Last week, I shared how my poor brain has finally figured out why carrying credit card debt creates havoc with your budget. Now that the new school year is starting, I want to share a few of my new ideas about savings. Once a savings account replaces a credit limit in your budget, I think that life can go a little bit smoother. Here are some reasons why:
- Spending real money makes you spend a little smarter. I’m giving myself a wardrobe bonus for paying off my credit cards. However, I want to wait until the October sales to get the best bang for my buck. If I were just spending credit, I’d be out there right now, charging up new clothes for the full retail price.
- Spending real money makes you spend a little more slowly. By saving up for things, you have the time to decide if you really want them. We’ve been saving six months for a new flat-screen TV. However, we’ve now decided that we don’t really want to spend all that money for something we won’t use very often. Instead, we’re looking at new digital cameras.
- No one can reduce your savings limit. Unlike a credit card or a home-equity loan, a savings account can’t be called back when there’s a credit crunch. You’re in charge of how much you save!
- No unwanted phone calls from creditors. In my twenties, I couldn’t answer my phone for fear of an uncomfortable conversation about my credit cards. It’s a nice feeling to know that I won’t owe anyone! Lately, I’ve been logging into the account with a zero balance, just to smile at that “0.”
By the way, my debt-reduction post was an editor’s pick this week at the Carnival of Debt Reduction. Be sure to stop by today for lots more inspiration on your own journey towards the zero balance!