Tough Times

We would love to hear from you about how you are handling the current economic climate.  It is understandably difficult out there right now, and we would love to hear from individuals who may need some help and guidance.  Any questions or comments will be kept confidential.

Have you had any luck cutting down on your current debt or do you find yourself accruing more debt every month?  Do you feel like you may be starting to see the light at the end of the tunnel, or do you predict things may get worse for you and your family?

Please feel free to use this site as a sounding board for your current financial problems.  You will find that talking about your struggles can offer some relief, and help to make solutions seem slightly more in focus.

First, take care of you and your families’ personal well-being. To do this, be sure to have an emergency kit available. The kit should contain the following items:

¨ a three day supply of water, which equates to one gallon of water per person per day

¨ food that will not spoil and can be eaten without having to be cooked or heated

¨ at least one change of clothing and shoes per person

¨ a first aid kit that includes any prescriptions that family members need

¨ a small tool kit

¨ a battery powered radio and flashlight along with a supply of spare batteries

¨ an extra set of car keys

¨ cash, at least $50.00 in tens, fives, and ones, as well as a roll of quarters

¨ personal grooming and hygiene supplies for each family member

¨ an extra pair of eyeglasses

¨ important documents such as insurance policies, wills, and birth certificates

¨ also, create a smaller version that can be stored in your car

Now that you are physically safe, what do you do with your finances? This is an area where many people are under-prepared, but it is almost as important as your physical safety. You may be thinking that your finances are not your most important concern at this time, but it is necessary for you to think about it before it is too late. Start by keeping all of your important paperwork and phone numbers together in one convenient location. The ability to access this information can help prevent additional stress when dealing with a disaster. In addition, you should have a duplicate copy of the information stored in a safety deposit box or some other location that is accessible. You may not be at home when a disaster strikes.

Now that you are safe, you should start by calling your insurance companies about policy coverage and specific filing requirements. Keep in mind you may have claims on your homeowners/renters policy as well as your automotive policy. You will need a list of items covered under your policy to start the process. If you lost the policies, ask your insurer for copies. If you do not have a list, call anyway.

If you do not have insurance, or if your insurance does not cover the cause of the damage, call FEMA at 1-800-621-3362 to inquire about federal disaster assistance. Typically, FEMA will help with emergency shelter and other immediate needs. Later, there may be federal grants and loans provided to some victims.

If you have a mortgage, call your mortgage company immediately. Your lender is likely to offer some concessions to assist you, but you must initiate the contact.

If you have other debt obligations, such as, personal loans and credit card debt, contact those companies as well. In many situations, they are willing to offer assistance due to the circumstances.

Natural disasters are a frightening experience to live through. Since you cannot prevent
them your only alternative is to be as prepared as possible if they do occur. These simple
tips can help you if you ever find yourself in this situation.

A shopping list can be your most powerful weapon to grocery shopping cheaply and effectively. Whenever you pick up something that is not on your list stop and think it over for a minute. Why do you need to buy that product? Is it something you need to have or is it something that you want to have? If it is a want put it back on the shelf. The grocery store is not responsible for your budget, you are. Remember, it is cheaper not buying an item than it is to buy something you do not need, even if it is on sale. Be careful of the “buy one get one free” deals as well. Write down the prices of items that you regularly buy. Compare them to the special deals to see if the price is the same. Set aside a specific amount of money to use when shopping and stick to it. If you have money left over, set it aside so you can stock up on items when a good deal comes around.

When you do have to shop in the aisles, be sure to check the entire shelf. Most people tend to buy the items that are at eye level because they are the first thing that they see. Grocery stores understand this and will generally put the more expensive items right where you can see them. Cheaper items are normally on the lower shelves so you are forced to search for them. In addition, buy generic items when possible. The same manufacturer that makes the name brand equivalent makes many generic items. They just have a different label on them.

It used to be common that it was cheaper to buy items in bulk. Many times this may be the case still but you have to be careful. Often times, bulk items are more expensive than the smaller items. It is important to compare the price of the item. Most price tags in grocery stores will have the price per a specific amount of an item, such as per ounce. This will allow you to compare the true cost of bulk items compared to smaller amounts of the same item. Also, remember that buying five pounds of grapes may seem like a great deal but it is not frugal if you end up throwing half of it away because it went bad.

Before going grocery shopping, eat. When you shop on an empty stomach, everything in the store tends to look good. This means you end up buying many items that you do not need. Also, dress warmly before you go grocery shopping. Grocery stores are normally cold and cold temperatures can actually make you hungry.

Always try to keep your grocery shopping to a minimum. If possible, go no more than once a week. This will allow you to pick up fresh milk and produce. Many people will walk in to the store for “one or two items” and will walk out of the store with an entire grocery cart full of items that happened to catch your eye. Try to make due with the items you already have at home. Look online for recipes that use only what you already have, you will be much better off financially.  

We encourage you to comment on what you read… you may find that your comments and suggestions help your fellow consumers get on the road to financial freedom!