How Do You Handle Your Finances?

Discussion in 'The Cocktail Lounge' started by gracer, May 24, 2015.

  1. gracer

    gracer Senior Investor

    Joined:
    Apr 2015
    Posts:
    532
    Likes Received:
    0
    We live in a time where most transactions involving money are cashless and may I say boundless. Paying bills, shopping and even insurance payments can be done with just one click or a swipe of your card. There's no such thing as unaffordable nowadays because we have the luxury of debt which is simply called credit card.

    I think the saying "live within your means" is an endangered phrase which is almost close to extinction. More and more people I know are usually living "beyond" their means nowadays.

    How about you guys? How do you handle your finances? Do you have a weekly or monthly budget or do you rely on your credit account if things go out of hand?
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

    Joined:
    Mar 2014
    Posts:
    1,722
    Likes Received:
    6
    There is such a thing as "unaffordable", people just don't realise it. But it comes back to bite them in the ass, that credit card bill has to be paid at some point and on top of that the interest rates are usually pretty big.

    I don't even have a credit card, no need for it. Bank account always has cash (so I pay with a debit card) and if for some reason there is no cash then I guess that means that I shouldn't be spending money anyways. :D No tight budgets here, though I am quite cheap when it comes to buying stuff. And though I don't keep a budget I think it's vital that each and every month your income is larger than your expenses. This way you end up with money on your account that you can use to buy bigger things like a new computer, new car etc later on.
     
  3. gracer

    gracer Senior Investor

    Joined:
    Apr 2015
    Posts:
    532
    Likes Received:
    0
    I really didn't expect that someone would say they don't use a credit card. :) To be honest, I don't use one either. I'm more of a cash person. Most people I know really rely on their credit cards in just about everything. At the end of the month, the bills pile up their mailbox. My husband even made me his credit card extension but I never used it. Let's just say I'm allergic to it. I'd still like to spend on what I can afford and stay within my budget because if I give in to the temptation of credit, I wouldn't be able to sleep well at night thinking of how much my credit card bill would be at the end of the month.
     
  4. pwarbi

    pwarbi Senior Investor

    Joined:
    May 2015
    Posts:
    1,028
    Likes Received:
    5
    I also don't use any form of credit either, I don't think it's that big of a deal to be honest.

    I'm not rich or well off, before people jump to any conclusions, in fact I'm quite the opposite. I was brought up with absolutely no money whatsoever, so I made it my goal in life not to have to worry about money.

    I've worked hard to get where I am, and that's how I would expect most people to do it.

    Basically, if you can't afford something, you have two options in my world. Save up for it, or don't get it.
     
  5. SteakTartare

    SteakTartare Senior Investor

    Joined:
    Mar 2014
    Posts:
    857
    Likes Received:
    8
    Earn all we can earn, save all we can save, invest all we can invest and track all of it religiously. We live well below our means so we can keep socking away cash in savings and investments. Other than a mortgage, we simply don't do debt; ever. Our household works hard for our money, but we see no need to waste it on stupid status crapola the latest shiny bobble. Far more liberating is financial freedom, liquidity, and knowing there is resources available for the inevitable rainy day.
     
  6. AtlantaSports

    AtlantaSports Senior Investor

    Joined:
    Feb 2015
    Posts:
    641
    Likes Received:
    2
    I try to be as conservative as possible with my income, plain and simple.
     
  7. crimsonghost747

    crimsonghost747 Senior Investor

    Joined:
    Mar 2014
    Posts:
    1,722
    Likes Received:
    6
    The thing is, as long as you have money on your bank account then why would you need to use a credit card? It makes very little sense. I guess it's ok if you know you can pay the bill at the end of the month (usually it's interest free if paid quickly) but still whats the advantage paying with credit vs debit?

    Credit cards were made for people who can't control their spending, and credit card companies thrive on the people who can't pay at the end of the month and get stuck with a big interest rate. That is just being stupid.
     
  8. gracer

    gracer Senior Investor

    Joined:
    Apr 2015
    Posts:
    532
    Likes Received:
    0
    I couldn't help but agree more with you guys. I never really expected there are still some people who do live within their means at a time where the temptation to dive into the world of debt is immense. When I was still on my day job, representatives of credit card companies used to try and convince me all the time to avail of their services since I am one of the few who hasn't caved into it yet. Most of my co-workers had their own credit cards that time. Up until I quit my job and became self-employed my mind never entered the thought of using them.
     
  9. Sunflogun

    Sunflogun Well-Known Member

    Joined:
    May 2015
    Posts:
    426
    Likes Received:
    1
    No no, I hate owing and debt, so I don't enter that dangerous road. I am owing my house because I consider it a good deal, but that's it. I save as much as I can to enjoy the pleasures of life when possible, mostly travel.
     
  10. dianethare

    dianethare Senior Investor

    Joined:
    May 2014
    Posts:
    987
    Likes Received:
    6
    I believe am slow to change, despite the world moving in the cashless direction, I have my cards with me but still prefer to use cash...as for handling my finances, I strictly keep to budget and try to be frugal as much as possible :)
     

Share This Page