Living with fixed income is a challenge, more so if we are drawing down on our life savings (or nest egg). Lower prices at the gas pump helps as long as we live within our means. Can we do so? Here you will find practical reliable suggestions to enjoy a good and balanced life. Lets begin with the use of credit as a financial tool. We have heard of the pitfalls, but there is much more to it than that. After all, don’t we wish to travel in style with our pets!
Credit cards if used properly is a convenient way to mitigate a large expense for, say, a comfy dog bed purchase, or to defer paying an item when funds are not available. They are temporary situations and we must continue to live within our means. With sufficient funds, it is simple to completely pay-off card balances to zero at the end of every month. But if we are making ongoing monthly purchases with a credit card, then carrying a credit balance is risky business because the balance can grow very quickly over time. Unless one has unlimited funds are our disposal, it is difficult to pay down the accumulated balance on the credit card when, at the same time, we must juggle paying current expenses including interest charges on the card. Here is a powerful tool that can make budgeting credit card expenses a lot easier. To remain solvent, your income must exceed expenses over the long-term. There is no way around that requirement.
This tool attempts to identify ♥savings that are earmarked to cover paying-off the mounting credit card balances. If you are unable to save and set aside funds every month, then do not carry a credit card balance. You must make it a full-time job to work with specific goals – goals that appeal to the way you live your life, and you feel happy. This is a chance to have fun and enhance one’s financial discipline, but without the drudgery. (See the next installment of this topic, or visit STA)