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.

Often you hear someone say something or you read something and you think, “Well, of course. Who didn’t know that?” You know what I’m talking about. Those things that are so simple that everyone should already be doing them. For example, an article published over at MSN Money entitled, The simple way to get rich: Pay yourself first. The article was based on a very simple idea; if you want to save for the future, you have to start saving now. Pretty simple idea.

However, simple things aren’t always easy, right? In order to save, you have to have enough money to pay your bills, meet the needs of everyday living and then whatever is left over, if there is anything leftover, can be moved into your savings account…well, not really. For some people, saving is easy (and simple). They are just wired to want to save for the future. That is how I am. I like the idea of having money sitting there for emergencies or for major purchases. Others find saving difficult, because there are a lot of things that they would rather spend money on today instead of saving for the future. So if you fall into the second group, how do you overcome the difficulty of finding money to save each month?

Well, the MSN article has an answer that simplifies the difficult part of saving. Are you ready? Treat saving like a bill. That’s right. If you have trouble finding the extra money required to save, then set your savings goal and treat it like a bill. Or better yet, set up your paycheck so that your savings are automatically deposited into your savings account each pay cycle. Make sure that getting the money out of your savings account isn’t too easy, otherwise, you will be tempted to spend it on things that aren’t part of your goals.

The most important thing to remember is that it is not too late too start saving. You are saving for the future, and today is the present, so if you are not saving already, start saving today. By thinking about the reasons you are saving, (i.e., college, car replacement, house down payment, etc) you will be able to overcome the desire to impulse buy when you see something that you “just have to have”. Stay focused on the goal and you will soon begin to see your savings grow.

Whether you are in debt or simply looking for a plan guaranteed to help you become Financially Free, there are a lot of great resources out there that can help. I have mentioned that I am both a Dave Ramsey certified counselor and a Crown Money Map coach. Both of these programs are designed to help you reach a point with your finances where you are debt free, building wealth and able to serve God through giving whenever He calls.

Dave Ramsey has the baby steps and Crown has the Money Map. Although slightly different both are great tools that will walk you through the steps to reach your goal. For a limited time you can get a free copy of the Crown Money Map.

For a lot of people, the last year or so has caused them to rethink the idea of personal saving. According to the U.S. Bureau of Economic Analysis, the personal savings rate for 2005 was -0.4%. That was the first time the savings rate in the U.S. had been below 0% since 1933. When the economy is doing well, the idea of needing a rainy day fund seems unnecessary; however, as we have seen not being prepared for a bad economy, can wreak havoc on a family.

Because of the renewed attention to savings, many families for the first time in years are prepared to handle minor emergencies without having to use a credit card or home equity loan. What about you? Are you saving for a rainy day? What about retirement? College?

Here are a few tips that might help you start saving or help you save more.

1. Direct Deposit – Use direct deposit to deposit a portion of your paycheck into your savings account.
2. Save Your Change – Put all of your spare change into a jar at the end of each day. All those pennies and nickles will add up over the period of a year.
3. Walk Away – When you see something that you think you just have to have, wait. Come back in a couple of days and see if the desire for the item is still there. Who knows, you may be able to find the same item for less.
4. Set a Goal – Often having a target or goal to aim for will help keep you motivated.
5. Use a Budget – The best way to begin saving is to know where your money is going. A budget will help you spend your money wisely and help prevent impulse purchases.

Working in an office allows me to see a lot of different people and observe what they eat for lunch. More specifically, how much they spend on lunch. Fortunately for me, I am pretty easy to please when it comes to food. As long as it isn’t horrible I can eat it. That makes it really easy to find options, but usually I go for price and amount (quantity) over taste (quality).

My favorite lunch is anything leftover from dinner the night before. My wife is a great cook and taking leftovers meets two of my lunchtime criteria – quick and cheap. Remember, I am eating for sustenance not necessarily taste. Whenever I take leftovers it is like a bonus because like I said, my wife is a great cook, so I get quick, cheap and great taste. However, there are times when there are no leftovers, it is then that the decision on where to eat comes in to play.

There are several people in the office that go to Subway almost every day. Not me! Too expensive. At least for me to get filled up. The six-inch sub isn’t enough so I always get the 12-inch. If I go with the combo meal it is close to $7. For those that do that each day, they are sinking $35 a week into lunch. If they do that for 50 weeks (two weeks of vacation) they are dropping over $1700 a year just eating lunch.

If I go out, I usually grab a couple of McChicken sandwiches from the Dollar menu. I also get a cup of ice water so I get lunch for $2.18 (including tax). Now I would never recommend anyone eating at McDonalds every day, but once a week is all right. I have also found that the prepackaged soups from our local grocery are very inexpensive and provide a nice size serving for lunch. Last night I bought a bunch for $1 a piece. Not the most nutritional lunch, but once in a while isn’t too bad.

If you are looking for a way to cut some spending out of your budget look at your lunchtime spending. You may find out that you are spending a lot more than you realized. Not going out with the rest of the group will take some discipline, but if you already have leftovers, it is easier to say no.

Most people have a very difficult time asking for a discount. For some reason here in the US we feel like we have to pay full price for everything. In a lot of foreign countries asking for a discount, or haggling, is not only welcomed, it is often expected, and why not. If someone is willing to give you a cheaper price just because you ask, why not try it out?

Don’t be afraid to ask

Today I called my phone/internet provider to discuss a recent change in my bill. Basically in two months my bill jumped over $17. When I finally got through the automated maze that every company seems to use, and found a human, I learned that my promotional rate had expired and that was why my bill was bigger than expected. When I asked if they were running any types of discounts that would bring my bill back down, I was transferred to someone in the Retention Department. As soon as I heard they had a department called retention I knew something good was about to happen.

I remained friendly and repeated my question. “Are you running any type of discount that will bring my bill back to where it was?” Then I shut up. I have found that just by being quiet, you can often gain an advantage in the discussion. To my surprise, the agent I spoke with didn’t question my reason for asking for a discount or try to explain how the company was being impacted by the economy. He simply said yes. He then started explaining the deal he was about to offer me and said that not only could he get me back to my original bill, but he could get me another $5 off on top of that. All-in-all I was able to save around $22 a month for the next 12 months. That is over $260 just for asking.

The hard part

I think the most difficult part of asking for a discount is getting over the feeling that you are being a tightwad. Most people feel as if they are cheating by asking for a lower price. There are several things you can do to over come the wave of emotion that comes over you just before you ask for a break. First, realize that the person you are talking to isn’t going to lose money on the deal. Every item or service has a price that will cost the store money. You aren’t going to get that good of a deal. Second, stores often use sales to move merchandise because they need the room to bring in more inventory. If you purchase the item (even at a discount) you are doing the store a favor. Finally, the worst thing they can do is say no. If they do, you still haven’t lost anything.

So, the next time you are looking to purchase something or have an increase in your cable or phone service, ask for a discount. You may be surprised by how willing the representative is to work with you.