Saving Your Money:

Tips on Saving for the Holidays and Other Special Occasions

By Kenneth R. Silagy, Parents' Source, November 20, 1998.

Imagine. You're ready to do your holiday shopping, and you have all of the money that you need enough to buy for everyone on your holiday list. You don't have to worry about paying off those credit cards in the new year, because you didn't use them. Best of all, you have a head start for next year's holiday season.

Is this scenario for real? This is the time of year when stress is at an all-time high. Money does not come easily. The mortgage and insurance are due, the car needs work, the kids need clothes, and they want everything they see on TV! In order to pay for it all, you've got to dig deeper into your pocket, and consequently, go deeper into debt. If you're feeling this way, you are not alone. The average family in America is living on the edge, and doesn't know which way to turn. Consumer debt and bankruptcy are at their highest levels. People are living way beyond their comfort levels. Money is not the root of all evil, but it is the lack of money that is at the root of most family quarrels.

We can start by fixing the problem right at home. Make a list of all of your monthly expenses. This list can be used as a tracking device. You may find that dollars which are being spent can be diverted elsewhere or saved. By simply keeping track of expenses and income, you can make adjustments necessary to free up money. When you spend money and receive change, take the change and fill up a jar or other container, then use those coins to pay for holiday gifts. Join a holiday club to help save the money needed for holiday spending. Spread purchases out over the year, instead of waiting until the last minute. Stores offer special promotions and discount prices all year long. When you find an item you wish to purchase, let your fingers do the walking. Call around for better prices, or the same price at a store closer to your home. Watch for sales, and make purchases at discount prices.

Purchase 0% interest loans, such as 90 days same as cash, to avoid making interest payments. But proceed with caution. You must be able to pay the loan off in the allotted time frame, or risk being hit with all of the interest charges that have accrued since the date of purchase. By making smaller payments rather than one lump sum, you can avoid payment penalties and extra interest.

How can you make 21% risk free? Simple. Pay off your credit cards. Credit cards can be a good thing, when used correctly. Used incorrectly, they can be the cause of financial ruin. Americans owe more money than ever before. How many offers do you get each week to go deeper into debt? It is now possible to borrow as much as $100,000.00 with a credit card. Credit cards cause serious problems for many people. There are qualified advisors and public service organizations which can advise and assist anyone needing help with credit cards. Guidance and a disciplined approach can go a long way!

Equity on your home can be used as a debt-leveraging service, and can sometimes free up a considerable amount of money on a monthly basis. Mortgage leveraging is a technique as old as the hills. When performed correctly, this be the key to financial freedom so long as the newly found dollars are saved, and not spent on recreation.

Finally, you need to save money. The average family finds it difficult to save $25.00 a month. By using some of the techniques I've discussed, you can put yourself on the path to financial freedom. When you pay your bills, make another bill called "The Family Bill", and pay yourself. You're a good person, so reward yourself. If you make $3,000.00 a month, try saving 10% or $300.00. If that's not possible, try 5%, or even 2%. Start saving early, and keep on saving. Get rich slowly. There is no quick way to do it. Everyone's idea of rich is different, so design your own plan and work at it. Use reading material as guidance. The following two books may be a starting point.

• "The Millionaire Next Door" by Thomas J. Stanley, Ph.D. is excellent reading
• "The Wealthy Barber" by David Chilton is a very uplifting starter book.

The more you know about your own finances and how to manage them, the more financially independent you can become.

Kenneth R. Silagy is the owner of Moneywork$ Financial Strategies, which strives to find avenues to financial freedom for those who have difficulty with money. Free educational seminars are offered monthly by licensed staff members. (See dates & times in "The Parenting Connnection.")

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