I know this is very long, but worth it. Please do not skip ahead it will not help you. You must follow the numbers as we go if you really want to help yourself and your family. I personally guarantee this works for anyone who has average mathematics skills and can be completely honest about your future spending. All that you need is a job, of course, food stamps and unemployment will work too, a calculator and a pencil with an eraser. The reason for the eraser is, like me you may not get it right the first time but eventually you’ll see it, I hope. First of all, I cannot express, honesty is the key, especially if you have a really skeptical wife like mine.
How to save $17,000 on a budget of $61,000 or less by only increasing your budget by $4000 is a little known, yet amazing accounting practice with hardly any serious belt tightening. The actual amount saved will be different for everyone depending on how much income you have and what you intend to spend it on. I was thoroughly surprised and to top it off, my wife was flabbergasted when I showed her the plan. I must admit, I had my doubts about it until I actually put in into effect and almost instantly I saw the savings. I want to offer this advice free to everyone because if you’re like me, you get sick of people trying to make a buck off of people’s backs. I truly desire to help you just out of the goodness of my heart.
These are my numbers and budget items, but all you need to do is take my template and plug in your own budget numbers I’ve already done all the hard work for you. Simply change the name of your specific line items. Some obviously may be the same like food, rent, college tuition, car insurance, Obama care, and car payments. Many families spend money on the same things so it really is the different items within your new budget that makes the different. So lets get started and please let me hear from you. If I can seriously help just one of you, I would be so blessed and all my hard work to bring this to you will be worth it.
On my present budget I wanted to buy a very nice used motor home that was $4300.00 under the Blue Book cost. It was a deal I could not pass up. It was my dream to own a motor home. But, like most of you I was stretched to my limit and when I brought the motor home idea to my wife she angrily shouted me down. It wasn't just an, I don’t think we can afford it honey, it was an absolute, “FUDGE NO! End of discussion!” But she didn't say fudge. I would have gotten a better response out of a brick wall. She was well aware that on our present budget we had to cut many of our so called projected luxuries for the new budget year if we were going to survive. You know, the typical things like most of you had to cut, like not going out to dinner as much. Renting a movie to watch at home as opposed to going out to the theater. Not paying tithes to the church. Going to the used clothing store. The typical cut out of the budget things.
Getting rid of our new car payments was the most difficult, but necessary, if I was going to be able to afford my motor home. So, bear with me and lets crunch the numbers. The car was originally $43,516.27 with a payment of $797.72 a month on a five year loan at a 10% APR making the drive off the lot car cost about $56,300. And, with full coverage insurance of $2,700.00 a year and an insurance payment of $225 a month, we were making payments of $1022.72 a month. What I decided to do, without my wife’s knowledge, was to sell the car. I know what you just thought; “Oh my god this guy has balls.” But I knew in my heart once she saw the savings she would be a push over and I was right, read on. We only had the car for about 8 months so the payoff was around $49,616.00. However, in order to get out from under the car immediately I had to sell the car a little short of the payoff and still have enough money left in my budget to purchase a good used car. I knew the used car had to be nice enough that my wife would approve. I received $33,000.00 cash for our car leaving a payoff loan balance of $16,616.00 of which I was able to get a 3 year loan with a great APR of only 8% and a very decent payment on the new loan. I know all these numbers may sound confusing, but stick with me, I promise it should make sense to you if you have the least little bit of common sense.
My new payment on the $16,616.00 three year loan was only $572.58 so right away I saw a monthly saving of $225.00. Over the remaining time period of the 5 year new car loan, minus the 8 months I paid I realized a savings of $11,700.00. Wow! When I showed my wife this free cash in our future spending, it began to look like my motor home purchase just might become a reality. Now, as promised, here is the little unknown accounting trick that I discovered on line when searching for financial help that just floored me. Sharpen your pencil, this really gets good. The motor home was on sale for $4000.00 cash out the door. The person who owned it desperately needed the money for an emergency. When I checked with my loan company the motor home was valued at $8,300.00 so I was able to plug in an immediate spending savings of $4,300.00 into my future budget and actually cut my projected budget. So in essence, I got the motor home for only $300 and only increased my new projected budget by $4000.00 while realizing a savings of $7400.
So, let me sum this up and bring it on home. By selling the new car, I saved $11,700.00 adding in the savings of $4300.00 on the motor home, I had a total projected savings of about $16,000 in my new budget. I was able to arrange a little bit better APR, because of my excellent credit rating, and save another $1000.00 for a grand total of $17,000.00. When I showed my wife the savings she had no problem of me spending just $4000.00 on my motor home, she saw the value and the savings. So if you have any common sense whatsoever you can see my actual, real, savings of $13,000.00. When I promised my wife a nice luxurious trip to Las Vegas in our new motor home, with all the money we would save with our projected future budget she was thrilled and I have finally won her hands down approval for my motor home purchase. Needless to say I was very happy.
If you do not have something to sell like I did, here is how you handle that. If you present budget is, lets say, $44,000.00, sharpen your pencil again, and write out all the new things you would like to purchase with your new savings, new car, motor home, speed boat, a 9mm hand gun plus 1000 rounds of ammo. Those things will obviously add up to way more than what your budget is in reality, don’t let that bother you. So here is the hard part, cut some of those things from your future spending and add the saving into your budget. Lets say, for the sake of having some numbers and you actually plan to purchase some or all those things I just mentioned and they add up to a grand total of $74,000.00 don’t let it get you down. Just cross some of them out and use what you save to plug into your new budget. Lets say you have an income of $44,000 a year. With your projected future purchases totaling to $74,000.00, you must be realistic on the real cost of these future items or this will not work, that’s why I say complete 100% honesty is the best policy, now cut out some of the things and set them aside to purchase later or just get rid of them.
In fact, from all places, I got this amazing budget trick from the government. Take what you projected to spend and since you are not going to actually spend it, according to our government, those amounts can be adding into your budget and either shown as real budget cuts or a cost effective savings. It really works but many of the American people have not become wise to it and how to use it in their own budget. Let me use simple numbers, lets say the government has an actual real budget of $100.00 and an income of $75.00. We can all see they are spending $25.00 more than what they have. They plan a projected future budget of $200.00 which of course is outrages with an income of only $75.00. So budget cuts are obviously necessary. With serious number crunching the government is able to cut the budget way down to $150,00 thus saving the American people $50.00. The $50.00 in projected savings is added to the actual income of $75.00 for a grand total of $125.00, which is income plus saving on future spending. So the new budget of $125.00 is approved and the budget is balanced by only spending an additional $25.00.
I am actually amazed how we can spend our self into a savings with future budget cuts that do not exist, and then using those non-existing savings to balance the budget. It will amaze you too. This tremendous budgeting scheme was birthed in the minds of the criminals we have running our government and in reality it’s ingenious. The government uses a mountain of non-factual gibberish, like I did above, to overwhelm us common folks and it works. 80 billion projected spending over the next 5 years on a 3 trillion dollar budget is truly ludicrous. 80 billion runs the government for 12 days, what a deal.
Recapping with even simpler numbers, look at it this way, if you only have $10.00 to your name and you make a very real plan of spending $20.00. The plan has got to be real. Now be realistic and figure out how to cut $5.00 out of your budget plan. You see, you instantly saved $5.00. Add that savings to your $10.00 and you now have $15.00 to spend. So the government tells the American people they cut the budget by $5.00, of which they really did, it’s not a lie. But of course you have to be able to print real money out of thin air in order for this to work in reality.
Thank you reading all of this gibberish. I hope this helps you with your own future projected budgeting as it did with mine. I saved thousands and only had to spend a few thousand more than what I actually had to achieve my goal. Unfortunately, I lost everything in my divorce. Fortunately I am saving thousands on money I do not have to spend not being married anymore but planned on spending while I was married. I’m buying a speed boat.