Leo who writes the Zen Habits Blog has a free ebook called Thriving on Less – Simplifying in a Tough Economy. Zen Habits is one of my favorite blogs and Leo is real but also lives what he teaches. He’s married with six kids, lives in Guam, and kicked a lot of bad habits and simplified his life. Now he inspires others to do the same.
Here’s an outline of his book (read it online or print out and take it to a printer to spiral bind it between 2 sheets of plastic).
Introduction
1. A Simple Lifestyle
2. Focus on the Essentials
3. Thriving on Less, Not Struggling
4. Focusing on Enough, Not More
5. Make Small Financial Changes First
6. Look at Large Expenses for the Long Term
7. Changing Your Spending Habits
8. A Guide to Getting Out of Debt
9. Tools for a Frugal Life
10. Resources
Maybe the economic crisis is teaching us something after all! CNN reports that for the first time ever, American’s debt shrunk! Read that, for the 1st time ever. Well, at least since 1952 when the Federal Reserve started collecting information about household debt.
“According to a Federal Reserve report released Thursday, consumer debt fell an annualized $30 billion, or 0.8% in the third quarter to $13.91 trillion.”
Our collective net worth has fallen too – to $2.8 trillion, or 4.7%, in the third quarter.
This is good news, a silver lining in otherwise dreary news we’ve had this year.
Here’s a resolution for the new year: get out of consumer debt and start investing with a Utah Financial Planner.
I love that our son’s teacher is teaching him the value of money at school. He does homework and instead of getting a sticker or smiley face, he gets paper coins. Later he can use the “money” to buy things at the “store.” The store has small, inexpensive items that kids would like. I told him how it took me much longer to realize the value of money.
We’re also teaching him at home. He recently asked his dad how business is going. Not sure if that’s good (he might worry if the answer isn’t all roses). But he’s aware.
The Get Rich Slowly Blog has a list of books that teach kids about money. They are all reasonably priced, under $10. For used copies it’s even cheaper:
The Totally Awesome Money Book for Kids
by Arthur and Rose Bochner. “Arthur wrote the original version of this book when he was 11. Now, at age 24, he’s teamed up with his 14-year-old sister to revise it.” Ages 9-12.
The author makes a good point – people are more receptive to books when they already have an interest and are ready. I try to cultivate this interest with my son. Never use books as a way to get people to change who aren’t ready – it won’t work and can turn them off to the subject completely.
Wine.
The bad financial news: You’re paying 300-400% mark up per glass over what you’d pay for a bottle in most retail stores! Workaround: some states and restaurants will let you bring in your own bottle of wine. Pay the restaurant to open and cork it for about $10. Or, you may be able to order a bottle and take the rest of the bottle home to drink after you’ve had what you want to drink at the restaurant.
Pre-cut fruits and vegetables. The bad financial news: You pay at least double the cost for pre-cut produce versus buying their whole counterparts. You also don’t get the full amount of vitamins. Workaround: Buy produce whole, and when you get home, cut it up and put it in ziplock bags ready to eat or cook. My husband likes to soak veggies in water if you’re eating them raw. You can do that up to a day ahead of time.
Popcorn at movie theaters. The bad financial news: You could be paying a 1,300% markup on a tub of popcorn at the movie theater. Plus, it’s really bad for you. For example, a Small with butter has 580 calories 47 grams fat. Think you’ll just skip the butter? Still, bad news. A Medium (no butter) has 650 calories, and 43 grams fat. Workaround: Eat before you go.
Bottled Water
The bad financial news: “Did you know that the two biggest brands of bottled water in America –Dasani and Aquafina — are nothing more than purified tap water? In fact, estimates are that 40% of all bottled water is tap water. ” Plus, bottled water can cost 10,000 times more than tap water. You’re paying for packaging and branding. Workaround: Refill water bottles with your own purified water.
Coffee at restaurants The bad financial news: The mark up is huge on coffee at restaurants. At $2 or more a cup, for something you could make at home for about 50 cents. Workaround: Drink coffee at home and drink water at restaurants or limit the number of times you drink coffee out.
If you limit drinking wine, coffee and bottled water, you can eliminate what can be a big chunk of money each year. Besides that the calories and caffiene aren’t the best for your health. If you’re healthier, life will cost less for you because you’ll have less trips to the doctor and lower risk for major health problems. Your pocketbook will also be fatter, even if you’re not!
Most of us have some bad financial habits that are tough to break. Focus on cutting back or eliminating one thing at a time. Find a replacement that you can enjoy that doesn’t cost as much.
