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After Bankrate.com ran a story on the seven-day
money challenge, readers flooded us with e-mails describing
their own savings success stories. They also had lots of advice
and tips for others who need help sticking to a budget.
The money challenge is simple. Figure out how much
cash you need to cover a week's worth of expenses such as groceries, gas, food
out and entertainment. Then, get that amount of cash and put away your credit
or debit cards. As you go through the week, jot down in a notepad what you're
spending or you won't remember where the money went. Can you make it seven days?
Or will you run out at midweek? This exercise will help you
understand your spending habits and identify where you can cut back in order to
keep within your budget. If you need to create a budget, just use this handy work
sheet. The stories that follow are from readers who are
conscious of their spending and proud of their saving ability. Maybe one of their
tips will help you get on the road to saving. Dump
the cards Debit card offers control
I just completed
something similar to what you recommend, and it TOTALLY CHANGED MY LIFE! All I
decided to do was STOP using my credit cards. I used to "try"
to do that, only to cave in halfway through the month and end up with a $2,000
bill to pay (on just one card -- no kidding). I now only use my debit card, so
it comes immediately out of my checking account, and I have to know exactly what
is in there. I also decided to pay all of my bills using only my checking account,
instead of halfway through the month putting my cell bill on a credit card, or
an insurance payment, etc. For the first time I actually feel
in control of my spending, and feel like I can attain the financial goals I am
setting for myself. Thanks for the great advice. If people
only knew how different it is to be in control of your spending.
-- Andrea T
Break the credit card habit
My husband and I stopped using credit cards about three months ago.
It was REALLY hard for me because that is what I have always used
and it was a habit. After a few rough weeks I am happy to say that
it is working for us. We each get a certain amount of cash every
week and we have our budget for groceries too. Slowly we are seeing
our credit cards going down and we feel more in control. I miss
shopping, but that is something I have to save money for. It's working
for us and we are going to stick with it. Your article was good
and I think more Americans need to try cash and get away from credit.
-- Rebecca M.
Consider
interest payments
How much do you spend on interest alone? Is the
credit card worth it in the long run? Probably not. Think of it as your money
working for you. If you could get 2.9 percent interest on your savings, why would
you pay higher interest on a credit card? Does it make sense? No, it doesn't.
So think of it like that and you may save some money.
-- Scott D.
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