Spend Less Than You Make
Posted in Frugal Friday and tagged with Cheap, Dave Ramsey, Video on 11/07/2008 11:17 am by lori
Spending less money than you make allows you to reap many benefits: building an emergency fund, peace, financial freedom, more security, less stress, etc.
So what are two simple ways to spend less than you make:
- Never, never, never get a Credit Card. I’ve been told that one can easily be swayed into buying impulsively with the catch phrase “Buy Now, Pay Later.” (My husband and I have never had a credit card). In Dave Ramsey’s The Total Money Makeover
, he finds “A study by Dunn and Bradstreet showed that the credit-card user spends 12 to 18 percent more when using credit instead of cash” (42). He also advises one who does have a credit card to get a Plasectomy: cut up those cards. Download
- And never, never, never take out a loan (unless it is to better your education or purchase a house– both wise investments). Proverbs 22:7 says that “the borrower is slave to the lender.” In Dave’s book, he says, “Taking a car payment is one of the dumbest things people do to destroy their chances of building wealth” (32).
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November 7th, 2008 at 11:24 am
Nice post. Simple and practical.
November 7th, 2008 at 11:31 am
Thank you, sir.
November 10th, 2008 at 4:35 pm
No credit cards?!?! YOu guys aren’t Americans!!! Hahaha Just kidding. Seriously, that takes a lot of discipline in this world and is very admirable. What Dave said about spending more is so true!
November 10th, 2008 at 4:38 pm
I know. We’re living like no one else, and we love it.
November 12th, 2008 at 4:59 pm
So what do you do when you’re ordering something online or from a catalog?
November 12th, 2008 at 5:21 pm
We use our Debit card– which is money from our checking account.