Financial Reality

I had to write this post today about facing the truth about our financial situations. I think everyone dreams of living debt free and having a surplus of cash to do with as we please. But reality is, most of us live paycheck to paycheck and are in debt way more than we like to admit. Some debt (like mortgages) are not the worst and are sometimes unavoidable. But some debt just hangs over your head and can quite honestly be unnecessary. The most unnecessary debt is credit card debt.

Yes, I would say at least 95% of us have some sort of credit card debt (ourselves included). In this day and age, this can really be a tough one to avoid. That no interest for blah blah blah months sounds really tempting or your look at your credit limit and think you will never put that much on the card. Credit cards can mask our true financial state and make ourselves and others believe that we can live a little more extravagantly than we really can. I sometimes feel we always have to be financially obligated to be available to have enough gas money, nice clothes, the money to go out, the money for a nice house and car, and money for other things that impress. I think there is always this stigma that everyone has to impress each other with all the crap we got and the crap we are going to get and there can never be any inclination of money problems. But reality is everyone who lives like that surely has money problems.  

With a tight budget there is not much left for the extras of going out, traveling, shopping, entertaining, etc. We used to be like "oh, we will just put it on the card and we will pay it off next month." Before you know it, you wonder how you are at your credit limit and how you are going to make a monthly minimum payment that is the same amount as a car payment. Credit cards are just a means to an end. And a huge no no - do not depend on credit cards to supplement income you do not have! 

We learned and are still learning that if we don't have the money, we don't have the money. That might mean we have to say no to going out to eat and drinks. That might mean we can't drive out to visit next weekend. That might mean we don't have the latest and greatest technologies. That may mean our cars are not brand new. That might mean I can't go to the mall. 

When we face our financial reality we have to live within our means and get creative about budgeting, saving money and really prioritizing what we spend our hard earned dollars on. It can be stressful, embarrassing and scary to face your financial reality. But if you are ever going to have financial freedom and have a successful future, you need to come clean with yourself. Believe me, you will feel better. Financial stress ruins relationships and families and who needs that!

Since we cut up the credit cards and started living in our financial reality, we are both less stressed and can map clearer goals of our future. We don't have to worry about if we can make that minimum payment because we always know what it is and in some instances we can pay more than the minimum payment and the amount keeps going down each month. Before we know it, there will no longer be a balance and how amazing will that be! We also spend more time at home and with our beloved animals. We spend more time outside - gardening, hiking, and walking because all of those things are free. I spend more time knitting and making which I can turn into extra income. 

So do yourselves a favor, cut up the credit cards.