Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do. So throw off the bowlines, sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”- Mark Twain

Tuesday, March 2, 2010

Staying Out of the Red

Being on a tight income, I can completely understand how some people can get their selves in trouble with credit cards and lines of credit. The one thing that has been a life saver to me is that I've never "gone to town" with credit, which then results in debt.

Now of course when I bought my new car, it was purchased on a bank loan. I am currently only 2 years into my 5 year loan. I do in the near future hope to have a mortgage for our own home. This isn't the type of debt I'm talking about.

Purchasing shoes, clothes or even TVs on the ol' Visa IS what I am talking about. I've found if I need these items, I can budget them in. Paying in cash is oh so much better than throwing down the credit card, signing and forgetting until 30 days later when the rude reminder comes in the mail.

I found if I budget $100.00 per month for "Extra Shopping", I can still buy what I want, without feeling deprived. If I want a new pair of cute shoes for $50, I buy them. I'll still have $50.00 left that I can spend on something else, or save for next time. I REALLY wanted a LCD TV. I saved 7 months of my "Extra Shopping" money, and bought exactly what I wanted at a boxing day sale. Not something I could have done before my budgeting days had started.

Easier said than done I realize, as I too once in awhile would purchase things on credit and forget about them until the bill came. However, once I started budgeting for them, and even saving my budgeted money for bigger items I may want, I was able to get things easier than I thought and there was no bill in the mail as a reminder.

One less bill is one less stress! :)


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