There are signs that some are taking extreme measures to change their lifestyle in order to live simply, better and away from the effects of the economic ‘storm’ in which we find ourselves.  You can classify these people as ‘survivalists’ because they have made changes in their living that promote the very term.  But they have not always had this philosophy and indeed do not necessarily embrace all of the tenets of a ‘survivalist’ mentality which includes a hate for government and a hoarding of guns, etc.

One of the traits of this group is that there is commonality in what they once were and have given up in making these changes.  There is a general withdrawing from mainstream living that includes these moves.

Shunning of a Credit Lifestyle. Most of these people are tired of being pawns in the game of credit and debt and have opted to remove themselves from that system.  Not that they do not believe in paying back their debts, but rather, they are trying to reduce their reliance upon credit, debt and the mindset of ‘keeping up with the Joneses.’
Their mentality is that they are doing what they have to in order to survive.  And, along the way are finding that it is a better lifestyle that what they had before.  There is less stress and easier living.

Simplifying their living arrangements. Some have taken the approach of moving away from the cities and towns and to more rural locales which affords them the opportunity to get closer to nature and benefit from its many offerings in such exploits as hunting and fishing.  You will find that they are good at things like cutting their own wood for their fireplaces and stoves which heat their houses.

Their utility bills are cut to the bare minimum. Their reliance on vehicles has dropped so that not only do they use them in more of a utilitarian fashion, they also go from multiple vehicles down to just one.

Growing their own food.  Gardens and related food activities such as canning have become important to them.  Having animals that produce food for them is important as well.

Reviving self-reliance practices. Among these people you will find a growing trend towards sewing their own clothes, and shopping at local thrift shops.  They learn very early where to buy things that are cheap and even start bartering with other people instead of paying cash.

All of this is acceptable as long as you do not shun responsibility and commitments that you made in the past.  People who try to remove themselves from the system will find that this is a difficult thing to do.  Their credit score will drop dramatically and their history will become blotched with actions and items that raise red flags.  So the advice is that if they plan to try to get back in at some point, it will be a difficult situation from which to recover.
Reducing stress and increasing self-reliance are good things, but you do not have to take extreme actions in order to embrace and practice those activities.

Extreme Measures in Tough Economic Times was created by and is property of American Consumer News.

Five places where your money can veil itself:

• Often times, it is distressing to hand over that cold hard cash. As you pay your bills with cash or have to write out a check, you are very observant to the fact that the checkbook or wallet is getting much thinner. Give yourself a monthly allowance. Use that money for dining out, a cup of java, a quick stop at the market and any other minor take-for-granted things that you find yourself swiping that plastic to pay for.

• While paying bills electronically is not a bad thing, be sure to scan the statement carefully for any hidden or “fraudulent charges”. Banks and computers are not always error free. More times than not, if you find a non-valid charge or one that you feel is in error simply call the financial firm, they will rectify the problem; usually resulting in crediting it back to your account.

• Be sure to fill in the amount you are paying manually. The ones with the automatic fill feature may fill in the minimum amount due or it may fill in the amount you last paid. This could result in not paying enough (which may add a late fee because the minimum amount was not paid) or possibly paying more than you budgeted for at that time causing you to be overdrawn (again possibly adding penalties and fees.)

• Know when to hold and when to fold. Saving 10 or 15% by opening a store credit card at the time of your purchase sounds like deal, and it is, providing that you pay off the balance in full when you receive your statement. Many are not disciplined enough to do this. Resist the temptation of overspending as well just because you are getting the percentage off. If you weren’t planning on buying it, then don’t. On the flip side, don’t soar into closing all your credit cards either. This can be harmful to your credit score by decreasing the grand total of your spending limits, causing you to appear a higher risk. Only close the ones charging you an annual fee.

• Track your spending. Frequently log into your accounts and monitor the charges and payments. This will help you keep better control of your spending. If you discover you are spending too much, you have the opportunity to get a more aggressive hold on spending. You will also be able to have a better perspective of what is coming at the end of your statement cycle.

Where’s All YOUR Money? was created by and is property of American Consumer News.

If you come from a family of spenders, it is likely that you too are a spender with very different perspectives than that of a saver. You may hold to the thinking that you are living for today and since you can’t take it with you, you might as well spend it. Savers, on the other hand, believe that everyone should be saving for the future, for unexpected events, or just to keep the stress of finances from taking over your life.

• Your perspective of money can certainly be affected by what you learned as a child and beyond. It now is up to you to change your mindset and move forward in a more money-savvy fashion. Like with anything, you need to want to change and not do it for any other reason. Start reading up on tips for better money management and begin to incorporate small habits or change of habits into your every day life, one step at a time. Trying to do an entire overhaul in one day will be just too overwhelming.

• Start changing your mindset about buying. Recognize the vast difference between your wants and needs. Think about how saving the money you want to spend will add up and allow you to do other things, such as taking a vacation or just having the reassurance that your financial concerns will be alleviated.

• Start small and tuck away a few dollars in the beginning to get into the habit of saving. Once you begin to see the money add up into a nice chunk of change, your motivation levels will likely rise naturally and inspire you to do more savings.

• Analyze your current expenses and cut out what is wants versus needs. Tuck that money into an interest-earning account. You will soon understand that you can make small sacrifices but achieve great rewards.

• Get out of your comfort zone. While you might have grown up with parents who seemed to easily ignore those calls from collection agencies, understand that it probably wasn’t the case. Your parents probably stressed over money way more than they let on to their children. Don’t avoid the phone calls and get a handle on where your credit stands. Avoidance only makes the situation worse.

• Stop placing blame on your teachers. Just because mom and dad were not great at managing their money or saving for a rainy day, doesn’t mean you can not change tradition and make your finances more manageable.

• Teach your own children how to budget money and help them to understand the real value of money and money management. You of all people should know who hard it was to change your ways, so start your kids off on the right financial foot. Don’t hid financial information from your children that pertains to the family. Get the kids involved in creating and abiding by a family budget. Your children will learn the most financial lessons from their own household.

• On the reverse side of this advice, never manage your money using methods you do not understand, Your money management methods need to work for you and your family. Do not do things just because other people think you should. No one method will work for every person.

Are You Genetically Able to Save Money? was created by and is property of American Consumer News.

Sadly, as more and more people are confronted with debt and poor on some level with the current economy, there will always be a large number of people who will continue to make the same mistakes time and time again. This repetition will likely leave a lot of those people in debt for a long time to come. It is only when you acknowledge these mistakes and work to correct them will you be able to regain control of you financial situation.

You may be guilty of a few or of all the following points but if even just one of these sounds familiar to you, it may be time to work towards a better financial plan.

Do You:

Spend Two Weeks Pay In One Week?

Living from one paycheck to the next can be hard but living above your paycheck can be a financial death sentence. For those who get paid every two weeks, it is incredibly important to budget your money and have a reasonable plan to stretch out the money for the full two weeks. Blowing your bi-weekly pay in one week’s time will not only leave you far behind, it will also ensure that you will never catch back up again.

Blame Everyone Else But Yourself?

There will always be some convenient person you can fault for your debt. From the boss who doesn’t pay you enough to the debt collectors who rack up penalties, you can try and talk yourself into believing that your debt is not your fault. However, if you are not taking care of your financial responsibilities each and every time, it is no one’s fault but your own.

Blow Off The Bills?

When you get bills in the mail and do nothing more than ignore them, you are at fault for your predicament. If you suspect you are running short at any given time, contact the company and tell them your situation. You can make payment arrangements or at least acknowledge your bill to the company instead of simply ignoring them. This can go a long way to helping your credit score and ease the stress of your debts.

Spend Without A Plan?

Living by the seat of your pants is no way to live. In the event of an emergency, there is no cash, you find yourself making poor financial choices just to get through the situation. Movements such as payday loans, writing bad checks, or charging way more than you can ever pay off only results in bigger debt and more stress.

Again, if any one of these points is familiar to your financial situation, commit to changing now. Stop making the same mistakes over and over and start tackling your debts today and get money smart.

Be Poor (Not Dumb) And Still Get Out of Debt was created by and is property of American Consumer News.