Monday, September 14, 2009

Money Pinching Monday

I have decided to start a weekly entry on our blog about how we save money. We are no experts, but we have learned a LOT the hard way, and some things the easy way through wise counsel of others. Others have asked me here and there how we got out of debt, and how we're building wealth. Again, no experts here, but I love penny-pinching. Some call it cheap, I think "thrifty" sounds nicer. :) I will start little-by-little right here.

We'll start with the BIGGEST advice I can give anyone: ditch your credit cards! Seriously. Every single one of them! Credit cards are the biggest drain on your finances. Know why? Because it's so easy to tell yourself, "oh I pay them off at the end of every month." However, what happens if a major expense comes up, or someone loses a job and then you can't pay the total amt due? That's a slippery slope I don't want to be anywhere around.

We hate credit cards with a passion! For so long, we'd pay on them every month, and then b/c that took such a chunk out of the paycheck, we'd have to go back to the credit card to buy groceries and gas. Next month, same cycle. SO frustrating! They had us, and we hated it!

Almost every business takes debit cards now. Use a debit card. Debit=CASH. There was only one instance where a credit card number was needed and I explained to the person that we don't do credit. He told me, "everyone needs a credit card for emergencies" He was serious!! I replied, "why would you need a credit card when you have a padded savings account??" Your SAVINGS account is for emergencies. Credit cards are for keeping people in debt.

If you are interested in getting out of debt, go buy Dave Ramsey's book, The Total Money Makeover. I hope it rocks your world like it did ours.

2 comments:

Erin and Roger Bell said...

Amen sister! :) We love love love all your advice and especially getting Dave's book, we are now on week 5 of our total money makeover and have already saved a total of $550 per month that we are now putting towards debt!! I love your weekly money saving blog idea!

Tate Family said...

Yeah! Keep the tips coming...