Levison - Frugal isnt cheap: spend less, save more, and live better

Frugal Isnt Cheap

Spend Less, Save More, and Live BETTER

Clare K. Levison, CPA

Copyright 2013 by Clare K. Levison, CPA

All rights reserved under the Pan-American and International Copyright Conventions. This book may not be reproduced, in whole or in part, in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system now known or hereafter invented, without written permission from the publisher, The Career Press.

FRUGAL ISNT CHEAP

EDITED BY ROGER SHEETY

TYPESET BY GINA TALUCCI

Cover design by Joanna Williams Designs

Printed in the U.S.A.

Published articles from the Roanoke Times that appear in Frugal Isnt Cheap were written by Clare Levison between April 2009 and July 2011.

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Library of Congress Cataloging-in-Publication Data

The Library of Congress has cataloged the print edition as follows:

Levison, Clare K.

Frugal isnt cheap : spend less, save more, and live better / by Clare K. Levison.

pages cm

Includes bibliographical references and index.

ISBN 978-1-60163-260-9 -- ISBN 978-1-60163-533-4 (ebook) 1. Finance, Personal. 2. Investments. I. Title.

HG179.L4724 2013

332.024--dc23

2013012533

For Troy, Brenna, and Elise.
I live better every day because of you.

The publication of this book has transformed a lifelong dream into reality. It has reminded me to never give up because just at the moment when youve decided it might be time to throw in the towel, everything can change. My older daughter was discussing her dreams and aspirations with me the other day. She asked, Do you really think I could do it? My answer is a resounding yes. Brenna, I really believe anything is possible. I dont just think, I know, you can accomplish whatever you put your mind to.

Id like to thank Drs. Wayne and Lynn Saubert who provided me with the career guidance that resulted in the attainment of my CPA license. Their advice altered my life in ways Im sure they never could have anticipated. I had no idea at the time where it would take me, either; not only did it lead me to a fulfilling career, it also led me to the job where I would meet my extraordinary husband.

Thank you, Troy, for being my biggest fan and loudest cheerleader; Im so lucky that I found you, and Im so happy that I have your loyalty and love. Thank you to my daughters, Brenna and Elise, for each being you. Brenna, you are such a strong and powerful girl. Elise, youll always be my tootie. I adore you both and I strive to be a mother you can be proud of.

My father instilled frugality in me from a very young age. As my uncle says, Its the family way. He also served as my unofficial editor. Nothing went to Career Press until it went to Dad first. My mother can be summed up in seven words: eternal nurturer, continual giver, and veritable saint. Thank you both.

Close friends are so important to me. Thank you to my friends for your encouragement and interest.

Sharon Lechter is an amazingly accomplished woman, entrepreneur, writer, and CPA. Thank you, Sharon, for all your help. Its an honor to work with you.

There is such a remarkable staff at both the American Institute of Certified Public Accountants (AICPA) and the Virginia Society of Certified Public Accountants (VSCPA). Thank you for giving me the opportunity to be a volunteer. Ive had the most wonderful experiences and met the most delightful people through my work with your organizations. Thank you to all my fellow AICPA National CPA Financial Literacy Commission members for your support.

My agent, Cynthia Zigmund, was committed to finding a home for this project, and her advice throughout this process has been invaluable. Thank you for believing in me and this book.

Thank you to Career Press for taking a chance on a first-time author.

Im so grateful to have the opportunity to share my frugal message. My greatest accomplishments dont have anything to do with possessions. My greatest accomplishments will always be wife, mother, friend, and CPA.

When it comes to money, you have a choice. You can become a master of or a slave to your money. In Frugal Isnt Cheap, Clare Levison highlights the importance of the choices you make each and every day. Will you choose to live beyond your means and mortgage your future with high amounts of debt? Or will you live within your means and become the master of your money and therefore the master of your destiny?

Personal finance does not need to be complicated and learning how to secure your financial wealth doesnt need to be boring. Through her real-life stories about money, Clare shares her journey of becoming a financial literacy expert with humor and compassion, and even through a few tears. The best way to learn anything is through real-life experience. By sharing the learning opportunities she had along the way, Clare strives to spare you from having to repeat the mistakes of so many others in your own financial life.

Being financially savvy has never been more important. Young people are graduating from college with large school loans and, unable to immediately find jobs, often begin their careers already enslaved by debt. According to both the Center for American Progress and the Consumer Financial Protection Bureau, student debt now exceeds $1 trillion ($864 billion in federal loans and $150 billion in private loans). This problem is intensified when these young people enter the work force and are not able to find jobs. According to a 2012 investigation by the Associated Press, more than 50 percent of recent graduates are still unemployed or under-employed.

The need for financial education was made clear to me when my oldest son went off to college years ago. He came home for the holidays already $2,500 in credit card debt! It was quite obvious that he had truly enjoyed his first semester of college until the bills were due. I was very angry at him, but I was even angrier with myself. I had taught my son about money, but apparently I hadnt taught him successfully about the perils of credit card debt. He was often with me when I used my credit cards, but not when I paid them off each month. We refused to bail him out financially, and he started his own seven-year journey to get out of debt and repair his credit rating. Like Clare, he often shares his story so that others can learn from his mistakes and learning opportunities. My experience with my son created the tremendous passion that I still have for highlighting the need for financial literacy.

Ensuring that the current generations of teens and young adults have a financial education is essential to the financial stability of our families and our country. The gift of a financial education is the gift of a lifetime and will allow young people to not just survive, but to thrive in the economy they will face as adults.

Whether it is Clares stories or the lessons you have learned from your own money mistakes, the message is quite simple: Spend less than you earn. By following this simple mantra, you will become a master of your money and create a financial foundation of security for you and your family while discovering todays new money reality. Being frugal can be the new cool.