It's been recently that I have decided to get serious about money, budgeting and our debt. I must rid myself of the term entitlement when it comes to shopping. If I really want to simply my life this is going to a process and this is going to take some time. Some serious time. There are no quick fixes here.
I need to think about this every single time I make a purchase (and consume that purchase ie. gas/food):
If I currently have credit card debt (which I have plently of) every purchase I make, even if I'm using cash, is like paying with a credit card. And not only is it like paying with a credit card - it's like paying with your highest interest credit card.
The cash I am spending today could have gone towards paying off my debt.
Let's bring out that scary amortization schedule to learn the true cost.
Here is a small example: take the kids to a movie vs renting a movie
4 movie tickets: $36
total cost $51
rented movie $2
microwave popcorn and drinks: $1
total cost $3
$47 x 15% interest (credit card) x 2 years
real cost: $54.69
If you pay cash for the movie but you have credit card debt it' like you are really putting this on credit. Would you put a movie outing on a credit card? I hope not!
I asked Sara to pose for a picture with some cash - it appears I've already done a lot of damage with my materialism daughter.
Do you float your credit? from month to month - with never ending paying interest? I do. I am so ashamed. I've been a poor steward with God's money. This needs to change. I'm starting to see things completely different. I feel like I'm now starting to walk around with my eyes open!
Shopko $17.61 (shipping to mail package & cash for tonight's babysitter - bible study)
Burger King (hubby) $6.42
McDonald's (hubby) 3.57
I'm with you - I have a whole new outlook on money. Trying to always look forward not backwards at our money mistakes.
Movies out for my family of five - not going to happen in my house for a while.
Recognizing there is a problem is the first step to financial peace. Americans have been mislead to believe that we must live in debt. This is false. You cannot grow wealth while you continue to service debt. Did you know that the average American makes 2 million dollars in their lifetime - but yet retires with nothing. You can live debt free!
Dana, I am so proud of you. I think it is amazing that you have spent just half of what you normally would. And not eating any fast food? Incredible! Calling Doug to pick up some food on his way home from work was pretty normal for me, and I've been trying to get used to making food at home every time. It's definitely not easy to change. You're doing great!
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