Steve Economides - Americas Cheapest Family Gets You Right on the Money: Your Guide to Living Better, Spending Less, and Cashing in on Your Dreams

CONTENTS

To the memory of Larry Burkett (19392003) cofounder of Crown Financial Ministries. He was an incredible author who had great compassion for others and a deep sense of discernment for the financial predicaments of the people he helped. His materials helped us create a financial foundation that has allowed us to accomplish so much more than we could have ever dreamed.

And to our parents, Athan and Frieda Economides and Sylvester and Carol Meola. They taught us both that frugality was a good thing and that embracing it would benefit our lives.

ONE

AMERICAS CHEAPEST FAMILY

Weve been called Americas Cheapest Family, the First Family of Frugal, cheapskates, thriftaholics, tightwads, or one of many other less flattering terms. Even calling us by our real last name, Economides, relates to saving cash. Yes, thats our real nameits pronounced econo-mee-dis. Its Greek and means son of the steward.

As the nicknames make clear, we dont like to spend a lot of money. But we dont economize just for the sake of skimping. We have big dreamsgoals that together we are working toward. We are living proof that even in tough economic times, its possible to:

Raise responsible kids

Purchase a home and pay it off in nine years

Buy cars for cash

Enjoy fabulous debt-free vacations

Feed a growing family on a grocery budget of just $350 each month

Put savings in the bank

Whats more, all this was done during the first twelve years of our marriage on an average income of less than $35,000.

A WISH FULFILLED

This is a book we wish had existed when we were starting out on our financial journey. Were not going to bog you down with pages of hard-to-follow economic theory and calculations. Instead, we focus on practical advice that even the most financially challenged can easily implement. Americas Cheapest Family Gets You Right on the Money will show you how to buy groceries smarter and less expensively, create a household budget that really works, buy affordable cars and homes, find alternative sources for dressing fabulously, deal with medical care and expenses, discover fun recreational activities that are free, plan and take great vacations that dont break the bank, teach kids to earn and manage money, build a great savings plan for the future, get out of debt and emerge from the vicious cycle of living paycheck to paycheck, and so much more.

Neither of us has a finance or accounting background. Neither of our parents taught us to manage moneythey were frugal, but by no means financial wizards. We are just an average couple who have discovered the secrets to living well on way less than most people can imagine.

Many people believe that thrifty living can be more easily accomplished in a rural setting. We are here to tell you that it just isnt so! Living in the suburbs all of our lives, we can strongly say that there are great bargains to be had at every turn. With a dense population comes greater opportunities to scoop up steep discounts and free items.

Writing from the perspective of a family, we hope to bring our message to every age group. The younger generation needs to hear that there is an alternative to todays credit-charged lifestylefrugal living can be fun and very rewarding, something our children know well. Those in the throes of the middle years, whether raising kids, building careers, or both, need to hear that work doesnt need to own them. We can vouch for the fact that they can live on less and still reach incredible goals. And as we edge our way toward retirement, we can offer guidance to seniors, many of whom live on Social Security or are learning to stretch their savings. As economizers, we proclaim that no matter what your financial state, and regardless of what the economy is doing, you can not only survive but thrive.

THREE PRINCIPLES FOR GETTING YOU RIGHT ON THE MONEY

There will be three themes that youll see recur throughout this book: avoid debt like the plague, live below your means, and embrace the thrifty lifestyle.

Avoid Debt Like the Plague

Why avoid debt, especially when many financial experts advocate credit card usage to establish a good credit score? Because the overuse of credit actually lowers your standard of living. After spending freely, eventually youll have to pay back what youve borrowed. This will have to be done with money that could better be spent on todays needs rather than yesterdays desires. The restriction of your cash flow after experiencing credit-enabled freedom is always a bitter pill to swallow. The average American family has a credit card balance of over $7,000. We have seen the dark side of credit abuse in which relationships and families crumble under the heavy weight of unpaid debts. The good news is that most people can be debt-free (with the exception of their home) in about eighteen months if they develop a plan and stick with it. Well show you exactly how it can be done!

While some call us naive to live without the benefits of credit (thats right, we dont have any credit cards), were here to say that it can be doneand life can be good! We have more things than we need, experience more good living than we deserve, and thoroughly enjoy all that we can afford. Can life be any better than this?

Live Below Your Means

This important principle is best accomplished by using a written budget. This is really much easier than you thinkand in Chapter 3: Budgeting, well show you how you can use a budget to set aside money in advance of all your expenses. In todays fast-paced lifestyle, spending can easily get out of control. A budget is a great tool to manage spending and makes living below your means achievable. How do you know when you are living below your means? Is it when all the bills are paid and youve still got money left over? We think its much more than that. Budgeting is the cornerstone of family finances. In every chapter well build upon that foundation with loads of ideas to free up money that you didnt even know you had.

Embrace the Thrifty Lifestyle

Being thrifty means that we should always strive to be efficient and resourceful with what we have. (Uggh! That sounds about as exciting as oatmeal.) But in reality, we look at this lifestyle as a game and the savings in time and money as the prize. Every chapter will contain tips, secrets, and new skills you can learn to help you win every time.

Many people say that avoiding credit, living below your means, and being thrifty are a waste of time. Ha! We say that as you experience success in reaching your financial dreams (and you will), youll be so convinced these practical principles work that youll never go back to the way you were living before. And youll leave the scoffers behind you, eating your financial dust!

HOW AMERICAS CHEAPEST FAMILY GOT STARTED

When we dreamed up the idea for the HomeEconomiser newsletter in March 2003, we had no idea that our thrifty advice would be so warmly embraced. There was tremendous interest from the media, and within one month several newspaper stories appeared, as did TV spots and radio interviews. In the next eighteen months the story spread from Phoenix across the United States and even to London, Hong Kong, Turkey, Australia, and New Zealand.

We were first hailed as Americas Cheapest Family when we appeared on Good Morning America in 2004. Initially we flinched at the use of the word cheap. Uggh!