (2%) Certificate of Deposit (5%) Stock Market (9%) Initial investment $1,200 $1,200 $1,200 $1,200 5 years $7,321 $7,695 $8,494 $9,674 10 years $13,596 $14,865 $17,803 $22,713 15 years $20,030 $22,782 $29,684 $42,775 25 years $33,390 $41,174 $64,200 $121,136 30 years $40,323 $51,829 $88,899 $194,211 35 years $47,432 $63,593 $120,423 $306,646 40 years $54,721 $76,582 $160,656 $479,642 Now we're at half a million. Not bad, right? Still, we think you can top it. In fact, it’s not a stretch to get near that magical $1 million milestone. Just save $2,500 a year (a mere $208 a month), and at 9% you’ve got a million dollars in 40 years. Or stick with the $1,200 annual contribution but improve your investing skills (which the rest of this series will show you how to do). If you are able to best the stock market’s average annual returns by a mere 3 percentage points, the $1 million prize is yours.   If we could, we would cue a soaring chorus of angels opening the doors to usher you into the Valhalla of investing … but we misplaced that file somewhere on our hard drive. And the best part about compound interest is that it works the same for everyone, whether you have $20 to invest or $200,000. Go ahead, tinker with this compounding calculator to see what we mean. If you don't believe you can become a millionaire with just the resources you have right now, keep reading. The amazing tale of the Mississippi washer woman Oseola McCarty was born in Mississippi in 1908. For nearly 75 years, she lived in the same simple house, washing other people's clothes for a living and putting whatever money she could into savings accounts at local banks. In the summer of 1995, Oseola made local and then national headlines when she donated $150,000 to the University of Southern Mississippi to establish a scholarship fund. "I just figured the money would do [scholarship recipients] a lot more good than it would me," she said. It soon came out that this washer woman had managed to amass nearly one quarter of a million dollars over her lifetime. Time -- a key part of the compounding equation -- helped turn her meager early investments into hundreds of thousands of dollars. We like this ending better As remarkable as the Oseola McCarty story is, the ending could have been a blockbuster. After she died in 1999, one of her bankers wrote to us saying: "Time was able to turn even the modest returns of her early investments into hundreds of thousands of dollars. If we had been able to introduce her to equities earlier, she would have left millions instead of thousands." Remember, the amount you save and your time horizon -- how long you have until you need the money you've invested -- are only two-thirds of the compounding equation. Oseola excelled in both. But she did pay a price for ignoring the rate of return on her investments. Typically, the more risk you are willing to take on (by, say, investing in stocks rather than bonds), the higher your potential return. But risk is a four-letter word to a lot of folks: They're happy to settle for lesser returns to avoid it. Bad idea. Stuffing all your savings into the Serta -- or sticking only with safer investments like Treasury bills or bonds -- is even more disastrous. It's not simply that they return less. It's that they barely keep up with the rate of inflation, and that means your retirement dollar is not going to go as far as you think. We Fools believe the best place for your long-term (key word … as you'll discover in Step 4) savings is the stock market. Your golden ticket to financial independence There you have it: Financial independence is just three variables away. So start saving now (as much as you can), and invest it well. Because the sooner you get the wonder of compounding working for you, the sooner you'll reach your financial dreams. And that's exactly what this series will help you do. Action: Who wants to be a millionaire? That's what we thought. Here's the magic code you need: 10,000, 8, 400, 35, 0, 0, 0. Plug in those numbers -- in that exact order -- here.

Thrifty Thur$day

Ah… the beginning of a new month, lots of possibilities and opportunities.  I’m currently training for my financial coaching certification (yes, it has been certification central in my life for awhile now).  One of the hardest muscles to train, as we’ve talked about in previous posts, is that money muscle, aka the “Spend It” thrust, when you give your debit or credit card to your local store owner.  Often overused, instead of giving you a lean and mean budget, this exercise (in futility) often starves your bank account and savings into a wimp with no CENTS!

Shaking your head yes?  Um-hummm… you know the pain and guilt and anxiety of not being where you want to be financially and perhaps being overwhelmed about how to do damage control and get your financial life back on track and healthier than ever.  A big part of our lives deals with money and expenditures, so let’s face it head on and start the clean up process.  It may be a little scary, but it’s better to know that to be a financial “Avoider” personality and just shoving those bills off in the corner, hoping by some miracle tomorrow they will be gone like the wind. 

Let’s begin simply.  Take a deep breath, and let’s gather all your debt information into one place so we can begin a debt elimination plan.  Click HERE for a debt elimination calculator where you can plug in all your creditor information, balances, interest rates, etc.  You will then be able to create a personal plan to pay off your debts.  It may surprise you!

I also highly recommend Dave Ramsey’s “Financial Peace University” workshops, which are a great way to learn a great deal about how to manage your money.  He’s got a very informative website as well – click HERE to surf over and check it out.  He offers tools to help you create a budget, understand debt and begin working towards financial peace.

There is something very freeing about beginning the process.  Once you have created a workable plan for yourself there is a sense of empowerment and hope.  You can do this.  You won’t be in debt forever.  Work those money muscles, wild women – you can do it!!!!!

Blessings,

Linda

Trade It Thursday

Awhile back I was watching a home decorating show on HGTV, and the woman was decorating a room because two sisters were having a swap party, and wanted their room and atmosphere to feel like a high-end boutique. They had organized the party by asking each woman invited to bring 10-20 items they would like to swap. The more items they brought, the more tickets they would be given to use as “money”. Naturally, the items had to be in great condition, neat and clean and ready to be used/worn. Every item was brought to the event the weekend before so the sisters would have time to evaluate the “cost” of the item, tag it, and display it appropriately. Well, at the end of the program their room was beautiful, the women had a wonderful time, and nobody laid out one red cent!

Okay, I love this idea, and think it would be such fun. Not only could you swap out stuff like they did in the program, but what about skills? I could offer one hour of personal training or Pilates, and maybe that would “buy” me an hour of learning a new language, or personal organizing. The more I write about this, the more jazzed I get, and I think this will definitely be something on my 2012 goals. Getting together with some of the FABULOUS WILD WOMEN I’m blessed to know, shopping, swapping, laughing and just having fun for F-R-E-E! It just doesn’t get any better than that!

Interestingly, no one brought husbands or children to exchange… isn’t that nice???

So crank up those trade it muscles, get together with a bunch of your best gal pals, and have a swap party! If you do, we’d love to hear about it, so email your comments and photos!

Blessings,
Linda

Tribute Thursday

Today I’d like to pay tribute to a woman I knew from my church – Daveida. She went home to be with the Lord on January 12th, and Thursday I attended her funeral, more appropriately called “a celebration of her life.” She was only 41, but had battled breast cancer for the last six years. She left behind three children, an 8-month old grandson, and uncounted family and friends who will miss her dearly.

I met Daveida about 18 months ago as she was going through a battle with this horrific disease, and even then she had so much courage, strength and faith in her Lord. She was a soft-spoken, calm woman with a great sense of humor, and there was a peace whenever you were in her presence. She rallied back from that battle – the doctors really didn’t expect her to make it through Christmas last year. But she did, and then some, living more than a year later. It was only in the last several months that yet another battle began, and it moved swiftly.

Even with the physical ravages she encountered, Daveida was beautiful and had a smile that would light up the room. Yet this beauty was overshadowed by the beauty of her heart and soul. She would reach out to others even from her hospital bed to see how they were, how she could pray for them, and what could she do for them.

There were literally hundreds of people at her life celebration service, which was a heartbreakingly sad yet joyful remembrance of this inspirational woman. We are sad and mourn for our loss, yet we celebrate her and thank God for the incredible privilege of having shared in her life. I wish I had gotten to know her better, but I will forever be changed by the moments we did have together. She taught us how to live, and how to die.

Goodbye for now, Daveida…

Stinkin’ Thinkin’ Thursday

What cha thinkin'? That can be a loaded question, because those thoughts create your reality, and can negatively impact your day, your attitude and your health. “Toxic thoughts” lead to stress, which affects our body’s natural healing capacities – it wears down the brain and body.

Dr. Caroline Leaf has spent years researching the brain/thought process, and how the science of thought relates to thinking, learning, and renewing the mind, gifting and potential. In a November blog she wrote that much our mental and physical illnesses come from our thought life. It’s a fascinating article, and you can read it further by clicking HERE. Research found that thinking and feeling anger, fear and frustration caused DNA to change shape according to thoughts, by tightening up, becoming shorter and switching off many DNA codes.

In today’s blog by Michael Hyatt, (click HERE to read it), he spoke about keeping a positive attitude. He writes:

“'For as a man thinks in his heart, so is he' (Proverbs 23:7). Negative thoughts deplete your energy. Positive thoughts replenish your energize. Attitude is not something that just happens; you choose it. Even in difficult circumstances, you can choose to have a good attitude. And, it whether good or bad, it will have a direct impact on your energy."

The point I’m making here is that you have so much power in your thoughts. Worrying and anxious thoughts can bleed you like an energy vampire, create physical problems like indigestion, ulcers, blown out adrenal glands and much more. Have you ever gotten upset in the morning and thought, “Well, that’s just going to ruin my day - it's all downhill from here!” Tell me, did the rest of your day meet your expectations? Probably. We set ourselves up all the time by low expectations, a victim mentality and believing wrong information. Were you criticized as a child and still believe those lies? Do you assume you’re going to have a lousy day? Do you expect the worst behavior from people? Do you tell yourself there’s nothing you can do, you have no choice, you’ll never lose weight, never have a good relationship, never this, never that? Sound familiar?

You CAN choose to think better. I’m not talking about sickeningly sweet Pollyanna positive la-de-dah life is beautiful all the time fluff. Nor am I saying that when life is hard we just cheerfully sigh and say, “Oh well, when life gives you lemons, make lemonade!” No, not only will that be unrealistic, but you will be incredibly annoying and most people will either run from you or slap you silly. I had to laugh when I recently heard a revised version of the lemons philosophy – “When life gives you lemons, grab the vodka and make a lemon drop martini!” Hey, at least they’re thinking about positive options! You have to start somewhere!

Seriously, though, you can choose how you are going to think about (and then act upon) a given situation. You can have a great day even if it’s pouring rain and traffic was re-DUNK-u-lous. Even if the situation itself cannot change, how you think about it/deal with it is within your thought choices and your power. You might not be able to change your circumstances, but you always can choose how you are going to think about/react to them.

For example, let's say yesterday you fell off the healthy eating wagon big time. Now you may think, "Oh well, I blew it. No point in trying now, I'll start again next week." You've just given yourself permission to eat poorly through the weekend. Then Monday morning you'll step on the scale, get discouraged, and possibly give up. Your thoughts can change that scenario and give you a whole different outcome. Today instead think positively and say, "Okay, I blew it yesterday. But today is a fresh start, and I'm going to continue to eat healthy." You stay true to your goal, and next Monday you feel better when you step on that scale, and you'll probably see a physical manifestation of your positive choice to keep on track and not give up. You'll feel proud of yourself, which will give you a boost to your mood and keep you on that upward climb. Good for you!

Today, exercise the positives in your thought life (and say NO NO NO to the negatives). Think I CAN instead of I can’t, expect the very best from everyone you meet – they might surprise you! It’s your choice.

What do you think of that?

Blessings,

Linda

Tips Thursday

Yesterday I blogged that I would be sharing some tips on how to handle eating through your holidays. Here’s some ideas that I have either used myself or have heard about, and I hope they’ll help you as well!

1) Eat before you go! There’s a rule that you should never go to the grocery store hungry, and it applies to parties as well. Eat some thing before you leave your house – especially protein, which fills you longer. Have a hot beverage (coffee, tea) with it to add a little fullness. Then you won’t be grazing over the food all night.

2) Stay away from the cheese! Once ounce (about the equivalent of a pair of dice) run you about 120 calories. Needless to say, you pop 10 of those little bad boys with some crackers, and you’ve already eaten pretty much a day’s calories! Instead, go for the veggies – all you want – as long as they’re not dipped into dressings that are drenched in calories. Go for salsa instead. Just remember to fill up on the veggies and fresh fruit.

3) Use a small plate! Less loaded, less bloated!

4) There is no such thing as bad food. Just don’t go crazy with it – eat a tiny bit of it, so you will have the taste and satisfaction of having it. One small (or half) of a brownie is fine, it’s when I eat those three and four that I’m in trouble!!!

5) Stick to seltzer water or wine spritzers if you are consuming alcohol. Nurse one drink all night. Stay away from the mixed drinks, its loads of empty calories. Of course, one glass of champagne is nice!

6) If you are eating dinner at someone’s home, just take small portions. Aunt Sophie will be happy you’ve eaten her special dish, but you don’t have to succumb to family pressure to EAT! EAT!

7) Drink a LOT of water before and during meals. Oh yes, and if you are drinking, drink a large glass of water in between drinks – better yet, opt not to drink (see #5).

8) Station yourself as far away from the food as possible – make yourself take a hike over to the buffet and think it over before you get there!

9) Don’t skip dessert. That’s right, don’t skip it. Just have a little. It is the holidays and we all want to enjoy it. (See #4)

10) Eat only until you are full, and then stop and move away from the buffet or table, or move your plate away. Don't keep eating just because it tastes good.

11) Give yourself 10-15 minutes before you go for seconds. It takes your tummy that long to tell your brain you are full/satisfied, and chances are you won't really be hungry in 20 minutes.

12) Be mindful and intentional about everything you choose to eat. We consume WAY too many calories when we're just sitting around talking, or "picking". Choose well.

Most of all, remember how blessed you are to be enjoying your holidays with family and friends, and thankful that you have such an amazing choice of foods. Have fun, be safe, and eat healthy!

Please write in and comment about other ideas you may have to handle food at the holidays!!!

Blessings,
Linda

Take Off Thursday

Start your engines, ladies, because today is the official start of the holiday season, December 1st!!!

The sugarplums are gearing up to start invading our dreams, Santa will be on every corner ringing his bell for a donation (so be sure to keep a buck in your pocket at all times and give generously), the schools and churches will be gearing up for kids programs, people will be stringing their lights outside in a mad array of unmatched colors and bulbs, and the shoppers will be out in droves to share in the madness. And so begins the time of good cheer, friendship, financial disaster, and insanity.

I will try to be giving some tips and tricks to help you organize the tinsel-covered tasks while you seek out the quieter, holy season of peace, love and joy. Today we begin preparing our heads, our homes, and our hearts.

So what is “take off” Thursday all about? No, it’s not like the shot you hear as you begin a race, although it sometimes seems that way as we rush to accomplish everything on our lists. No, today I want you to exercise your toss it out muscles. Spend about 15 minutes today to go through your closets, household items, and rooms and see what you can eliminate. Find ten things to toss – clothing, duplicate kitchen items, toys that the kids no longer use. If the items are in good shape, donate them to your local Good Will or Salvation Army. You know there will probably be a lot of stuff coming in on Christmas that will clutter your house/life, so begin making room. Get the kids involved if you have them, so they can learn how to give to others. Do this for the next few days… just keeping going through the house with a critical eye, asking yourself “Do I really need this?” If you haven’t used it or worn it in six months, get rid of it!

Then sit down with a cup of cocoa (because, after all, it is the first day of the holidays, and that demands cocoa!), and begin to take off some of the anxiety and stress in your life – unclutter your mind and spirit and heart. What things are weighing you down? What would life look like if they were all gone in the morning?
What little tiny thing could you do today to walk towards that goal of a less cluttered self?

Ready? On your mark… get set… GO! You’re about to embark on the best holiday season of your life!

Blessings,
Linda

P.S. Also visit www.mylittlechristmasblog.blogspot.com for a daily advent message, and lots of Christmas goodies!

Thanksgiving Thoughts Thursday

The countdown has begun – T minus seven days until Bird-day! Whether you’re having turkey, ham, pasta, a grilled cheese sandwich, a tofurky (a tofu turkey) or a turducken (a chicken stuffed into a duck, stuffed then into a turkey – don’t ask – who thinks up these things???)… you’ll probably be eating at some point in the day. As I said in yesterday’s post, the holiday can be a blessing and still be stressing!

I speak often with my clients about mindful eating – being intentional about our food intake, portion size, and eating when we’re hungry, not just because we’re bored or stressed. I found a great article on www.caloriecount.com that I’d like to share with you today about eating mindfully. I HIGHLY recommend using caloriecount.com to journal your food and activities. It’s a free website, and provides not only a calorie count for your food, but also provides a daily grade, info on fat/carbs/proteins, and can track your sodium intake, cholesterol, vitamins, sugar, and your weight. I use it daily myself. Did you know that people who consistently use a food journal double their weight loss chances?

The author of the article is Michelle May, M.D., the author of the book Eat What You Love, Love What You Eat. This article is an excerpt from chapter six of that book.

Time to exercise your muscles of intentionality, just in time for Thanksgiving.

Blessings,
Linda

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SAVE THE STUFFING FOR THE TURKEY: EAT MINDFULLY INSTEAD

By Michelle May, M.D.

While this advice may seem counter-intuitive, this holiday season, experience maximal pleasure from all the wonderful food and special occasions. By eating mindfully you’ll eat less and enjoy it more. The key to mindful eating is to love what you eat. In other words, notice all the little details as if you were writing an article about your Thanksgiving meal for a gourmet magazine. The following tips are excerpted from chapter six of Eat What You Love, Love What You Eat.

•Focus on the people you’re sharing your meal with. Engage in interesting conversations, ask questions, and really listen to your companions.

•Before eating, notice how hungry you are. If you aren’t hungry, become aware of the reasons you feel like eating anyway. If it is for social reasons, then be social for a while longer, knowing that there will be plenty of opportunities to eat when you get hungry.

•Decide how you want to feel when you’re done eating. Stuffed and miserable? Or comfortable and content? Then fill your plate (or order) accordingly.

•Mentally describe the table setting and the ambiance. Notice the aromas, colors, textures, and presentation of the meal.

•Before eating, take a moment to be truly thankful about where your food came from, including all the people who invested their time, effort, and talent to get it from farm to plate.

•Choose food carefully by asking yourself what you really want and need to eat. Don’t waste your appetite on cranberry sauce shaped like a can if you don’t love it!

•Put one small bite in your mouth. You only have taste buds on your tongue so the flavors of a large bite of food are lost on your teeth, cheeks, and the roof of your mouth.

•Notice the texture and flavors of the food on your tongue, then slowly begin to chew the food. Breathe while you chew since flavors other than salty, sweet, bitter, and sour actually come from the aromas.

•Set your fork down between bites. If you put a bite of food in your mouth then immediately begin to load your next forkful, your attention will be on the next bite. And if you are focused on the next bite of food instead of the one you are eating now, you won’t stop eating until there are no more forkfuls left to load.

•Sit for a moment and let the flavors and experience linger before you take the next bite.

•Notice as the food gently fills your stomach. Pause for several minutes in the middle of eating to reconnect with your hunger and fullness levels and enjoyment of the meal.

•Food is abundant this time of year (actually, year round for most of us!). Remind yourself that you can eat more later or at another meal so there’s no need to eat as though food was scarce. When you eat it all now, you risk ruining an enjoyable meal by being too full. Mindful eating is a great way to enjoy Thanksgiving and other meals more while eating less. You’ll be thankful that you did!

You can find the article at: http://caloriecount.about.com/save-stuffing-turkey-eat-mindfully-instead-b538580