Larson Institute of Self-Mastery » Master Your Money

How to Live Simply

Guest — Tue, 22 Feb 2011 08:31:42 +0000

Author – Ricky Miller

Choosing a lifestyle of simplicity is often a very personal, life changing decision. People choose to live more simplistically for a lot of different reasons. Some may do it simply to save money, while others do it to feel a deeper connection with life. You may choose to simplify your life to reduce stress, to reduce the environmental impact that you have on the earth, or simply because it is hard to manage the space that you have to live in. No matter your reasons, you can use these guidelines and affirmations to help you manage a simpler life.

1) Living simply gives us more time to enjoy life. Just imagine how much less time you could spend cleaning, organizing, shopping, and worrying if your life was streamlined into a wistful, predictable bliss. Of course, things will come up. But, having a commitment to making your life more livable and less stressful will give you the outlook that you need to make it through the rough patches.

2) Start by reducing your possessions. Ask yourself if you really need it or if it really makes you happy. Why did you buy the item in the first place? Did it make you happy when you bought it? Does it still retain its value to you? Getting rid of things that clutter your home will help you to free your mind. It is a very powerful feeling to have control over the number of possessions that you have. Many people are so happy with the control that they feel that they don’t miss the things that they got rid of, at all.

3) Go through your home and find piles of junk. Everybody has some clutter that could be reduced. Focus on one section of your home at a time and try to keep only what you really use. If you have a lot of dishes, keep only your favorite ones. If you only have one frying pan, you’ll have to clean it every time you use it. No more dishes piling up in the sink. If you don’t have back-ups for putting things off, then they’ll have to be done in small doses. No more weekend days that consist of only cleaning. You can’t procrastinate doing the laundry or housework if it has to be done for the next meal or day of work to happen. You’ll be so happy never having clutter pile up that you’ll revel in your small daily routines of making it work.

4) You will need to optimize your storage space to get some things in order. Take your closet for example. If you’re serious, you may want to get rid of bedroom furniture. Many folks love only having a bed in their bedroom. It’s a great way to enjoy space. You will still need somewhere to keep the possessions that you need. Get a good closet system that has spaces for little things, like ties, socks, jewelry, and gloves. Use space saving hangers to make your clothing that you keep fit into a smaller space. Velvet hangers are great for this, because they’re slim, strong, and can save you more space than you may have imagined. Once you get your closets done and your home clutter-free, you can relax in the space that you have created.

About the Author: Rick Miller is on the staff of Only Slimline Hangers, a leading online resource for velvet hangers which are space saving hangers, non slip hangers and slim line hangers.

Article Source: http://EzineArticles.com/?expert=Ricky_Miller

How to Live Debt Free Without Credit Cards

Guest — Tue, 08 Feb 2011 08:38:58 +0000

Author – Andre Larabie

Living debt free is a goal that many of us have, but few of us seem to be able to achieve. Our modern world seems programmed to keep us in debt – credit cards, financing for major purchases, store cards and more keep promising us that we can have what we want now and pay for it later. It is a massive temptation. When we are looking at the signs that say ‘Nothing Down, and no Payments for 12 Months’ we aren’t thinking of the extra cost that is implied in that financing. When we buy everything on credit we can end up paying as much as 3 times the value for the items we purchase. Over a life time this money can really add up. So how do we get out from under the burden of our consumer debt?

The key in lightening the debt burden lies in re-establishing spending priorities that are within your means. The fact is, when you live debt free you will actually have more than enough money to buy the same stuff you buy on credit, the difference is that you cannot necessarily buy with the same sense of immediacy. When you are living consumer debt free, purchasing takes on a save and spend cycle. Although the change to this new cycle of monetary control will take awhile to adapt to, eventually it will become natural and you will wonder why you voluntarily threw away so much money on finance and interest charges.

In order to reach a state where you can successfully live debt free and live without credit cards you will need to resolve the outstanding debt you currently owe. Minimum payments are a trap to maximize credit card profits and to keep you locked in debt, so start making more than the minimum payment each month. If you have multiple credit cards and financed purchases, choose the account that has the highest interest rate and concentrate on paying it off as quickly as possible. Once you have cleared the first account, choose the account with the next highest interest rate and repeat the process. Although it may take some time to clear all of your consumer debt in this manner, the feeling of relief you will gain as you gradually break free from credit card after credit card will deliver great satisfaction. Once you have cleared the balances on all of your credit cards and financed purchases, cancel the accounts, cut up the cards and prepare to live a life free of the credit burden.

For many people the initial months after all consumer debt is cleared are the hardest. The mental boost you get from becoming debt free soon fades and the offers from credit card companies desperate to win back your business start pouring through the mailbox. Resist temptation to open any of the junk mail – your did not work so hard to get out of debt only to be sucked back in by a better interest rate and a high starting balance. Just put any mail from a credit card company directly into the trash – eventually, when they get no response from any of their mailings they will stop sending offers.

Managing your spending while you are debt free is a fairly easy process once you get into the habit. Review your spending habits over the past couple of years and create a budgetary amount for things that in the past you bought on credit. Items this list might include are – clothing, jewelry, household goods and appliances, books, videos, games, meals out and travel. Once you know what your average yearly spending was in each of these categories it will be easy to create a savings that provides for spending in these categories. When you first see the amounts in each category you may be a bit shocked, but you can easily afford to buy what is there because you won’t be paying any interest or finance charges on the purchases. You may also find that you buy less than in the past, because without the lure of ‘painless’ credit buying you will pay more attention to your true needs and be less at the whim of impulse buying – one of the primary causes of high consumer debt.

One method that works for many people who are attempting to live credit card free is to establish a monthly ‘allowance’ program for household and personal purchases. To enact this method you will need to establish a monthly budgetary amount for all household expenses. For standing bills like a mortgage payment, taxes and utilities you pay them by check or bank transfer as normal. For all other purchases, including groceries, gifts, clothing etc., you will take the budgeted amount in cash and place it in an envelope marked with the appropriate category. If your grocery budget is $500 each month then on the first of each month the envelope will contain $500 – this amount will gradually decrease over the month as you do your regular shopping. Using cash for all purchases in this manner will help you keep tabs on your money and help you discover just where the problems remain in your sending habits. You will now have the knowledge to correct the bad habits that credit card sending concealed.

The quest to live debt free is a worthy one, but like all quests it will take dedication and sacrifice on your part. While you are paying off outstanding consumer debt you will feel the budgetary ‘pinch’. Don’t give in to cravings to shop however – most of these impulses are programmed into us by advertisers who have employed expert techniques to trigger our desire. Stay focused on the end goal, give yourself occasional treats (paid for by cash, of course) and remember that once you are debt free you will be able to purchase without guilt. There is no reason to continue to throw money away on finance and interest charges. You can live without credit cards and experience a life free from the shackles of increasing finance charges, rising interest rates, and spiraling debt.

Get your financial life back on track today! Visit the best guide on the web to learn even more about how to live without credit cards now. You’ll find everything you need to handle collections and credit-related topics at http://www.TopLineBusinessCoach.com

Article Source: http://EzineArticles.com/?expert=Andre_Larabie

Credit Cards – You Can Leave Home Without Them

Gary N. Larson — Wed, 26 Aug 2009 21:23:00 +0000

Is it possible to survive in today’s world without a credit card? The answer I get from most people is that it can’t be done. To do anything these days requires a credit card, it seems. If you want to make purchases on the Internet you have to have a credit card. You can’t reserve a hotel or buy plane tickets without a credit card. Most people use them now to buy gas. Fast food restaurants take them along with movie theatres, the post office and grocery stores. It seems everybody takes credit cards. So it would seem that you really do need a credit card to survive in today’s world.

The only problem with that statement is that it’s dead wrong. I have never owned a credit card in my life and I don’t plan on owning one. When I tell people I have booked airline flights, booked hotels, traveled to China and Sweden and other countries, gone on cruises and purchased all kinds of things over the Internet without a credit card they say, “You’re lying!”

I tell them, “No, I’m not lying. I function just fine without a credit card.” I thank Sears, Roebuck and Company for turning me down for a credit card over twenty years ago. I bless that day. I have never looked back since.

Yes, I admit it. I use plastic. I use a card that has the Visa symbol on it. But guess what, it’s not a credit card. It’s a checking card. It’s like a debit card on steroids because I can use it as a debit card when I want or I can use it LIKE a credit card when I want. It is accepted anywhere a credit card is accepted. So I can make purchases online. I can make hotel reservations with it – no problem. And yes, the money comes right out of my checking account as if I wrote a check. It forces me to only spend money that I actually have. What a concept!

I had one person say to me, “Now how can you do that? You don’t keep a $5,000 balance in your checking account, do you?” I had to say, “Well, actually I do.” (It’s in reality much more than $5,000.) I’m not trying brag or anything. It’s just that my wife and I work very hard to have a decent cash reserve. We only spend money that we have.

So, I truly get a kick out of telling people you don’t need a credit card and that I’ve never owned one. They really do find it hard to believe but let me tell you, it’s a great way to go.

I could go on and on for another entire article and talk about the perils of credit cards and how stupid it is to own one. So don’t get me started on that today.

I know a person whose take-home pay is around $1,500 per month. He has racked up in credit cards and other debt over $26,000. His minimum monthly payment to service his debt is around $750 a month. When you take $750 out of $1,500, that doesn’t leave much to live on, and in fact you can’t live on that. Because of high interest rates he will never pay off his debt by just making the minimum monthly payment. What a shame that he has gotten himself into that situation through debt accumulated primarily through credit cards.

So my message today is: You do not have to have a credit card. Live within your means. You will be so much further ahead in the long run. It has enabled me and my wife to live totally debt free. Our home is paid off. Our cars are paid off. I’m not trying to boast. I’m just like anybody else. I’m just trying to show that you can exist in today’s world without a credit card. Cut up your credit cards. Cancel your accounts. Do whatever you need to do. I am living proof you CAN leave home without it.

Living without debt and loving it!

Thank you.

Is it Best to Buy the Best?

Gary N. Larson — Fri, 09 Jan 2009 08:31:40 +0000

Good morning. I went golfing a while ago with a friend who I know doesn’t earn a lot of money, yet he had a $500 golf set. His driver alone cost over $150. I asked him how many times a year he golfed and he said only once or twice. Once or twice! And yet he thinks he needs to have a top of the line golf set. I mean, come on, if you’re golfing once or twice a year I would think a decent $200 golf set would do just fine.

I have come across a number of people with this same trait. They think they need to have “The Best”. There is nothing inherently wrong with that except these are people that can’t pay their bills each month. Their money picture is all out of balance, meaning, in some areas they are lacking and other areas they have too much. Their house is falling apart or they can’t afford to pay their bills and yet they’ll go out and buy an item and it will be the top of the line or the biggest or the best and of course the most expensive.

Another example is an individual I know who is struggling with money. She went out and bought a brand new $700 computer. Now a $700 computer may not seem like such a big deal to most of you, but I know for a fact that you can purchase a great computer for around $400. I recently got one for my family and it works great and is very powerful. I don’t know what she got for the extra $300 but I guarantee you she doesn’t need it. All she is using her computer for is to access the internet and do simple word processing. But for some reason she was compelled to get “The Best.”

Its purchases like that that baffle me sometimes. Whether it’s a computer or clothes or a car or a camera – if you’ve got the money then go ahead and get the best. But if you don’t have the money you shouldn’t be buying top of the line items.

I’ve never bought a brand new car in my life and I don’t know if I ever will. You can buy great used vehicles for a fraction of the cost of new ones. I pay cash. I don’t go into debt. The car I drive right now is a great car and it didn’t cost much at all. It has all the luxury features, all the bells and whistles, and I’m very happy with it. Mostly I’m happy because it didn’t cost me a dime in interest. I paid for it with a check. It’s a fraction of the cost that many people, who make less money than me, spend on their brand new cars. I can then take that extra money and do fun things like go on a cruise with my wife, which is what I’m doing next week. I would much rather use the money for other things than sinking it into a vehicle or an expensive computer.

The point I’m trying to make is this: If you have the money, great. I don’t have a big problem with you having nice things or even the best things. I do have a problem if you buy those things when you can’t afford it. If you’re struggling and you can barely buy food or clothes for your kids then why do stupid things like buy an expensive car or an expensive computer or an expensive camera that you don’t need? Why do you think you have to have “The Best?” You can get along fine with good quality things. You can be perfectly happy and content without the 72″ big-screen TV – really! Many people do.

The next time you feel compelled to purchase “The Best,” stop and think. Why are you buying it? Are there cheaper models that will do just fine? Can you purchase it used? Can you skip the purchase altogether? Be wise. Think before spending. The best may end up not being the best after all.

Thank you.

Master Yourself, Master Your Life

Myths of Money and Happiness

Gary N. Larson — Sat, 22 Nov 2008 08:47:11 +0000

The myths of money and happiness are many. The general feeling in today’s society is that more money and things will make us happier. Because of this belief we tend to focus our time and efforts on acquiring more and more “stuff” to the point where we sometimes overextend our finances and resources and in the end achieve exactly the opposite result we intended.

Affluenza Epidemic

A recent book gave a name to this affliction and in fact is the name of the book. It is entitled Affluenza. In the book affluenza is defined as “a painful, contagious, socially-transmitted condition of overload, debt, anxiety and waste resulting from the dogged pursuit of more.” The book reported that Americans each spend more than $21,000 per year on consumer goods. Our average rate of saving has fallen from about 10 percent of our income in 1980 to zero today. Our credit card indebtedness has tripled in the 1990s and currently equals $2,293 in credit card debt for every man, woman and child in the United States. More people are filing for bankruptcy each year than graduate from college.

Many of us do very well with our finances and manage to stay out of debt and live within our means. However, there are too many that have fallen victim to the affliction of affluenza.

What is the True Source of Happiness?

Let’s think for a moment about happiness and where it comes from. First I want to do a little test to see how well your happiness prediction abilities are working. I want to present two different futures for you to contemplate and think about and then decide which one you would prefer.

The first one is of you winning the lottery to the tune of $100 million.

The second one is of you becoming a paraplegic – of losing the use of your legs and being confined to a wheelchair.

So which future would you choose? You may think that is kind of a stupid question. Of course you would choose winning the lottery – who wouldn’t? A person who wins the lottery would be so much happier than someone becoming a paraplegic. Right?

Strange as it may seem they have actually done studies on these two groups of people. They studied how happy they were one year later after either winning the lottery or of becoming a paraplegic. The fact is that one year later lottery winners and paraplegics are equally as happy with their lives. There is absolutely no difference in their level of happiness.

When I asked a number of people I know where they felt true happiness came from they, mentioned their families, serving others, doing what’s right, being out among nature, and someone even said living within your means. So happiness isn’t found in more and better things. It’s mostly found in the things of life that are entirely free.

Jesus Christ made this statement:

Beware of covetousness, for a man’s life consisteth not in the abundance of the things which he possesseth. (Luke 12:15)

Misery of Debt

When my wife and I were first married I tried to start my own business. After a year of trying to make a go of it we found ourselves deep in debt and behind on all of our bills. It was a horrible experience for us. Every time the phone rang we would hate to answer it for fear it would be a collection agency calling. We had had enough and finally decided we would do everything we could to pay everyone back and get completely out of debt.

We liquidated the business and I got a job making $4.25 an hour. For the next year all of my paychecks went to paying off debts. We lived like church mice. I drove a $250 car. We cancelled our phone. During the winter we heated only one room of our little rental house. There were times when it got so cold that the water in the toilet would literally freeze. It was a long and difficult year that we spent getting out of debt. But it was a glorious day when the last payment was made and we were completely free of financial bondage. It was a hard lesson to learn but we did learn! Today, my dear wife and I are completely debt free and love every minute of it!

Heber J. Grant said:

If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding and discouraging and disheartening, it is to have debts and obligations that one cannot meet.

Live Within Your Means

What I’m about to say is going to sound old fashioned and out of style. But I know the value of it because I have lived it and know it is true.

I urge each of you to honestly examine your own financial circumstances and determine now to live within your means. Prepare now for the future. Be modest in your expenditures. Save for those things you feel you need. Pay off debts as quickly as you can. Begin saving a little money on a regular basis. I promise you that if you will follow this counsel you will feel more secure and experience greater peace and happiness in your life.

Thank you.