Today on MoneyLife with Chuck Bentley

Sharon Epps is here with us again today. She’s the Vice-President of Content and Media here at Crown.

We're going to talk with her today about how to save big in 2010. It should be a practical program with lots of good tips. I hope you’ll hear at least one you can start using right away.

First, I want to share an email from a listener who is struggling to get his wife to stop seeing the money she makes as hers to do with as she pleases.

Sharon says it’s hard to find out after you marry that you have a different perspective on money than your spouse. If that's your situation, she advises that you look to the Lord and to what is He calling you to do. Choose to do things God’s way and ask your wife to do the same. Become a student of your wife or husband, to find out what would motivate your spouse to become involved.

Here are 4 great tips to save in 2010:

1. Cut your cell phone plan down to what you actually use. The average cell phone plan costs over $50 a month. Many families have one for each person. A study has shown 2/3 of the people who have a phone don’t use half of the minutes they have. Cell phone bills are so complicated, people may not understand about unused minutes. Compare your plan to others to make sure you’re not overpaying. Also, these days, a landline home phone is just an additional expense.
   
   
2. Lower what you pay for auto insurance by maximizing your discounts. The average care insurance premium is $1800 a year, $150/month. The average family has more than one car. You can get discounts for job stability, education, and defensive driving. Ask for discounts. Do an insurance checkup annually.
   
   
3. Save money on entertainment by swapping with others. The average person watches 4 hours of television a day. People spend a lot of money on TV service through cable and satellite. Swap your DVD’s and books with others. It's a way to recycle what you aren’t using. You can also post them for sale online. Use the library to borrow DVDs and movies.
   
   
4. Save money on entertainment by buying discounted tickets online. Shop for movie and concert tickets online. Search for coupons for restaurants. It just takes a little but of planning. Seek family entertainment that is interactive. See these important links:
   
   
   • More information at CNNMoney
   • Billshrink.com
   • SwapADVD.com, PaperbackSwap.com
   • ZebraTicket.com

Crown's late Co-Founder Larry Burkett taught ways to make wise spending decisions. He said it helps to think before you buy, so you avoid impulse decisions, especially on expensive items.

Larry had a series of questions he encouraged people to ask themselves before they made a purchase to reveal their real motivation for buying the item. Here are questions to ask before making a purchase. You can also download a pdf version.

1. Is it necessary?  Do I need this? Most things aren’t necessary, especially on a daily basis. For example, a loaded cell phone plan, dinner out, and furniture are all purchases that can be put off.
   
   
2. Does it reflect my Christian ethic?. If your purchase supports a company that isn’t a good witness for Christ, you probably shouldn’t make it. Would it cause someone in your family to be uncomfortable? We sometimes buy brands for the sake of others. This is especially true of children under peer pressure.
   
   
3. Is it the best buy? Stores present items to entice you into making an impulse purchase. Check prices at other stores before buying.
   
   
4. Is it an impulse item? If the item isn’t a planned purchase to meet an identified need, you shouldn’t buy it. You’re being swayed by the emotions of the moment.
   
   
5. Would my spouse agree with this purchase? If your spouse wouldn’t agree with the purchase, don’t do it.
   
   
6. Does it add or detract from my family? Will this item cause you to spend more or less time with your family? Don’t sacrifice family relationships for material things.
   
   
7. Is it a highly depreciable item? Cars, for example, can lose significant value. Be cautious in making those purchases. Make sure you get the best deal.
   
   
8. Does it require costly upkeep? Look at the operating cost and the total cost of the item. Make sure you can afford it and it's the best use of those funds.

You can find more information on this list in Crown's Family Financial Workbook.

It's important to have a savings goal for each category where you’re trying to trim expenses. Be specific and write it down. That number becomes your target. An example would be saving $50 a month on food.

Let us know if these questions were helpful!

***

We've got two listener events coming up in February, Thursday, February 11 in Atlanta and Thursday, February 18 in Chattanooga.

These are stops on the God Provides™ film tour, and I'll be teaching, too. These events are family friendly and free, so bring your children. We'll be showing Abraham and Isaac and the Widow and Oil films. You can register here.

This is not a fundraising event and there's no charge to attend. I encourage you to see God as your provider during these difficult economic times. I hope you’ll make plans to be there if you live in those areas. If you do, please say hello and let me know you're a MoneyLife listener.

Steps to Making a Budget

In making a budget, there are several steps, each requiring individual effort.
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Need for a Spending Plan

Without a spending plan, it is impossible to know where your money goes each month and whether you will have available funds for the things you need.

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Budget Busters

Budget busters are areas that can result in financial disaster if not accounted for properly.

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Finding Financial Freedom

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes