Having worked at a financial institution for years, I've seen people crippled in debt that even at their retirement age they're still paying debts they acquired for a long period of time hindering them from enjoying their lives. Just military families alone, debt is one of the top reason why divorce is high. It's alarming and sad to see the negative effect it brings to people.
Hubby and I has one credit card each. I don't believe in getting multiple cards because it only means I'll have the ability to use it beyond what I'm supposed to and even if I cut them up or put them away, it still won't change the fact that I have them. For some it means easy access in case of emergency, for others they live on it.
My car is paid off, his will be early next year. We don't have mortgage as we are overseas. We don't have big balances on our cards. We set aside money every month. We don't live above our means, it's scary enough to think of not having to get anything from the government when we retire let alone be buried in debt. So we make the most out of what we can get from being employed.
How do you know you're living above your means?
1. Bills piling up
2. No savings - they say to have at least thrice of your salary
3. Use of credit card for every purchase
4. Discontentment - constantly wishing for more or trying to keep up with your friends
5. Paying overdraft fees on your account
It's never too late to reconstruct your budget when you think/know you're headed to this direction. Wouldn't you want to sleep soundly at night without having to worry about a single thing of debt? Or go on a vacation you really wanted knowing you didn't use your credit card to purchase it? Don't waste the time you spent worrying and stressing about your debt, turn around and start enjoying your life instead.
As far as our nest egg goes, I'm proud to say that we are sitting comfortably where we are right now and continuously working to achieve our goal in the next years.
Until next time. Cheers!
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