Family cuts up credit cards and spends 24% less in a month

Personally, I find it easier to track my spending with a credit card, since every dollar is listed on the monthly statements. When the money is in my pocket, I don't always remember where it's gone. I'm more likely to carry a few extra bucks "just in case" and maybe spend it.

I use a credit card that pays points and always pay it off before any interest or fees accrue. I earn hundreds of bucks a year in gift cards.

Carrying a credit card is also nice because you don't have to risk carrying a large amount of cash or coming up short by forgetting to bring enough cash for all your purchases. I usually carry a $10 or $20 for emergencies but don't touch it unless I really have to.

Perhaps some people need a physical impediment to overspending; people like me just need some extra focus. I made penny-pinching a hobby years ago and I'm really good at it. Just cutting out unnecessary stuff at the grocery store, planning car trips to reduce gas usage, keeping an organized house and doing an "inventory" before shopping so you don't buy stuff you don't need, making an initial pass at discount stores for gift purchases, driving 55-60 mph, prioritizing bill paying to maximize the after-tax savings, transferring money as soon as possible into an interest-bearing account, etc. can save thousands of dollars a year. Oh, and getting the kids out of diapers and various other toddler "necessities."

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We live without debt. If we don't have enough money in the account to pay for it, we don't buy it. Period. That goes for anything from new shoes to a new car. This forces us to live within our budget and not to be giving away our hard earned cash free of charge to credit card and other companies as interest. Think of it that way -- if you have debt, you are handing over money every month, simply giving it away, in return for NOTHING. Yikes. I give money to charity, not to credit card companies!

By the way, this doesn't mean that I don't have a credit card. I do (for the airmiles of course!), but each item that I purchase is written down on my bank balance sheet at the time of purchase. As if I'd written a check. I don't add up the credit card bill when it arrives each month, I simply write a check for the full amount and send it off, airmiles firmly in place. Everything was already accounted for at the time of purchase.

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Ok folks, let's get to it.

Nicola is right, except for the credit card. (65% of all airmiles are never redeemed). Good luck getting those airmiles with airlines cutting back routes and such.

The bottom line is to spend within your means, period. God's and Grandma's way of running your household budget. Yes, the dreaded "B" word.

Yes, I too am a Dave Ramsey fan. Why? Because it WORKS, Each time, every time. Discipline yourself to do what is the right thing to do and not act as though you are in Washington, DC.

Good cheer his holiday season.

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I think people really don't need credit cards unless they want to live outside of their means. Many people considered the plastic to be free money until a job is lost or the economy bottoms out and those borrowers make a demand for their money. Frankly, I like to deal on a cash only basis since I got burned with having a couple of credit cards. I am happier, more care free and in much less debt than if I still had active plastic. Don't continue to get fooled by mass media when they advertise that we can't live without the plastic. We can if we pay ourselves at the BANK first by collecting rainy day money for big ticket items or catastrophies, pay cash for immediate bills and then, only then, spread some money around for the economy's sake. Think about it for a second. What did our great grand parents do in a crisis. Cash cash cash, save save save,barter barter barter, fun fun fun. All in that order!

Happy Budgeting and Happy Holidays!

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Budgeting, its the new buzz word.

My entire congregation waded through the crown ministries budgeting, saving, getting your financial house in order for six weeks, this summer. Talk about an eye opener.

Great way to really shake folks up. Great stuff, easily followed, but needs discipline.

Watch for sales, live by the 10%,10%,80 % method.

Happy Holidays!

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