Hi Cruncholi,
Financial security can be achieved, but it does involve some discipline. You don’t have to live like a miser, but you may need to scale back on some purchases. I’m fortunate in that DH and I both absolutely hate being in debt, and we both have very similar attitudes about what we’ll spend good money on. We never pay full price for something unless there’s a really, really good reason to.
My personal philosophy is to not carry a total debt load any bigger than what I could safely manage on half of my current salary. So if something did happen with my job, we could get by without too much stress. Since DH runs his own business, we keep our finances separate, and I take care most of the monthly household expenses.
I use my credit card for a lot of my monthly purchases (I get frequent flyer miles with it), but it gets paid off in full every month. I’m also very aware of what I can easily afford every month and purchase accordingly.
As for vehicles, I’m in a pretty good situation. DH owns an auto-body repair shop, so I can have my pick of any car in the salvage yard. I pay cash for a wreck and he fixes it. The sale of what I’m currently driving usually pays for most parts and materials – I pay him for whatever doesn’t get covered. And well…we take the labor out in trade.}( }( }(
Here would be my tips for getting out of credit card debt and building some savings:
1. If credit card debt seems to be the bulk of your problem, my answer would be to stop using it completely until it’s paid off. If you don’t have the cash, don’t buy it.
2. Avoid extraneous monthly expenses. Everybody offers a something for a “low monthly payment” nowadays. These things will drain you if they get out hand.
3. Use direct deposit. If your employer provides direct deposit, use it. For every paycheck, I have a budgeted amount that goes into my checking account for monthly expenses, another amount that goes into savings, and another amount that goes into an account for annual expenses like property taxes, car/house insurance, fuel oil, etc. I’ve used a system like this since I was 18, and it’s made my financial life so much easier.
I’d also recommend checking out Clark Howard’s web site. He’s a consumer advocate and has a national radio show. A major topic is usually getting people out of debt. The URL is
www.clarkhoward.com
Hmmm…a shock collar might work for the spendthrift. }( }(
Good luck!! You can do it!!
BUT $300 of that was B-day money people had given me. I felt bad when I think about the money I spent and I had to keep reminding myself that I wasn't charging anything and it was my money! All bills were paid, I didn't need to feel bad.
