Money Monday

Credit Card Emergencies

We all claim our credit cards are just for emergencies. Yeah right! Dinner out is not an emergency. Awesome pair of boots...nope not an emergency. Ummm must have toy for the kiddos? Still not an emergency.

Emergency

e⋅mer⋅gen⋅cy 
 –noun 1.a sudden, urgent, usually unexpected occurrence or occasion requiring immediate action.
2.a state, esp. of need for help or relief, created by some unexpected event: a weather emergency; a financial emergency.

No were in there does it say a sale a Macy's. LOL!!

Emergency to me means blood and gore, massive flooding, or stranded on the side of the road.

Consider having an emergency fund in place so you do not even have to consider your credit cards.

Money Monday

Just a quick suggestion

Go get your wallet or purse right now. Hurry up...go get it....got it? Okay now open it up and take out all your credit cards. Done? Now get that "spare one" you hide in the back out. Done? Double check......Okay now close up your wallet or purse. Take a deep breath...STOP do NOT put any of those cards back in there. Yes that does mean the one for Sears too.

Carrying around a credit card makes it a whole lot harder to keep your spending in check. If you don't have the money don't spend it. Credit cards themselves are not evil but the should be used with cation and planning.

Get a small safe box to store them in or hey put them on ice (as in freeze them). Many credit cards offer nice sounding little perks. Often these perks do not compensate for that cards fees and interest rate. BE CAREFUL!!!

Money Monday

Dave Ramsey is a financial guru and very well regarded in the financial realm. Here are is baby step to becoming debt free and in control of your finances.

Baby Steps

1. $1,000 to start an Emergency Fund

2. Pay off all debt using the Debt Snowball

3. 3 to 6 months of expenses in savings

4. Invest 15% of household income into Roth IRAs and pre-tax retirement

5. College funding for children

6. Pay off home early

7. Build wealth and give! Invest in mutual funds and real estate

Here is his printable. Want to know more about Dave? Click here to go to his site. Still need help with a budget (I do!!)? Want a free budget guide? Go here.

Where are you and where do you want to go? Have you done or tried Dave's plan? Did it work for you? Do you think this might work for you?

Money Monday

Avoid Debt

Elder Joseph B. Wirthlin taught: “All too often a family's spending is governed more by their yearning than by their earning. They somehow believe that their life will be better if they surround themselves with an abundance of things. All too often all they are left with is avoidable anxiety and distress” ("Earthly Debts, Heavenly Debts," Ensign, May 2004, 42).

In the All Is Safely Gathered In: Family Finances pamphlet it says, "Spending less money than you make is essential to your financial security. Avoid debt, with the exception of buying a modest home or paying for education or other vital needs. If you are in debt, pay it off as quickly as possible."

On the LDS website you can also find debt reduction tools such as a debt-elimination calculator and a family budget worksheet. Both of these tools are beneficial to becoming and staying debt free. Here is a debt calculator that can help you understand the interest you pay and help you calculate how and when you can bee debt free.

"Look to the condition of your finances. Discipline yourself in your purchases, avoiding debt to the extent you can. In most cases, you can avoid debt by managing your resources wisely. If you do incur debt, such as a reasonable amount in order to purchase a modest home or complete your education, work to repay it as quickly as possible and free yourself from bondage. When you have paid your debts and accumulated some savings, you will be prepared for financial storms that may come your way. You will have shelter for your family and peace in your heart" (49).
—See True to the Faith (2004), 48–49