Make more money, get out of debt and live like a king … without chopping up your credit cards

By DEREK CLONTZ
Your World Report

You can make more money, pay off your debts without chopping up a single credit card and live high on the hog day after worry-free day with super tips from ordinary people just like you.

And you don’t have to invest a million dollars in high-risk stocks, stop buying clothes for your children or cut out splurge vacations or nights on the town to turn your finances around, either.

All you have to do is take to heart some real-world tips offered up by men and women who decided to stop slaving their lives away for greedy bankers and start working - and spending - smart for a change.

By putting one or more of these simple principles to work in your life, you’ll soon find yourself strutting around town with cash in your pocket. You’ll shop when you want to shop, buy what you want to buy - and STILL pay every bill on time.

“If I found financial freedom, anyone can,” chortles Joe Delance, who earns just $17,000 a year as a school custodian but still has enough money to:

- Pay the mortgage on his $120,000 home,

- Lease a new Chevy Impala,

- Send his twin daughters to college, and …

- Treat his stay-at-home wife to dinner at Red Lobster, Denny’s or Sizzler every Saturday night.

“I know it sounds too good to be true,” he told me exclusively - “two years ago, I thought the same thing.

“It’s simply a matter of paying attention to where you’re spending your money and what you’re spending it for.

“Once you’ve got a handle on that, you ask yourself a couple of questions: Am I going to slave my life away to make big-shot bankers and businessmen even richer than they already are? Or am I going to look out for who’s really important in my life - me and the people I love?”

Before making the changes that enabled him to take control of his finances, Delance says, he received at least five threatening telephone calls from credit card companies, bill collectors and collection agencies - week after miserable week.

“I realized I was going deeper and deeper into debt by blowing all my money on expensive and unhealthy fast foods, two car payments, a large and flashy wardrobe and making one bad loan after another to co-workers, family members and friends,” he says.

Delance slashed his monthly spending from $2,700 to $1,000 by using several common-sense strategies he tailored to suit himself. They included:

Switching to a whole-foods diet of healthful salads, fruits, vegetables and just a little meat, a change that shaved a whopping $110 off his weekly food bill. It used to be $150. Now it’s $40.

Selling one of his two cars to slash his transportation costs from $600 a month to $240 a month .

Sticking to a firm “no loans to anyone” policy, saving him a staggering $75 to $100 a month.

Resolving to use credit cards only for things that will improve his life in a big way, saving him, by his own reckoning, “thousands and thousands and thousands of dollars every year.”

“Before I got smart about money, I thought nothing of buying four of those idiotic Billy Bass ‘singing fish’ for myself and my friends,” he explains. “These days, I wouldn’t buy four of anything unless I was getting two pairs of shoes at a buy one pair get another pair free sale.”

To complete his financial housecleaning, Delance refinanced the remaining $20,000 he owed on his 1970 mortgage, reducing his monthly payment from $750 a month to $190 a month. His utility bills average just $85 a month because he turned off his furnace and started using a wood stove “and lots of blankets” for heat in winter. He used to pay $200 for electricity alone.

In summer, he says, “I open the windows to cool things off. If I want air-conditioning, I visit a friend - or go to the mall.”

Although it’s technically illegal to accept income without reporting it to the Internal Revenue Service and local taxing agencies, Delance says he barters with friends and businesses whenever he can, trading his custodial and maintenance skills for everything from under-the-table untaxed cash to haircuts, prime-cut steaks and chops, hardware items - even ice cream cones, movie tickets and $4-a-cup gourmet coffees.

“I still have five credit cards carrying a balance of over $18,000,” says Delance. “To bring that under control, I went to the banks that issued them and told them flat out that I’d declare bankruptcy if they didn‘t help me out.

“They agreed to let me make smaller payments, and now I’m paying them off at a clip of $220 a month instead of $500. Not only that, they still let me use the cards as long as I make my payments on time.

“I carpool with four friends to reduce my fuel costs by driving just one day a week instead of five. My wife and I also started shopping for clothes in thrift shops. Not only is it fun, it’s cheap. Last week, I bought a $600 suit for $25. My wife got a mink coat for $10.

“And there‘s always money left over,” he adds, “to take her out for a nice dinner every Saturday night. I‘m also paying my daughter‘s tuition at community college. It‘s only $600 a year, but that‘s $600 I didn‘t have before.

“My total monthly expenditures average $1,000 now. That’s $12,000 a year, which is well under the my $13,600 take-home pay. I buy gold coins with the money I have left over.”

Delance isn’t alone in having turned his finances around. As an investigative reporter and financial writer, I can tell you that thousands of men and women have done the same using multiple cost-cutting strategies they read about in newspapers and magazines or dreamed up themselves.

Here are 12 of those “real world” strategies from my breakthrough financial report, 55 Fun Ways to Make More Money, Get Out of Debt - and Live Like a King ($7.95, 4-Page Media, Inc., P.O. Box 303, Alachua, FL 32616).

Use as many as you like to get your finances in order.

1. As radical as it sounds, get serious about suing somebody.

A fascinating new study suggests that the average American will be the victim of negligence or an accident that legally qualifies him to receive money on three different occasions over the course of his life.

But only one in 10 will take legal advantage that can “put them in the money.” The bottom line? If you’re hurt in an accident or by someone’s negligence, don’t be “Mr. Good Guy” or “Mrs. Milquetoast.” Get the best lawyer you can afford and demand the cash settlement you deserve. Pay off credit cards, write a check for a new car to avoid finance and interest charges, splurge a little and invest the rest of your windfall. In one fell swoop, your financial future may be assured. “I was so deep in debt I was sure bill collectors were going to chase me into an early grave,” said Melinda Rashama, of Trenton, N.J. “If I hadn’t slipped on that wet floor in the movie-plex, I’d probably still be in debt today.”

2. Help friends - for a price. This little-known but excellent strategy will not only earn you the extra money you need to pay down bills, it might develop into a lucrative - and easy - new job. Tell friends and relatives who are in business that you’ll send customers their way - for a percentage of sales. Chances are you’re going to refer people to them anyway - you might as well get a cut of the profits. “It’s the American way,” says Mary Strehln, who started out sending customers to her brother’s lawn service for a 5 percent cut of the profits and now is on the unofficial payroll of 22 other small businesses in Minneapolis. “I average $600 a month just keeping my ears open and not being afraid to express my opinion. If I’m standing in line at the supermarket and hear someone say he needs a new sofa or car repair or whatever, I chime in with a recommendation, and give them a business card for the company I’m recommending. It’s the easiest money I’ve ever made.”

3. Shill for companies in return for BIG TICKET FREEBIES like cars, major appliances and lifetime supplies of foods and personal-care items. Make a habit of writing glowing letters and testimonials for products you use every day - cars, shampoo, computers, refrigerators, soft drinks, food, motorcycles, bedding, you name it. You’ll be surprised to find out firsthand how lavish big companies can be in rewarding people for testimonials - a lifetime supply of soap, a new laptop computer and even a new range, refrigerator and car are not out of the question. “I bought a pre-owned 1996 Toyota Corolla from a dealer here in town and was so happy with the car and the salesman that I wrote a letter to the owner,” says Fred Tolert, of Gaffney, S.C. “Two days later he told me to drop by the lot because he had ‘a little something’ for me. That little something was a 2002 Lincoln Navigator - and free oil changes for life. All I had to do was agree to let him use my letter in his advertisements.”

4. Get yourself EVEN DEEPER in debt! It sounds crazy, but study after study confirms that you can expect to earn an extra $1 million over the course of your career - more than enough to get out of debt and live high on the hog - after you earn and apply your 4-year degree. Unless you’re just too old to go back to work, taking out student loans to pay for more education makes good financial sense, financial experts say. “I took out $60,000 in student loans and it sure paid off for me,” says Leslie Playor, of Birmingham, AL. “I used to make $300 a week working in a dry-cleaning plant. Now I’m an environmental engineer making $1,200 a week - and the benefits are incredible.”

5. Start eating smart, fatty! A mind-blowing 80% of Americans are overweight. If you fall into that category, and statistically, you almost certainly do, you can slash your food bill - and flush out the flab - by changing the way you eat. Remember: When you buy food that someone has prepared and packaged in any way, you’re spending two to 20 times what it will cost you when purchased whole and raw. Sure, you can buy a package of premixed salad greens for $3. But you can purchase them separately and toss them yourself spending the same $3 - but instead of having just one salad, you’ll have ingredients enough to make five or six, slashing the price. “Everybody’s talking about ‘whole-food diets‘, which revolve around foods that are uncooked or only lightly cooked, such as vitamin- and enzyme-rich fruits and vegetables,” says Roger Lafayerre, of Princeton, N.J. “I switched from my old meat and potatoes diet and instantly whacked $100 a week off my family’s food bill. Not only that, my cholesterol and high blood pressure returned to normal, and my doctor took me off prescription drugs. That leaves me with another $75 a month to spend on things I really want, like that new fishing rod I’ve had my eye on.”

6. Donate $20 to $50 a month to the world’s most important charity - you. Don’t say you don’t have $20 to $50 - chances are good you‘re spending that much or more for home delivery of a daily newspaper that you could be reading free at work, borrowing from a friend or perusing at the public library. Be ruthless in looking for ways to find your “charity cash” - and invest it. Remember: You don’t have to sink a million in the stock market to realize a handsome return. Call a stockbroker and don’t be shy - tell him you’ve got a $20 -or $50 - a month to invest. He’ll help you build a financial future that, until now, you probably thought was beyond your reach. “I started out investing $40 a month n 1998 and my $2,400 investment is worth over $10,000 today,” says Jakee Carentine, a single mother of five from St. Louis.

“I thought a stockbroker would laugh at my plan to invest $20 a month. But he didn’t - and today, even in a down market, I’m way ahead. And to think I used to live paycheck to paycheck.”

7. Rake in the riches that are in front of your nose. To do that, stock of quick-and-easy money making activities that are available to you that you aren’t taking advantage of.

“Washing one car a week at the going rate of $25 can net you $100 a month in extra income,” says Fred Johanes, of Raleigh, N.C., who paid off all his credit card debt by doing just that. “Cleaning windows or bathrooms - chores people hate to do themselves - are big moneymakers, too. My wife charges $25 to $50 per house or apartment and that’s another $100 to $200 a month in extra income.”

Tim McCreighten, of St. Louis, started out cleaning a neighbor‘s toilet for $10 a week in 1998 to help pay off a credit card. Today, “Tim the Potty God” employees 60 workers - and lives in a $400,000 home.

8. Start a “Skinflint’s Club” - and rally the troops around a collective “crash cash diet.” It sounds dull but its fun. First, round up as many friends and acquaintances as you can find who want to take control of their finances. Second, get together and schedule regular weekly or bi-weekly meetings to discuss ideas and support one another. To get started, simply make a note of every penny you spend for two weeks, and then take a look at the result. Depending on your income, you might want to “slim down” from spending $400 a week to spending $340 a week. When the club meets, everyone can discuss their own spending patterns and offer suggestions to one another for cutting them down to size. It’s not only a great way to socialize and have fun, the result could be the financial freedom you crave. “My Skinflint Club has 12 members and together we’ve slashed $1,200 a week in frivolous or dumb spending from out household budgets,” says Sammy Klower, of Spartanburg, S.C. “We’re working on getting out from under high interest debt now, and on bringing our food budgets into line. At the same time, to reward ourselves, we’ve all added money to our recreation budgets. We’re taking control of our finances and having more fun than ever at the same time.”

9. Crown yourself “King - or Queen - of Garage Sales” - and hold one every week without fail. Go door to door or run a small ad in a newspaper offering to clear out garages, attics and basements for free. Leave the junk on the street for the trash collector and keep the good stuff for your garage sale. “One garage sale isn’t going to improve your finances - but one a week sure will,” declares Amy Seener, of Chattanooga, TN. “I hold a garage sale every Saturday morning and spend every Saturday afternoon cleaning out someone’s attic or garage. That gives me a week to clean the items I’m going to sell and also to research my prices. I average $100 to $150 a week, more than enough to make my car payment and pay for my weekly crab legs and beer bill at Red Lobster!”

10. At a complete loss over the best way to bring your finances under control? Consult a bankruptcy attorney and find out precisely where you stand financially. The consultation is free and the attorney can quickly tell you what you need to do to get out of debt. Bankruptcy usually isn’t necessary - and most attorneys will be more than happy to put you on the right track because they know you’ll refer them when your friends or relatives get into trouble. “I was ready to commit suicide until I talked things over with a bankruptcy attorney,” says Candace Moreger, of Houston. “He put things in perspective in five minutes flat. I didn’t have to declare bankruptcy, but by following his suggestions, I climbed out of debt pretty much painlessly. And I’m living better than ever.”

11. Expect cash and good fortune to come your way - and it will. Dramatic new studies show that good luck abounds for people who cultivate a positive attitude and keep an open mind about themselves and their future. If you need help, sign up for a free “positive attitudes” class at your nearest library or community college - and get off your duff and go. “Once I learned to keep a positive attitude, I started seeing where I had been missing one lucky opportunity after another,” says Fred Blemerman, of Virginia Beach, VA. “Now that I’ve opened my eyes, good things happen to me almost every day. I got a new, higher paying job because I heard a man talking about the opening while I exercised at my gym. And you might not believe this, but I find money on the ground all the time. I expect good things to happen and thy DO happen. I encourage everyone to do the same.”

12. Liquidate. Do you really need to be making payments on three TVs, four stereos, three computers, two cars, a new bedroom suite and all the other junk you and family members keep buying on credit? Sell everything you can part with or turn it all back over to the people you bought it from, not sometime in the future, but right now, today. Shelling out $400 a month on a car? Give it back and you instantly increase your cash flow by a staggering $4,800 a year. To get where you‘re going, walk, ride a bike, use public transportation, rely on friends, or buy a cheaper car. “Want a $200 raise? Get rid of something that costs you $200 a month in payments,” says Marge Retwenger, of Kansas City. “Be ruthless. I got rid of my new car and bought a clunker for a monthly savings of $320. I told the appliance company to take back my $2,000 refrigerator and bought a used model at the thrift store for $50, saving my monthly payment of $40 a month.

“Now I’ve got money to spend on me and things I really like. It‘s like winning the lottery every day.”

Question? Comment? What do you think? Write Your World Report Editor Derek Clontz . He reads and responds personally to every letter, often within minutes and always within one business day.

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