Turning finances into an extreme sport

I don’t know a lot about extreme sports, except that the people that compete in some of the events are either crazy or very brave. Either way they enjoy some very exciting opportunities. Wouldn’t it be great if there was a way to turn the “extreme sport” attitude into a “personal finance” attitude?

Well, now there is. Yahoo! Finance has an article detailing the extremes that some families go to to enjoy the financial freedom. The article lists eight secrets that guarantee a life free of financial bondage

1. Avoid Debt
2. Delay Gratification
3. Create Multiple Streams of Income
4. Live Below Your Means
5. Cut Down on Everyday Expenses
6. Track your spending
7. Live on one salary while bringing in two
8. Automate savings

Most of these ‘secrets’ are really just common sense. As a matter of fact we have talked a lot about most of these, and you don’t have to have a finance degree to be successful in implementing them into your everyday life.

Avoid Debt

We talk a lot about this one. If you have no debt, then the money that would be going to payments goes into savings and/or retirement.

Delay Gratification

Dave Ramsey recommends waiting at least 24 hours to determine if your really need or simply want an item. We recently did this with a washer and dryer. The washer was a return item listed for half price. We waited and when we went back to the store the washer was gone. A few days later we got the same washer/dryer set at another store for the same total price. The difference is both items were brand new.

Create Multiple Streams of Income

Most people wouldn’t think of picking up a part-time job, but for a period of time, it could be the engine that gets your debt payoff machine in gear. It doesn’t have to be a part-time job, maybe you work a few hours each week of overtime, or have a yard sale. I am sure we all have a few items that would look better sitting in someone else’s closet. A second job in an area that you enjoy is the perfect solution. Who knows, maybe you have a second career just waiting to be tapped.

Live Below Your Means

Larry Burkett always said it isn’t how much you make, it is how much you spend. If you can always spend less than you make and save the difference you will be in good financial shape.

Cut Down on Everyday Expenses

What are things you spend money on everyday? Lunch at work? Coffee at the local coffee house? Find those areas of your life and determine if you can do without them. Can you bring leftovers for lunch? Did you know that the local coffee house sells regular coffee for $2 a cup? You don’t have to spend $4-5 for coffee.

Track your spending

If you have never tracked your spending for a month, I promise you will be amazed at some of the ways you spend money. When you realized just where your money is going you will be more likely to say no to some of those ‘buying opportunities’. Learning to say no to some of those everyday expenses will give you extra money for savings or paying off debt.

Live on one salary while bringing in two

Ok, this only works if you either have two jobs, or you have two people in the house that are both working. Most homes in the U.S. now have both parents working, and they still have trouble making ends meet. If you can adjust your lifestyle to live on only one income you can accomplish all of your financial goals…any you will be considered really weird!

Automate savings

With direct deposit most people never even see their paychecks anymore. If you can set up automated money transfers, you can eliminate the temptation of spending money instead of saving it. We have our Roth IRA contributions and college savings contributions automatically deducted from our checking account each month and I never even know the money was there.

There you have it. Eight secrets that will take your finances to the extreme. Most of it is common sense, but all of it is up to you. Only you can make the decision to take control of your finances. Don’t blame your situation or your environment, you can choose to change the direction you are heading or you can choose to keep doing what you are doing.

• Let's talk life insurance
• More money saving tips
• Saving (more) at the grocery store
• How to get a raise instantly
• Why can't you save any money?

• Personal Finance Links (I Almost Died Edition)
• 40th Money Hacks Carnival
• The Very Best Money Saving Tips
• Are money-saving tips unhelpful to people who really need them?
• The Best Money Saving Ideas of All Time.