Everyone has been spending alot more time looking at the value of their expenses, including me.  This happens everytime there is a recession, people all of the sudden switch gears and slow down on the spending.  For the first time in a long time people are starting to save a bit of their income versus spending everything they bring home plus more. During the boom times everyone would just charge everything or get a second mortgage to go on a vacation, I had this mentality too and I have seriously changed the way I think and spend my money in the past 11 months.  

As I look back in 2008 and I look at several of my accomplishments, one of the biggest accomplishments was downsizing my car from a BMW to a Toyota Hybrid.  Just on this alone I am saving 70% less on gas and polluting I would say 100% less.  The other was that I was able to pay about $28,000 in debt, $10,000 in my wife’s surgery and the other $18,000 on credit card.  I have about $16,000 left to go with interest averaging around ~5%.

I learned that becoming Frugal is a slow transformation, first you start looking at the big things and you work your way down to the little things.  I also learned that being frugal is not being cheap and cheap is not being frugal.  I do more research and shop around more now than ever before, I now think of how will I use it and if I could live without it. This coming year I graduate from U of F (University of Frugality) as I work on my remaining credit card debt and start paying down on my auto loan.  2009 is the year where I will be completely debt free, pay at least half of what I owe on my car loan and work down my mortgage, I will continue paying my self every week as I have been through investing in my Roth IRA and my side investments as now maybe the best time to get in the stock market.  I know alot of people say pay down debt first then invest, I want to do both at the same time.  

Everyone have a Happy New Year.  Remember Frugal has become cool again!

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