I got paid last week and that pay started my new budget without using credit cards!
It is more freeing, I will say.
On Saturday, for the first time in I don't know when, I went inside (GASP) a gas station and paid cash! It is an inconvenience especially if it's rainy but I know it's what I have to do. And a little inconvenience never hurt anyone.
I was also able to purchase some really cute pink nail polish without going into my weekly "blow money" since I made sure to budget a few dollars a month for cute cosmetics that I couldn't resist.
I will say, however that I am nervous about gas. This weekend, I will be traveling to Raleigh and Wake Forest and the gas does get eaten up quickly when going that far. And I only have a certain amount left for gas til my next paycheck. But we shall see how it goes. I will let you know!
Just a little update on how my life without using credit is going. =)
Sara
Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Wednesday, February 22, 2012
Wednesday, February 15, 2012
It's Decided, I'm Cutting!!
Last night, after watching Dave Ramsey's Dumping Debt DVD, I made my decision to cut up three of the four credit cards that I have. I am very excited. Once I get this last one paid off I will be cutting it up as well. I don't EVER want to go back to debt again.
I jotted down a few myths about money that Dave debunked in the DVD and I'd like to share them with you. There were several that I didn't know were myths!!
First Myth
If I loan money to a friend or relative, I will be helping them.
TRUTH
The relationship will be destroyed. You are now their master and they are your servant (until the debt is repaid). See Proverbs 22:7
Second Myth
By co-signing a loan, I am helping a friend or a relative.
TRUTH
The bank requires a co-signer because the person isn't likely to pay. So, be ready to pay the loan and have your credit damaged because you are on the loan.
Third Myth
Car payments are a way of life and you'll always have one (I think I've always kinda thought this way).
TRUTH
Staying away from car payments by driving reliable used cars is what the typical millionaire does. That is how they become millionaires.
Fourth Myth
I'll take out a 30 year mortgage and pay extra, I promise.
TRUTH
Life happens. Something else will always seem more important so almost no one pays extra every month.
Fifth Myth
You need a credit card to rent a car or to make purchases online or by phone. (I thought this too)
TRUTH
A debit card will do all of that, except for a few major rental companies.
Sixth Myth
I pay my credit card off every month with no APR. I get brownie points, air miles and a free hat!! (I bought this one too)
TRUTH
Dun and Bradstreet found that when using plastic, you spend 12-18% more because spending cash HURTS.
There you have it, several credit myths debunked!! Let me know if you've bought into any of these.
Sara
I jotted down a few myths about money that Dave debunked in the DVD and I'd like to share them with you. There were several that I didn't know were myths!!
First Myth
If I loan money to a friend or relative, I will be helping them.
TRUTH
The relationship will be destroyed. You are now their master and they are your servant (until the debt is repaid). See Proverbs 22:7
Second Myth
By co-signing a loan, I am helping a friend or a relative.
TRUTH
The bank requires a co-signer because the person isn't likely to pay. So, be ready to pay the loan and have your credit damaged because you are on the loan.
Third Myth
Car payments are a way of life and you'll always have one (I think I've always kinda thought this way).
TRUTH
Staying away from car payments by driving reliable used cars is what the typical millionaire does. That is how they become millionaires.
Fourth Myth
I'll take out a 30 year mortgage and pay extra, I promise.
TRUTH
Life happens. Something else will always seem more important so almost no one pays extra every month.
Fifth Myth
You need a credit card to rent a car or to make purchases online or by phone. (I thought this too)
TRUTH
A debit card will do all of that, except for a few major rental companies.
Sixth Myth
I pay my credit card off every month with no APR. I get brownie points, air miles and a free hat!! (I bought this one too)
TRUTH
Dun and Bradstreet found that when using plastic, you spend 12-18% more because spending cash HURTS.
There you have it, several credit myths debunked!! Let me know if you've bought into any of these.
Sara
Thursday, February 9, 2012
Credit Cards and Impulse Buys
I've been thinking about credit cards and impulse buying these last few days. Not exactly imagining what the cards look like but the why behind their popularity as well as they why behind impulse spending.
Why I believe that credit cards are so very popular is that Americans have lost the art of waiting for the things we want. If we want a new blouse, we go buy it. If we see that new phone that just came out, we rush to the store and get it. If there's a preview for a movie that we want to watch, we won't wait to see it on DVD, we rush to the theatre to see it.
Credit cards allow us the opportunity to get things we don't necessarily need now at this very moment. And what does that do for us? it gives us a high. But it's temporary. When our credit card bill comes calling, the high goes away and is replaced by guilt. Or anger at ourselves. Or maybe apathy.
Back in the olden (don't you just love that word?!) days, if you wanted something badly enough, you saved for it. You held back your desire of now for the pleasure you knew would await when you were able to afford that item you so badly craved.
Do you know what that waiting did for those back then? It created pride in the item they would soon purchase and it grew patience in their souls knowing that they would get what they wanted but not RIGHT NOW.
Credit cards have destroyed that for us. That is why I would love to go credit cardless. (It is in the works....)
This also ties in to why impulse spending is so very prevalent (for me too!).
Nike told us "just do it" and Burger King told us "have it your way and we listened to both. We just did it and bought things as therapy when we were sad, mad, or happy and then, we had it our way as we racked up debt, filled our houses and our sheds with items we really didn't like and felt guilty for throwing money away on things that didn't fill the emptiness in our hearts.
Impulse spending goes hand in hand with credit cards. Credit cards enable us to spend impulsively and without accountability (until the bills come).
One of the things that I am trying to challenge myself to do is not spend impulsively. I do it because of my emotions. Maybe I had a horrible day at work so I go shopping to get rid of the stress. Or maybe I'm depressed about something so I go out and find the perfect outfit or buy some more makeup (that I don't really need).
These are just some thoughts about credit cards and impulse buys. Please know that I am not judging or critisizing anyone because I have found myself in both the places I've mentioned here many times. But I'm trying to break the cycle because I know that it will be better for me in the future.
Sara
Why I believe that credit cards are so very popular is that Americans have lost the art of waiting for the things we want. If we want a new blouse, we go buy it. If we see that new phone that just came out, we rush to the store and get it. If there's a preview for a movie that we want to watch, we won't wait to see it on DVD, we rush to the theatre to see it.
Credit cards allow us the opportunity to get things we don't necessarily need now at this very moment. And what does that do for us? it gives us a high. But it's temporary. When our credit card bill comes calling, the high goes away and is replaced by guilt. Or anger at ourselves. Or maybe apathy.
Back in the olden (don't you just love that word?!) days, if you wanted something badly enough, you saved for it. You held back your desire of now for the pleasure you knew would await when you were able to afford that item you so badly craved.
Do you know what that waiting did for those back then? It created pride in the item they would soon purchase and it grew patience in their souls knowing that they would get what they wanted but not RIGHT NOW.
Credit cards have destroyed that for us. That is why I would love to go credit cardless. (It is in the works....)
This also ties in to why impulse spending is so very prevalent (for me too!).
Nike told us "just do it" and Burger King told us "have it your way and we listened to both. We just did it and bought things as therapy when we were sad, mad, or happy and then, we had it our way as we racked up debt, filled our houses and our sheds with items we really didn't like and felt guilty for throwing money away on things that didn't fill the emptiness in our hearts.
Impulse spending goes hand in hand with credit cards. Credit cards enable us to spend impulsively and without accountability (until the bills come).
One of the things that I am trying to challenge myself to do is not spend impulsively. I do it because of my emotions. Maybe I had a horrible day at work so I go shopping to get rid of the stress. Or maybe I'm depressed about something so I go out and find the perfect outfit or buy some more makeup (that I don't really need).
These are just some thoughts about credit cards and impulse buys. Please know that I am not judging or critisizing anyone because I have found myself in both the places I've mentioned here many times. But I'm trying to break the cycle because I know that it will be better for me in the future.
Sara
Friday, February 3, 2012
To Cut or Not to Cut
In my “Dave Ramseying my finances” session this week, my friend said something I found very interesting (and thought provoking). She pointed out that if you begin using cash for everything (which is what this program is all about) then at some point you wont have a credit score. When she said this I was very skeptical, I mean you always hear that you must have good credit so if you don’t have a credit score, isn’t that bad?! Then, she pointed out that you don’t NEED a score if you’re paying cash for everything. Good point! However, the thought of not having a credit score (or a credit card for emergencies – at LEAST) kinda makes me nervous. There again, my friend pointed out that you should already be prepared for emergencies since your emergency fund will be built up.
It seems that there is a plan for most eventualities in this program but I don’t know if I’m ready to get rid of the comfort and backup having a credit card affords me.
Does anyone have any advice? I am really considering doing away with my credit cards but haven’t gotten up the gumption to do it yet As with anything, its all in how you use it whether it turns out for good or bad!
sara
Thursday, February 2, 2012
Self-Control
Last night, I had some time to kill before going to church so I decided to go into one of my favorite stores, Ross.
Not many times do I go into Ross without carrying something back out. It could be a piece of clothing, a pair of shoes, a pocket book, or something for the home but I usually come out with one (or two) items.
Last night I didn't.
It was hard.
I looked in every section. In the clothing section I saw a cute lace shrug that would be perfect for summer ($10.99). And in the housewares section, I saw this adorable little box with tiny drawers (big enough to hold jewelry) that I LOVED. I almost picked it up. But then I rememered: I didn't have money!
Well, I had $1 but really, that's not considered "money" if you know what I mean.
I had spent my week's allowance and would not have next week's money til Friday. So, with regret, I stepped away and moved on.
I know that if I would have had my credit card with me, I would have rationalized with myself to purchase one (or both) of the items mentioned above. And knowing me, a few months down the line, I would be wanting to get rid of one of them.
Last night's experience was actually freeing. True, I didn't really have the option to buy or not to buy since I didn't have the cash (or a credit card) on hand but being able to look at something, really want it and then turn and walk away was NICE. It let me know I can do it. It also reminded me that some things (the things that aren't really that important to me and that I can live without) will fade from my mind and in a day or a week, I won't remember what they were. The things that I truely desire (those items that call to me and speak to me) will be more important to me because I will have saved for them.
That's my first experience with 'window shopping' in a while. We'll see how the next episode goes!!
Sara
Not many times do I go into Ross without carrying something back out. It could be a piece of clothing, a pair of shoes, a pocket book, or something for the home but I usually come out with one (or two) items.
Last night I didn't.
It was hard.
I looked in every section. In the clothing section I saw a cute lace shrug that would be perfect for summer ($10.99). And in the housewares section, I saw this adorable little box with tiny drawers (big enough to hold jewelry) that I LOVED. I almost picked it up. But then I rememered: I didn't have money!
Well, I had $1 but really, that's not considered "money" if you know what I mean.
I had spent my week's allowance and would not have next week's money til Friday. So, with regret, I stepped away and moved on.
I know that if I would have had my credit card with me, I would have rationalized with myself to purchase one (or both) of the items mentioned above. And knowing me, a few months down the line, I would be wanting to get rid of one of them.
Last night's experience was actually freeing. True, I didn't really have the option to buy or not to buy since I didn't have the cash (or a credit card) on hand but being able to look at something, really want it and then turn and walk away was NICE. It let me know I can do it. It also reminded me that some things (the things that aren't really that important to me and that I can live without) will fade from my mind and in a day or a week, I won't remember what they were. The things that I truely desire (those items that call to me and speak to me) will be more important to me because I will have saved for them.
That's my first experience with 'window shopping' in a while. We'll see how the next episode goes!!
Sara
Wednesday, February 1, 2012
Dave Ramseying My Money
A very sweet friend from my church asked me if she could help me overhaul my finances (since she saw the posts I've been making regarding money). Her family uses the Financial Peace Plan put out by Dave Ramsey.
As you are probably aware if you have read any of my posts, I am trying to get my finances in order so in short I don't have to worry about money! As I've mentioned, I'm a girl, and I love to spend money on cute things as well as necessities. That's ok as long as I'm not overspending which I have tended to do these past two years.
I suppose that I can trace my unwise handling of money to my second credit card which I got the end of 2010.
Since I was a late teen, I have had one credit card. And I really think that all young adults should start out with one to build up credit (disclaimer: Once I am done going thru the Dave Ramsey Financial Peace Plan, I may say that I don't think it's a good idea).
I had always used the card for emergencies, or for certain specefic purchases that were a little more than my cash allowance. The one thing I did that saved me from debt for many years was that right after I made a purchase on my card, I would write a check in my checkbook for that amount and deduct it so that when the credit card bill came, I would have the funds to pay for that purchase.
I continued on like this until 2010 when I got a new credit card.
For some reason, my spend mode kicked in big time and I began charging, charging, charging and while I might write out a check here and there for some of the purchases, for the majority I didn't have the funds to cover the purchases. I feel bad saying this but there were many bills that I had to dip into my savings to pay off (because I didn't want to have interest or late fees). The only good thing that I can say about that time was that I wasn't accruing interest (which is NOT a good feeling) or late fees.
Then, my savings became depleted because of using it to pay off large credit card bills filled with (mostly) unessary items. I had a decision to make. I continued using my cards, not realizing the consequence. About September of 2011, I began to have a bill accruing interest =(. I'd NEVER had that before in my life so it wasn't a good feeling.
Ever since then, I have been trying to handle my money better but it never really clicked until I saw how quickly debt could pile up (especially when using credit cards).
That's the back-story to me learning from Dave Ramsey's Financial Peace.
Even though I've only had one session with the friend from church, my thinking is already beginning to change and I look forward to the next lesson.
It's hard for me to share most of the things above but I really do want to help other young people out. If I can spare you from debt by my mistakes, that would be lovely.
If you have any questions or comments, I'd love to hear from you.
Sara
As you are probably aware if you have read any of my posts, I am trying to get my finances in order so in short I don't have to worry about money! As I've mentioned, I'm a girl, and I love to spend money on cute things as well as necessities. That's ok as long as I'm not overspending which I have tended to do these past two years.
I suppose that I can trace my unwise handling of money to my second credit card which I got the end of 2010.
Since I was a late teen, I have had one credit card. And I really think that all young adults should start out with one to build up credit (disclaimer: Once I am done going thru the Dave Ramsey Financial Peace Plan, I may say that I don't think it's a good idea).
I had always used the card for emergencies, or for certain specefic purchases that were a little more than my cash allowance. The one thing I did that saved me from debt for many years was that right after I made a purchase on my card, I would write a check in my checkbook for that amount and deduct it so that when the credit card bill came, I would have the funds to pay for that purchase.
I continued on like this until 2010 when I got a new credit card.
For some reason, my spend mode kicked in big time and I began charging, charging, charging and while I might write out a check here and there for some of the purchases, for the majority I didn't have the funds to cover the purchases. I feel bad saying this but there were many bills that I had to dip into my savings to pay off (because I didn't want to have interest or late fees). The only good thing that I can say about that time was that I wasn't accruing interest (which is NOT a good feeling) or late fees.
Then, my savings became depleted because of using it to pay off large credit card bills filled with (mostly) unessary items. I had a decision to make. I continued using my cards, not realizing the consequence. About September of 2011, I began to have a bill accruing interest =(. I'd NEVER had that before in my life so it wasn't a good feeling.
Ever since then, I have been trying to handle my money better but it never really clicked until I saw how quickly debt could pile up (especially when using credit cards).
That's the back-story to me learning from Dave Ramsey's Financial Peace.
Even though I've only had one session with the friend from church, my thinking is already beginning to change and I look forward to the next lesson.
It's hard for me to share most of the things above but I really do want to help other young people out. If I can spare you from debt by my mistakes, that would be lovely.
If you have any questions or comments, I'd love to hear from you.
Sara
Friday, January 6, 2012
Revamped Budget - The First Week of 2012
I officially set my 2012 budget on Saturday.
It's been an ok week. I've taken my lunch three days (and ate out two days).
I haven’t used my credit card AT ALL this week (except I will be using it to purchase gas this afternoon because I earn points) which is a MAJOR accomplishment.
I used my weekly spending money wisely and have $4 left in my pocket =).
I did forget to hold out my $25 for the money market account I am saving up to begin but that’s ok, I’ll be sure to hold it out next check.
I was able to purchase two birthday gifts for a party I am attending tomorrow for $5.35 here. It does look a little hillbillyish but it is very cool and has some great stuff at inexpensive prices.
So, that is the highlights of my first week into my new budget.
It’s hard. Every time I wipe the slate clean and begin again it’s hard. I have gotten so used to pulling out a credit card and covering non-necessities that I have to begin rethinking what my necessities really are.
So, how is your budget for 2012 coming along? I’d love to hear how your first week went.
$ara (get it, it’s a money symbol – yes, I know I’m crazy)
It's been an ok week. I've taken my lunch three days (and ate out two days).
I haven’t used my credit card AT ALL this week (except I will be using it to purchase gas this afternoon because I earn points) which is a MAJOR accomplishment.
I used my weekly spending money wisely and have $4 left in my pocket =).
I did forget to hold out my $25 for the money market account I am saving up to begin but that’s ok, I’ll be sure to hold it out next check.
I was able to purchase two birthday gifts for a party I am attending tomorrow for $5.35 here. It does look a little hillbillyish but it is very cool and has some great stuff at inexpensive prices.
So, that is the highlights of my first week into my new budget.
It’s hard. Every time I wipe the slate clean and begin again it’s hard. I have gotten so used to pulling out a credit card and covering non-necessities that I have to begin rethinking what my necessities really are.
So, how is your budget for 2012 coming along? I’d love to hear how your first week went.
$ara (get it, it’s a money symbol – yes, I know I’m crazy)
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