Volume 4 #7
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Frugal
                                                                                                     Organizing
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are some tips that may help you reduce some of        to cover some of the costs associated with college.
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Spare Change:                                       percent), and magazines (15 percent). All of the
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Freedom Debt Relief - Do You Have A Spending Personality

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Many people have a primary spending
personality that may affect how they use money. J. Grady Cash wrote a book entitled Seven Deadly Money Mistakes in which he identifies seven spending personalities.
In this newsletter edition, we will feature three of the most common personalities including impulse buying, fanatical hopping, and passive buying. Stay tuned next month when we will discuss more spending personalities.

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Freedom Debt Relief - Do You Have A Spending Personality

  1. 1. Volume 4 #7 Do You Have a Spending Personality? FDR Client Reminders • Debt 101 Frugal Organizational Ideas Inspiring Thoughts • Spare Change Welcome to the Freedom Debt Relief monthly newsletter! As part of our ongoing goal to enhance our services, we will be sending you a monthly newsletter filled with interesting articles and helpful financial tips and advice. We hope you enjoy this issue, and that you find the enclosed 1-800-655-6303 information helpful as you continue on the road to financial freedom. effort to find good deals. However, he may need to Do You Have a consider the time and resources in an attempt to save just a small amount of money. With gas prices at record highs, driving around town to find the Spending lowest price may not always be the best solution. Fanatical shoppers have a compelling desire to Personality? control money, perhaps an insecurity that they will not have money in the future. Therefore, they see every purchase as a win or lose proposition. If they do not get the lowest possible price, they feel M defeated. The ironic thing about fanatical shopping any people have a primary spending bothered to browse at the department store, which is that quality, time, and money are often ignored personality that may affect how they can easily lead to impulse spending. If she saw during the quest for the best deal. use money. J. Grady Cash wrote something that she may want to buy, Ellie should a book entitled Seven Deadly Money Mistakes in have walked away and thought about the purchase which he identifies seven spending personalities. for 24 hours. Passive Buyer In this newsletter edition, we will feature three of the most common personalities including impulse Like any spending personality, impulse buying Scenario: Linda does not like to shop, especially buying, fanatical shopping, and passive buying. exists in people to varying degrees. In severe for major purchases. She needs a new laptop for Stay tuned next month when we will discuss more situations, impulse buying can become a habit her small business and has limited knowledge of spending personalities. and a clinical addiction. Impulse buyers enjoy technology. She goes to an electronics store and Keep in mind that we understand that consumers the instant gratification and the emotional rush a persuasive sales associate convinces her that she acquire debt for various reasons. We realize that from buying. For most people, impulse buying is a needs a state-of-the-art computer even though she many times family or medical emergencies can personality that exerts itself more frequently with knows she only needs it for simple tasks such as create financial circumstances beyond your control. smaller purchases rather than larger purchases. e-mail and word processing. As a result, she will This article is simply intended to provide some spend $4,000 for her new laptop. insight on how you may relate to money and Fanatical Shopper question certain spending habits. Solutions: Although Linda does Scenario: Doug prides himself on not know much about computers, being able to find the lowest price she could have researched Impulse Buyer in town. Every week, he studies prices online or looked at Scenario: Ellie goes to the grocery store to buy all of the advertisements in the advertisements to find average Sunday paper and makes lists of costs for a basic laptop. She a loaf of bread and a gallon of milk. She leaves the items he is going to purchase could have also gone to the store with the store with bags full of food. Her next stop is at every store. He also cuts out a friend or relative that was more familiar with the discount department store and she plans on all of the coupons and spends many hours computers. purchasing a toy for her niece’s birthday. When she organizing them. His Sunday routine would is in the store, she starts browsing through the aisles include traveling to Store #1 because they Passive buyers can be a salesperson’s dream. and puts some items in the cart that she thinks are have toothpaste and juice on sale. The same Some have the potential to be good shoppers, great deals and absolute necessities. As she is leaving store also has shampoo on special. But, he but feel they don’t have time or do not place the store, her jaw drops when she looks at her plans to go to Store #2 even though he has to a high priority on saving money. They do not receipt and realizes that she spent nearly $100 on drive 7 miles out of his way because it is 20 comparison shop and are too embarrassed to purchases that she did not plan on buying. cents cheaper when he uses a coupon. ask questions even if they do not understand. Passive buyers do not want to appear Solutions: Ellie should have considered sticking uneducated. This can leave them vulnerable Solutions: This short scenario indicates to her list at both stores. Large grocery orders are to salespeople talking them into expensive that Doug is certainly concerned about usually better planned ahead of time instead of “extras” such as extended warranties. his finances because he does put forth buying a lot of food randomly. She should not have Beyond Your Personality For years, society never recognized compulsive spending other addictions, compulsive debtors use shopping as a way as a psychological addiction. In fact, some individuals would to escape from emotional problems and stress in their life. make jokes about this problem. Many retail stores still sell Similar to Alcoholics Anonymous (AA), a 12-step program novelty items such as mugs and t-shirts that read, “Born called Debtors Anonymous (DA) exists for individuals who To Shop,” and “When the going gets tough, the tough go are trying to overcome compulsive spending. If you think you shopping.” may have a compulsive spending problem, consult a licensed At this time, most psychological professionals do therapist or visit www.debtorsanonymous.org for more acknowledge compulsive spending as a disorder. As with information on the organization and meetings in your area.
  2. 2. Frugal Organizing Ideas Client Reminders D isorganization may cause additional various odds and ends. Refinishing old dressers Visit us on the web! Did you stress in your life. It may also can also be a fun and creative project. know that you can view your account affect your finances. According information online? We have recently Baskets and Boxes: You probably to the National Association of Professional enhanced our web site for our clients. Go Organizers (NAPO), it costs an average of $10 have shoe boxes that may be taking up space to www.freedomdebtrelief.com and click per square foot to store items in your home and in your closet. Consider using them to store on the tab “Current Clients.” Then, near disorganization may cause “crisis” purchases, documents, small toys, or other loose objects. the bottom of the page under the heading which involves buying duplicates of misplaced You can also reuse shoe boxes as a gift box by “Existing Client Login for Account or broken items and last-minute shopping wrapping the bottom and top separately. Baskets Information” click on the button, “Click at premium prices. If your bills and mail is a are also a good storage solution for many rooms Here.” Enter your e-mail address, and disorganized pile of paperwork, this could result in the house. Save baskets from gifts that you then follow the instructions to create a in missed due dates and late fees. may receive or products that you buy. If you can password and validate your information. Controlling your clutter does not always sew, consider lining the baskets with fabric like You will now be able to view this have to entail hiring a professional organizer or the expensive sets that are sold in stores. information online! buying expensive bins and furniture. You may be able to use containers and objects that you Discount and dollar stores: already have in your home if you follow some Tax Debt? If you owe money to the If you do need to purchase storage or of the tips listed below. Keep in mind that as organizational solutions, check out your discount IRS and would like information on you begin to organize, you will more than likely and dollar stores first for inexpensive items such how to reduce your tax debts, please come across things that you no longer use. Try to as plastic bins and utensil organizers. You may contact our sister company, Freedom sell them and make extra cash. also be able to find some interesting containers Tax Relief at 1-800-455-6TAX. Our tax and other organizational devices at thrift stores. attorneys and tax specialists are eager to Is that really trash? Your family may immediately start helping you resolve throw away many boxes and household items your tax troubles. In addition, existing each week. Before you toss something, consider FDR clients are eligible for a $100 referral if it will help organize clutter. For example, you bonus if they refer someone to Freedom could use empty cereal boxes to make magazine Tax Relief. holders. (Detailed instructions are listed on this site: www.allfreecrafts.com/recycling-crafts/ magazine-holder.shtml ). Empty tissue boxes American Consumers Union can also be a solution to hold all of those plastic FDR has a partnership with the grocery bags. Wash empty glass jars and cans and American Consumers Union in order to use them to store a variety of small objects such provide additional support to our clients as office supplies, craft beads, nails, or screws. with respect to creditor harassment. Kids also can have fun decorating these types All FDR clients are automatically Some people may say that they do not of objects. In addition to saving money and given membership into the American have time to get organized. Below is a organizing your home, reusing items can also Consumers Union, and are given the full checklist of some quick organizational goals help the environment. Using a tin can as a pen that you can accomplish this week! use and support of the advocacy group, holder is better on your desk than in a landfill. at no additional charge. This is a terrific Put an “outbox” by the door. Family benefit for our clients and we are happy Be a multi-tasker! Just because members can put library books and to be able to provide this service to our video rentals in this box to ensure that a product is normally used in a kitchen or clients at our expense. You can visit them bedroom does not mean it can not be used in and late fees. online at www.myacu.org. other areas of the home. For example, use ice cube trays to organize jewelry. Spare trash cans *** Sort mail immediately. Remember to can be used as hampers or to store odd-shaped toss junk mail as you receive it. If you Customer Service Phone No: objects such as rolls of gift wrap. When choosing are still receiving credit card offers, visit furniture, consider pieces that have multiple www.optoutprescreen.com or call 1-888- 1-800-655-6303 567-8688 to opt out of these mailings. functions and a lot of storage. Coffee tables Eliminate unwanted catalogs in your with drawers or shelves can store magazines, FAX No: 650-393-6800 mailbox by visiting www.catalogchoice. books, and remote controls. Dressers can also org. The Direct Marketing Association serve many purposes in the home rather than web site (www.the-dma.org) can also Hours of Operation: the bedroom. If you are starting out, consider help you remove your name from buying a pre-owned dresser and use it as a TV Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST general junk mail lists. stand in the living room. The drawers can hide Fri: 6:00 a.m. – 5:00 p.m. PST a lot of the miscellaneous items that may create Search the Internet for various Sat: 7:00 a.m. – 11:00 a.m. PST organization tips. You can start with clutter. Dressers can also give you extra storage www.organizedhome.com, a site that in the kitchen and serve as a microwave stand. E-mail: includes helpful articles and a variety of If you have an old dresser that you no longer support@freedomdebtrelief.com printable planners and checklists. use, consider putting it in your garage to store
  3. 3. are some tips that may help you reduce some of to cover some of the costs associated with college. these costs so you will be less likely to succumb Consult the career services division of the college to the allure of credit. or perhaps your school may offer a work-study program, in which you can work on campus. Some colleges and universities may also allow Create a budget. You may want to create students to apply work-study earnings toward a budget and learn to stick to it. Consult your tuition. Campus employment usually has limits parents if you need any help. Budgeting is a on the amount of hours students can work so the valuable skill that you will use after you complete job does not affect their studies. your education. The financial web sites listed below have budgeting tools and calculators that Avoid the free gifts. U.S. PIRG reported cater to young adults and college students. Money-saving tips that 76% of the study participants claimed • You Can Deal With It: on how college that they signed up for a credit card on campus www.youcandealwithit.com in order to receive a free gift. These freebies students can avoid • What’s My Score: usually include inexpensive items such as t- www.whatsmyscore.org shirts, Frisbees, snacks, mugs, or water bottles. credit card debt Although it may seem harmless at the time, these • Truth About Credit (CARE) Program: “gifts” may cause you to acquire a significant www.truthaboutcredit.org M any credit card companies target amount of debt. In five years, you probably will college students, especially no longer have the t-shirt or mug, but you may Save money on textbooks. The U.S. PIRG during student orientations at the have a credit card balance for years to come. study indicates that 55% of undergraduates use beginning of the semester. According to a study credit to purchase textbooks. Campus bookstores conducted by the U.S. Public Interest Research Consider credit card alternatives. usually sell new textbooks at premium prices. Group Education Fund (U.S. PIRG), 80% Instead of a traditional credit card, you may You may consider other alternatives such as of the survey participants reported that they consider a prepaid debit card that include borrowing books or buying used books from received an average of nearly five solicitations per various features geared to young adults. Unlike students that previously took that class. Look for month. Oddly enough, these students do not credit cards, they carry no risk of debt or signs on campus or see if the university supplies have to meet many requirements in order to get overdraft fees; cardholders can only spend a list of classified ads. You may also consult approved for a credit card. They do not need to the amount of money prepaid onto the card. online used book sources such as have an income or a credit history. Additionally, prepaid cards offer www.textbookx.com, www.half. In recent years, much controversy has the protection of a credit card and com, and the textbook section surrounded the issue of credit cards on college the opportunity to build credit. of www.barnesandnoble.com campuses. Nellie Mae, a national loan servicing The cards are generally accepted and www.amazon.com. Also, organization, reports that nearly half of wherever credit and debit cards remember to sell your textbooks undergraduates carry an average of four credit can be used. According to Mintel, at the end of the semester for cards and a balance of $2,327. Approximately a consumer research firm, parents extra cash. If you need software seven percent of undergraduates are saddled like the idea of prepaid cards. Three for a particular class, web sites with balances that exceed $7,000. A survey also in five (62%) respondents with such as www.journeyed.com and conducted by Nellie Mae indicates that students children attending or planning www.gradware.com offer popular acquire credit card debt by charging education- to attend college are interested in software at discounted prices for related items such as school supplies and having their children use a prepaid students. textbooks along with incidentals such as food, debit card rather than a credit card. clothing, and toiletries. Many consumer advocate Many prepaid cards come with Get a part-time job. If it groups are working towards getting legislation safety features like allowing parents will fit into your course schedule, passed to regulate credit cards on campuses. In to monitor spending or requiring consider getting a part-time job the meantime, if you are a college student, below authorization for online use. Y ou have probably heard the saying, While you are “waiting” for all your debts to “Good things come to those who be settled, below are some tips that may help wait.” This piece of inspirational advice you now and throughout your financial future. could relate to your current debt situation. As much as you would like to, you will probably Don’t give up. There may be times when not get out of debt overnight. It may require it seems like collectors constantly call and the several years for all of your debts to be settled. unexpected expenses are endless. Despite these Although times may seem bleak on some hard times, try to stay strong and keep in mind days and you feel like your financial goals are that good things come to those who wait. impossible to achieve, there may be a part of you that knows you must find the strength to Learn new things. You can also use this persevere. time to educate yourself on various financial In our consumer-driven society, it may be issues. Check out budgeting tools and difficult to think that delayed gratification calculators online. Borrow books from your brings about good fortune. If you want to make local library on money-related topics. a purchase, credit card companies want you to buy it immediately. Why wait when you can Treat yourself. Working towards a debt- Inspiring Thoughts have it now? Generous credit lines also allow free lifestyle does not mean you have to deprive consumers to use credit to cover daily living yourself. When you reach short-term goals expenses. Establishing a budget does not seem throughout your program, reward yourself. necessary when you can simply charge a large With self-discipline most It does not have to be extravagant, just small order of groceries instead of waiting until pleasures that will encourage you to move anything is possible. payday. As most of us know, these habits can forward. ~Theodore Roosevelt cause a dangerous cycle of debt.
  4. 4. Spare Change: percent), and magazines (15 percent). All of the coupon acquisition categories have experienced growth since 2005, however none at the level of News, financial tips, and other Internet coupons. information regarding personal Verification systems may be violating financial freedom privacy laws. Recently, numerous states have begun passing laws designed to limit the amount Internet risks declining, but still remain article on Consumers Reports web site at www. of information which a financial institution may consumersreports.org. high. According to a recent survey from solicit from consumers. As a result of these new Consumer Reports, U.S. consumers lost almost laws, financial institutions are now considering Many consumers surf for internet $8.5 billion over the last two years to viruses, abandoning challenge / response authentication coupons. Internet coupons are of increasing spyware, and phishing schemes according to systems in order to reduce their liability and projections from the magazine’s annual State interest to consumers, according to a recent improve their compliance. Challenge / response of the Net survey featured in the September analysis by consumer and media measurement authentication systems are security systems that issue. However, Consumer Reports’ survey firm Scarborough Research. Eleven percent of solicit personal information from consumers, findings produced some hopeful signs that households currently obtain coupons via the usually as part of a login process. As you visit online security is slowly improving because the Internet, and this has increased 83 percent since various web sites, you may have been asked chances of becoming a cybervictim continue 2005. However, the Sunday newspaper remains to register and then later answer a challenge to decline. Consumers have 1 in 6 chance of the number one place for acquiring question, such as “What was the name of your becoming a cybervictim, down from 1 in 4 in household coupons. Fifty-three childhood friend?” The FDIC and several 2007. Spyware and virus infections have also percent of households consumer groups believe that these types declined significantly over the past few years. get their coupons from of questions may violate privacy laws. However, Consumer Reports’ projects that the Sunday newspaper. There are authentication solutions problems they cause have resulted in damages Other leading places for that meet the regulatory guidelines of roughly $6.5 billion over the past two years. acquiring coupons include without resorting to soliciting Consumer Reports also estimates that 3.5 the mail (35 percent of personal information from consumers. million U.S. households with broadband remain households usually obtain Alternatives include traditional unprotected by a firewall. Check out Consumer coupons via the mail), in- hardware tokens, software certificates, Reports September 2008 edition for the article store coupons (33 percent), and virtual tokens. When considering entitled: 7 Online Blunders. You can learn preferred customer/loyalty cards any authentication solution, the FDIC which online activity to avoid so you can reduce (22 percent), in-store circulars recommends that financial institutions your chances of becoming a victim of identity (22 percent), weekday newspapers simply limit the use of personal theft. For a limited time, you can also read the (17 percent), product packages (17 information. 1875 South Grant Street Suite 400 San Mateo, CA 94402 Phone: (800) 655-6303 FAX: (650) 897-8800

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