Spending after.
Thursday, September 28th, 2006
Getting off the spending treadmill - or never getting on in the first place - is a matter of habit. A habit of not spending before you have the money.
Why does this matter? Because, if you have already spent the money, you don’t have a choice. It has to be paid, at some time. And the longer you delay, the more you pay.
So the starting point - never borrow (aka credit card) for your spending! Credit cards are convenient to use, without having to carry cash around in your pocket. But when you use it, just make sure there’s enough in the bank to pay it off when it comes due.
That’s where the 60 percent strategy makes it easy. Define what you’re willing to spend, and put away the rest of the money. Set up automatic payments for your commitments - the rent, utilities and the like. Once that’s done, you know how much you have to play around with.
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October 2nd, 2006 at 7:10 am
[…] Spending after. […]