How many times have you gone to the grocery store planning to spend $150 and you walk out spending $300 and wondering what the heck? Or with eating out? These are two of the biggest categories Americans overspend on. So what do we do? How do we control this spending?
Did you know the first credit card was established 1958 but it took till 1980 for them to begin taking over and since then a social revolution has begun. This revolution has taken Americans away from saving and pushing to spend! What did people use before debit and credit cards? Ask your grandparents or your great grandparents: CASH!
According to Avni M. Shah, an assistant marketing professor, paying with cash is more painful than paying with cards. Why? Because with cash, you are manually handing the check out person your money and seeing it disappear before your eyes.
Because of this fact, cash envelopes were introduced!
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What is an emergency fund?
An emergency fund, also known as contingency fund, is a personal budget set aside as a financial safety net for future mishaps or unexpected expenses. (Wikipedia)
I wrote this post in 2016 and had to reshare again with a few updates! I still feel that having an emergency fund is crucial and will also serve as an investment for your future.
As mentioned in a previous post, my husband and I took the Financial Peace University course online. One of the first items Dave Ramsey recommends is to as quickly as possible save $1000 for emergencies. Most emergencies are under that amount but we reach for our credit card and then our balance continues to grow. If we keep reaching for our credit card, we will never get out of debt. So, by having this emergency fund, we can have some security to be able to pay a doctor bill or an auto repair we didn’t expect without going more in debt.
To build this emergency fund, Dave...