So this post is going to be a bit more dry than my usual posts… I therefore feel as though I should start with a light-hearted joke or something. The only problem is that I don’t know any good ones. And my cats are cranky this morning so there are no cute, fuzzy kitty pictures to be taken. (Unless you all want to see a pic of Highstreet — my large black cat — in all his grumpy morning glory).
But I wanted to quickly clarify one thing from my last post… (And turning a post about money, credit cards, and budgeting into a humorous blog post is beyond my levels of talent). So here goes nothing… 😉
Nate and I do use a credit card. I received an email from a reader who wondered how in the world we carry just the right amount of cash with us everywhere, if we’re not using credit cards to pay for things. 🙂
So here’s the truth… We actually put everything on our credit card, from the living room furniture to the groceries we pick up every week. What we don’t do is ever pay interest.
Nate and I have a very detailed budget in which we break down our monthly bills, savings, and then our extra cash. We always know exactly how much we have to spend each month and we keep track of that very carefully. So while we put everything on our credit card, we pay it all off at the end of the month.
The reason we do this, as apposed to using a debit card, is that credit cards offer points. Nate and I have been gaining travel points for the past couple of years, and we plan on cashing them in this year. This means that we’ll be going on a nice vacation that is almost paid for in full.
So it’s almost like a free vacation!! 🙂
This kind of spending isn’t for everyone though. Credit cards can be dangerously tempting and if you aren’t sure that you would be able to follow your budget, then stay away from cards. Don’t play with fire and you won’t get burned, right?
The bottom line is to try to not spend money that you don’t have. Getting into debt is a huge burden and often causes issues that reach even beyond finances. So while living by a budget can be frustrating at times, it is SO worth it!!
How do you feel about credit cards?