A lot of us look at our debt and say "we had no choice, we had to get the credit card/loan to pay this unexpected bill". Some of the time this statement is true but I guarantee every single purchase you have made with your credit cards was not an unexpected bill or emergency. The majority of the time we get ourselves further into debt by acting like spoilt children. We see something that we want and we want it NOW! We don't want to wait however long it will take to save the cash needed to pay for it. Why on earth would we do something silly like that when we can use the credit card the bank gave us and have it now but not only that we can have it now while only paying a little bit for it each month?
Another awesome teaching from Mr Ramsey which is disregarded by so many is this:
You are not entitled to anything until you save and pay for it.
Or worded differently but meaning exactly the same thing...
If you can't afford the price tag in cash then you simply can't afford it.
I'm no saint! I have had my share of four year old tantrums where I've metaphorically thrown myself on the ground demanding I have that shiny new toy right this instant. The Husbands had his fair share of those tantrums too.
Our recent vacation is one such example. We went to the UK to visit family. With a sick mother in law we were ok with getting more debt for ourselves, to us it was an emergency. However I put my foot down and threw my tantrum and said if we are going all that way then we are going to Disneyland Paris too!
I don't really need to tell you how much money we would have saved, or how much less we would have to pay back, if I had already had my Dave Ramsey kick up the butt and said no to un necessary spending.
Starting your debt killing spree, which is very much what we all want to do to our debt right?, is about putting those tantrums behind us. It's time to grow up and be more mature with the way we handle our money.
You don't need that new HD 3D flat screen television. You will be able to watch the same program's on your current tv without adding to the amount of money you owe other people.
Your children don't need a dozen gifts each from you or Santa. I know this is a hard one for a lot of parents but instead of thinking 'I don't want them to miss out' or 'I just want to give them the best' or any other excuse you pull out of your cap to justify spending hundreds of dollars on items that will hold their interest for only a few short months start thinking about how much you will be able to do for them once you are debt free.
Starting a college fund, paying off a family home so they have that security. If mum and dad are debt free your children will grow up seeing it as the way to go. Do you really want your children to live their lives from one credit card payment to the next?
Kids learn so much from their environment. What they see as the norm for mum and dad will be what they grow up to expect for themselves.
Starting now if you don't have the cash then you WAIT until you do. Save every week as much as your budget allows and then when you've got it all saved up taking home your new toy will be so much sweeter.
Research has shown that we spend 12 - 18% more when we use credit cards. Put the plastic away, withdraw the cash and keep it in your purse. You'll see how much you have and you'll know how long it has to last you. Spontaneous purchases will cease, credit card fees will stop, and pretty soon you'll see your money lasting longer and longer each week.
It's time to stop being immature with our money and grow up! I'm giving it a shot whose coming on the journey with me?
Next weeks money management post will be about step one of the total money makeover. We've gotten Gazelle Intense and stopped being immature with our money next up is working towards getting out of debt and staying there.
Skye
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