Since I'm reading the Total Money Makeover book by Dave Ramsey, I find it very appropriate that i CANCEL and CUT UP all my credit cards. Especially the cards i have just sitting in a drawer for a rainy day like Macy's, The Limited, Banana Republic, Express, and an extra Visa to name a few that you see to the right. Yup, those were my cards. The rule is if I don't have the CASH money, i don't buy it. Now see, I have always been very disciplined with my cards--paying them off at the end of every month and basically just using other people's money for the perks. Well I read that the average person spends 12-18% more when putting it on the plastic because it just doesn't hurt so much like it would cash....I am the average person because I've been known to say "oh i'll just put it on the card" and figure it out when get paid. Whoa reality check strikes! No Way Hosea, NO MORE! The only cards i'm allowing myself to keep is the card in which i put business expenses on that is reimbursed every month by my job. That way I can responsibly take advantage of the points for free stuff--like the $50 dollar Target gift card that I just redeemed and received in the mail. Partnered with the great sales Target has and the coupons I just clipped, that $50 bucks (like Cash) will go a long way for me :)
Thursday, February 11, 2010
No Debt Allowed!
Since I'm reading the Total Money Makeover book by Dave Ramsey, I find it very appropriate that i CANCEL and CUT UP all my credit cards. Especially the cards i have just sitting in a drawer for a rainy day like Macy's, The Limited, Banana Republic, Express, and an extra Visa to name a few that you see to the right. Yup, those were my cards. The rule is if I don't have the CASH money, i don't buy it. Now see, I have always been very disciplined with my cards--paying them off at the end of every month and basically just using other people's money for the perks. Well I read that the average person spends 12-18% more when putting it on the plastic because it just doesn't hurt so much like it would cash....I am the average person because I've been known to say "oh i'll just put it on the card" and figure it out when get paid. Whoa reality check strikes! No Way Hosea, NO MORE! The only cards i'm allowing myself to keep is the card in which i put business expenses on that is reimbursed every month by my job. That way I can responsibly take advantage of the points for free stuff--like the $50 dollar Target gift card that I just redeemed and received in the mail. Partnered with the great sales Target has and the coupons I just clipped, that $50 bucks (like Cash) will go a long way for me :)
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SO PROUD
ReplyDeleteThanks for letting me borrow your book Julie!! Good stuff and i'm only on page 50!
ReplyDeleteEvery time a check-out person offers me a c.c., I love to tell them "No thanks, I don't use credit cards, only debit." I wish I didn't even use debit, but I can't get to the bank often enough.
ReplyDeleteAre you thinking about using any envelopes? We use envelopes for the "entertainment", "restaurant", and "blow" fund part of our budgets.
I haven't gotten to the envelope part yet ;) That's what I am looking forward to most is learning how to actually make a budget. I won't have a lot to work with thought because a percentage of my paycheck is already deposited into a separate "bill only" account for all my monthly set payments that include my mortgage and utilities. I'm left with about 52 bucks a week for groceries or anything else that arises...like a bag of dog food, or an occasional morning starbucks.
ReplyDeleteSo proud! Keep it up - you won't be sorry!
ReplyDeleteAuntie.