Many of you have been asking me about the steps we have taken to get out of debt.
Believe me, it has not been easy. And it is still a journey we are dealing with each and every day.
We have gone through our entire marriage with very few frivelous purchases, and we think long and hard before we buy ANYTHING.
Now, don't get me wrong. We do go out for dinner about once a week....and our children (and even ourselves) want for very little. We have a good life.
So, here are the Overy Family Financial Tips:
Tip #1 - Before even spending a dime from our paycheck, we pay bills. I make sure to leave enough of the paycheck out for groceries and other necessities if our bills exceed our available funds, but otherwise all money goes to bills. If we have more money than bills, we might use this for something fun, but this rarely happens. Right now, all extra money is going toward our kids birthday and Christmas.
Tip #2 - One of the biggest "tools", if you will, that helped me understand debt and how much something really costs is to equal the item to the amount of hours needed to work in order to pay it off. For example, my husband wants this video scope thingy (which he swears will help him with his job, however I think he just wants a cool tool). The cost of this "cool" scope thing, $250. So, I took the $250/his hourly wage, and guess what? He would have to work 18 hours in order to pay for this ONE item! To me, not worth it. Another example for all you females. There is this pair of jeans....that I REALLY want (and might get, because I only have 1 pair of jeans....but, that is not the point) will cost us 3 hours of work. That makes me choke a little. I have a hard time spending money when I think of our expenses in this manner.
Tip #3 - Use cash. It really helps.
Tip #4 - Leave your credit/debit cards at home. I have often found myself, when using cash, saying "well, if I go over I will just put in on the debit card and replace it with the cash when I get home." Well, that way of thinking gets you no where. We just end up spending more money than necessary, and because of that taking money from our savings. Not a good thing.
Well, that's all I have for today. If I think of any more useful hints I will be sure to let you know! :) I hope this helps you on your journey to becoming debt free, and living within your means.