Spending

Money is one part of my challenge. I decided to have a good look at it and that’s what i came up with.

I wanna stop using my credit card. It’s good to have a credit card for emergencies, like if you’re out of a job or something and have to pay the grocery bills, but you gotta make sure you’ll be able to pay it off. I used to use it when i wasn’t working, before that i left it at home.
If you have control over your spending you should be alright with using it.

Some people seem to be really into impulse purchases and buying crap.
I’m not one of them, so i don’t have to worry about that. If i don’t totally need an item i will think about it for days if i wanna get it. I will think about it for ages.

Some people use the interest free days on their credit cards for investing, paying off their mortgage quicker for example, that might be handy and if you wanna do that you should speak to an expert about that and do some research.

I’m still unsure about debit cards. Is using cash better then using debit cards? What do you think? I think i will stop using my credit card and only use it for emergencies and use a mix of cash and debit cards. I don’t like being in debt, mortgages are freaking me out, coz they are so expensive and i don’t take out loans for cars or furniture or shit like that.

Happy Cash

We spend a massive part of our wages on rent, which is the biggest part, food, utility bills and petrol.

We normally don’t spend money on anything else. Nevertheless, to find out where exactly our money goes and where we can make cuts, we started a spending diary. Good idea, right?! Which means for us to write down everything we spend money on for 3 months.

I don’t wanna do this for ever. And i hate budgets, i don’t think they are necessary for us as we always pay our bills first anyways. The plan is to sum everything up by the end of each month and have a good look at it. Figure out what’s happening. And then do it again after the 3 months are over, decide on changes and implement them.

Another thing we write down is where we buy stuff, for example groceries, which supermarket, farmer’s market. That gives you an idea where your money goes and you can then decide where you do or don’t want to spend your money. I mean you can do this anyways, that’s just gonna make it clearer for us though. Definitely wanna use more farmers markets, see if we can spend more money on them after we saved it at the supermarket.

Have you got any cool savings/budgeting tips? How do you get your finances under control and spend less?

Advertisements

3 responses to “Spending

  1. A credit card is *exactly* what you need when you are travelling. Or when your house is destroyed by fire.

    It is perilous when you know how to use it to buy things on the internet. It requires *huge* force of will.

    Cash is good; you can ration yourself. Take out so much per week, and make it last.

    And, last but not least: shop at home. Have a rummage through the stuff that you already have & you’ll be amazed at what you have. Spend a couple of days using it and playing with it.

    Spend your time, not your money. And spend it the same way that you spend your money: as much as necessary on the bare necessities, and then as much as you have left on the things that you love.

    When it comes to time, we all die broke. And when it comes to money, we might as well, otherwise it was time wasted.

    Cheers! 😀

    • Hey Mary, great thoughts. That’s what my next post is going to be about, time. When people talk about money they often talk about saving it, but often you hear people talking about killing time. Ironic, right?!

      I actually have been going through my stuff since weeks, as you suggested, to sell some, give some away and use up my art supplies.;) It’s great, i hate having all these resources lying around that don’t get used. I’m not a hoarder, but still, stuff accumulates..

  2. We rolled our credit cards over into a 2nd home loan when we bought a car last year. That’s not for everyone, as it does mean you are paying the debt off over a longer period. But for me I was hopeless with paying it off on time and I was always up to my credit limit, so it suited me to have a lower interest rate and repay it at a set rate. Of course we had to close the credit card account and get our heads around not using credit..which was a lot harder than it sounds. We now have a visa debit card linked to our bank account and transfer into it as we need.

    We also allow ourselves a set amount each fortnight to spend as we wish, but I usually hoard mine cause I’ve become one of *those* people who over-think purchases…believe me it made xmas shopping a shit fight..but that’s another story…lol

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s