What have you learnt?

FireWyrm

tealady wrote: »

I learned that paying in cash made me think twice. Now I shop around instead of impulsively handing over my card.

How right you are. There was a study conducted some years ago which showed positively that people paying with any form of plastic (debit or credit) will pay twice as much for an item then if they were paying by cash. Have you noticed the all fire push to normalise the use of credit cards? Why do you think that 'credit' is extended everywhere and for everything? It is extremely lucrative, not just in the initial amount people are prepared to part with, but then in fees, interest, penalties etc that often go hand in hand. Before, if you looked in your purse and didnt have the money, you couldnt buy it, then along came credit and suddenly, almost everyone could feed their innate acquisitiveness using money they didnt have. Intellectually, we know we dont have the money, but there is a disconnect in the brain and the purchase can be rationalised as though the money was not spent at all.

Debtfree2018_2

Thank you matttye I do that sometimes, but still seems a long time away for me

Debtfree2018_2

So true firewyrm, and ver scary too

Hermia

tealady wrote: »

I learned that paying in cash made me think twice. Now I shop around instead of impulsively handing over my card.
Also I have learned to treat savings as a debt to be paid. That means I now have a (small) emergency fund.
Also this site is a fantastic place for advice and support, whatever the money query.

I actually find the opposite. I use my credit card for almost everything (and pay it off every month). I find having that scary statement looking at me every month makes me think about what I spend. I find if I have cash in my purse I forget where I spent it. I also earn enough points on my credit card to buy a lot of my Christmas presents.

tealady

Hermia I wish I had that self control! Thats one of the things that got be into debt in the 1st place.

Hermia

tealady wrote: »

Hermia I wish I had that self control! Thats one of the things that got be into debt in the 1st place.

It's such an individual thing, isn't it? I know with me that if I take £50 out of the cashpoint it will be gone in a week and I won't remember where I spent it!

Debtfree2018_2

Hermia I think in the end it's all about how I have budgeted for it whether it's cash or card...

tain

Get a pen.

Get some paper.

Get your bills + income.

Write it down, add it up, and look at it long and hard.

Repeat EVERY month (or week if you need to).


If you're in the black, remember that figure and never spend more than it.

If you're in the red, be honest with yourself and get some help.



It took me about a year of being 'numb' to my spiralling debt and failing business to seriously think about how much money I was losing. Once I'd taken that first step in writing everything down, it started me on a road that meant I can now be sitting here 5 years later having paid of over £25k in debt.

tain

tealady wrote: »

Hermia I wish I had that self control! Thats one of the things that got be into debt in the 1st place.

Haha just to throw it in the mix - I can't do either very well! Out of sight out of mind with the credit cards, and not being able to pin cash in my wallet to any specific purchases means it'll get spent willy nilly.

Hence my better half looks after every penny I earn... She loves to save!

freeisgood

A couple of good uns from my relatives.

Dad always told me "never spend what you haven't got".

And a lesson from my slightly fight fisted brother "I really don't want to break into my next bank note, do you have any change sis?".

LOL Real cash does hurt parting with.