Live Debt Free

Pay off debt. Save. Give. Live your mission.

Save Money on Black Friday

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Marketers are brilliant, they have convinced us that spending less money is the same as saving money. If you’re like most American’s you believe you save money when you buy things at a discount – on sale. (Thank those brilliant marketers for that thought.)

Now let’s think critically about it.

Spending is not saving

Let’s be clear – spending money is NOT saving money. When you spend money on anything, even with discounts, you are not saving money… you’re spending it.

Saving money means you’re choosing not to spend it. If you buy something at a discount, you don’t save, you simply spend less.

Rather than spending this year, sleep in and save money by skipping Black Friday sales choosing instead to fund your savings account with the difference.

Needs vs. wants

Is there anything wrong with spending money on Black Friday? You’ll have to answer that for yourself, but let’s address a few distinctions.

  1. Do you need what you’re buying? If so, then waiting for Black Friday means you’re planning ahead so you can spend less than normal.
  2. Do you want what you’re buying? If so, make sure all your needs are met, you have previously saved for the item, and have discussed it with your spouse or accountability partner.

So is there anything wrong with spending money on Black Friday? Draw your own conclusion but mine is simple – you can shop Black Friday to get deals on things you need or want as long as you understand the above facts and meet the mentioned criteria.

Choose to save instead

With the vast majority of your media consumption encouraging your to spend I’m happy to give you a healthy opposing option.

Rather than spending, make the positive decision to save. You already know which banks I recommend for checking, saving, and debit card rewards… so open an account of your choosing or fund a savings account at your existing bank.

After all, do you really need what you think you need? Do you really want the responsibility that comes along with more possessions?

Less is more

Betsy and I never considered spending a dime this year. Not because we don’t want anything, it’s more accurate to say we’re learning more possessions means more responsibility. Less money spent on possessions means less maintenance and/or debt. That in turn means less time spent working to pay for the possessions and debt, and more time for other things.

What other things? For us it means more time for love ones, more time for passionate work, and more time for ministry.

How would you focus your time if you had less debt and fewer possessions to maintain?

Gifts and purpose

God gives each of us spiritual gifts to be used for His glory. He also gives us purpose (or calling).

What are your gifts? What is your calling? It’s okay if you don’t know, but it’s not okay if you have never pondered the thought.

“As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God. If any man speak, let him speak as the oracles of God; if any man minister, let him do it as of the ability which God giveth: that God in all things may be glorified through Jesus Christ, to whom be praise and dominion for ever and ever. Amen.” I Peter 4:10-11

Rather than spending time pondering Black Friday purchases, think about how your time, money, resources, and gifts can be spent serving the Lord of glory. He’ll ask you about it one day, why not have an answer ready?

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The Whole Armor of Personal Finance

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Some of my favorite bible verses are those packed full of encouragement and power.  In the following passage, the Apostle Paul is speaking to the church at Ephesus regarding the battles to be fought, and the weapons with which they should fight.  This text is incredibly uplifting and full of timeless wisdom.

Paul reminds the reader that the Christian battle is not one of flesh and blood, but of principalities, powers, the rulers of this world, and wickedness in high places.

It reminds me of our battle against debt, advertising, commercialism, and the war we fight to gain control over our personal finances.

The Scripture

Finally, my brethren, be strong in the Lord, and in the power of his might.  Put on the whole armour of God, that ye may be able to stand against the wiles of the devil.  For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.  Wherefore take unto you the whole armour of God, that ye may be able to withstand in the evil day, and having done all, to stand.  Stand therefore, having your loins girt about with truth, and having on the breastplate of righteousness;  And your feet shod with the preparation of the gospel of peace;  Above all, taking the shield of faith, wherewith ye shall be able to quench all the fiery darts of the wicked.  And take the helmet of salvation, and the sword of the Spirit, which is the word of God:  Praying always with all prayer and supplication in the Spirit, and watching thereunto with all perseverance and supplication for all saints;”  – Ephesians 6:10-18

The whole armor of God

  1. Loins girt about with Truth
  2. Breastplate of Righteousness
  3. Feet shod with the preparation of The Gospel of Peace
  4. Shield of Faith
  5. Helmet of Salvation
  6. Sword of the Bible

The whole armor of Personal Finance

  1. Loins girt about with Wise Money Management
  2. Breastplate of Frugality
  3. Feet shod with the preparation of Sound Financial Counsel & Education
  4. Shield of Contentment
  5. Helmet of A Proper Money Mindset
  6. Sword of Cutting Expenses

Loins girt about with Wise Money Management

  • Budget to gain control & focus on Spending less than you earn
  • Emergency fund savings – while many say to get at least $1,000 saved for emergencies, I advise to continually fund your emergency fund and other high interest savings accounts by using the percentage approach.  I currently designate 25% of my available funds to my savings even though I am still in debt reduction mode.
  • Debt reduction – where I focus the remaining 75% of my available funds.  It is of the utmost importance to rid yourself of all your high interest consumer debt like credit cards, department store cards, auto loans, etc.  Once you pay off your high interest debt, I advise shifting the majority of your available funds to savings & investments.
  • Invest & continue to save – once you have paid off your high interest consumer debt, continue building your EF and invest the rest in your investment of choice.  Index Funds (through Charles Schwab or Vanguard) are solid, low-cost, choices that will meet market returns.
  • Pay off your mortgage & student loans – once you have your savings funded according to the needs of your individual situation, paint a big bulls-eye on your low interest debt and slash that baby down as quickly as possible.  I may catch flack for saying this, but I am a HUGE proponent of paying off the mortgage and living DEBT FREE.

Breastplate of Frugality

  • Creative mindset – get your creative juices flowing & be resourceful.  Before we do anything now, my wife & I run all our financial decisions through our protective frugal filter.
  • Stop eating out – If you have been following our Debt Free Adventure then you may well know that Mrs. Jabs & me were spending between $5,000 – $6,000 a year eating out at restaurants.  Looking back now, this is absolutely atrocious to me but before equipping ourselves with the breastplate of frugality we just didn’t concern ourselves with the costs.  If you must eat out use my Frugal Guide to Eating Out.
  • Homemade gifts & products – making more things at home including:  food, cleaning products, gifts, home decor, etc. will save you money and bring many other benefits along with it.  We make products such as homemade laundry detergent, toothpaste, deodorant, all-purpose cleaner, homemade dishwasher detergent, etc.  We also stopped buying cards & gifts and choose to make our own now – the results are more personalized, unique, and special than their store-bought counterparts.
  • Use Coupons – When we do buy things we always shop around and seek out coupons.  This is especially useful when shopping on the Internet, before I make any purchase I simply go to Google and type in “Coupon *product I’m buying*”
  • Ask for discounts – I tell my wife all the time, you never know until you ask!  Just a few weeks ago, when putting in my paver patio I saved over $300 by simply asking for a discount due to the volume of my purchase.
  • Decrease use of heat & AC – we used to keep our house at 70 in the winter and 74 in the summer.  Now we keep it at 64 in the winter and have actually been able to keep our A/C off every day this summer except for two!

Feet shod with the preparation of Sound Financial Counsel & Education

  • Adopt a financial mentor – when I truly began to get a hold on my finances at the beginning of this year I found myself in need of some solid financial advice from those who were already standing where I wanted to be.  I decided to adopt a few financial mentors and they continue to be an ENORMOUS blessing in my life.
  • Read personal finance blogs – they’re free and chocked full of sound money advice.  A few great ones to get you started are Frugal Dad, Bible Money Matters, Get Rich Slowly, Five Cent Nickel, and The Simple Dollar
  • Read personal finance books– if you are like JD Roth and you like the smell of books, or you simply love the feeling of a good book in your hands then get started with a few goodies.  I recommend:

Shield of Contentment

  • Simplify your life – break free from the culture of temptation that marketers have been driving at us for decades, and choose instead to return to a simpler life.  Ride your bike more, walk more, read more, turn off the TV.  All of these things may seem like sacrifices at first but after being exercised by them Mrs. Jabs & me have realized the true blessings of a simplified life.
  • Determine your needs – what do you need at a most basic level?  Water, food, shelter, and love – everything else is a bonus.
  • Determine your wants – our wants can be endless so it is incredibly important that we realize this and quickly determine what we can do to keep them in check.  What kind of food should we buy?  How big of a house?  What clothes should we wear?  These questions, like many others in this post, will be answered differently based on your income, debt, age, and relationship status so be sure to answer them specific to your position.
  • Find a balance – now that you have separated you wants from your needs, focus on finding that balance where you have what you need, are living below your means, but still comfortable.

Helmet of A Proper Money Mindset

  • Sacrifice now to benefit later – this is actually my entire financial philosophy in a nutshell.  The concept is simple and revolves around my view that it is better to scrimp & save now than it will be when you’re in our 60’s, 70’s, 80’s, & 90’s!
  • Embrace compounding interest – to motivate yourself, calculate how much interest you are paying to big banks and do whatever necessary to reverse that cycle and start paying yourself first.
  • Spend less than you earn & avoid debt – this isn’t rocket science and does not require explanation.
  • Save/invest increasingly – Grow your savings every year, even if you are currently paying debt.  Always pay yourself at least 25% of your extra money each month.
  • Give generously – it truly is more blessed to give than to receive.  Since implementing an automated charitable giving plan earlier this year, my wife & me have never had a better grasp on our finances.

Sword of Cutting Expenses

  • Turn off your TV – I mentioned it earlier in the post and I am purposely mentioning it again.  It is hard to impress upon you the many benefits of canceling your TV service.  I am much more productive in my side hustles, I spend more time with my wife, I accomplish more around house… especially in the way of my “honey do list”.
  • Reduce grocery costs – grow a garden, make more homemade food, stop eating out, buy in bulk, eat locally, preserve the harvest by freezing it and by canning it.
  • Reduce your consumption – I’ll say it again… turn down/off your furnace and turn down/off your air conditioning.  At first we thought this was uncomfortable but found we adapted to the temperature quickly.  Now that we no longer use our A/C we are always very cold when we go into a building that has it in use.
  • Carefully check your monthly bills for errors – I was able to save $160 over the course of two months because my utility company was over charging me.  I am not sure whether this was done on purpose, but regardless, by checking the bill and looking it over carefully I was able to save a lot of money.

I hope you were encouraged by this article, and that it helps to equip you with the whole armor of personal finance so you can protect yourself from the wiles of debt, advertising and commercialism.  Let us fight the good fight of faith and strive to win the daily battle to gain control over our personal finances!

Energy Saved is Money Earned

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Let’s start with some facts about energy consumption.  It’s estimated that 1/2 of the energy consumed in an average home comes from heating and cooling. When left open without a fire, a fireplace flue damper wastes about 8% of furnace heat straight up the chimney. Another 6% of total home energy is used by refrigerators and freezers alone. Conserving energy means conserving dollars.

Electric, propane or natural gas

These are the most commonly used energy sources so let’s start here.

We all know about turning off lights when not in a room, but we can also use energy efficient bulbs to save energy. Currently the most popular bulbs are incandescent bulbs. Compact fluorescent light bulbs may cost more but only use ¼ the energy used by incandescent bulbs. As an example, if we replace all bulbs in the house we save 75% more energy, which translates into a smaller electric bill. It won’t take long for the savings to catch up to cover the higher costs of the compact fluorescent bulbs, then it’s all savings from then on – and CF bulbs last much longer than incandescents. The Department of Energy estimates that replacing incandescent bulbs with LEDs could potentially save 190 terawatt-hours annually – the equivalent of lighting over 95 million homes.

Matt’s note: Betsy and I don’t use CF bulbs because we don’t like the half spectrum lighting and aren’t crazy about their high levels of mercury, but if this doesn’t bother you… go for it. It is also commonly known that CF bulbs lose brightness over time and rarely live up to manufacturer claims of long life. As a safer and better lit alternative try LED bulbs but be aware they are also half spectrum lights.

Ever heard of phantom power? Even when turned off certain electronics and appliances still use energy just by being plugged in. Common culprits of phantom power are microwaves, toasters, TVs, computers, and even mobile (cell) phones. To reduce phantom power you can unplug these power hogs when not in use. One easy way to do this is to have them plugged in to a power strip so you can power them all off with the flip of one switch. Look for power strips that double as surge protectors to further protect your electronic assets.

Matt’s note: I once had a power surge blow up my cable modem, television, and Xbox! I now use surge protectors all over the house.

It is also recommended that pipe insulation be placed on water pipes leading into and from water heaters. The insulated pipes keep cold water cold and hot water hot longer making the water heater more efficient. Water heaters are also preset when first installed at 140 degree temperature settings. Consider lower the heat setting to 120 to save energy and as a preventative measure to protect children and the elderly from being scalded.

Matt’s note: We installed pipe insulation on all accessible water pipes. We also covered our water heater in an insulation blanket to help keep water hot longer.

You should also check into different types of energy sources available in your area that may be less costly than what you’re currently using. Investigate the possibilities and change if it makes sense. Many utility companies employ programs encouraging people to use ‘greener’ energy sources like wind or solar. They may offer discounts for such alternative energy plans so it’s worth checking into.

Windows, doors and appliances

Drafty homes leak heating and cooling energy year around. Use caulks and sponge sealers around doors and windows to seal the drafts. You can also use plastic to cover windows.

There are tax breaks, or possibly even home assistance programs, for buying energy efficient windows and doors that help to conserve energy. There are also many programs and energy companies offering assistance for updating to energy efficient stoves, refrigerators, freezers, washers, and dryers. The energy supplier in my area will pick up old appliances (even if they’re no longer working) and offer a rebate on our energy bill if we replace them with a new energy efficient model.

There are even web sites that base possible energy reduction tactics specifically for the area or time zone where you live. This can include sun angles, average wind directions for windbreaks to be used, and landscaping tactics providing shade or encouraging natural sun warmth for energy efficiency.

In conclusion, there are many, many ways to save energy and keep more money in your pocket. Don’t be afraid to type “energy saving” into your favorite search engine for extra tips and ideas.

Make it like a game with your family by having everyone look around for energy saving ideas and reward those with good ideas. You can also propose a contest to neighbors to see who can get to the lowest energy costs per square foot. Be creative and get started!

By themselves these tips are infinitesimal but taken together they add up to a considerable monthly savings.

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