[pennywise]

Its okay to cut the luxuries. Short term sacrifices for long-term gains!!! You are on the right road. You found us so you are looking, you have also made some tough decisions and incorporated them into your life. I hope we can prevent the further loan taking. Taking equity from your house is not a good idea and does not buy you the financial freedom you are looking for. We will continue to encourage you. I started on ADC over 25 years ago - my sister said: look at what you have done with your opportunities. And I did. I don't have to work anymore if I don't want - will have to live on a low income, but I don't have to anymore. Let's get you there.

1) The phone. I need you to analyze the phone use. What do you use the phone for? Can prepaid long distance cards work and cut long distance. I know we all need unlimited local because of the computer. Check out Vartec: I have unlimited local and 30 min long distance every month for about $45 total (all those taxes and fees included). If anyone has the same cheaper who is your company? Check all competitors in your area. SBC is looking to grow right now. Okay, step 1.

2) Look at our discussion on the hot water heater and the other is "how do you save on electricity". There may be some ideas for you. Can you turn the hot water heater down a notch. Do you have the blanket on the hot water heater (if you need to buy one you have to cut from somewhere to buy - you cannot just go buy one, okay?)

3) I read my electric meter every day to see where I can cut. You need to analyze every room to see what is plugged in. You can lower here I am sure, see #2 above.

4) The auto insurance. What coverage, how old are the cars. I have two brand new and I put the minimal insurance - they were paid cash for. The insurance man said "new cars, we will fix you but not the cars" I said "I have been driving since age 16 (current 49) and have never used my insurance"!!!! Check competitor's, do not just keep paying the bills. Call your rep and discuss decreasing the coverage.

5) Cut the alarm at the first out of the contract. Keep your sign on the house and keep the thing working. Mine goes off if I forget, but really - what is the liklihood someone will break in? The sign will keep the honest man honest and the crook will come even with the alarm. Come on, do you really have millions to protect?

6) Allowance is good. I know it makes you feel good, but the kids are 5 and 1. You are lucky because at this age you can control the money, clothes, toys, etc. It is my opinion you need to cut the allowance out completely. Short term sacrifices for long term gains!

7) Eating out. Just don't do it. If you are going out pack a picnic. Besides eating out is gross, who knows how sick the teenager cook is, did the food fall on the floor, how freshly cooked is it, does he have a hair net on......?

8) The wife or SO: does she/he work? What do you do for a living. I am looking at this area to see if we can increase income. Again, short term sacrifices for long-term gains. Also, look up in the search engine "Benjamin Franklin AND saving" there is very good advice here.

9) REad the whole site here as there are good links and ideas.

10) get the wife in on the plan and get her to read the household tips us women put out.

Let's get started, we will cut your bills, increase your income, avoid further borrowing, and start the path to financial freedom: SPENDING MONEY DOES NOT GIVE YOU POWER, HAVING MONEY DOES. SPENDING MONEY DOES NOT BUY FREEDOM, HAVING MONEY DOES.

Good job, I am proud of you. Keep that TV off except for a rare treat. Don't forget to get silly with the family, since the kids are young they don't care what kind of dancer you are, just that you dance with them. So sing, be silly with your wife and kids and laugh - it is free.