10 Things You Don't Need To Waste Your Money On

What is this called: A $1 candy bar bought 5 times a week for a year equals $260.

That's easy! It's simple math.

No, actually it's called "perspective."

Want some more?

The average cost for a single trip to a nationally recognized coffeehouse is $3.25, according to CBS News. Bought five days a week is $16.25. That's about $65 a month and $845 a year. Even if you don't buy it every day, or maybe buy cheaper coffee, you're still spending the equivalent of a car payment.

Point being, it's something you don't need, especially if you're in debt. Every day Americans are wasting tens of thousands of dollars on stuff they don't need.

Here are 10 things that most people could probably do without. In fact, I'm more than sure that anybody could do without.

1. Up-Sizing Your Order

All you want is lunch, but the teenager on the other end of the speaker has been trained to rope you into purchasing more with a plethora of options. "You want a cookie with that? How about a super-sized drink? Apple pie? Extra fries?" Whatever the options, a lot of people are saying "Yes!" because, hey, it's only an extra buck, maybe even 50 cents. ... Who cares?! You're not 15 anymore. Stop giving in to the peer pressure and just say no!

2. Purebred Dogs

My wife has fallen in love with a new kind of dog breed, a cross between a Husky and a Pomeranian, called a Pomsky. I'll admit, they're deliciously adorable. They're also about $4,000. Let the pompous wealthy develop their expensive dog breeds for the sake of having something expensive. Meanwhile there are plenty of loving dogs (and kitty cats) that make up in loyalty what they lack in pedigree. Save a dog. Save some cash. Gain a friend. Sounds good to me!

3. Private Education

What do Starbucks' founder Howard Schultz, fashion entrepreneur Ralph Lauren, Apple Co-Founder Steve Jobs, and filmmaker Quentin Tarantino have in common—aside from the fact that they're all millionaires? They all went to cheap, lowbrow high schools and colleges. Not to mention John D. Rockefeller, John Glenn, Mark Twain, Henry Ford, Winston Churchill, Abraham Lincoln, and Albert Einstein, among many, many others.

Listen up America! An alma mater isn’t going to guarantee your sweetie a six-figure income—only hard work and determination can do that. I spent seven years working for a wealthy couple whose two children graduated ivy league colleges and struggled for years afterward trying to find jobs, and even though they're both employed now mommy and daddy are still paying some of their bills. So before you pay for another tuition hike, make sure you’re actually getting a better, safer or more faith-centered education for your money. And absolutely do not go into debt for it.

4. Lottery Tickets

For every 259 million people that play the Mega Millions lottery, only one will strike it rich. That's right. One.

Gosh'um golly gee whiz, I love perspective!

Want some better odds? Did you know that if you invested $100 a month in a good retirement plan for 40 years, you’ll almost always retire a millionaire? The math is simple. Lottery tickets = money leaving your pocket. Planning and budgeting = a little thing called prosperity.

5. Brand-Name Medicine

I was a seasonal allergy sufferer for almost twenty years. As a little kid I remember just laying on the couch and sneezing again and again and again and again all afternoon. Over the years I've tried countless brand name drugs to battle my allergies. Some worked well enough to clear me up for a spell, others didn't work at all. Then one day my wife and I saw a huge bin at Walmart filled with cheap allergy medication—$1 a box for 12 pills. I figured, why not? And you know what? It was the BEST allergy medicine I've ever used. Brand-name drugs usually have the same exact ingredients as their generic counterparts. So read the labels and buy your meds based on what’s in them, not based on who’s advertising them.

6. At-Home Parties

You’ve been invited to yet another jewelry party. Last month it was tote bags, and before that it was essential oils. But your best friend is hosting this one, and she’s asked you to come along as a favor. So you RSVP—even though you never make good decisions in a room full of women eating, drinking and writing checks for fun. Next time, if you can’t afford it, say no. Blame the budget if you have to. A true friend will understand.

7. The Newest Gadgets

Zombies are all the rage on TV and in the movies these days, but the there's a genuine zombie apocalypse happening in our streets every time a big gadget company releases a new version of the latest thingy. People swarm to the nearest store in droves to buy a thing with more storage space or a bigger screen or more megapixels or faster processor or whatever. Look, does your phone still make calls? Does your computer still turn on—maybe it doesn't boot up like a shiny new Mac, but it still works doesn't it? Relax, people. Whatever it is, chances are, you don't really need it.

8. Car Payments and Leases

Given the choice, would you rather pay someone else $500 a month, or pay yourself $500 a month? Thought so. Instead of buying a car on payments, hunt for a vehicle you can actually afford right now—even if it’s just a $2,000 get-you-to-work-and-back beater. And in just three short years, you’ll have enough money saved for an $18,000 look-at-you-now beauty. Then you can take that $500 car payment and put it in the bank every month for 40 years. That's $240,000, not including interest!

Peeeeeeerspective!

9. Singing Birthday Cards

That hilarious singing birthday card may be cute, but it’s not seven dollars cute! Plus, your brother-in-law is just going to throw it away in a week’s time. So save some cash by grabbing a generic card for a buck or two and writing a meaningful message inside. What you say will mean so much more than the paper you say it on.

10. Bottled Water

There’s really no excuse to buy something that’s practically free. And yet, in 2012, Americans spent more than $11.8 billion on disposable water bottles. Come on, folks. This one is really dumb, especially considering a group of German researches discovered in 2011 more than 24,000 chemicals on bottled water. Furthermore, a study from the Natural Resources Defense Council has shown that the quality of tap water is held to a much higher standard than that of bottled water. So if you're an avid drinker of bottled water, here's a money-saving that could potentially save you hundreds of dollars a year: buy a 32oz Camelback water bottle and fill it up with water every day. Drink at least one every day. You'll be richer and healthier!

In Closing

It's not fair to dog those of us who can afford private tuition or a nice new car, so, if you can and you want to, by all means, go for it. But if you're still paying down debt, catching up on bills, or stockpiling your emergency fund, these expensive life add-ons need to wait.

What about you? What things are you throwing your money at that you could probably live without, or at least long enough to gain some financial traction?

Why You're Still In Debt

I call it a 3 a.m. moment. It's the instant you realize that you need to do something about your debt. Maybe it doesn't happen at 3 a.m. necessarily. Maybe it happens when you look at the next credit card bill, or when you go to write that massive check for an unexpected car repair. It's like waking up in the middle of the night with the horrible realization that you forgot to do that very important thing.

So you decide to make a change. You even get a little angry about it. That "3 a.m." moment made you determined to get out of debt for good!

Buuuuut it didn't take. After a while, your conviction waned and now, sadly, you're still in debt.

What keeps people from getting out of debt? Why would someone want to stay in chains instead of living in freedom? Sadly, there are all sorts of reasons people choose MasterCard over being free from debt, but here are a few:

1. They want to keep up appearances.

This is what realty TV has got us trained to do—keeping up with the Joneses, or, to many, the Kardashians. But most people who appear to have it all really have a steep mortgage on that million dollar home, and a lease on that expensive car, and a Visa card that's maxed out. These are some of the most broke people in your neighborhood! Trying to keep up appearances with anyone is nothing but your ego taking a stroll on the uneasy side and it will lead to bankruptcy if you're not careful.

2. They are unwilling to sacrifice.

When Danielle and I got married, I couldn't fathom not going out to eat at least once a week. But it was a sacrifice I eventually made. Now we go out to eat once every few months. If that. And you know what? It's not as dreadful as I imagined it would be. We have since come to sacrifice many other things in order to get ahead—cable TV, high-speed internet, Netflix, vacations. This doesn't mean we have to do without these things forever, but the savings we've accumulated over the last two years is precisely why we are currently debt free! It’s about priorities. Here’s the question: What are you willing to sacrifice?

3. They’re addicted to stuff.

During my time as a UPS driver I had two stops on my route to women who were full-blown shopaholics. It was a rare day that I didn't stop at their houses with multiple packages from amazon.com. A love of stuff isn't that hard to understand, really. I mean, who doesn't like stuff? Heck, I LOVE stuff! And learning not to impulsively purchase everything we want isn't easy, because, for some reason, the more we have, the more confident and powerful we feel. But it's all a fraud! Eventually, stuff just weighs us down.

4. They don’t know how. 

A lot of people get those "3 a.m." moments and want to kick their debt to the curb, but they just don't know how to do it. Our culture, with its mentality of immediate gratification, has trained people to look at their mountain of debt and see it as something too big to bother with. Quick and easy, that's what people want. Hard work? Forget about it! But hard work and discipline is exactly what it takes to get your debt under control. That, and a plan. Thankfully there are plenty of solid, reliable budgeting programs to help you out—be it Crown Financial or Dave Ramsey, for example. You may have to plunk down some cash to get the program or take the course, but it's well worth the investment.

5. They’re lazy.

Some people know what to do. Maybe they know about the debt snowball and they sorta, kinda want to get out of debt. They know how debt can negatively affect their marriage, their stress levels, their relationships, and their future; they know that buying expensive coffees and cable TV packages and newer, more expensive cars and clothes isn't a wise move, but they just aren’t motivated to make a change. And that's... well, embarrassing. Especially if you've got kids. It's now not only your life you're ruining but theirs because they're going to learn their financial habits from you.

Every day, people are making the decision to get out of debt and change their lives. They’re ready to sacrifice and get rid of their fear of change or their addiction to stuff. If you're ready to take that leap, we can't recommend Dave Ramsey's Financial Peace University enough. It saved our finances and our marriage.

If a lazy, stuff-lovin' bum like me can make this change, then anyone can!

Keep pinchin' :-)

Taking Vacations With the Baby Steps

Jake and Danielle on vacation in Maui.

If you're like most people, you can only work, eat, sleep, and play through your weekly grind before the itch to "get away" starts making your insides raw.

But how do you take a vacation and have a good time when you're working your way through Dave Ramsey's Baby Steps to financial peace? I mean, the Baby Steps aren't exactly the best place to be when you want to blow $5,000 on a tropical getaway. Well, here's the good news: you're a fool if you sound like this *in a nasally tone* "We can't go on vacation. We need to save our money. Dave Ramsey says so."

Chill, bro. Or sis. Whoever you are. Vacations are not NOT possible. They CAN happen no matter what baby step you're in. But here's the tough news: you're going to have work at it.

Obviously, the decision to take a vacation is dependent on where you're at financially. If you’re on Baby Step 1 or 2, you’re either building a $1,000 emergency fund or paying off your debt with the debt snowball. In other words, your budget is probably tight—especially if you’re paying off debt aggressively, which you should be. In this case, your options might be limited, but that doesn’t mean you can’t have a fun, relaxing vacation. For now it might have to be a staycation, or an inexpensive camping trip, but it's not impossible. Get creative!

If you can manage—and budget for—a short weekend getaway, then go for it. Just remember, the beach and the mountains and all the fancy resorts can wait until you’re out of debt. They’ll still be there, and they will be an awesome reward for busting it and getting out of debt. The main thing is that you don't incur MORE debt by going on vacation.

If you're into Baby Step 3, you’re out of debt and starting to save your big emergency fund, which is three to six months of expenses. Now you can take a little bit of a breath. You’re still saving aggressively and putting all that money you were using to pay off debt toward the emergency fund. But you are also in a good situation where you can take a little bit of that and go on a vacation paid for with CASH. No credit cards here. Woot-woot!

It's important to not go too crazy though. Give yourself a budget, and keep yourself within that budget.

By the time you're into Baby steps 4 through 6, you're in an awesome spot! You’re out of debt, and you’ve saved up a large emergency fund. You’ve started the process of investing 15% of your household income retirement and you've begun saving for your kids' college funds. An annual summer vacation shouldn't be a problem. Just put it in the budget and set a little money aside every week. Even if it's just $100, that's $5,200! Pack up the van and take the kids to Disney!

Your income will determine what’s reasonable for you to do when it comes to vacation spending. Higher earners will obviously be able to afford pricier vacations, but the point here is to go somewhere and remain debt free. Say it with me now: No. More. Debt.

When you've made it all the way through the Baby Steps, don't forget to be generous. Take some family or friends with you on some of your vacations. Be an encourager and a motivator to people who haven’t reached this point in their journey yet. Be generous with your money and even more generous in your spirit. Everyone’s journey will be different. Some people are able to go through the Baby Steps quickly, while it takes much longer for others.

Keep that dream vacation in mind and use it to motivate you to work through the Baby Steps. Remember, getting out of debt and learning to live debt free won't take you forever. This is just a phase of life. The good times will come. You just need the dedication and a little patience to get there.

Keep pinchin :-)

Cost-Saving Vacation Tips

Traveling from Vermont to Hawaii isn't easy. It's a 22-hour journey of driving, flights, shuttle busses, layovers, and more flights, all culminating in an epic collision between an exhausted traveler and some faraway hotel's welcoming bed pillow.

Such an epic journey isn't easy on your finances either, but it doesn't have to break the bank, and it certainly doesn't have to involve going deeper into debt, so long as you plan for it smartly.

Here are some of the ways that Danielle and I saved money on our trip to Maui.

Know What Kind of R&R You're Looking For

It's dangerous to go on vacation with nothing but vague notions of rest and relaxation in your head. Everyone wants to kick back on a vacation, but if you don't think of HOW you're going to kick back you run the risk of making the dollars in your wallet an endangered species.

For me and Danielle, having a nice hotel in Maui wasn't a priority because the type of vacation we wanted involved a lot of activities, not the least of which involved spending loads of time on the beach. As long as the beds are comfortable, we're not picky. For us, the hotel room is just a place to crash after a long day of doing stuff.

If, however, your dream vacation is all about lounging around the resort with a good book, watching TV, or admiring the view from the pool, than maybe you'll want to put a little more money into your hotel. This means, of course, that you should reel-in the rest of your vacation spending.

Pack Food ... or Have a Grocery Budget

Food, glorious food! One of the greatest reasons to go on vacation is to eat food. Sometimes it's the whole reason you go on vacation—to eat exotic foods! The problem is that beyond that lonely concept people don't put much effort into planning what they're going to eat while they're on vacation. They just wake up one morning and realize, gasp, we need food! This usually results in paying for last minute room service or eating out, like, a lot.

Pack food. Bring snacks, like granola bars, trail mix, muffins and water. When you get to your destination go grocery shopping and make plans to prepare at least half your meals yourself. Our hotel in Maui came equipped with a fridge and small stove which made it easy to scramble some eggs in the morning, and the nearby beach had grills handy to barbecue some chicken we bought at a grocery store down the street. We grilled enough chicken for four meals for less than $8. Eating out for those four meals would've easily cost us $100.

Pack Conservatively

Unfortunately the airline that Danielle and I were flying with had a $35 cost per checked bag, outrageous when you consider the exorbitant cost of plane tickets these days. We knew we would have at least one checked bag, but with some careful packing we were able to get everything we needed into our carry-on luggage. Did it mean making some sacrifices? Yes. (I had to leave behind the navy blue belt that matches me red shorts, but I was pretty sure I would survive.)

Have a Budget

You budget for your electric bill. You budget for your mortgage. You budget for birthdays and Christmas. So budget for your vacation! Decide—not how much you're willing to spend—but how much you can spend, and stay within that limit. If, with two days of vacation left, you've maxed out your allotted spending money and the kids want to go mini-golfing, say, "Sorry, kids. Jake and Danielle say 'no.'" Shoot me an email. I'll send you our PO address and your kids can write us a nasty letter.

Remember that Not Everything Has to Cost $$

While there are some vacationing things that are going to cost money no matter what, NEVER forget to check the area for free fun. Danielle and I made a list of hiking spots we wanted to visit in Maui as well as some historical landmarks. Maybe hiking and sightseeing isn't your thing, but there were also art shows, music, playgrounds, beaches, and other free stuff that we could've enjoyed.

Plan Your Vacation At Non-Peak Times

Granted, this might not always be possible due to your schedule, but usually the best rates at hotels and resorts are during times when they don't see as much tourism traffic. If you know where you want to go, do some Googling and find out when their off-season rates come into play. You could save yourself a bundle of money.

Use Your Judgment

Obviously a family of five doesn't have the same flexibility as a young couple with no kids, or an older couple who are all done going through the Baby Steps to financial freedom. Know your limits. Talk with your spouse. Pray about it beforehand. Put together a vacation that works for you in the here and now. It might not be that dream vacation you've always wanted, but don't worry about that. You'll get there eventually. Try to keep your eyes focused on the end game.

Keep pinchin' :-)

Maui: The Christmas Gift She Never Saw Coming

Pray for us. This Wednesday we're getting on a plane at 6 in the morning, traveling to Newark, NJ, to catch a flight to Los Angeles, CA, where we'll get on a plane to fly to a 10 day stay on Maui, HI.

Yeah, it's going to be brutal.

I suspect Danielle, my summer-loving wife, will do a face-plant hug of the seashore the moment her feet hit Mr. Sand and I'll be lucky to get any time with her once that wife-stealing son-of-a-beach gets his gritty dunes on her. I hope she doesn't neglect me too much though because it's due to my own personal genius... ness... that we're even going on this trip. So, you know, credit where credit is due, and all that.

Back in November when I asked my wife what she wanted for Christmas, she jokingly said, "A trip to Hawaii." She mentioned this two other times, and it became unclear to me just exactly how jokey she was actually being. Regardless, I began to wonder just how plausible a trip to Hawaii really was. I mean, we had the money. We had the time. Why not go?

I really enjoy travel planning, so I took to Google to see what there was to do in Maui, what resort life was like, and how much the airline industry would rip us off for two plane tickets (because, really, what does the airline industry ever do except charge ridiculous amounts of money for what is, essentially, a miserable experience coupled with molestations courtesy of the TSA.)

But when it came to actually spending the money to pre-book everything I decided to hold off. Danielle and I work very closely together when it comes to our finances and I wanted her to be part of the ultimate decision making, but, still, I figured I could seduce her travel tastebuds with some palate-whetting visuals:

—a genuine Hawaiian luau
—sandy beaches
—surfing lessons
—sandy beaches
—a sunrise zipline tour
—sandy beaches

I even printed up some little flash cards of the many sights we aimed to visit.

"Is this is a joke?" she asked.

"If this is a joke," I said, "it's one of the cruelest Christmas presents ever."

"No joke."

But, no, it wasn't a joke. I can always tell how excited she is about something by how quickly it hits Facebook. In this case, I think she set a new record.

Honestly, Hawaii was never on my radar of places to go. I like the cool, damp, bleakness of places like Scotland, England, Seattle, and home. But, really, in the dead of a Vermont winter after weeks of sub-zero temperatures, even I found myself tempted by the warm shores of a tropical paradise.

I suspect this blog will become something of a travel blog over the next ten days as we explore the various sights, try the various foods, and enjoy the many majestic vistas of Maui. So stay tuned!

Keep pinchin' :-)

How To Refocus Your Finances

Hi. Remember us?

Yeah, we sort of lost track of our blog about three months ago when it fell into the abyss between Mt. Busy and Mt. Really Busy; they're two peaks in northern Vermont on the road to Overwhelmington, overlooking lakes Where-Has-Our-Life-Gone and It's-February-Already. (Yes, those are real lakes.)

These past wintry months have brought a lot of exciting changes into our lives. Right now, we're a week into sub-zero temperatures and I feel sort of like our life was put into a little snow globe and had the daylights shook out of it. Except what's falling down around us isn't fake plastic snow, it's a crazily scary, busy, fun, weird, roller-coaster ride of uncertainty. Our home is almost sold. Neither of us have full-time jobs. It was 30 below on Tuesday.

Whether we like it or not, a financial refocusing is what we have to do right now, and with Christmas having come and gone and New Year's resolutions in full-swing it's likely that's where you're at too. Getting back into the habit of budgeting and financial planning may sound daunting, even overwhelming, but here's the truth: it's easier the second time around.

If your financial focus has fallen by the wayside, the only thing that makes it seem difficult to start back up again is your memory of how difficult it was the first time. Do you remember the first time? I do. It was six brutal months of weekly budget meetings between me, a money spender, and my wife, a money hoarder, butting heads, bickering, crying, until we finally figured out how to do this "budgeting thing" together.

But the second time around isn't like the first. We know the drill. We know what we have to do. Thankfully, Danielle and I never really quit doing our budget meetings, we just have them once a month now instead of once a week. Still, with the major upheaval our life has undergone these last few months, it's time to sit down and figure out what our financial priorities are. This isn't a bad practice to do every once in a while. So...

Think Small

Refocusing your financial goals needs to be broad in scope, but small in steps. One of the reasons people veer off course is because they set their goals too far ahead. Their goals become too unobtainable. They get discouraged. They quit. This is why Dave Ramsey's Financial Peace University approaches budgeting with the "Baby Steps." The first step—get $1,000 of emergency money in the bank—is obtainable within a month for most people. Seeing progress that quickly is encouraging and helps you to realize that, yes, this budgeting process can work!

So as you refocus your finances, make your goals realistic. Maybe your broad goal is to pay off the house in the next ten years, but for this month make it a goal to put an extra $100 down on the mortgage, or $1,000 in six months. The way we handle money is tied to our emotions, and our emotions are motivated when we see progress, so set obtainable "baby steps."

Keep Those Meetings Coming

You and your spouse need to be making your financial plans together. Maybe, if you really love crunching numbers and your spouse doesn't, you can handle it on your own, but you need to at least make an effort to include your spouse in what's going on. Danielle and I talk about our finances a lot. We help keep each other focused and motivated. Knowing what financial dreams are on her mind are important to me, and, frankly, I couldn't do all this math crap without her.

Pray

No financial plan should begin without consulting the One who owns it all anyway. "Everything comes from You, and we have given You only what comes from Your hand," 1 Chronicles 29:14. God knows your future far better than you do. He knows what storms are coming your way and how He's going to provide for your every need. You and your spouse—or financial accountability partner if you're single—need to keep God on the front lines of your financial goals.

So start there. Pray. Think small. Keep those budget meetings in the pipeline. Let us know what you're struggling with so we can pray for you and learn more about this stuff alongside you.

Keep pinchin' :)

How Financial Stress Can Lead To The "D" Word

Jake and I were recently talking about how hard our first two years of marriage were, specifically the first year. We have publicly stated before that had we not taken Financial Peace University, we may not be married today. That statement is not something I am proud of, but it is also not much of an exaggeration!

Debt, finances, and no real money-management plan can cause a lot of stress on a relationship, and when that relationship is fairly new that stress can be hard to bear!

I remember there were times when we would just walk away from an argument and not speak because frustration, misunderstandings, and hurt had caused both of us real pain that we didn't know how to communicate.

Even after we started budgeting there were times that our financial meetings ended with me in tears and the hubby frustrated that we still weren't on the same page or that our money didn't seem to be doing what we wanted it to.

We had made a promise to each other to never mention divorce, not even jokingly. It is a word we just don't want in our vocabulary. Still, in the midst of those first couple years, we both contemplated how we were ever going to make this marriage work, and whether or not we even wanted to.

Fast forward to where we are now.

This summer has been amazing, not that our marriage still hasn't had its challenges, but because we've become more united in our goals. We've begun to cement as a team with a single vision of where we want to go with our finances, our family, with God.

When we decided to sell our house it was a huge relief to both of us. After living there for almost two years we realized that it was way more house than we needed, more work than we could handle, and really not in the location we wanted to be in. So, a few weeks ago, we packed up our bags and moved in with Jake's beautiful grandmother, one of the sweetest ladies you'll ever meet. The situation is mutually beneficial for all of us because having us there at the house helps Grandma and also gives us some time to save some money and invest a little more time in finding our dream home.

Some may consider moving in with family a step back, but for us it has been freeing. I don't completely regret buying our big old homestead because while we were living there we learned a lot about what we really want in a home, what we really need, and where we want to be.

The weirdest part about all of this, however, is that even though we're probably facing more stress than ever right now—with trying to sell the house, with Jake possibly losing his job soon—we're dealing with it much better than we would have a couple years ago. Instead of all this stress driving a wedge between us it has become something we can come together about, praying and trusting that God has a plan in it all, and being thankful that we do have that 3-6 months savings set aside for these uncertain moments in life.

I think the reason we are both so passionate about Financial Peace University is because of how it helped not only our finances but our marriage.

If you're facing marital problems, won't you let us pray for you? Click the contact button above. And if you'd like more information about Financial Peace University, ask us!

Keep pinchin'

Budgeting Myths That Are Probably Ruining Your Life

Belief shapes behavior. If you believe Star Wars is superior to Star Trek you'll probably enjoy finding opportunities to slam Trek fans. If you believe eating chocolate is good for you, you'll probably get fat. If you believe that budgeting isn't necessary you'll probably go broke.

And if you are struggling with managing your money it might be because you're believing lies about the budgeting process. If you follow our blog at all you know that Dani and I budget regularly—if for no other reason than the fact that it works!—and we want you to be a budget-head too. It can be really hard to get started, but not because budgeting is actually hard—trust me, it's not—but because many people buy into some of the myths that turn the budget into a bad guy.

If you're smart—and we believe you are—then you can learn to let go of these myths, excuses, and misunderstandings, and start building the wealth you've always wanted to have.

Budgeting Myth #1

I don't have time to budget.

Sure, budgeting takes some time, but there's a difference between not having the time and not having the motivation, which is most likely the case, wouldn't you agree? Getting a budget up and running might take a few hours, but after that all it takes is a few minutes a week.

Want to know how much time Dani and I spend on our budget? About one hour a month. We keep track of our receipts and expenses, which takes a few seconds here and there, and at the end of the month we get together to compare our expenses to our budget, make adjustments, and plan for next month, but in total it probably doesn't take more than one hour.

Managing your money needs to be a higher priority since it is one of the largest contributing factors to the quality of your life. We have lots of posts to help you create a budget. Click here.

Budgeting Myth #2

I'm not good at math.

Oh, be quiet. Nobody is as bad at math as me. I loathe math. I jumped for joy when I finally graduated high school for the simple fact that I never had to open another math book again. There simply aren't enough synonyms for the word "detest" to describe how much I hate math.

And yet I budget.

Seriously, budgeting isn't rocket science. You've got your monthly income. You've got your monthly expenses. Those two numbers need to equal zero. Wham. Bam. There's your budget. You're welcome :-)

And thanks to budgeting software, you don't have to be good at math, you simply have to be able to follow instructions. Many of these programs are free and can be safely downloaded without fear of viruses or spyware from CNET's download.com. If you know how to use spreadsheet software, you can even make your own budget. Or, if you're like me and Dani, you can use paper and a plain, old-fashioned number 2 pencil.

Not doing a budget because you don't like math is a really lame excuse. Dave Ramsey has some really simple budgeting forms to help get you started.

Budgeting Myth #3

I keep track of budgeting in my head.

Uh-huh. Yeah. Sure you do. And that's why you never bounce a check, never find yourself overspending, and are sitting on a mountain of liquid cash. If you can seriously do a zero-based budget in your head every single month we’ll just assume you are the most brilliant person on the planet. Could you please help our government make a budget?

A budget in your head isn’t a budget. It’s just a vague-idea-of-what-I-spend deal-ish thing. To work, a budget needs to be written down so you can physically keep track of your assets. Moreover, if you're married and doing a budget in your head, how does that help your spouse? Guys, I'm talking at you! (And some ladies). You need to keep your spouse involved in the financial decision making.

Budgeting Myth #4

I don't need to budget because I keep track of everything I spend.

Great! That's budgeting. Sorta. Well, it's a start, but it's not a budget. If you're only keeping track of spending than you're only keeping track of the past. What about the future? The point of having a budget is to look ahead and plan for the coming month, year, and lifetime. You need to make plans for the money you haven't spent yet. Look forward AND back, not just one or the other.

Budgeting Myth #5

I want to be free to buy the things I want.

Cool. So do I. And that's why I budget. That doesn't mean I impulsively purchase every single thing I see, it means I've developed enough self-control to know where I want my money to go. If you like buying movies—like I do—budget for it. If you like getting coffee every morning—plan ahead. Need a new car? A camera? Need some landscaping done? Make. A. Budget! If you've got a budget for these things you will always have the money set aside for them, because a budget, over time, can build a cushion that provides increased purchasing power.

Read that again: increased purchasing power. Ooooh, I like the sounds of that!

The more of these myths—and others—you believe the more your actions will be defined by them. Don't let your future get bogged down under the weight of so many lies.

Keep pinchin' :-)

Getting Back To Basics When Life Throws You Off Course

We were so busy in the month of August that I didn't even have time to realize that our days in what once was our "forever home" were numbered. Then one day I got home from work and was half-way out of my car when it dawned on me, "This is our last night in our house."

Dani and I have decided to move in with my Grandmother for the time being as we continue our attempts to sell our house. By doing so we hope to save on some heating costs this winter while giving Grandma some much-needed helping hands around her home.

With this change in our living arrangements our financial situation has changed some too. It will likely change again once the house sells and we're out from under the burden of homeownership, and it will change again in a year or so when we find a new house... or apartment... or something.

All of this means we need to take a "back to basics" approach to our budget, which, when you think about it, isn't a bad thing to do every now and then anyway.

Since leading Financial Peace University, Dani and I have kept in touch with some of the people who attended. Some are doing well. Others have backslidden. One lady approached me last week and said, "I hope you're not planning another FPU reunion because my husband and I have made no progress with our finances at all!"

People in that kind of a situation think I'm going to be mad at them or disappointed, but there's no way I can fault them for their mistakes when I make plenty of my own. The more important thing is no matter how many times our financial mistakes trip us up that we dust ourselves off and get back up. Sometimes that may involve a budget "Reset," especially if you haven't been keeping track of your income and expenses.

We live in a society of perfectionism, where one mistake by a political leader or celebrity earns them a lifetime of public shunning, unforgiveness, and hatred. Anyone remember actor Mel Gibson's drunken anti semitic outrage back in 2006? Of course you do. Because despite his numerous attempts to publicly apologize for the incident and seek forgiveness from the jewish community, Gibson is still far more hated in America today than he is loved. Why? Because we found out he wasn't as cool and collected and heroic as the characters he portrays in film? Because we found out that he's a real human being with real problems?

Our culture, while admittedly imperfect, demands perfection. The moment someone doesn't live up to our expectations we diminish them.

Instinctively we apply this type of thinking to ourselves far too often. When we're faced with a project we can't complete perfectly, we quit. When stuck in a marriage that doesn't reach our standards, we divorce. When we're unable to follow a financial plan, we ignore it.

We know we're imperfect.

We say we're not striving for perfection.

Yet we fault ourselves, and others, when perfection is not obtained.

I don't know about you, but the word "absurd" comes to mind.

Perfectionism isn't really about being meticulous and perfect anyway. Essentially, it's about fear. We fear failure. We fear making mistakes. We fear disappointing others. Which is why people act so ashamed when they admit to me that their falling short on their financial budget.

Look, it's no surprise to me that you've fallen short. What would surprise me is if you said the budget is working great, that you've never screwed up, that you follow it to a T, you love it, because at that point I would just assume you're lying!

Maybe it's time to get back to some basics. Don't let the latest mistake keep you down. Revisit that budget, find out where you went wrong, and get back on track. Cut the fat. Mind the frivolous spending. Start putting money into savings again. Don't give up just because you've messed up.

Dani and I are going to be making lots of changes to our budget in the months ahead because our financial plan, as we laid it out years ago, has not become what we wanted it to be. Some of that's because of mistakes. Some of it's just plain the result of life interjecting the proverbial monkey wrenches. But all of that doesn't matter as long as we don't throw in the towel.

So, bear with us as we continue to figure it all out. And, while you're at it, pick up that budget, dust it off, and dive back in!

Keep pinchin' :-)

One Of My Greatest Money Saving Tips

I try not to go shopping unless I have a plan. Some days I can go into a store and not purchase anything, just enjoy the "window shopping" experience, but there are other times, times when I go in without a plan, that I end up purchasing things I either don't need or don't have in the budget.

Here's what I mean by "shopping plan":

Whenever I go on a shopping trip and stick to this plan I'm usually quite successful and don't leave the store with that guilty feeling of going over budget. I not only enjoy the trip a lot more, but I enjoy the items I purchased even more. Going shopping with a budget plan is also motivation to hunt down good deals and maybe even have a little money left over to purchase a few "wants" :-)

Do you have a plan when you go shopping? Is there something you do that isn't on my list? Please share!

Keep pinchin' ;-)

Taking The Zap Out Of The Electric Bill

This past winter our electric bill seemed to sky rocket! It was CRAZY, and for this penny pinching girl, unacceptable!

For a year and a half it had been holding steady at $50-60 a month. Mind you we don't use the dryer—preferring to hang our clothes to dry when possible—we unplug things we aren't using, and turn off lights in rooms we aren't in, all in an effort to cut down electric costs. We were doing well for a time.

Then, all of a sudden, we got a bill in excess of $80! Not once, not twice, but many times. Our bills were $85 or more. This was NOT ok!

After taking the time to do some investigating I was able to pinpoint what I thought was the problem. A year before I had changed over our electric supplier because they were significantly cheaper than the only distributor we had available to us. I made a fatal mistake with this decision though, because the price I locked in at was only good for six months. After that I needed to lock in a different price. I forgot about this, and consequently put us into the variable price plan that changes from month to month.

Realizing this so late in the game didn't help matters, because locking in at the current price of almost DOUBLE what we were paying before wasn't cool.

So I decided to see what else was out there.

Thankfully I was able to do all my investigating online because I HATE calling people. (I'm not kidding. I usually make Jake do all the phone calls, and I handle online stuff.) Anyway, as I was investigating I found that there was a new electric supplier for our state, and, lucky for me, they had the best going rate. We're in the same situation though where I have to lock-in the rate in six months, but hopefully by then we will have moved so it won't matter. Plus, I think I learned my lesson.

Happy ending to my story: the last two months our bill has been back down to right around $50! When you have a zero-based budget—meaning, all of our money is accounted for and allocated—an increase of $30-to-$40 a month for electric ruins the whole thing!

Moral of my story: don't hesitate to shop around for the best rates. Electric, gas, oil, groceries, repairmen... Don't think you don't have options. And, if you get yourself into a short term fixed rate, make sure you follow up with it and re-enroll!

Keep pinchin' ;-)

Breaking Free Part 5: The Art Of Sustainable Sacrifice

It's been two years since Danielle and I started down this road toward debt-free living. It's been a challenge, a fun ride, a ministry, and a blessing, all rolled into one adventure. This week we'd like to look back on our journey, share some of the intricacies of how and why we do it, and hopefully encourage you to gain some ground in your financial battle.

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Saying that I don't complicate things is like saying a full moon doesn't throw a monkey wrench into the Wolf Man's daily grind.

I have a tendency to immediately over-think and over-complicate things, but when Danielle and I first started budgeting I forced myself to be intentional about keeping it simple. In fact that's one of Dave Ramsey's key points in Financial Peace University. He calls it KISS: Keep It Simple, Stupid.

So, first, we followed the plan. Simple.

Then we wrote our entire budget out on paper to make it easier to work with. I even used a pencil instead of a pen. Simple.

When we compiled our budgetary needs we put them into a small number of categories. For example: instead of having budget lines for cleaning supplies, tools, and home repair, we have one line item called Home Needs. See? Simple.

We found that a successful budget needs three main things in those first few months:

1. Discipline. You've got to keep at it. You've got to do the work. You've got to set it up and make your money work for you.


2. Realistic expectations. Unplanned expenses are going to happen, and the money to cover them has to come from somewhere.


3. Flexibility. A budget is rarely going to work properly from the get-go. It will need adjustment.

After about six months we had the budgeting thing down to a science.

Spend Less, Earn More

When it comes to paying off debt, Dave Ramsey points out that the two things that contribute the most to attacking debt are spending less and earning more. I'll give Danielle the most credit when it comes to earning more. That girl can work like a dog when she's got a goal. She took a lot of extra jobs on top of her full time job to earn extra money.

And when it came to spending less we both made a lot of sacrifices. We didn't cut out restaurants and movies at first, but over time we cut back at these things more and more with the understanding that we couldn't give them up forever.

That's what sustainable sacrifice is all about—sacrificing unnecessary expenses to accelerate progress for a period of time. The idea is to stay motivated as you see your sacrifice enabling you to get ahead in other areas financially. If you can get debt free in one year by sacrificing deeply, go for it! Otherwise, take a good look at your budget and determine what expenditures you can cut back and for how long.

In our case, we knew we'd have to sacrifice for about five years at least, and we made decisions based on what we thought we could handle for that amount of time. Had we gone into it without a determined timeframe we—mostly I—would've gotten too discouraged and probably given up.

I Gotta Have My Cookies

Sustainable sacrifice isn't about depriving yourself of everything you enjoy. It means being intentional about telling your money where to go. If you want to spend some of it at Dunkin Donuts, that's fine, just make sure you plan for it. Otherwise you get fat.

Oh, wait. Wrong topic. Well, it still sort of applies. See, now that my wifey is into being a Beachbody coach, and now that I've seen the tremendous success she's had with eating right, I've decided to work on adding a better dietary plan to my workout routines. But, like my personal spending money, if I don't have some junk food to look forward to I'm going to get real discouraged real fast.

So I prepared an entire batch of chocolate chip cookies and divided them up into little freezer bags of three. Every Saturday I know I have that beautiful, chocolaty sweetness to look forward to. If i didn't have that, I wouldn't keep track of what I was eating. A candy bar here. A brownie there. I wouldn't know from one week to the next how much junk food I was eating.

Knowing I've got cookies coming on Saturday makes the sacrifice during the week sustainable.

Sustainable sacrifice.

Now, just as a quick side note, the types of sacrifices that move the debt needle the fastest are monthly sacrifices like cable TV, subscriptions services, and the like. Maybe for this summer you decide not to purchase a golf membership. (I know, heresy!) Or if cutting out television entirely isn't an option, maybe a cheaper package with fewer channels is the way to go for the next year.

Making sustainable sacrifices will help you make progress, which will help keep you motivated to make more sacrifices to keep on keeping on.

What sacrifices have you made to dump debt?

Other posts in this series:
Part 1: My Personal Wake-Up Call
Part 2: How To See Some Hope
Part 3: Overcoming The Comparison Trap
Part 4: The Things We Didn't Give Up

Make Your Goals Specific And Measurable... Like Batman

Batman is the quintessential problem solver. Since his inception in 1939 he has always been, first and foremost, a detective. A costumed Sherlock Holmes. More than his martial arts skills, his money, or his gadgets Batman's intellect has always proven to be his most valued asset.

Though the movies have often failed to demonstrate this aspect of the Caped Crusader, there's a great scene in "The Dark Knight Rises" that shows Batman's intellect and how victory can be achieved when you first break down your problems and tackle them one step at a time.

First, you've got to understand, that in "The Dark Knight Rises" Batman had spent the majority of the movie getting beaten to a pulp. He had grown too cocky, over-confident, and had lost his edge. As a result, when he finally comes face-to-face with the physically superior villain Bane, Batman gets pulverized and tossed into a third world dungeon with a broken back.

As his body heals, Batman considers what he did wrong, and when he finally returns to Gotham City he approaches Bane like a surgeon, dissecting the threat before they come to blows. First he recruits some allies. Then he gathers his equipment. Then he spreads hope to the citizens of Gotham and fear to the followers of Bane by announcing his return in dramatic fashion. Finally, after months of planning, Batman springs his trap and defeats the bad guy.

With a little planning, determination, and some allies, nothing is impossible to overcome.

• Don't try to tackle your problems all at the same time. No matter how much craziness you've got going on in your life, it's wise to break the issues down and take them on one by one. This is what makes Dave Ramsey's Financial Peace University so effective—it breaks down the budgeting process into easily achievable goals, goals that you can't help but reach as long as you keep moving forward.


• As Batman so clearly demonstrates in "The Dark Knight Rises," your goals must be specific and measurable. When he returned to Gotham City to face Bane again, he had a detailed plan that included the use of specific allies and certain equipment. It's an example of the obvious—if your goals are too vague they are just dreams.


• Long-term thinkers are the ones who win. Batman knew that defeating Bane was essential to the survival of Gotham City. His plan took months to form, but it was for a far-reaching purpose. Today's culture doesn't think like this. We're all about immediacy and convenience, and rarely do we think beyond our needs for the day, week, or maybe even the month. But when we keep our eyes on the future instead of our immediate circumstances, the possibility of reaching our goals becomes more and more inevitable.

This is a simple formula that can be applied to any tricky life situation:

1. break your problem down into smaller goals
2. make your goals specific and measurable
3. plan around those goals with a far-reaching future in mind

You may find yourself beaten at times. You may find that there are some Banes out there who are going to catch you off guard, knock you down, and thwart all of your efforts, but you can't let your circumstances overwhelm you.

Are there any specific and measurable goals that you're currently chipping away at? Or have you been thwarted?

Keep pinchin' :-)

10 Things I Hate About Saving Money

In all honesty, as much as Dave Ramsey has saved our finances, and probably even our marriage, his principles can be a real drain on life sometimes. Especially if you're a free-spirited spender like moi.

Now, for Dani and I, when we get down about things, we'll make a rap music video or find some other creative ludicrousness through which we can vent our frustrations.

Sometimes, however, you just gotta let it out. So here's my top 10 reasons why I hate saving money.

1. I AIN'T GETIN' ANY YOUNGER

A screenshot from our trip to
Cedar Point video.

Bush Gardens. Disneyland. Sea World. The world's tallest roller coaster. Scotland. I want to enjoy these things while I still have youth and vibrance to enjoy them.

2. I AIN'T THE OUTDOORSY TYPE
I don't mind a nice hike from time to time. I enjoy family picnics and bike riding, camping, and boating, but my real passions are indoors—art, writing, movies, books. Sometimes it's not easy to enjoy the indoors for free when there's three new blu-ray movies that just came out or the next installment of George R.R. Martin's Game of Thrones series to read.

3. SPEAKING OF MOVIES
I love the whole movie-going experience. The audience reaction. The surround sound. The dark. The smell of overpriced popcorn. Sadly, my theater-going excursions have drastically diminished over the last couple of years. I don't mind being more selective about which movies I go see, but, dang it, sometimes I just want to BE at the movies.

4. THE LUNCH DATE
Back before I knew how much money I was wasting on eating out, I never gave it a second thought to have dinner with a cousin or my dad or call up my mom and say, "Hey, how 'bout lunch!" Now I have to plan weeks in advance for these sorts of things, if I can afford them at all!

5. I NEED MORE USEFUL STUFF
Not useLESS stuff. UseFULL stuff. Dani and I budget for everything—well, we try to—but even still there's some things that there's just no way to budget for right now. Stuff like bicycles, kayaks, power tools, and games for entertaining friends, are just impossible to find money for when you're trying to break free of debt.

6. WHEN I FEEL LIKE BENG ALL ROMANTIC
When the wifey and I were dating, it was fun to buy her flowers and chocolates and cards and things like that. Now that we're married we find that although that stuff isn't as essential to building intimacy and romance as it once was, it's still fun every now and then. With such limited flexibility in our budget,  however, it's hard to justify spending $30 on a bouquet of flowers.

7. TREATING OTHERS TO SOME FUN
I would love to have extra cash to treat my little nephews to some ice cream, or take some friends out for a round of mini-golf. Assuming the financial burden on behalf of someone else so they can have some free fun is, personally, a lot of fun! And I miss being able to do that.

8. MR. FIX-IT, I AM NOT
At the very mention of something breaking down I get this hot little knot in my chest. I hate engines. I hate plumbing. I hate repairing things. I'm not good at it. I would much rather pay someone else to do the fixing and make sure the job is done right than waste hours of my own time bumbling through something that a professional can do in 10 minutes. Dealing with stressful repairs while on a tight budget means finding ways to bury that hot little knot and fix it myself.

9. FOOD IS MORE COMPLICATED ON A BUDGET
Sometimes I have a tiring day at work. Sometimes the wife does too. Sometimes, when we're both exhausted and it's 90 degrees outside and neither of us feel like making anything I want to just make the executive decision to bring home a pizza. Mmmmm yea.... no. Not in the budget. Sigh.

10. "GET ME OUTTA HERE!"
There's a hilarious scene in the movie "Happy Gilmore" where Adam Sandler's character Happy is bringing his grandmother to a nursing home.

"This place is perfect!" Happy says as they roll up the driveway. "You're going to make friends in no time."

Suddenly a crazed-looking woman throws herself onto the hood of the car and screams desperately, "Mister! Get me outta here!"

And that's kind of how I feel sometimes when all this penny pinching starts to get on my nerves. One eye kind of goes askew. My face contorts. And I'm tempted to run up to total strangers and beg them to help me get free.

And now, if you don't mind, I'm just going to pick my tongue up, hop off my soapbox, and wander to a small little corner to weep.

Keep pinchin' :-)

Short-Circuiting Self-Sabotage To Win At Financial Recovery

To me, the hands-down best episodes of the hit sitcom Seinfeld are the ones where Jerry and George get to make a TV sitcom for NBC, and fail in spectacular fashion—though ultimately the failure is not their fault.

True to form, it's the slow-witted George Costanza—who believes that God will never allow him to be successful—and his self-sabotaging antics that nearly ruin their chances at fame. First he tries negotiating with the network for more money, which results in him and Jerry actually getting less. Then he gets involved in a romantic relationship with one of the show's producers, whom he ends up despising, but he's too afraid of losing their sitcom to he breaks up with her. Then he begins irritating the cast members. Then he has that "white discoloration" on his lip that he's convinced is terminal cancer. All of his nervousness over the possibility of success make almost incapable of actually becoming successful. In fact, he is pretty much the quintessential example of a hopeless, self-sabotaging individual.

Self-sabotage happens a lot with financial recovery. After a few months of disciplined budgeting and careful spending, some people start to miss the excitement of shopping, swiping credit cards, eating out, or entertainment. So they find themselves wandering the aisles of the mall "just to look," but in actuality they're feeding the growing urges to spend. Or they might start borrowing money from one area, like grocery money, to splurge in another.

Over time these little decisions short-circuit the entire budget, cause the person to get discouraged, and throw in the towel because they "just can't do it."

If you can’t break your addiction to financial excitement, you’re never going to achieve the kind of financial life that gives you peace.

True, spending money is exciting, and, yes, it's true that getting out of debt can be a total bore, but nothing good ever came from lazy behavior. Words like "discipline," "steadfastness," and "structure," are words that successful people are very familiar with. You want to loose weight? Discipline! You want to change your lifestyle? Steadfastness! You want to be rich some day? Get structured!

Here's another word: routine.

When it comes to getting in better physical shape, for example, I've noticed that the people who actually succeed at doing this have established routines. They don't work out every single day because they feel like—although sometimes they may feel like—they just do it.

How should paying off debt and building wealth be any different? How do you create more routine with money, and, most importantly, how do you stay on track when you're feeling bored or resistant.

Here are some ideas:

• Like Dave Ramsey always says, make a list. Even if the first item on your list says, "Make list," at least it will help you feel like you've accomplished something. Try listing your smallest debts first—credit card, car, house. Make a list of weekly budget-related tasks—Get groceries: $100, Get cleaning supplies: $20. Until you give yourself structure, you won't have any at all.


• Hold regular budget meetings. For the first year after FPU Dani and I met faithfully every week to go over our budget. Once we felt more confident in the process, we started meeting every couple of weeks. The point is, we meet and go over the budget together on a regular basis because there is no "one size fits all" budget. It has to be revisited every month, or seasonally at least.


• Dani and I have learned that we make better progress when we have hard and fast goals. We got more work done on the upstairs renovation in three days than we had in a month because we found out the realtor was coming to show our house on the weekend. And, in the past, whenever we have been adamantly focused on paying off a debt we have succeeded more quickly than we anticipated. Having goals works!


• Having fun is key to staying sane throughout this whole process. So what can you do to have fun that doesn't involve spending money? Dani loves to go to the beach. I like to chill in my hammock and read a book or write on my laptop. During the holidays we like to go look at Christmas lights. Museums. Parks. Parades. There's lots of fun, affordable entertainment to find if you look for it.

It can be hard to shift your mindset from over-spending to something as mundane as list-making and budgeting, but you have to believe that this is what will have the biggest impact on your level of financial peace. The more routine you establish, the better your chances of nipping those self-sabotaging behaviors in the bud.

Keep pinchin' :-)

Life Without Obamacare Is Beautiful... But Complicated

I'm just going to come right out and warn you: if you're planning on hunting down your own health insurance you're going to have to learn to navigate some pretty complicated waters.

For the past few months Danielle and I have been investigating Christian healthcare sharing solutions, and it's proven to be a complex task trying to figure it all out. The whole learning curve has been... not fun. In fact, it's the very antithesis of fun. It's un-fun.

But here at Penny Pinching Prose we're all about enduring un-fun to serve you better *wink*

If you've read our blog for any amount of time you probably know just how much the wife and I dislike Obamacare. I don't know, maybe it has something to do with how much we like freedom, how much we value what our veterans fought and died for, and just how much we appreciate all the hell our forefathers went through to establish a country free from tyranny. What can I say—we're Americans.

So, anyway, we're going to spend some of this week blogging about what we've learned about Christian healthcare alternatives. What are they, exactly? Are they reliable? Is it a good idea to get involved in one?

OK, SO BASICALLY...
The first thing you need to understand about share ministries is that they are NOT insurance. Though some of them function almost exactly like an insurance company, there is one major difference: insurance companies offer legally binding contracts in which they agree to pay your medical bills, whereas share ministries rely on members SHARING their income to meet the medical expenses of other members. There is no guarantee that your bills will be paid when you're with a share ministry. It requires an element of trust in God's provision.

A gamble? Perhaps. Except that God has an excellent track record of caring for His people THROUGH His people. On top of that the three major share ministries available in America today also have excellent track records of continuous coverage of their members' medical expenses.

HOW DO THEY GET AWAY WITH THIS?
How is it that these organizations can allow people to opt-out of some of Obamacare's unfavorable demands—like subsidizing abortions—yet still meet the requirements of the healthcare law? Well, basically it's because our First Amendment rights are still being upheld... albeit to a very small degree. It's the result of Congressmen Tom Perriello, a Virginia Democrat, and Senators Max Baucus, a Montana Democrat, and Charles Grasslet, a Republican from Iowa. They fought to add the exemption to the law. It's the same principle that allowed for the Amish to be exempted from the individual mandate—with the crucial difference being that it's a lot more practical to join a share ministry than it is to become Amish. Although that would be cool.

The exemption requires qualifying health-sharing ministries to have been in operation before Dec. 31, 1999, which gives something of a monopoly to the three qualifying organizations—Medi-Share, Samaritan Ministries, and Christian Healthcare Ministries.

HOW DOES IT WORK?
They all work pretty much the same way: to join you agree to pay a certain "share" every month, which  is similar to the premium you would pay with an insurance company, except your money goes into a giant fund from which other members receive money for their medical expenses. At Medi-Share, for example, the funds are distributed by the organization, but at Samaritan Ministries the individual members handle the money, so when you need a medical expense covered you'll get checks from several different people instead of the organization.

I know. It sounds weird.

So say you break your arm. You go to the doctor and tell them that you're a "self-pay" patient. You work out a billing schedule or pay up front. After receiving care, you notify the share ministry of your medical bill which is looked at to determine if it meets their guidelines for sharing and then they reimburse you directly. In some cases they'll pay up front.

BUT HERE'S WHAT THEY DON'T COVER
Unfortunately, all three main share ministries treat regular doctor visits—like vaccinations, prescriptions for chronic illness, and check-ups—as something you need to budget for in addition to the share amount you pay every month. Their policies vary slightly, but they all seem to take the same position on this to one degree or another.

Still, even with the monthly share amount and budgeting for regular doctor visits, members pay significantly less than they would with Obamacare—i.e., through an insurance provider at work—especially if you're in the middle class tax bracket.

IS THIS SOLUTION RELIABLE?
Well, it depends on who you talk to really. Some people say share ministries are great because of their biblical-based alternative to Obamacare. Others say they are unreliable, that payouts for your medical bills are dependent on other people, which means there is no guarantee that you'll get financial assistance in the event of a medical crisis.

If you're a normal human being with any level of financial responsibility that might make you say, "Umm, yikes!"

Historically I've never met an insurance company that was reliable either. Time and time again I've been screwed by insurance companies that are busting at the seams with dollar bills yet unwilling to let go of a single one of them. So, personally, I don't mind not wasting another second on insurance companies.

Ultimately, Danielle and I like the faith-aspect of share ministries and how it forces us to be more aware of how God should be at the center of our healthcare decisions. We like that we get to use our money to help other Christians, that we can pray for them and encourage them through their medical trials. We like not paying an arm and a leg for insurance that goes against our beliefs as Christians, our rights as Americans, and supports things that are clearly against God's Word.

Tomorrow we're going to talk in more detail about the pros and cons of the three major share ministries, so stay tuned!

And in the meantime...

Keep pinchin' :-)

Flexing My Muscles... or Lack Thereof

It's called "Insanity." It's a six week workout series that I've been going through with a friend. To give you an idea of how hard this workout is I'll tell you that my wife passed out from the intensity of it the first time she tried it. So, instead of my wife, I've found a workout buddy who lives up the road from me and we've been plowing through it every night for the last two weeks.

The workout is, as the name implies, insane. It's a high energy, high impact, heart-racing, sweat-dripping excursion into total body pain. The only thing I can imagine that's any worse is maybe giving birth, but, being a dude, I will never have to experience thank.

Insanity, by fitness professional Sean T., is the kind of workout I prefer though because it doesn't involve any gym equipment, weights, or exercise gear. It's just you. Your body. And a ton of cardio and plyometric exercises. It's an expensive kit, but, thankfully, I had bought it years ago, back before we were following such a strict budget.

Thanks to my workout buddy—who has attended medical school, and knows a lot more about the inner workings of the human body than I do—I've been learning a lot about fitness. Exercise is just a small part of getting into better shape. There are some dietary practices one has to employ in order to see results, because I can follow the workout instructions to a T, but if I'm not doing something as simple as drinking enough water than my body is going to suffer.

I can't help but relate this whole Insanity experience to my finances. In many ways, the financial disciplines that Dani and I have been practicing for the last year or so are very similar. If I think of my workout as my budget, then everything I do leading up to the workout is like my spending habits. If I have $1,000 in monthly bills, but only budget $500, then at the end of the month I'm going to have a hard time meeting my budgetary goals. Likewise, to get the most out of my workout, I need to make healthier choices throughout the week—a banana for a snack instead of a cookie, more water and less lemonade. It's these little choices along the way that make the whole thing work.

My friend and I just completed the second "fit test," which acts as a sort of gauge of how you're doing. I'm pleased to say we have both seen some measurable improvement in our fitness level. It'll be interesting to see just how much progress we can make in the weeks ahead.

Keep pinchin' ... or, as Sean T. likes to say, "Peace out!" :-)

How Pruning Can Benefit Us

At the end of winter I decided to cut back my raspberry bushes. I'm not entirely sure if that was the right thing to do, but it seemed logical to me. The raspberry bushes were on our property when we bought our home almost two years ago, and I'm not sure how long they had been there prior to that or how long it had been since someone took care of them. I wasn't sure what was old and what was new, so I decided to just cut it all back in hopes that in the future I would reap a greater harvest.

As I was raking out all the branches I had pruned and the dead leaves, I was reminded of how this is kind of what Jake and I have done with our finances. In some ways I feel like we have hacked back and hacked back as far as we can go in hopes of building a better financial future. We went into this process with some hesitation, facing a lot of unknowns, and we still don't really know what will happen next, but we are trusting the process to produce financial fruit for us. We knew that we couldn't keep spending the way we had in the past if we expected things to be different in our future, but knowing that didn't necessarily make it any easier to cut out restaurants, Netflix, or our vacation budget.

Another thought that occurred to me was how God prunes my spiritual life. Often times in order for God to really work in my life He has cut back or completely remove things that I thought I needed. While this process is painful, if I stick with it and trust in Him, I usually find that He is faithful to do a mighty work in my heart and life. Sometimes He even replaces the things I thought I needed with much more precious things.

It amazes me how often I am willing to hang onto the old, broken, damaged parts of my life for fear that I won't like what will happen if I allow them to be pruned back, but as long as I am unwilling to allow that process to happen I am missing out on the good things my Father in heaven has in store for me.

So, while I wait to see what comes from my raspberry bushes I will allow those newly cut-back plants to remind me of the importance of the pruning I need in order to continue in my financial and spiritual life.

Keep pinchin' :-)

10 Financial Principles Straight From The Bible

It amazes me that Dani and I, who both grew up in Christian homes, who were both saved at young ages, didn't start learning all of this financial stuff until we were married. In the 16 months since taking Dave Ramsey's Financial Peace University we have discovered a whole world of biblically-based financial advisors, blogs, websites, books, and more that talk about managing your money from a God perspective.

Neither of us learned this growing up. I never once heard it preached from a pulpit. I never remember hearing it on Christian radio. Maybe the whole trend of managing money God's way is just now starting to catch on, but I also think it's sad that more pastors don't preach this stuff. The more I learn, the more I think, "It's so obvious! Why didn't I get this sooner, and why aren't more people doing it?"

Here are 10 financial principles straight out of the Bible that I'm, A) stunned I never heard about before, and, B) want to pass on to someone else so they don't waste their life digging themselves into debt. Because, let's face it folks, America isn't getting any better. The government is not going to protect your assets, your 401k, or even your hard-earned retirement. Don't count on it. Put your trust in the only thing that has proven trustworthy: God. The following financial principles are tried and true. They're real, and if put into practice will change your financial future.

1. God is the source of everything. Learn this. Learn it now and it will make the rest of your life a lot easier. All throughout Scripture we're taught that everything we have comes from God and we give it out of His hands. God owns it all, from the earth (Psalm 24:1) to all the silver and gold (Haggai 2:8) to me and you (1 Corinthians 6:19–20).


2. Giving isn't a good thing to do, it is an ESSENTIAL thing to do. Like I blogged about yesterday, Deuteronomy 14:23 tells us that tithing wasn't created for God's benefit, but ours, to teach us that God comes first. The Bible encourages us to give a tithe to the Lord (Proverbs 3:9, 10) from the "first fruits" of our earnings—yes, that's before taxes. The book of Hebrews suggests a tithe should be 10%.


3. You've got to allow some room in your life for the unexpected to happen. By all means, make your plans and live out your plans, but do so with an understanding that God may ask you to do something different. The Apostle Paul was running around murdering Christians when God radically changed the direction of his life. The same goes for the disciples, as well as Jonah, Job, and countless other Biblical figures.


4. Set something aside for a rainy day. The Bible says that only a fool spends everything he has, but in the house of the wise are stores of choice food and oil (Proverbs 21:20). We should all be setting aside a little bit of what we have because no one is exempt from hard times. A house fire. A lost job. Sickness. The Bible essentially says that not planning for hard times is idiotic.


5. Avoid unnecessary debt. As I've written about before, the Bible doesn't necessarily condemn or condone debt, but it does strongly caution against it. In fact Proverbs 22:7 essentially calls anyone who is in debt a "slave to the lender." Debt isn't usually worth it. Stay clear of it.


6. Be content with what you have. Despite what cultural philosophy might tell you, happiness is not found in the "American dream" or by having more money, better cars, or bigger homes. Scripture teaches that covetousness and lust are wayward desires of the flesh that just pull us away from Christ. Just read The Ten Commandments.


7. Keep records. People who run their businesses without keeping records are morons. Their businesses fail. No intelligent person would run a business like that, yet it's how we run our lives every day. Proverbs 21:23 says to be diligent in knowing the state of your wealth, and 1 Timothy 5:8 says—and this is the heavy one—"If anyone does not provide for his own, especially for those of his household, he has denied the faith and is worse than an unbeliever." So know what you've got and what you're doing with it.


8. Don't go into debt with someone else. Cosigning on a loan? I'd hesitate on that one. Proverbs 27:13 suggests that poorest credit risk you could take is to agree to pay someone else's debt. Think about it, the only reason a lender requires a co-signer is if they don't trust the borrower to pay the money back. If you agree to cosign, this means that the lender is smarter than you!


9. Don't be afraid of hard work. The Bible doesn't pull any punches on this one. God values labor, and richly rewards those who aren't afraid to work hard (Proverbs 14:23, Proverbs 28:19). This whole concept of work is all throughout Scripture. God worked to create the world (Genesis 1:1), and when Jesus called the disciples away from their fishing, it wasn't so they could just follow Him around and listen to Him preach, it was to make them "fishers of men." A different kind of work.


10. Seek Godly counsel. The Bible says that people who seek the counsel of the Godly are blessed (Psalm 1:1, Proverbs 15:22). If you need financial advice, don't talk to friends and family members who are just as in debt as you are. Talk to your pastor, your elders, and, above all, seek God's guidance through prayer and His Word. And be prepared to hear hard things because they're most likely going to tell you that some of your financial decisions are downright stupid. But if they won't tell you, who will? And if they don't tell you, where does the roller coaster of spending and debt end?

Keep pinchin' :-)

This blog was inspired by an article by Christian financial advisor George Fooshee. Click here to read his 10 biblical financial tips.

Jake's Take: Die Hard - If It Works On Terrorists...

Deriving financial insights from today's blockbusters and yesteryear's classics.

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It was Bruce Willis’ claim to fame and it’s one of my all-time favorite movies: Die Hard. Sure it’s loaded with blood splatterings, gunfire, explosions, and profanity, but Die Hard is a classic example of the action flick at its best.

And Die Hard has some great lessons to teach us about the mind set that we need to have when we approach budgeting. Trust me it does. It has to. I’m writing a blog about money management and I love Die Hard, so I’ll squeeze a metaphor out of it if it kills me.

The hero of the story is John McClane, an under-appreciated, down on his luck, New York City cop who flies out to California to reconnect with his wife and hopefully save his marriage. While attending a Christmas party at her office building, McClane and all the company employs get trapped on the 40th floor when a group of terrorists seize control of the building with hopes of acquiring the $640 million stored in the company vault. Slipping away from the baddies, McClane becomes everyone's best hope for survival. But he’s a fish out of water. He’s got no phone, no technological know-how, and no shoes.

McClane’s biggest asset is his method to approaching to conflict—simplify. He’s not good with computers (in fact he’s utterly baffled by a touch screen monitor). He doesn’t understand electronics, and he’s not motivated by greed or ambition or money. He's good at being simple because John McClane is a simple guy, and throughout the movie he’s continually breaking down his challenges to the simplest fundamentals.

Too many bad guys in the ways? Use bullets.

Bad guys shooting up police officers? Drop a bomb on their heads.

Roof about to explode? Jump off…. but first tie yourself to a fire hose.

Granted, his ideas aren’t always the greatest, but it is his ability to simplify that saves his life again, and again, and again.

Like John McClane, we need to take a more simplistic approach to money management. It’s not all facts and figures and calculators and spreadsheets and computers. Sometimes it’s just good old fashioned discipline and common sense. Maybe you don’t need a budget with 40 categories. Maybe 20 will do just fine. Maybe if your spouse can’t understand the colorful spread sheets you’ve set up in the computer, maybe it’s time to just write it down on paper. Whatever the case may be. Simpler is better. If it works on terrorists it'll work on your bank account.

Keep pinchin' :-)