How to Write Your Own Stimulus Package

While the federal government works to create an economic stimulus package for the entire country, why not try and create one for your own family? Reduce debt and spending and increase credit and savings.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• creativity

1. 

   Get a grip on your current income and spending. Use a easy and free program, like Mint.com, to monitor your income and spending for a month.
   
   Get a grip on your debt. Check out credit cards, student loans, mortgages to learn exactly how much you owe and what the interest is for each debt.

2. 

   Useing Mint.com (or whatever program you choose) examine your expenditures for surprises (spending way more in coffee every month than you thought? did you know you were auto-paying a $100/month cable package?)
   
   Create a ruthlessly cheap budget and try to live with it for a month or two. In the beginning its fun, and you will be surprised at how easy it is to save a lot of money. However, as time goes on you will learn what luxuries you can't live without and can create a new budget with some cushion built in for your necessary indulgences.

3. Change the way you spend to create local economic stimulus. Buy groceries and food at a local co-op or farmers market and go to locally-owned non-chain coffee shops and restaurants. Think about the power of your money and spend it where you think it will have the largest positive impact.
   
   There are many ways to spend and save money while helping your local community. Small things like using a reusable grocery bags and efficiently using energy will save you money and have good benefits on your community.

4. Use the money you have been saving for two purposes: saving and paying debts.
   
   Its generally best to pay off the debts with the highest interest rates first. If you have a really high credit card interest rate, don't hesitate to call the credit card company and try to negotiate a lower rate. If they won't budge, explore the potential of transferring the balance to a lower rate card (be aware of short-term low/no interest offers and read all the fine print). Some home mortgages allow you pay the same amount every month split into two payments - one mid-month and one at the end. This can take years off your mortgage because you accumulate less interest.
   
   Don't underestimate the importance of tucking some money away into savings. It gives peace of mind to know you have money if there is ever an emergency.

Tips & Warnings

• I'm not a finical expert, so if you have any questions, concerns, or serious financial issues you should consult with a professional.
• Be present and mindful when you spend money and you will be wealthier, happier, and healthier. Its great buying tomatoes from the person who grew them at the farmers market - you know where your food came from and where your money is going. Its awesome to see the savings in your electric bill after turning down the water heater - knowing that your saving money and reducing carbon emissions.

Resources

• Mint.com

[torque63]

on 2/28/2009 Good article, I'll have to check out mint.com thanks! 5*