Did you know being in debt is robbing you of your
future? How many of you are in debt,
because you used a credit card or two, to get out of an emergency situation, or
purchased something you just had to
have but didn’t really need to survive?
Life throws us curve balls daily; and to survive,
you need to plan wisely. Part of
planning is creating a monthly budget.
Okay, I can already feel you cringing, and see you shaking your
head. Friends, my husband and I did the
same thing years ago……that was until we sat down and created our monthly
budget.
This budget gave us a true visual of all monies
coming into our home versus all monies going out. Having a budget provides you with the proper
discipline and structure needed to ensure you tackle your debt and create a
true savings account/emergency fund to use toward preparing your family for
being self reliant.
You ask me how is being in debt going to rob me of
my future? Let me explain by using this example….
You stress about the economy after watching the news and reading Prepping Blogs
and decide, instead of waiting until you have the extra cash on hand, you’re
going to use a credit card to shop for $200.00 worth of groceries to stock your
pantry. When you get home, you unload the groceries, stock up your pantry, and
feel physically and mentally satisfied. You’ve
stashed $200.00 worth of preps for your family. Granted, this quick solution
feels great; that is until you receive your credit card bill. Now you owe $200.00, plus 18 percent interest
rate for that month (interest rates vary).
The company only requires you to pay $15.00 for your minimum
payment. You opt to pay the minimum
payment, because you can’t pay off the total balance.
The next time you receive the credit card
bill, the credit card company hopes you can only pay the minimum payment again,
because the credit card company is earning good money off of your measly
grocery purchase. Each month, the credit
card company is earning at minimum $3.00 more from that one grocery trip, and
if they can persuade you to only pay the minimum payment for let’s say 1 year,
they would have made over $30.00 + dollars off of you, for your measly
$200.00’s worth of groceries. That is called
robbing your future. Instead of using a
credit card to survive, and paying all that interest on a measly purchase, sit
down with your spouse and budget accordingly.
You’ll be surprised how much money you can save, and
the debt you can pay off.
Life is good. Bulldog Man and I have paid off all of
our debt (school loans, kids’ emergencies, credit cards, and miscellaneous) and
have decided debt will not become a burden again. Cash is KING!!!
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oh Sweet Sandy - no truer words have ever been spoken! when you pay off your debts and truly understand the ins and outs of your weekly, monthly, bi-annually, and annual budget - the relief that comes with that knowledge is worth it's weight in gold! stock up on preps but also start putting a little cash aside each month. it may start as only $10 a month in a jar..but as you pay things down, add to your stores and find that you have another spare $10 bucks for the jar...now the jar has $20 bucks! $20 bucks you never really realized you could ever have on hand. and it is like the domino affect - once you have saved $20, plus paid your bills, plus added to your stores - then you want another $20 in that jar. and it just builds from there.
ReplyDeletedon't use credit cards unless you are positive that you can pay it off in full BEFORE the end of the month! otherwise, save that money and when you have enough buy the item in full with cash.
we've learned this lesson and the amount of freedom that comes with knowing you are "squared away" makes for a really food night's sleep. something i am about to go and have (toothless or not - bahahahah! inside joke for some of us!)
love you Sweet Angel! and sending love to you and all of yours always! your friend,
kymber
Sweet Kymber,
DeleteTo be a true prepper, one must understand your hurting your family in the long run if you're not debt free. As a prepper one should live off of cash and not beyond ones means. Cash is King!!!
Whether you save money in a jar,use envelopes, or stash your money in your mattress....LOL don't use a credit card unless you can pay it off in full each time you use it. Freedom from any form of debt is an awesome feeling :-)
I hope you're feeling well after your dental visit, and things are going as you planned.
Hugs, and love to you both.
Sandy
Shout it loud and often !! Credit and debit cards separate a person from thinking in terms of cash (labor value).
ReplyDeleteGary,
DeleteAmen my friend, Amen!!! Shouting as loud as possible :-)
Cash is King!!!
Living below your means can be extremely difficult when everything you think you need is easily obtainable (with credit) thanks to our corrupt Congress and Banksters.
ReplyDeleteBut a little restraint in the early days makes life smell a lot better in the later days.
Mike,
DeleteYou can say that again Mike!!! Restraint is a large word for many people. One should always have restraint, work towards ones goals, and use only CASH when purchasing anything.
I've been trying for YEARS to drill this in to my son's brain to no avail. Seems a lot of the younguns live for the moment. His excuse--I work hard and need a reward. Fine-buy a mutual fund!! LOL! Oh, moms take all the fun outta life.......
ReplyDeleteKeep spreading the word.
Sue,
DeleteKids don't get it. Even if as parent you explain or drill this into their brains. Sue, most younguns live along the basis of their friends. They won't listen to their parents, only friends. In time, your son will realize Mom was right. You just wish he would realize "NOW", instead of in the future when he has debt. Like you, I continue to educate our youngest son....even though he would rather listen to his friends. Keep on keeping on Sweetie.
The younger generation(s) have been taught by the media (banksters) that they "deserve" more than they've "earned."
ReplyDeleteIf parents don't teach kids at home the simple principles you've laid out in this important blog post, it would be nice (darn necessary!) if it were taught in schools. Education has to start somewhere. (I do realize society and peer pressure can have a HUGE (and not necessarily good) influence on the younger generation which over-rides what has been taught at home.)
Reading statistics of how much in debt the average person is is terribly scary. But, hey, look at our national debt which has been created by people who supposedly are governing our country! If our (once great) country operates this way, why shouldn't the individual do the same . . . and be just fine? It's sad.
Mama Pea,
DeleteI so hear you Mama Pea. The younger generation think their the entitled generation. It's up to the parents to teach their children right from wrong, save cash, and not use or depend on credit cards.
Our countries debt is crazy, we have people in office who continue to spend money likes it's growing on trees with no consequences. It's scary when you think about it. It makes you wonder where this country will be when were no longer here.
We have not had a credit card in many many years. We don't even do a checking account! We are literally cash only folks. We have a little prepaid debit card that cost us 3.00 a month to have and we put money on the card when needing to pay a bill online or place an order. We have saved 1000's of dollars living this way. We don't know any other way. It's really not hard to do. We also feel better about making "prepper" type purchases using cash because they cannot be traced through a credit/debit card transaction! Debt can be avoided like you said with careful planning. There is no reason to have frivolous debt looming above your head. We have one major debt.... Our land and it is owner financed ....no bank or loan company involvement keeps the "powers that be" outta my business! LOL
ReplyDeleteHL,
DeleteI so hear you with using cash for everything. Who wants everyone knowing your business?? Careful planning, and use of cash....not credit is the means to a great life. I don't consider owing money on land or having a mortgage a problem to worry about like having credit card debt. A preferred benefit to owning land is to purchase it directly through the owner, not have it financed through a bank or credit union. Planning and saving is the true key to a successful life.
So very true. We are cash kings & have been for many years. The only time we use a credit card is for large purchases that we already have the $$ set aside. That way, we get points for free hotel stays & it's still paid off each & every month. It does take discipline & preparation though.
ReplyDeleteDFW,
DeleteDiscipline and preparation are the keys to a successful life. Like you mentioned...use cash for everything. If you have a major purchase, charge it, and pay it off in full. This not only will provide you with points for free things but will keep your credit active and in a positive standing.
(Standing ovation) Amen, proverbs 22:7
ReplyDeleteK,
DeleteThanks!!! Proverbs 22:7 totally appropriate :-)
AMEN!!!!
DeleteCongratulations!
ReplyDeleteGail,
DeleteThanks!
Now consider the fact that the government is doing that to us every day to the tune of billions......
ReplyDeleteEven if we stay away from personal debt we are still drowning in it.
PP,
DeleteYou're so right!!!
Being debt free buys you peace! Having the house paid off and owing nothing at the end of the month except utilities and that major obamacare bill (another subject!) makes for a good night's sleep. I do use credit at the gas station, but that is paid off as soon as the bill arrives.
ReplyDeleteI've learned not to shop, which I suppose is not to covet. Every purchase has several questions that need to be answered: Do I really need it? Do I have a place to store it? Is it worth the price? I'm glad the economy is not dependent on me!
Susan,
ReplyDeleteIt sure does, and space to breath :-)
I would have to agree with you regarding the use of a gas card. If you use it, pay it off in full when you get the bill. The questions you ask yourself before every purchase are great questions. Most people don't ask these type of questions and just purchase whatever it is that they want......not what they need.
The only way to live, Sandy. I agree.
ReplyDelete