I'm not sharing this to brag, or to make anyone feel bad about using credit cards. I'm sharing this personal information because I've had a few people ask me lately how I'm able to pay cash for large purchases. The answer is simple: I just don't buy things until I'm able to pay for them. I realize that is easier said than done. And for those of you that currently have credit card debt, I am definitely not judging. When you are at a place that you can work on paying it off, I recommend Dave Ramsey. His baby steps make the process do-able. I also realize sometimes in life people are faced with emergencies that require the use of credit cards. I get it. However, for those of you that are not currently in crisis mode, I hope this information will be helpful.
About 10 years ago I made my last car payment to a lender. Once it was made, I opened a separate bank account and set up an automatic transfer to pay $300 per month into my "car account". It was roughly the same amount I'd been spending per month, only I was paying it into my car fund instead of to a lender. I drove my paid off car for about 4 more years (paying a few repair bills along the way) and eventually I was able to purchase a newer car. It was about 2 years old, but was nicer and more dependable than what I'd been driving.
I've done the same with vacations. By simply calculating the cost and determining how much I can afford to save per month, I've been able to plan for and pay cash for vacations. Now, keep in mind there have been many years that we did not take a vacation, but trust me, it has been worth it. Vacations are just more relaxing when you know they are paid for!
Do you have any tips to share? If so, I'd LOVE to hear them. I learn so much from my fellow bloggers and money saving friends. Please keep the email tips coming! ◦
1 comments:
Hey Ronica - I am taking my kids on a "surprise" vacation in June (nobody tell them!!!). I booked a hotel that we always used to go to since I am taking them by myself - I feel more comfortable with something I know. But I did look around at other hotels and found one in the next town over that was running a special- buy 5 nights get the 6th free. I called my hotel, and they not only matched it, they also took some more off. So now I am paying $123 a night, plus a free night!!! All you have to do is ask!!
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