Comments on: Creating My List Of Financial Priorities

By: The Success Professor

The Success Professor — Sat, 19 Jul 2008 14:08:23 +0000

One reason why you may do well with or without using a credit card, is because of your previous priority – to live within a budget. That means that you are paying attention to what you spend money on and won’t spend extra simply because you are using plastic.

Most people spend more money when they are using plastic. I have read studies which show that people spend an average of 18% more when they use debit cards, and 28% more when they use credit cards. Any form of plastic creates an emotional detachment from the spending.

By: Darin

Darin — Thu, 17 Jul 2008 16:33:45 +0000

Good stuff here! My wife & I have what we call a WSA (Working Savings Account). We figure 200.00 a month to buy a car in the future, 100.00 for car insurance that will come due, 100.00 a month for maintenance on each vehicle, 100.00 a month for plane tickets to visit family, etc). The account goes up & down, but actually slowly is going up. What we’ve found is that many times there is actually money left over in the checkbook at the end of the month so that if we need 100.00 for some car maintenance we don’t actully have to take it out of savings. We paid off our final credit card July 1st which is a GREAT GREAT feeling. We never ever ever what to do the “borrower slave to the lender” thing again.

Blessings, Darin

By: Mark

Mark — Wed, 09 Jul 2008 13:43:12 +0000

I wouldn’t get hung up on not using credit cards, I use credit cards when travelling abroad because they reduce risk and are the most convenient way to pay. What I dont ever do is allow any debt to roll over, so I always pay the debt off before any interest is due using a direct debit from my current account.

However I agree completely with the drive to live debt free – good luck.

PS.The landlord insurance will cover the buildings but not the tenants belongings which would need to be covered under a seperate tenants insurance policy.
M

By: Think Money Blog

Think Money Blog — Tue, 08 Jul 2008 15:57:24 +0000

Not using credit cards shouldn’t be an issue. In today’s economic climate, it’s using them that should! I think everyone could take a leaf out of your book.

By: Debbie M

Debbie M — Mon, 30 Jun 2008 21:47:44 +0000

Wow, I categorize things very differently in my head. Here’s my list.

Vital: eat and drink daily, take care of health issues, don’t spend money on stuff I don’t want, don’t steal

Very important: live indoors, have fun

Important: live within my means, don’t depend on others (borrow), save for big goals (such as my next car, my next computer, vacations, the annual insurance bills, future health issues, etc.), help others

Cool: own fancy toys I don’t need (e.g., car, computer, cheese grater), eat yummier food than I need, wear prettier clothes than I need, retire early

By: Erica

Erica — Sat, 28 Jun 2008 05:04:42 +0000

Great advice! These are things that everyone needs to be doing, but it continually amazes (and horrifies) me how many people don’t understand them.

By: MBL

MBL — Thu, 26 Jun 2008 21:31:24 +0000

Great post. It is important to determine the priorities of your financial “house” and what you need to do to get them in order so you can accomplish each of the priorities before you move on to the next one.

You have given me some food for thought. I myself have lived without a credit card for years but found that having one again after learning self-restraint is not only beneficial to my credit history/score, it is also interesting to learn how I handle my finances now with a credit card that I do not have a need for. It is a different track of mind.

By: Amphritrite

Amphritrite — Wed, 25 Jun 2008 20:37:58 +0000

These are awesome goals, and displayed in a great format. I think I’ll steal liberally the outlay and do my own now

By: NCN

NCN — Wed, 25 Jun 2008 20:33:31 +0000

@Amanda June… Of course, I’m thankful for my regular readers! But, I felt that random clickers from Money might be interested in a few ‘getting to know NCN’ posts…
NCN

By: Kym

Kym — Wed, 25 Jun 2008 20:32:47 +0000

@GM: Yes, you need to purchase renter’s insurance if you want your possessions insured. I have personal experience being the uninsured renter, and I didn’t get jack – the landlord’s insurance is indeed only for the structure.