Wednesday, December 14, 2011

Path to the Penthouse: Brick #3

Brick #3

buying furniture, clothes or personal items on credit!

If you can not pay CASH you should NOT buy these items.

Our family got in trouble pretty quick by using the credit cards to buy what started as major home items to smaller things like clothes and services.
As our credit limits got higher and our minimum payment requirements got lower, we became more frivolous, sinking further and further into debt.

The key here is to ask yourself:
Do I REALLY need this? Or is this a want?

Here's where you have to learn to be honest with yourself.
I found myself saying I NEEDED a new pair of shoes. Really? I had a closet full of shoes. I just WANTED a pair that matched that outfit perfectly. What I found was I probably had several pairs that would go with the outfit just fine. 

Does your living room REALLY need a remodel? If the dog has eaten your sofa cushion, you may have to replace that piece. But, SAVE your cash and buy it outright. 

I promise, you will IMMEDIATELY feel the freedom when you start paying in cash for these items. You won't be dreading the monthly statements or hiding receipts and purchases.

So what do we ask ourselves?
Let's practice.....
Do I REALLY need this? Or do I WANT this?

PS.... this is a great thing to practice with our kids! Showing them that everything we WANT is not really a NEED is a great way to preparing them for a world that doesn't think they are entitled to what they don't earn.

Oh, my... that means we aren't either! Tough pill to swallow, but true.......

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