This post follows on from Part 1 and Part 2
This fundamental change in the way that we now view our finances (ie. get rid of credit cards and use a cash budget to control our weekly expenditure) has improved our financial status tremendously. When you consider that this change came about because our family annual income dropped by thousands (ie. my wife's wages), it is bizarre to find that our debt (well, to be honest MY debt) has more or less halved in less than a year. This is purely down to taking on board that all spending must be accounted for (a 'look after the pennies' philosophy) and controlling expenditure with cash. I have even walked the two miles to work on occasions to achieve 'non-spending' days and to exercise the discipline of only buying fuel when the cash is there to do it.
There is of course, a cost... My personal purchases have been severely curbed, I would like to have a nice new flat-screen for my PC at home, but for now, my ancient CRT will have to suffice. We have not been on a holiday for a long time, but I think we can live with that in the short-term. When you think of it, it is exactly this type of spending mentality that fuels debt: 'We must go on a foreign holiday...', 'I must have a flat-screen for my PC or wide screen HDTV' - these are the purchases which often end up living on our credit cards for far longer than a month...
In the next post, I will talk about the wider impact of this philosophy and provide some resources for those serious about saving money.
This fundamental change in the way that we now view our finances (ie. get rid of credit cards and use a cash budget to control our weekly expenditure) has improved our financial status tremendously. When you consider that this change came about because our family annual income dropped by thousands (ie. my wife's wages), it is bizarre to find that our debt (well, to be honest MY debt) has more or less halved in less than a year. This is purely down to taking on board that all spending must be accounted for (a 'look after the pennies' philosophy) and controlling expenditure with cash. I have even walked the two miles to work on occasions to achieve 'non-spending' days and to exercise the discipline of only buying fuel when the cash is there to do it.
There is of course, a cost... My personal purchases have been severely curbed, I would like to have a nice new flat-screen for my PC at home, but for now, my ancient CRT will have to suffice. We have not been on a holiday for a long time, but I think we can live with that in the short-term. When you think of it, it is exactly this type of spending mentality that fuels debt: 'We must go on a foreign holiday...', 'I must have a flat-screen for my PC or wide screen HDTV' - these are the purchases which often end up living on our credit cards for far longer than a month...
In the next post, I will talk about the wider impact of this philosophy and provide some resources for those serious about saving money.
2 comments:
You must travel to Canada for your next holiday..
Man, that would be great...let's see if I can make enough for the airfare... ha ha
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