Applying Our Financial Knowledge

I am not one of those people who need a coffee fix at their favorite coffee shop or chain every morning, or buy $10 lunches at work. Even before the recession hit us hard, we all knew that using credit cards like limitless cash and paying just the minimum monthly payment are habits that will keep people in debt for life. Now that some of our worst financial nightmares have come true, I know that the “rainy days” are here to stay for a while. Instead of living in constant fear, we have to make the hard choices and change our bad financial habits for good. Even when the economy rebounds and employment rates go through the roof, I will not become financially complacent again. The lessons all of us are learning now are too painful to forget.

I have done my best to avoid debt like the plague. Refusing to use credit cards is the most effective method. I have a debit card that can be used like one, but I am always mindful of my bank balance and never go over it. Last year, I opened a credit card account at a well-known department store to obtain a discount on a purchase, but I immediately paid off my balance and have not used the account since. I still get letters promising all kinds of savings if I make more purchases on the account. I’m not tempted to do so.

Since my detox began, I hardly ever go out to dinner. If I have to buy something, I have dietary as well as financial limitations to consider. It can be frustrating, but I have to admit I feel good when I see how my cutbacks on eating out pay off. I have also always been a very careful shopper, and I will continue to be so. I try not to make frivolous purchases, and when I do I always try to make up for them by cutting back on others or returning them, if I am allowed.

Do you have any savings' tips to share?