Re-Evaluated Priorities

Priorities. We all have them. 

Priorities are basically our personal list of things that are most important to us. And, as time passes, those priorities can change and often need to be re-evaluated. I recently re-evaluated my own priorities as winds of change blew into my life.

Change 1: I was able to quit my full-time job as a paralegal to stay home and take care of my husband and children. A dream seven years in the making.

Change 2: My son was accepted to pre-school and will start in August. That mommy tug-of-war is going on in my heart - so proud that my baby will be learning and growing but sad to let him go.

Change 3: I reapplied to college and will be starting classes in August as well. I am looking forward to finally finishing my teaching degree.

Change 4: My husband and I began plans to build a new home. This dream is requiring even more tightening of the purse strings.

Each of these changes brought about some re-evaluating on my part.  Obviously, the most important things to me are my hubby and our babies.

So, since I will be preparing my little boy for school, undertaking classes of my own and working on plans for the construction of a new home (and a tighter budget), I have decided to take a blogging sabbatical.  I plan to someday return to blogging and continue to help others gain control of their financial future and learn how to truly enjoy life. But, for now, I will be focusing on my own family and my own future.

I may post from time to time, but it will be sporadically.  And, I will entertain the idea of featuring guest writers so the blog can continue to grow.  If you or someone you know would be interested in "filling in" for me during my time away from writing, please e-mail me.

In the meantime, continue to mend the hole in your handbag and I will do the same.

Chasing the dream...
Lydia Lyn

Vinegar - So Cheap! So Good!

White vinegar is one cleaning product that I ALWAYS keep handy.  It is just as good (or even better) than many name brand cleaning products and it is so inexpensive and easy to use.  If you have never been told about the amazing uses for white vinegar, you (and your handbag) will be pleasantly surprised!

I use white vinegar to:

* Clean windows and mirrors. A 50/50 white vinegar and water solution works wonders on glass. After making this little discovery, I completely stopped buying Windex.

* Remove soap residue from clothing AND reduce static cling.  I hate little irritants like soap residue and static cling, but found a way to put an end to both (and still stay on budget). Simply add about a half cup of white vinegar to the last rinse cycle while washing and the problems will be taken care of. Test if you like, but vinegar is safe for almost all fabrics.

* Rinse my dishes.  Instead of buying expensive products like Jet Dry, I pour white vinegar into the rinse compartment of my dishwasher. It does the trick for pennies.

* Remove coffee residue. Run a 50/50 vinegar-water mix through an automatic coffee maker for a complete cycle.  Replace the filter, and run water only through the coffee maker for another cycle to rinse. The coffee maker will be clean and the coffee residue will be removed.

* Clean and shine faucets. Splattered faucets can make an otherwise clean bathroom or kitchen look not-so-clean. White vinegar solves this quickly.  Simply wipe on with a paper towel and then wipe off. Quick and easy.

* Spot clean carpets. Yep, it works for that too.

I dare you to compare the price of a bottle of white vinegar to the price of the name brand items you have been using to accomplish the same tasks. You will wish you would have learned this little money-saving secret sooner!

Forget Diamonds. Baking Soda is a Girl's Best Friend.

Let me introduce you to an amazing product. Readers, meet Baking Soda.

I realize we have all been using baking soda in our recipes for years, but baking soda can be used in a plethora of ways around the house.  And, that is why I love it. Baking soda is a cheap alternative to many other items and was used by our grandparents long before fancy packages came along to market other cleaners and brand-name products.

Here are just a few uses for baking soda:

1. Remove odors from your refrigerator and freezer. Just place an open box in your fridge and another in your freezer and its presence will prevent unpleasant smells from filling the space.

2. Put out kitchen fires. Keep a box next to your stove and you will be ready for a small grease fire. The baking soda can be used like a fire extinguisher. Water will not put out a grease fire and can make it worse. Baking soda is safe and convenient.

3. Use as a carpet deodorizer. Just sprinkle a little baking soda on dry carpet. Brush it in or use a broom to work it into the carpet. After the baking soda has sat for about an hour, vacuum.

4. Clean toilet bowls. Who needs the color blue to prove that a toilet is clean? Baking soda works just as well and it is less expensive.

5. Cleanse the entire kitchen.  Baking soda works just like a scouring powder and can be used to scrub pots and pans. Baking soda can be used to clean countertops.  Baking soda and vinegar can even be used to mop with.  Pour the leftover mop water down the sink and it will continue its work on the pipes.

There are so many uses for this amazing product and they do not stop with cleaning.  Check out Arm & Hammer's website by clicking here and you will find a multitude of uses for baking soda from hygene and health to pool care and crayon removal.

Favorite FREE Spring Cleaning Tool

So, this little blogger has been busy spring cleaning.  Yes, I know, spring is not here quite yet. But, can you blame me for anticipating the sunshine and longer days? I cannot wait to be outside more (and I cannot wait to put my flip-flops back on).

Because I am sure that I am not the only one craving spring, I thought I would begin a series of posts focused on spring cleaning. Now, this is not a cleaning blog or an organizational blog or even a home-sweet-home blog.  This is a financial encouragement blog.  So, when I write about spring cleaning, I will be giving my readers tips on how to prepare for spring on a budget.  I will be sharing with you how I spring clean with re-used items and homemade cleaners. I will share secrets about how to make the most of your money while shopping for cleaning products and I will fill you in on little known household tricks that can save you a bundle.  How does that sound?

Yea! I knew you would be excited too!!!

Today, I will share with you my favorite FREE spring cleaning tool.  T-shirts.

Every once in a while I convince my husband to sort through his old t-shirts and tell me which ones he wants to keep and which he is willing to part with.  The discarded t-shirts are re-purposed as rags.  I simply take out a pair of scissors and start cutting.

There is no right or wrong way to cut up a t-shirt and turn it into a rag.  I cut larger pieces and put them under my kitchen sink.  These are used for soaking up drink spills or wiping down the counter.  These FREE spring cleaning tools help to cut down on money spent on paper towels.

I cut medium sized pieces and put them in each of the bathrooms.  These are handy for a quick cleaning of the bathroom sink or toilet rim.  Afterward, I can throw the rags away without feeling wasteful.

I cut smaller sized pieces and use them as dusting rags.

Old or mis-matched socks also do the trick.  I have found "dusting mittens" to be a great way to involve my children and get them excited about helping with housework. 

Do you have any cleaning tricks up your sleeve? What about an innovative idea for re-purposing an item? I would love to hear all about it! Just leave a comment and share your wisdom with the other readers of The Hole in My Handbag.

Staying Fit Physically AND Financially

Although we probably do not think about the correlation between our physical health and our financial health, the two impact one another in monumental ways. By taking care of our bodies, we can minimise high medical bills, prescription medications, surgeries and hospital stays.  There are many health conditions that can be avoided (or at least postponed) simply by exercising and eating right. Depression, type 2 diabetes, obesity and several other diseases are influenced by lifestyle.

If eating healthier and exercising can save us thousands of dollars in medical care, why do so few of us cash in? I have personally used the following excuses: I cannot afford a gym membership.  In home exercise equipment is too bulky and expensive. I do not have enough time to workout. Health foods are more expensive. My family will not eat "diet" food. 

Excuses! Excuses! Excuses!

The truth is that we CAN stay physically fit and financially fit at the same time. 

Here are some more truths:

TRUTH: We do not need a gym membership in order to loose weight and get in shape.  The fact is that most people who have gym memberships do not use them.  A less expensive alternative is finding a workout buddy.  The accountability of a workout partner brings the same benefits as an expensive membership, except it is free. Grab a friend and split the cost of some workout DVDs. Having someone to exercise with will keep you motivated and accountable.

TRUTH: There is no need to buy an expensive treadmill or weight bench. Inexpensive equipment can be found if we will just think outside the box. The Dr. Oz Show asked Kristen Kirkpatrick to find weight loss tools at a dollar store and she did! Try a jump rope for a little cardio workout or use large rubber bands like resistant bands. Kristen came up with some innovative ideas. Check out all her discoveries by clicking here.

TRUTH: Exercise does not need to take up much time. Just sneak in workouts where you can.  Take the stairs instead of the elevator.  Lift hand weights while you watch your favorite television show. Run around in the yard with the kids. Bike ride with the family. If we will just teach our minds to look for opportunities to stay active, we will find chances to get that blood pumping!

TRUTH: Health foods that are packaged as "health foods" are more expensive, however... there are tons and tons of cheap health foods that slide under the marketing radar. Beans, tuna, shredded wheat, brown rice, frozen vegetables, whole wheat bread, oatmeal and yogurt are all inexpensive healthy foods. Buy generic brands to get an even better deal. 

TRUTH: We can still sit down to the same meal as the rest of our family as long as we eat less of the fatty foods and more of the healthy items. The best thing to keep in mind when it comes to diet is portion control. By putting less on our plates, taking smaller bites and eating slower, we can dramatically cut down on calorie intake. There is no need to make eating healthy more complicated than it needs to be.  

No more excuses for us! We can stay fit physically AND financially!

What are some excuses you have used in the past?  How do you make time for a workout? Have you been able to save some money on medications or doctor visits by lowering your blood pressure or blood sugar or loosing weight?  I would love to hear from you!

The Best Ways to Spend a Tax Refund

It is that time of year... tax time!

Those who hold out the maximum amount of taxes from their checks throughout the year are usually thrilled to file their taxes. They know that shortly thereafter, a nice refund check will be headed their way. But, how should that refund be spent?

How a refund should be spent greatly depends on each family's personal financial situation. If you have received or will soon be receiving an income tax refund check, ask yourself the following questions:

Are we in debt?  If your family is carrying debt, especially high interest debt, those bills need to be paid off as soon as possible. Begin by determining which debt has the highest interest rate.  If it is possible to pay off the high interest debt, do it! If you cannot completely pay off the debt, at least begin working in that direction. There is no better feeling than being debt free.

Do we have an emergency fund? Most (if not all) economists and financial advisers will tell you to stash back some money for emergencies. Start by having at least one month's salary placed aside. Once you have achieved this milestone, add to your emergency fund until you have three to six months worth of cushion. You would not believe the peace of mind an emergency fund will bring. Knowing you are prepared for job loss, catastrophe, vehicle replacement or major repairs will reduce anxiety and fear. Save that refund check and breathe easy.

Are we planning for the future? Once you have eliminated debt and created an emergency fund, it is time to start thinking about future expenses. We all want to retire someday. Even young adults should think about investing in some kind of retirement plan, i.e. Roth, IRA, 401k, etc. Also, we all want our children to be able to pursue their dreams. Even if your kids are still in diapers, consider starting a college fund. Your bank will have plenty of account options for you. Regardless of the path your child chooses, whether it is college or trade school, it is a good idea to make sure the resources are available to achieve those goals.

Do we have an immediate need? If someone in the family needs medical care or surgery, an income tax refund can help fund such necessities. If the house is in need of major repair, those maintenance issues should definitely be remedied. After all, the home is a major investment and should be cared for. However, a new wardrobe, jewelry, ATVs or season tickets to the Packers are not needs. Splurges such as these should only be made if the family is debt free, has a healthy emergency fund and has planned for the future.

Income tax refund checks can be beneficial to a family on a budget, but only if they are spent wisely. The best way to spend tax money is actually by spending it throughout the year. Rather than holding out the maximum from your paycheck each week, hold out only what needs to be paid to cover your income taxes. By doing this, you can spend (or save) your money wisely throughout the year instead of banking on that refund. Just talk to a tax advisor or your employer to determine how much needs to be held out so that you end of breaking even at the end of the year, without receiving a refund or owing the IRS.

How have you used your income tax refund in the past? Have you made good decisions or poor decisions? Do you have plans for this year's refund?

Why it is Never a Good Idea to Buy Rent-to-Own

Buying from stores like Aaron’s or Rent-a-Center can be appealing, especially if the buyer has credit issues.  These stores often market to those with not-so-good credit by making promises like “Worry Free Approval” and “No Credit Needed.”

While their promises may seem enticing, it is never a good idea to buy from places that offer rent-to-own deals.  Why? The items at these stores are always over-priced.  The buyer is paying for instant gratification without a credit check. 

Rent-a-Center is currently trying to rent or sell a 55 inch Sony HDTV for the “low” price of $29.99 per week. That does not seem that bad.

But, by the time the television is paid off, it will have cost the purchaser around $2,418.00. That same television can be snagged at Best Buy for $1,599.00, for a savings of $819.00. This proves that it is better to save up the money and pay cash for a new television rather than make high-interest payments to a rental store. Just be patient and tons of money can be saved.

For an even better savings, shop second-hand. I found the same television brand new on e-bay for $1,198.00, with free shipping, and a 53 inch used Sony television for $600.00. Craigslist had a 50 inch Sony television and matching stand for $500.00. Local papers are another great resource for buying electronics, furniture, appliances and more.  If you give yourself plenty of time and do a little research, you can find exactly what you want for a fraction of the price.

By avoiding rent-to-own stores, you just might discover that you will find better quality items for less money without running the risk of repossession or credit ruin if payments are late or missed.  Plus, you will have made your purchase DEBT FREE and that is an awesome feeling!

But do not just take my word for it, All Financial Matters also believes that renting is a bad idea.  Check out their furniture analysis here.

Keeping Constant Reminders

When a family has been on a budget for a while, it can be easy to get off track. As budgeting begins to transform a bad financial situation into a good one with a cushion for emergencies, it can be tempting to fall back into bad habits and make foolish purchases.  This is why it is so important to keep constant reminders of the long term goals.

There are a few methods I use to keep myself and my family motivated to stay on budget.

1. On my refrigerator I have several magnets with clever sayings reminding me of the type of lifestyle I want to have.  The rest of the world shouts "SPEND!" But what I really want to do is save.

2. When I am reading, I have a bookmark with a picture of my husband and children.  They are my reasons for working so hard to stay on budget.  I want my husband to have less worry and I want my children to have a secure future.

3. Pinterest is a great place to highlight your likes and interests, but it is also a great way to stay motivated financially.  Not only are there plenty of quotes to remind you of what is important, but you can use your boards to plan ahead and have a visual display of your goals.  For instance, we are hoping to build a new home in a couple years.  I plan to use some of my Pinterest boards to pin pictures of home styles and layouts, as well as interior designs.  This will keep me focused on the big purchase we plan to make and help me be less distracted by the small purchases that could potentially keep us from achieving what is most important to us.

4. To keep the family reminded, a poster board collage can be a wonderful visual reminder. Get the kids involved by first letting them know what the family's financial goals are.  Then, pull out some old magazines, newspapers and printouts.  Parents and kids can cut out pictures and statements that will remind the family of the reasons for being on a budget. The cut outs can be arranged and glued on a poster board or tacked to a cork board. Once the collage is finished, display it in a place where the members of the family will see it often. A project like this will keep everyone on the same page.

5. I also listen to motivating music.  There are a lots and lots of songs that talk about money and keeping the right perspective about its role in our lives. Personally, I like Jessie J's song Price Tag and Shania Twain's Ka-ching.

Do not let yourself forget what is important to you. Budgeting will free you to achieve your financial goals, but only if you stick to it. Just keep constant reminders around to encourage you to continue budgeting. I would love to hear about some of the tricks you use to keep yourself on budget. What are some of your favorite "money" songs? Do you have any inspirational quotes?