tag:blogger.com,1999:blog-3882775077817504505.post2436680264253953887..comments2024-03-12T00:38:39.819-07:00Comments on Thrifty Polished: Real Talk About SpendingAmanda C.http://www.blogger.com/profile/14977811037288255876noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3882775077817504505.post-79108847840480589352017-01-09T04:31:41.515-08:002017-01-09T04:31:41.515-08:00I agree with Alyssa about 'debt is just part o...I agree with Alyssa about 'debt is just part of the American way' being untrue. My mother has never had a credit card and only buys what she needs, when she has money for it. Since we've gotten the rest of our debt beaten down we are very much more 'cash on the barrel' now, buying only if that money is available in the checking account and not automatically whipping out that credit card.<br /><br />~DebDebhttps://www.blogger.com/profile/05658958620972494748noreply@blogger.comtag:blogger.com,1999:blog-3882775077817504505.post-58299212245892684582017-01-08T23:55:23.452-08:002017-01-08T23:55:23.452-08:00Another great post, Amanda. I am enjoying your &qu...Another great post, Amanda. I am enjoying your "Real Talk" blog series. I really wish that money was a subject that was okay to talk about, simply because I think people could glean so much more knowledge from having this dialogue with each other. I guess that's what all the frugal-living blogs are for--to discuss $ issues and ideas that aren't normally talked about. We do not have a budget in the sense of "each month we only have X amount to spend on groceries, X amount to spend on gasoline," etc. However, my husband plugs what we have spent in certain categories into a spreadsheet so that we can have a visual of our spending from month to month. It is easier to track our expenses this way. I will say that my husband and I are both very frugal and REALLY good with money. We are super aggressive savers. I hope that doesn't sound like bragging--I just think it is important (for me and my husband) that we are on the same page financially. For the first time in our marriage, we have a balance on a credit card, from purchasing our solar panels. However, we decided to get the solar panels immediately rather than wait to buy them when we had the cash, because the cost savings with PG & E would give us an immediate return on our investment. Plus, we would see a benefit during tax season for getting them in 2016. Here are some financial things I've learned along the way, in no particular order if you are interested (most of them relate to home-buying): <br />-Set a strict price limit on a home (we bought less than what we would have been loan approved for). Don't let a realtor or anyone else sway you into going above your set price limit!<br />-Try to put 20% down. That way, you won't have to pay PMI, which really adds up. It doesn't sound like much on paper, but it totally is. Think of PMI like interest on a credit card. http://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx<br />-On a home loan, pay extra each month if you can. The more you chip away at the principal, the less interest you will have to pay over the life of the loan. <br />-Hold off on major money-draining cosmetic improvements on the house until the loan is paid down.<br />-Like the above commenter said, I also suggest getting rid of all but one or at the most two credit cards. <br />-I also suggest building up an emergency fund, perhaps as a separate savings account, so that you kind of "forget" about it and only draw upon it in a true emergency. <br />http://www.daveramsey.com/blog/quick-guide-to-your-emergency-fund<br /><br />Gosh, I hope that the above suggestions don't sound bossy or braggy or condescending, that's totally not my intention. I just really love to talk financial matters and I love sharing what I've learned. Lastly, I think that as a society, we are falsely led to believe by the media, the credit card companies, lending institutions, etc. that debt is just part of the American way of life, and I 100% disagree with that! -AlyssaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3882775077817504505.post-10395456532146982232017-01-08T18:27:46.619-08:002017-01-08T18:27:46.619-08:00We do not have a budget but bills *always* come fi...We do not have a budget but bills *always* come first for us. We've been in a situation something yours, not budgeting or saving, and running the card way up. When you mentioned paying off your cards and then running them up again I was nodding like 'Yup yup, been there.'<br /><br />At one point we were making a home loan payment, equity loan payment, car payment, and credit card payment. We've had the card paid way down low many times but just turned around and ran it back up. We finally decided we were getting nowhere and made great efforts to attack these debts one at a time. We now only have the home loan payment and whatever little amount goes on the card each month (hubby's gas and cigarettes, usually). It feels so freakin' awesome to be free of all that debt and we can now FINALLY start putting extra on the home loan payments and FINALLY get this house paid for!<br /><br />We never got financial help or anything like that. It was just frustration and determination to turn things around. We never declared bankruptcy either. And we didn't really pinch pennies either. We just started slowing down on things we bought and made sure to always put extra on our payments.<br /><br />My first suggestion to you is to get rid of all but one credit card. It's easier to just make one payment, and it might help remind you how much debt you have if you're looking at one larger bill instead of maybe three smaller ones. Know what I mean?<br /><br />Good luck!<br />~DebDebhttps://www.blogger.com/profile/05658958620972494748noreply@blogger.com