The Rest of the Story...

Perhaps you remember Lynn Crapo who did a guest post earlier this year. She sent me an email a few days ago and updated me on her situation. I requested her permission to share it on this blog so that other readers may be uplifted by her faith and ability to count her blessings. Thanks again for sharing Lynn! You are INSPIRING! We'll keep you and your family in our prayers.

Hi there.

I am sure you remember the guest post I did for you back in Feb. of this year.

Life has been fast paced and hectic since then and I almost forgot about it (the post and our no spend month) until just today.

My husband DID actually lose his job. A little earlier than we expected. He went to work one day back in August and was surprised to find that the entire department had been laid off..........just like that. No warning. The whole place was in a shock. They actually took all the employees jobs from that department and gave them to a company in the Philippines to do for them. It was kind of ironic.......as we have MANY members of our ward from the Philippines over here searching for work. They are taking any job they can to provide for their families they left behind. It's so sad. And now my husband and many others have lost their jobs to those who are there. It's so strange.

Anyway.....I just wanted to update you, as you had always asked how we were doing and were so kind with your comments.

I wanted to let you know how blessed I feel. I know. I bet you weren't expecting that.

But I do.

My dad (64 years young) just had a heart attack last Thursday. My mom has been with him every day in the hospital. She is plum worn out. But she made the drive up here (2 hours) to pick up my brother from the airport with our help, (flew in from England) to go and surprise my dad with a visit. We are so excited and can't wait to hear how that surprise went.

You see........my brother, Mike who just came over here, is a Bishop there in his ward. Earlier this year he suffered a brain infection and went crazy. He almost lost his life. It was a horrible and scary time for the entire ward, and his wife and kids. And of course the rest of us here, feeling helpless so many miles away. But my dad and my mom did what they could to get over there to say their good byes. The doctors didn't know if he would make it.

But he did. With my dad's love and help. (And of course a priesthood blessing and loads of people praying for him.) He has come SO far in his physiotherapy. My brother had to "show" his brain how to read and write all over again.

Now here he is.....returning the "favor" for my dad. : D I can't wait to hear how that meeting went. My dad is not eating these days, as it's too hard on his heart to do anything since the attack.

However, with prayers and a blessing, my dad is also receiving a miracle. You see......his heart is creating it's only blood vessels around the area that is 100% blocked. These little tiny blood vessels that are new are working like mad to grow and mature and pump his blood for all it's worth.

I feel SO blessed.

Now for one more thought on being blessed.......

I just remembered my post for your blog tonight...........when my mom and brother and my brother in law who drove my mom up to the airport........... came over for a hot meal (it's SO cold these days) before I sent them on their way back home (2 hours drive again). I felt blessed when I realized that all I had to do was to go down to our basement and get what I needed from our food storage. IT was all there. No worries for things needed to feed others.

...

I have faith that things will work out. It's been 4 months now that my husband was laid off........but things will get better. We know it.

I just had to share this with you.

Thanks again for all you do.

Lynn Crapo

Principles of Self-Reliance

While going for a walk the other day, I listened to a talk given by Silvia H. Allred entitled, "Principles of Self-Reliance" on my mp3 player. Today I decided to look it up on the internet and found a pdf of her talk. If you'd like to read it in its entirety, click here.

She has personally experienced an unexpected family tragedy as a child, the financial collapse of Argentina in 1989, and "the devastating effects of earthquakes in El Salvador and Chile." She said, "These events have taught me to follow the counsel of our leaders about living the principles of self-reliance."

"There are many other types of adversities we might encounter in the normal course of our lives, such as loss of a job, accidents, divorce, health problems, death, etc. Those who prepare are blessed in the present and will be blessed if adversity comes.

"Family preparedness is a well-established welfare principle, and women are instrumental in family preparedness. We prepare for difficult times. We prepare for the day of scarcity. We put away for emergencies. We save for a rainy day."

Some other highlights from her talk:

Personal and Family Finances -

"The two overriding principles of sound financial management are: first, live within your means, and second: save for a rainy day.

"What does it mean to live within your means, and how do you do it? It simply means to ensure that your expenses are less than your income." ...

"The second principle is to save for a rainy day. Keep in mind that small sums saved regularly, over time, compound into large sums of money. Financial advisors agree that saving at least 10 percent of your income will provide flexibility and security in your future." ...

Home Storage -

"We have been advised to acquire and store a reserve of basic food and water that will sustain our lives during difficult times or in emergencies. By following this counsel, we will help protect ourselves if adversity comes. Through careful planning and faithful efforts, we can gradually store a supply of food according to our circumstances."

"Begin modestly by purchasing a few extra items of food that are part of your normal family diet. You can do it when you do your normal grocery shopping. Take advantage of items that are on sale. Here are just a few other ideas:

• Complete a three-day supply of basic food items and then build your storage to a one-week supply.
• Gradually increase it until you have a one-month supply, two month supply, three-month supply.
• Consider items that will keep and store well, such as wheat, beans, rice and canned goods.
• Concentrate on essentials.
• Create a rotating system to avoid spoilage.
• Water should be stored in leak-proof containers and should be kept away from heat sources.
• Prepare a 72-hour emergency kit for each family member and keep them within easy reach.
• Be prudent. Don’t go to extreme measures to store food. Be obedient and faithful, and God will sustain you through trials."

Physical Health -

"The state of our health affects every facet of our lives: our feeling of well-being, our attitudes, our social interactions and our service to others.

"Habits that contribute to our physical health are:

• Eating nutritious meals.
• Exercising regularly.
• Getting adequate sleep.
• Practicing hygiene and sanitation.
• Avoiding substance abuse."

She concludes with:

"To be self-reliant in all these, we should:

• Assess current circumstances.
• Set realistic goals.
• Identify available resources.
• Make specific plans to reach goals, and follow such plans.

"I know that sound personal and family financial management, home storage, and physical health will be a great blessing to our families. Being self-reliant increases our ability to serve others, to assist the needy, and to give support and understanding to the emotionally-starved. Through righteous living, gospel study, and loving family relationships, we can achieve self–reliance and family preparedness, which will help us solve many of life’s problems." ...

I appreciate her words of wisdom. Thank you Sister Allred!

(Source: Silvia H. Allred, "Principles of Self-Reliance," May 1, 2008)

Real Life -- Living It

Because we can learn so much from each other, Monday's posts will be "Real Life -- Living It" featuring a guest post.

This week's guest post is from an Ensign magazine article entitled "Focus on Family Finances" by Allie Schulte. She writes: "Either we control our finances or they control us. Here’s how to get the upper hand."

"Jason and Alanea Hanna faced many financial questions when Jason lost his job. Should they relocate and find another job? Should they try to find a job where they were currently living? After considering several options, they asked the most important question of all: “What would the Lord have us do?”

“We studied talks by prophets and apostles on topics like debt, budgeting, and saving to try and figure out what the Lord wanted us to do,” Alanea explains. “We knew that the Lord’s plan was the best plan and that we would be blessed if we followed it.”

After prayer and contemplation, Jason and Alanea both decided to return to college and finish their bachelor’s degrees. They took out minimal student loans to pay for their education, and both worked full-time to provide for their other expenses. They coordinated their work schedules to ensure that one of them was home with their children. They budgeted carefully, spending their money on the essentials and eliminating fast food, cable TV, and new clothes. Jason even rode his bike to school and work to limit the costs of gasoline and car insurance.

Now Jason works as an engineer. Alanea also completed her degree and is currently fulfilling her responsibilities as a full-time mother of five children. They still live within their means, budget carefully, pay tithing, and live according to the financial counsel of Church leaders. “We’re grateful for the trial and the experience,” Alanea says. “It ended up being a great blessing in our lives and taught us that the Lord will always bless us if we are obedient.”

Read the entire article here.

(Source: Allie Schulte, “Focus on Family Finances,” Ensign, Jun 2009, 28–33)

Great Articles

This month's Ensign magazine has some great articles on finances and gardening. Here are the links:

Focus on Family Finances
By Allie Schulte
"Either we control our finances or they control us. Here' how to get the upper hand."

Power Tools for Family Finances
"Use them to demolish debt and build a strong financial future."

Stretching Your Dollars
By Kay Przybille
"We can stretch our dollars by eating home-cooked meals, looking for bargains, and establishing a budget."

Our Community Garden
by Beth A. Wright
"I had always wanted a garden, but with no yard I didn't think it would be possible."

In the Morning Sow Thy Seed
"Hard work can strengthen our spirits."

(Source: Ensign, June 2009)

"Your Stimulus Package is Right Between Your Ears, Darlin'"

As I was getting into my car last night, Dave Ramsey was on the radio. (Love that guy!) Anyways, he was responding to something I had missed a few moments earlier with this: "Your stimulus package is right between your ears, darlin'." He then recommended reading some books (some of which you could easily read in one evening):

• "Rich Man, Poor Man"- Irwin Shaw
  
• "The Richest Man in Babylon"- George S. Clason
  
• "Who Moved My Cheese?" - Spencer Johnson, MD
  
• "The Good Book" (The Holy Bible)
• (and some other titles I couldn't remember)

He talked about the importance of reading good books -- that's going to change things for you -- not sittin' around watchin' the television.

I wished I had heard the whole conversation, but I think I caught enough to understand the power of reading good books. I've already read a couple of his suggested titles and am going to go check out the others I've missed. Thanks for the reminder Dave!

HERE'S ANOTHER REMINDER:

The food storage book "I Dare You to Eat It" GIVEAWAY ends tonight (midnight, MST). If you haven't entered the contest yet, just click here and leave a comment on that particular post.

Dave Ramsey's Baby Steps

Last year I read Dave Ramsey's book "Financial Peace Revisited." He helped me understand the importance of a budget -- how to create and keep my own. He says:

"We view budgeting as if it is a form of torture. A correctly prepared budget is not a form of torture, nor is it so time consuming that you can't have Saturday night out. On the contrary, a proper, simple, written plan will actually give you more free time and money with which to enjoy it." (pg. 250)

I thought he did a great job explaining mutual funds, 401(k)s, Roth IRAs. He includes easy to use worksheets for a Monthly Cash Flow Plan, Recommended Percentages, Sample Allocated Spending Plan, Irregular Income Planning, Breakdown of Savings, The Debt Snowball, and others.

He gives "Baby Steps" to get out of debt and build wealth:

"Step One: $1,000.00 in an "Emergency Fund" ($500.00 if income under $20,000 per year)
Step Two: Pay-off all debt utilizing the "Debt Snowball" (except the house)
Step Three: 3-6 months expenses in savings
Step Four: Invest 15% of household income into Roth IRAs and pre-tax retirement
Step Five: College Funding
Step Six: Pay-off home early
Step Seven: Build Wealth! (Mutual Funds/Real Estate)"

There's something for everyone in this book -- no matter what stage or situation in life you find yourself at this time. He pretty much covers it all. You can check out your local library to see if they carry his book(s).

Pay Tithes and Offerings

"Successful family finances begin with the payment of an honest tithe and the giving of a generous fast offering. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (Malachi 3:10 and Isaiah 58: 6–12).

Tithing

If our tithing is the first obligation met, our commitment to this important gospel principle will be strengthened and the likelihood of financial mismanagement will be reduced.

Fast Offerings

On fast day, we go without food and drink for two consecutive meals, if physically able, and then give to the bishop a fast offering at least equal to the value of the food not eaten. If possible, we should be very generous and give more. The bishop uses the fast offerings to care for the poor and needy."

(Source: Provident Living at: http://providentliving.org/content/display/0,11666,7416-1-4005-1,00.html)

Taking It Home

Ever heard the questions "Why can't we buy ___________?" or "Why can't we do ___________?" or "Why can't we have ___________?"

When our home was bustling with teenagers and pre-teens (about eight years ago) and there were many demands on our money, we decided it was a good time to "show and tell" them where the money goes. We gathered our family together for a Family Home Evening and presented them a "hands-on" financial management course.

My husband obtained enough one dollar bills to equal one-month's salary (which task was more of a challenge than we had first thought.) On a poster board I wrote down our financial obligations and offerings for one month. (We had to figure out our income and expenses for the whole year and divide that by twelve in order to get a realistic idea of a one-month budget.) Our list included:

GROSS INCOME: (never could figure out why they call it "gross" income before taxes are taken out. To me it would make more sense to call "net" income "gross" because it's just gross to see so much taken out of your salary.)
Taxes - Federal and State, Social Security

NET INCOME:
Tithes and Offerings (first and always - everything else somehow works out)
Savings
Insurance - auto, health, home and life
Mortgage - plus extra put towards early payoff
Utilities
Food
Auto - car payment, oil changes, new tires, etc.
Gasoline
Clothing
School expenses - fees, books, clubs, drivers ed, etc.
Lessons - music, sports, etc.
Other

By the time we got to the "Other" category, there were just a few dollars left. Everyone was silent for a brief moment as we looked at the piles. REALITY CHECK! Whoever said, "a picture is worth a thousand words" was right.

We explained that there are some categories we don't have much control over such as taxes, mortgage, and insurance. There are categories we do have a little more control over -- such as electricity, natural gas, and water -- by using less, turning off lights when not in use, having shorter showers, etc. Food and clothing are other areas where we can save money...which led to another discussion..."needs" versus "wants". We also set family goals and talked about ways to achieve them.

That night was one of many geared towards teaching principles of financial management. It was an "eye-opening" experience for each of us and one that we'll remember. There was more understanding when requests were made and we worked together as a family to save where we could.

I've also heard of people using "Monopoly" money to teach this concept to their family. The ways to teach the principles of financial management are varied. Use whatever method(s) that will work best for you. The important thing is to take time to TEACH family members...the dividends will be priceless!

Teach Family Members

"Teach family members the principles of financial management. Involve them in creating a budget and setting family financial goals. Teach the principles of hard work, frugality, and saving. Stress the importance of obtaining as much education as possible.

Abundant resources are available—from classes, to books, to other resources such as One for the Money: Guide to Family Finance."

(Source: Provident Living at: http://providentliving.org/content/display/0,11666,7420-1-4009-1,00.html)

Build a Reserve

"Gradually build a financial reserve, and use it for emergencies only. If you save a little money regularly, you will be surprised how much accumulates over time.

President Gordon B. Hinckley has taught: “Set your houses in order. If you have paid your debts, if you have a reserve, even though it be small, then should storms howl about your head, you will have shelter for your wives and children and peace in your hearts” ("To the Boys and to the Men," Ensign, Nov. 1998, 54). "

(Source: Provident Living at: http://providentliving.org/content/display/0,11666,7419-1-4008-1,00.html)

Use a Budget

"Keep a record of your expenditures. Record and review monthly income and expenses. Determine how to reduce what you spend for nonessentials.

Use this information to establish a family budget. Plan what you will give as Church donations, how much you will save, and what you will spend for food, housing, utilities, transportation, clothing, insurance, and so on.

Discipline yourself to stay within your budget plan. A budget worksheet is a useful tool to help you with your plan."

(Source: Provident Living at: http://providentliving.org/content/display/0,11666,7418-1-4007-1,00.html)

Avoid Debt

"Spending less money than you make is essential to your financial security. Avoid debt, with the exception of buying a modest home or paying for education or other vital needs. If you are in debt, pay it off as quickly as possible. Some useful tools in becoming debt free are a debt-elimination calendar and a family budget worksheet.

Distinguish between Needs and Wants

We must learn to distinguish between wants and needs. We should be modest in our wants. It takes self-discipline to avoid the “buy now, pay later” philosophy and to adopt the “save now and buy later” practice.

Elder Joseph B. Wirthlin taught: “All too often a family's spending is governed more by their yearning than by their earning. They somehow believe that their life will be better if they surround themselves with an abundance of things. All too often all they are left with is avoidable anxiety and distress” ("Earthly Debts, Heavenly Debts," Ensign, May 2004, 42).

Getting and Staying out of Debt

We should avoid debt. There is nothing that will cause greater tensions in life than grinding debt, which will make the debtor a slave to creditors. A specific goal, careful planning, and determined self-discipline are required to accomplish this.

President N. Eldon Tanner taught: "Those who structure their standard of living to allow a little surplus, control their circumstances. Those who spend a little more than they earn are controlled by their circumstances. They are in bondage” ("Constancy Amid Change," Ensign, Nov. 1979, 81)."

(Source: Provident Living at http://providentliving.org/content/display/0,11666,7417-1-4006-1,00.html)

How Would One Prepare for Financially Hard Times?

"1. The breadwinner in the family should make every effort to stay employed and keep earning wages or salaries, profits, and benefits.

2. Try to build tenure or seniority with your employer, and demonstrate both creative and productive skills.

3. Keep knowledge and skills current through continuous upgrading; thus, you can compete with the best and offer the best service or product available in your field. Even family members not employed should do the same. Where possible, everyone should have or work toward a potentially marketable skill or product.

4. Protect yourself during a recession—or times of inflation—by keeping monthly expenditures well under control. It is no time to have any excessive debt or large installment payments. Also, you may not be able to borrow money for major things like houses, farms, or businesses. Wait until money is more available and the interest levels are moderate.

5. Have an emergency cash reserve. The longer or deeper the economic downturn, the greater the need for ready money in such cases as unemployment, reduced income, illness, or injury.

6. As much as possible, get ownership and clear title (or deed) to cars, major appliances, homes, farms, businesses, etc. During a recession or depression, repossession, foreclosure, and garnishment—and the resulting risk of bankruptcy—are more likely since cash demands continue and income may stop. Ownership of your major possessions would provide you with great security.

7. Have an adequate one year’s supply of food and clothing. It takes most families months and even years to build a good supply and learn how to store and rotate it properly. Get started now.

8. Be willing to make significant life-style changes. Economic hardship could force you to sacrifice many comforts and luxuries such as recreation, travel, nonessential clothing, eating out, entertainment, and gifts; can you make some of these changes voluntarily now? Expenditures might have to focus on essentials such as food, housing, utilities, health care, and transportation.

9. Organize your extended families to give help to each generation as needed.

10. Self-reliance is important. Knowing how to make bread, sew clothes, make gifts, toys, and home decorations, paint the house, fix the plumbing, etc., will become increasingly valuable. As much as possible, be able to sustain life. Grow a garden, cultivate fruit trees, keep animals, etc., wherever practical, or have access to these resources.

One of the best defenses against a recession or a depression is owning things like food surpluses (such as grain, sugar, corn, rice, beans, and dried fruits), precious metals and gems, coal and wood, land, etc. They have intrinsic value, demand for them stays high, and they can be used in many ways.

11. Be good friends and neighbors. During hard times, you’ll be exchanging products and services much more."

(Source: “Questions about Coping Financially: Welfare Services Suggests Some Answers,” Ensign, Jun 1980, 12)

Thrift and Frugality

"There is a wise old saying: “Eat it up, wear it out, make it do, or do without.” Thrift is a practice of not wasting anything. Some people are able to get by because of the absence of expense. They have their shoes resoled, they patch, they mend, they sew, and they save money. They avoid installment buying, and make purchases only after saving enough to pay cash, thus avoiding interest charges. Frugality means to practice careful economy."
--Elder James E. Faust, April 5, 1986

Financial Securtiy: Managing Money in Tough Times

Tonight I found this helpful link from Utah State Cooperative Extension regarding finances entitled "Financial Security: Managing Money in Tough Times" that is definitely worth checking out! They have links to more articles:

• Accepting Your Feelings
• Adult Children Moving Home
• Building an Emergency Fund
  
• Controlling Spending
• Coping With Stress
• Debt Management in Tough Times
• Deciding Which Bills to Pay First
• Doing Things Together as a Family for Less
• Freeing Up Money from Services
• Having a Spending Plan is Critical
• Keep Lines of Communication Open
• Keeping a Roof Overhead
• Making Extra Money
• Making the Most of What You Have
• Managing Stress
• Meeting Your Insurance Needs
  
• Saving Money at the Gas Pump
• Sizing Up Your Financial Situation
• Stretch Your Food Dollar: Keep Food Safe
• Stretch Your Grocery Dollars
• Stretching Your Food Dollar
• Teaching Children Coping Skills
• Things You Can Do When Money is Short
• Tips for Teens: How to Contribute to Family Needs During Touch Times
• What are Your Resources?
• What is Your Net Worth?
• When Prices Rise: Living on Your Income
• Working Teens as Contributors to the Family

(Source: Utah State Cooperative Extension)

How to Make Your Dollars S-T-R-E-T-C-H

I’ve heard it said that there are two ways to have more money:

A) Increase your income

B) Decrease your spending

Since it isn’t always possible to increase our income, let’s focus on something each of us can do: decrease our spending.

1. Pay tithing. (Do this first, somehow things always work out.)

2. Pray. (Ask Heavenly Father for His help. He will help you!)

3. Set Goals. (Amazing things happen when you have a goal.)

4. Budget. (Almost a four-letter word -- I know, but it will give you freedom if you learn to do this.)

5. Discern between needs and wants. (Make a ‘wish list’ for your wants and save those for birthdays, Christmases, or save up for them. Learn to anticipate instead of instant gratification.)

6. Think outside the box. (Are there any goods and services you might be able to trade for other goods and services? – ie. lessons, tutoring, handyman, babysitting, meals, cleaning, yard work, sewing, etc.)

7. Brown bag it. (Make and take your own lunches when possible. The savings add up!)

8. Buy ‘used’ when possible. (You can find treasures at second-hand thrift stores and yard sales. ‘One mans junk is another man’s treasure.’ Also, your local classifieds have incredible savings on almost anything you might need.)

9. Borrow DVD’s and books from your local library. (Make sure to return them before their due date to avoid overdue fines.)

10. Buy items on sale. (Stock up on needed ‘on sale’ items when possible.)

11. Use coupons on things you need. (I just love those two-for-one coupons!)

12. Prepare and eat your own meals. (So much cheaper – and healthier -- than buying already prepared foods or eating out.)

13. Avoid wasting food. (Use up those leftovers – they can become ‘fast food’!)

14. Use your food storage. (Rotate it before it expires and eat healthier, too. Be sure to replenish your supply when possible.)

15. Grow a garden. (Eat and preserve your own food.)

16. Wash your hands. (This simple thing will help keep you healthier.)

17. Walk when possible. (Save gas and release ‘happy’ endorphins. I like happy!)

18. Brush and floss daily. (‘An ounce of prevention is worth a pound of cure.’)

19. Get enough sleep. (‘Early to bed, early to rise, makes a man healthy, wealthy, and wise.’ You'll make better decisions when you're well-rested.)

20. Make your own cards and/or gifts. (Sometimes time is more available than money. Many people appreciate handmade items.)

21. Give service. (This gives you a very satisfying feeling and blesses the receiver(s) as well. It takes your mind off yourself.)

22. Change your attitude. (Be grateful for what you do have. Think, “What I have is enough.”)

I’d love to hear how you make your dollars s-t-r-e-t-c-h.

The Basics of Family Finances

"PAY TITHES AND OFFERINGS
Successful family finances begin with the payment of an honest tithe and the giving of a generous fast offering. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (see Malachi 3:10).

AVOID DEBT
Spending less money than you make is essential to your financial security. Avoid debt, with the exception of buying a modest home or paying for education or other vital needs. Save money to purchase what you need. If you are in debt, pay it off as quickly as possible.

USE A BUDGET
Keep a record of your expenditures. Record and review monthly income and expenses. Determine how to reduce what you spend for nonessentials.

Use this information to establish a family budget. Plan what you will give as Church donations, how much you will save, and what you will spend for food, housing, utilities, transportation, clothing, insurance, and so on. Discipline yourself to live within your budget plan.

BUILD A RESERVE
Gradually build a financial reserve, and use it for emergencies only. If you save a little money regularly, you will be surprised how much accumulates over time.

TEACHING FAMILY MEMBERS
Teach family members the principles of financial management. Involve them in creating a budget and setting family financial goals. Teach the principles of hard work, frugality, and saving. Stress the importance of obtaining as much education as possible."

(Source: "All is Safely Gathered In - Family Finances", The Church of Jesus Christ of Latter-day Saints)

Finances

"I urge you...to look to the condition of your finances. I urge you to be modest in your expenditures; discipline yourselves in your purchases to avoid debt to the extent possible. Pay off debt as quickly as you can, and free yourselves from bondage.

"...If you have paid your debts, if you have a reserve, even though it be small, then should storms howl about your head, you will have shelter for your wives and children and peace in your hearts. That's all I have to say about it, but I wish to say it with all the emphasis of which I am capable."

(Source: Gordon B. Hinckley, in Conference Report, Oct. 1998, 72; or Ensign, Nov. 1998, 54)