Want More Money? Give Yourself a Raise Today!

How big of a raise do you want? Five percent? Ten Percent? More? Don't wait for your boss to give you one - give yourself one - today! We all want more money so that we can afford more of the things we need. If you can grasp one simple concept you can accomplish that goal quite simply and effectively give yourself a raise, and a higher standard of living!

Here is the concept; If I have $1 and I go to the store to buy a can of peas which are $1 each - I can buy one can of peas. If I get a raise - say they doubled my salary this week - then I now have $2 to buy cans of peas. I can now get two cans of peas, instead of just one. My increase in wage has raised my standard of living and allowed me to have more "buying power" which is the ability to purchase a set amount of goods. When you think of it - we all want more buying power, not more money. We just think that getting more money will give us what we really want - more buying power.

But what if I didn't get a raise this week and I still want two cans of peas? I buy them for fifty cents a piece. There are a number of techniques; coupons, sales, coupons and sales combined, discount bins, warehouse foods, etc. - but that is not the real point here.

The point is that I have not, in fact, gotten a raise. But if I find everything that I want at a discount (equal to the amount of the raise I want) I have effectively raised my purchasing power to the level of the salary that I want. Because, as we have previously discussed, I want the buying power of the larger salary - any way I can get it! Now not everything can be found at a discount - electricity for example. Once you have found the lowest rate you can negotiate for yourself in your area you won't ever find your utility provider having a "Buy one kilowatt get one kilowatt free" sale. You only recourse in this situation is to lower consumption. No matter how you do it though - you will still get more bang for the same buck. You also won't have to pay income taxes on that extra buying power - so this is really a tax free raise!

So let me rephrase the question I asked earlier: How big of a raise in purchasing power do you want? Five percent? Ten Percent? More? Most people would be happy with a five percent raise. If you make $30,000 a year that is an increase of $1,500! So to give yourself an extra $1,500 a year all you would have to do is find everything you buy discounted by 5%. This is not only a very realistic goal, but it is easily doable even to the most uninitiated beginner!

Now granted, some costs can not easily be lowered. Your mortgage payment would be an example of something not easily lowered. But even fixed costs like these can be renegotiated, if feasible, to help lower expenses.

Here are some ideas for lowering fixed costs:

1. 
   Look into refinancing you mortgage.

2. Revisit your car insurance policy with your agent and see if raising your deductible can shave off a few dollars. Find out if there are any deducts they offer, like for members of certain organizations or if you take a special safety course or install a theft deterrent device on your vehicle.

3. Adjust life insurance limits if the kids are now on their own or the mortgage is paid off. Remember, life insurance is to help the people you leave behind deal with the debt you leave behind. If that burden has decreased your coverage can too! Find out if there are any circumstances that would lower your premium, like quitting smoking. Not only would you save the money you spend on cigarettes but your premium could go down!

4. Speak to your insurance agent and find out if they give a discount for multiple policies. If you have your home owners and flood insurance or even car insurance at the same company they often give ten or fifteen percent multi-policy discounts!

5. Check to see if your mortgage balance is 80% or less than the current value of your home. If it is you can then drop your PMI (Private Mortgage Insurance) and save big! The Homeowners Protection Act, which became effective in 1999, requires lenders to spell out at closing and once a year how to terminate PMI. Check with your lender for details.

6. Take a look at your cable bill and see if you are really watching all the channels you originally signed up for. Changing to a smaller package can lower your bill considerably.

7. Switching to a different Internet provider and bundling several services together often saves tons of money too. Watch for a promotion that fits the things you use (like cable, Internet and home phone) and switch to save!

8. Call your credit card companies and negotiate a lower interest rate. If you have been a long time customer they will more likely than not lower your rate to keep you as a customer.

The most important thing to realize is that during this process you are not depriving yourself of anything! You are in fact trying to get more - you are only trying to pay less for it. So don't think of it as deprivation - think of it as a game! How much can I get for the same amount of money? Adding quality to your life is the goal. Freeing up money to spend in areas that will make you the most happy is the goal.

Maybe you can ditch the second job with this strategy. Now wouldn't THAT add quality to your life? THAT is the idea here. getting rid of the things that do not matter TO YOU so that you can indulge in more of the things that do matter TO YOU!

Everyone will have a different frugal journey. I may love eating out. So I may decide that I can live without cable TV to get a few more meals out every month. Or I may funnel my savings into other areas that add value for me like renting videos or saving for a cruise to Alaska. Whatever you decide is important TO YOU is what you should save for and spend on.

Contrary to popular belief frugality is not purely about delayed gratification and deprivation. It is about channeling your available resources ONLY into those areas that have meaning and value FOR YOU. You are in essence building a life where every penny you have is only spent on things that make you happier, more fulfilled! This is what frugality is all about! Frugality is about giving yourself a raise and living a more fulfilling life - now who can argue with that!

Colleen Mitchell

Single mother of two who shares her many years of experience in the trenches
learning to live within her means on her blog "Uber frugal" - http://www.uberfrugal.wordpress.com