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