Pay Cash for Your Car

Pay cash for your car.
Simple.
I know what you are thinking, no way can I pay cash for my SUV or luxury car. Then you can't afford it.
You have to start somewhere. We leased our first cars. When we took out the 48 month lease payment in 2006 and 2008 we asked how much the buyout would be at the end.
We saved that additional amount each month for 48 months to be able to purchase the cars. Our 2008 is still going strong.  Start this plan if you are in a lease. It isn't too late.  Then use that car as a trade in or sell privately towards getting the car you want to have.
I have since had two new to us cars, each used, each paid for in cash.  Last year I traded in my car, and paid the difference on my credit card and paid off the balance the same day. I did this to earn many Air Miles.
My car doesn't turn any heads. It's a Toyota Corolla with almost 100,000km on it. But it is safe. It is reliable. It is great on gas. IT IS PAID FOR. 

According to the Globe and Mail, the average Canadian spends $570 in a loan, and $490 in lease payments. These prices are for periods between 48 months and 84 months!  That's a lot of money!!
Once your cars are paid for you can continue to save money for your dream car. Move up in car every other year and eventually you will get the car you want to drive. Or, be content with your paid for car and put the money towards your mortgage and other debt.
Photo Credit Dave Ramsey Website

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Contentment

This quote came up on my Facebook today.  I read it a few times, as it is applicable to many parts of my life. Since this is a blog about money and being Debt Free I will focus on this aspect.
It is easy to get caught up in the wanting more and better of material things.  The Jones' are broke trying to have the best of the best.  And guess what? They probably aren't very happy.
We focus on 4 C's to get out of debt, and the hardest one is CONTENTMENT, yet I think it is one of the most important.
I drive a Toyota Corolla.  It is a 2013, almost 100,000 km and it's paid off. It was second hand, but great for me. I dream of a new 7 seater SUV and have test drove a few. Then I think why am I doing this? I have 2 kids, and when they have a friend over, a 3rd fits in just fine. My car fits my family and it is safe. I am content.

I  love Michael Kors brand. I love good quality shoes, and I have been buying this brand of shoes for ten years and I absolutely love the quality. They feel amazing. Would I love to buy all my clothes there, and my purses? Absolutely. I find many of this brand second hand, great for me! But I feel content and grateful that I have the products I have. I buy the splurge items time to time for me, because I love the item. I am content.

From time to time do I suffer from the bite of the green eye monster? Absolutely. Then I take a step back and talk to my husband about how I am feeling. Life quickly gets put back in check. 

I am content with what I have. Would I want a nicer vacation, car and clothing? Absolutely. But I have found CONTENTMENT. And I drive through parts of my town, and realize how blessed I really am. My family has clothes that are clean and fit us. We don't need to walk to get groceries, and we have a roof over our head and feel safe.
I AM BLESSED. I AM CONTENT. Someone else is dreaming of what we have right now.

Cancel Cable

We don't have cable.  Four years ago we cancelled our cable and home phone.  This has saved us almost $75 a month.  We went on Amazon and bought android boxes to stream TV shows and movies.
This has been great and I have found that it has cut down on our mindless watching of TV. We do binge watch shows, and having them all on the box makes it easier.
Sports was an area of concern for my husband.  After talking to other people that use the android box he has found places to watch his hockey and baseball games.
I also find that since we don't go to the movies often, we are ok watching older movies.
Our cell phones have fantastic plans.  We only use our cell phones, and do not have a home or land line.  The phones have great long distance plans to talk to our family.
I know this sounds extreme to quit your cable and phone line.  I took some convincing.  Four years, at $75 a month is $3600 !!! Read that again...$3600.  It's worth it!

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Cost Per Unit

Have you ever noticed when you go to the store there are several sizes of the same product? Not even taking into account the competitive brand and the generic brand.
It can be overwhelming, and many people assume it is the same price irregardless of the package size. 
I refer to the real cost of the item as cost per unit. I think this is the commercial name also, I didn't make it up:) To find out the cost per unit some simple math is required. (this makes the teacher in me proud..yes life skills)
If the item is sold based on items, take the total cost and divide by the number of items in the package. See example below.
Example: 
Shoppers Drug Mart had toilet paper  on sale. Yes it was a good price but always remember to determine your cost per unit. Superstore has bigger packages on sale for more money but the price per unit was 0.3325 at Shoppers. OR superstore it is 0.312 per unit.
If you have the coupon from walmart magazine a few weeks ago price per unit becomes 0.270 per unit.

If the items is sold in ml, grams or kg it is done the same way.  Cost per 100ml, 100g will help you decide what brand to buy, as usually 2 competitors sell the similar product in different product sizes.  

This is where it can get fun for a couponer like me.   One would normally assume use the coupon on the highest price package. If you have multiple coupons for a product, it can work out to be cheaper to buy the package that costs a bit more money, but use your coupons. One coupon can only be used for one product, but multiple coupons can be used on multiple products. You may need to do math a few times when using coupons, but the savings are worth it!

And if all else fails... look on the shelf! Most stores have this figured out for you in very very tiny font on the price tag on shelf. However, if the item is on sale the cost per unit is on the original price.

These tips have helped our family save money and pay for Disney World two times in 5 years.

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Envelope System

We follow the Dave Ramsey plan pretty closely at our house. Before we started him we followed Gail Vaz-Oxlade and her jar system. 
You can type in all of your personal information and it helps you determine how much money goes in each category.   To explore your personal allocation go to
http://www.gailvazoxlade.com/articles/budgeting/magic_jars.html  
Now we do it in envelopes.  We have an envelope for the following categories:
Date Night
Kid Activities
Power Bill
Frenchies/Clothes
Gas
Groceries
Miscellaneous

Dave Ramsey talks about a cash budget and telling your money where to go monthly.  At the start of each month we put cash in each envelope.  That's the money for the category.  When it's gone, it's gone.
At the end of the month there are a few things you can do if money left over.  You can allow the money to carry over and build up in the category. For example, the Power Bill is due every other month, this one builds up.
Groceries envelope at month end you may realize you have some extra money to do build your stock pile.
Clothing, Gas and Date Night envelopes we don't let build up.
When we did the jars the happiest thing was we had an empty jar purposely for month end. The last day of the month we would dump any left over money into it to be the fun money. This was how we afforded a get away in a neighouring city for a night, or a movie dinner date.
Now we take any extra money and slap it on the mortgage.
If you are saving for something special, say a vacation or a new purse, have an envelope. 
YOU WON'T BELIEVE THIS BUT TRY IT A MONTH AND YOU WILL SEE...
Doing the envelope system makes us feel like we have more money.  It gives permission for us to spend money while keeping an eye on the prize.
Good luck and comment below if you have tried these strategies and share your success stories.

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Note Pads

Here is a little secret about me....I love making lists.
Daily I take notes of things I need to do for the day. I also take notes daily about my long term goals.  I find writing quick notes helps me stay on task, and focus on the big picture.  I also am a visual learner. If I make a note of an item, it helps me remember the item later on.   And lastly, I feel I have  ADD and always need to multi-task.  Recording on paper helps me focus.
All these things means I use a lot of paper.
I save all paper that is blank on one side instead of putting them in the paper recycle bin.  I shove them in a large envelope until I have lots.
When I have a stack I cut the papers into various sizes. Usually half and 1/4 of the sheet I cut the paper and staple them together to make note pads. I strategically place them around my home and my classroom.
I keep some papers in an envelope for my children to use  for drawing. Anyone with kids knows how much money one can spend on paper!
After I am finished with my note paper, I rip it into little pieces for my recycle bin.

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Groupon...a new trick

I love Groupon. Before I make a purchase for a restaurant, activity or hotel I search Groupon first.
Log on to airmilesshops.ca first and search Groupon.  This will help you collect air miles on your purchase.
Recently I was searching out a hotel room for Niagara Falls.  I found a hotel that I liked and a price I was comfortable paying.   Just before I clicked to buy I logged in New York as my home city by accident.   The same offer for the hotel I was just about to purchase was much cheaper in American dollars.   I bought it, even with paying the exchange rate I saved $120 Canadian from my original price I was willing to pay!  
My air miles were also awarded.
Take an extra 5 minutes and after you find the Groupon you want to buy and play with other home cities and see if there is a difference in price.  I have never earned $120 for 5 minutes of work that was well worth my time! Happy shopping.
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