Wednesday, November 12, 2008

Finanacial Advise.

This is basic, but seriously, it could save you.
I knew some of this from my upbringing, and some from the Dave Ramsey classes. It's simple, sound advise.

1. Don't use credit cards. You know that 10% you saved at the checkout when you signed up? Yeah, they charged you 13%, 16% , 23%, EVEN UP TO 32% to use that card.

2. Don't spend money you don't have. (This takes care of number 1)

3. Have $1000 in the bank for emergencies, like car repair, not a good boot sale. This also takes care of number 1.

4. Have savings that can take care of 3-6 months expenses, if something happens to your income you can live off of this for 3-6 months while you find new income. Simple, basic, smart.

5. Pay your savings off the top. We tithe, pay self employment taxes, and then savings...then everything else. Even if it's $5, it's still worth it.

6. Take a month and write down EVERYTHING, that you spend. The coffee, the soda, a little snack at work, a treat for the kids whatever. Break down the grocery bills too, decipher what was food and what wasn't, and what is real food, and what isn't.(That's a whole other post). If you can't manage a month, try a week. You might be surprised where it all goes.

7. And never under estimate the power of; Use it up, wear it out, do without: and: Recycle, reuse, renew.

Most Americans spend 125% of what they make.....125%!

Even in our darkest, poorest moments, these things still worked for me. Even when we couldn't fully utilize this advise, it still worked for me.
See other fabulous tips at Shannon's Dryer.

I know the plans I have for you. Plans to make you prosper, not to harm you, to give you a future and a hope.
Jeremiah 29:11


Mom2fur said...

I've been working on paying off debt for years now, and follow these rules as best as I can. I especially love the 'use it up or wear it out' one. Another good idea is to know what you already have on hand that you might be able to use, instead of going out and buying something. I need some casual tops, but all I could find at Sears were ones with a Christmas theme. That's okay, except I already have 4 or 5 such shirts in the attic. So I'm going to take them down and use them now--who cares if it isn't Christmas or even Winter, right?
And don't forget to take an inventory of your pantry, fridge and freezer. If you check out the site called "", you can list what you have on hand and it will give you recipes. The best part is that it will tell you what you can make 'right now,' so you won't even have to go to the store!

Lori said...

I use a credit card for almost everything. I know Dave Ramsey says not to but I do it anyway. I have a JetBlue American Express card that I put all purchases that I possibly can onto. I keep a ledger and use it as a debit card. I pay every penny off every month. This way they can't use their 32% on me and I get to slowly work my way toward free airfare. It's my way of sticking it to the credit card people and it DEFINITELY works for us. But, in theory, I wholeheartedly agree with not using credit cards.

Crayl said...

I know other people that use that method, but seriously,l you have to be super diligent and pay off the total EARLY. Did you know most credit cards are on a 26 or 28 day cycle, NOT a 30 day? That means they will charge interest before a month is up. I agree, that IF you can live that way, IF you can truly pay it off early every single month, then it may be worth it. But if you can't control the spending, or can;t get that payment in time, avoid it.

Amy said...

Very wise advice! VERY!!

Sooz said...

My favorite verse. Another tip: don't use your debit card with the pin at the checkout counter. Most places charge you a fee. If you say "credit please" and sign the slip, you won't get a fee. :-)

Dena said...

as you can tell, i'm behind on my blog reading...Love this post, thank you, SERIOUSLY, THANK YOU!!