How do you avoid spending more than you earn? - Page 2

jmhouck2001 · 10-24-2007, 10:14 AM

WE use cash, and once that's gone, it's gone. I think if people use credit cards it can become more easy for them to overspend, not saying this is the case w/ everyone. But for us, the cash works perfectly. It helps keep us in line!

ember15 · 10-24-2007, 10:42 AM

Want vs Need. The easy way is not buying the wants no matter what the sale price

lovemy2boys · 10-24-2007, 10:49 AM

ITA with everyone above about the need for avoiding cc debt at all cost - it can get ugly fast as you see those interest fees add up! But one note of caution, I personally think it is a good idea to have at least one cc in your posession for emergency purchases and for reservations (like hotel or car rental). Plus when making big purchases, it is really nice to have the added protection that comes with a cc. Like if you buy an appliance with a cc and it is a lemon, you have the recourse of disputing the charge through your cc - an option you don't have with cash only. I think the best bet is to put these big purchases on a cc and then pay it off the next month in order to not get into debt, but still take advantage of the cc buyer protection plans...

JMHO!

Mama2mygirls · 10-24-2007, 12:32 PM

We just don't spend money we don't have on a daily basis. We did obviously spend money we don't have when purchasing cars but hope not to next time (we'll be only paying cash from here on out.) As far as credit cards and stuff like that, we don't use them, unless it is to get a discount or something, in which case we pay it off the next day. Also, dh has money for the IRAs taken out of his paycheck before we even see it, and then transfers all of our excess money to our savings account as soon as he gets paid. At that point we take out our money for the week in cash from our checking account and only use that money (not our debit cards) to buy groceries, gas, misc., etc.