I cut up my credit card yesterday and it was the best feeling ever! How many of you have ever wanted to but couldn’t? There was always a reason why I had to have it handy. Frequent flyer points, that sale where you scored a bargain of the century, and last minute expenses because pay day felt like a life time away.
Look they have worked for me in the past. Not initially though. I had amounted quite a bit of debt many years ago as I was reckless. After I got married, I became more responsible with how I spent my money.
I made all my purchases on the card so that I could accrue Qantas Frequent Flyer points. Anything from my large skinny cap to bills. Whatever transaction I could click/tap/swipe. It actually paid for a recent trip to Hong Kong a few months ago.
I had to reassess my financial goals now that this was a solo income household. I work part time as well so I knew that having a Platinum card wasn’t going to happen or remain sustainable.
I actually wish I hadn’t waited this long to take the plunge.
I stopped using my card these past few weeks. It was a great experiment and a trial to see how I would cope with expenses and used my savings only. It forced me to assess where my money was going.
For the first time in many years, I actually created a budget. I had been avoiding that B word for so long! Why!? I know these are very simple steps that most people take. Even my husband used to have these excel spreadsheets drawn up with details of our finances. Creating the budget itself gave me a very clear picture of what my expenses were and what I had to put aside each month before I bought that cappuccino. More importantly, the budget allowed me to be able to still buy that cappuccino.
I’ll keep you posted on how I structured my savings to help me rid of the credit card – once and for all.
Almost a month on from not using my card, I feel like a free woman totally in charge of how she spends her money. I am definitely more “mindful” now about my spending habits and what I choose to spend on or save for.
If you want or are ready – take the plastic plunge!