Self Reliance article

FRIDAY, JANUARY 9, 2009

I just read this article on MSN and enjoyed it.

self-reliance-in-3-not-so-easy-steps

The basic points are:

1. Go with cash
2. Be prepared
3. Train yourself in self-reliance

"Go with cash" is my favorite. I don't mean just pay off your credit card balance every month, but spend cash and keep the plastic put away. I used to be so proud of myself for paying off my balance every month yet I struggled to save as much as I wanted. I had no debt and was getting ahead a little, but I wanted save even more money. When I looked at how much I was spending I discovered that if I hadn't spent so much on the credit card I could have saved a lot more! What was I buying? Dinner out, things I didn't need, things I did need but could have waited a week until I got paid and bought with cash.

An experiment in life without plastic:

With the exception of buying gas, I basically stopped using my credit card for the month of November. Instead, I planned for big purchases like bulk buys of laundry soap, toilet paper, etc in advance. In order to buy something I wanted that cost $200 I put aside money from my paychecks and waited until I had the full amount, then paid cash. By the end of the month my usual rate of savings DOUBLED!

I let things slide a little in December. This month I am back on the wagon and looking forward to saving more money.