Oil Price is sky rocketing...

Oil Price is sky rocketing...

Here is a Tip from Tricia

Tricia's book of revelationTricia credits a close friend she made during that desperate time with helping her change her financial philosophy. "This woman has a lot more money than I do," she says, "and at first I was jealous and resentful."Then she began to realize that the reason her friend had more money wasn't because she was born rich but because she saved constantly and only spent her money on what was truly essential. Slowly, over the last three years, Tricia began a new financial life. It hasn't been easy, but realizing she wanted more out of life than the treadmill of debt and struggle has kept her moving forward.Here are some of the ways she manages to keep body, soul and family together on $553 a week, net pay, including child support.Tricia's tips

· Think different. "A big thing that's changed over the last two years is the way I think of shopping and purchases. I used to be more impulsive. I've learned to ask myself: 'Why do you need to buy that? Why does my kid need that?' Give me a reason to spend the money. I've really learned the difference between necessities and luxuries."

· Use technology to your advantage. "I've been using money software for years," she says. She also uses a spreadsheet to monitor spending on certain items, from one month or week to the next. "I don't think I'd have this much control without software."

· Plan ahead. Tricia uses the computer to map out all her fixed expenses (utilities, phone, mortgage) for the entire year. "That way, I see immediately when I spend on extras."
· Live a balanced life. "I balance my checkbook daily. Some people might think that was crazy, but it forces me to see the numbers every day. If you make so many purchases during the week, it's too easy to say, 'I can't believe I spent all that money!'"

· Pay off debt weekly. Tricia has about $4,000 in credit-card debt on two cards. In addition to making the monthly minimum payment, she sends an additional payment each week. "Another good strategy is to add whatever interest you were charged that month to your minimums. Every little bit helps."

· Bank that tax refund. As she has for the last few years, Tricia is taking her $3,600 refund and putting it in the bank. "I know I could pay off my credit cards faster if I used that, but this is what covers all the unexpected expenses during the year."

· Rely on the kindness of friends. When Tricia was trying to master these new habits, a friend suggested he could create an "escrow account" for her. She put extra money (like the refund) into that account -- and could only access the cash if she discussed it first with her money buddy. "That made it harder to ask for, so I only spent that money when I absolutely had to -- for heating oil or for something one of my kids needed."Smart shopping; facing reality

· Never pay full price. "Clearance is my favorite word," Tricia jokes. Her other trick for finding high-quality items at low prices: consignment shops. Now her daughter is a fan, too.
· Give up your fantasies. "One thing that contributed to my 'turning point' was reading a book, 'Women Who Think Too Much.' Something stuck with me. Many women are just waiting to be rescued. I wanted to be taken care of, but I'm the only one who can do that."

· Wait before you shop. When Tricia knows she needs shampoo or groceries, she resists the urge to go shopping. "I have only (so) much budgeted for groceries. So when we get close to that amount, rather than go to the store, I say: 'What's in the freezer?'" Although she paid for her son's gas while he was in technical school, she gave him the same strict instructions: "You can spend X per week on gas. When that runs out, you don't drive."

· Scale back the services. Because her house is in a rural location, Tricia has to pay for basic cable. But she took the long-distance service off her land line. "We never used it, and yet there were always these little charges on the bill."

· Bargain for everything. To help out her two oldest children, Tricia struck a deal with the cell-phone company: three phones for $100 a month. Now she's trying to see if she can get a three-way discount on student loans: two for her college-age kids and one for her while she completes a BA.Passing along what you learn

· Teach your children well. Tricia has no problem explaining the financial facts of life to her kids. Now that her oldest is done with technical school, "we've had several conversations about the fact that I won't be paying for his phone or his car anymore."

· Keep learning. "Educate yourself," Tricia says. "Read anything you can that might help you stick to a plan." A favorite quote she read recently: "Squirrels end up with millions because they put the nuts away, not because they make lots of nuts."

· Never pass up a freebie. "I love Nascar racing, so I work at the track when they race nearby. I raise money for our high-school band, and best of all, I can enjoy an experience that would otherwise cost $50 or more. My boss offered me tickets to see our local Triple-A minor league baseball team -- and it's through our local public broadcasting company. We will have VIP seats and be fed. What a great way to spend time with my children!"