Question on Quora: What’s one small habit that helped you become better with money?

Question on Quora: What’s one small habit that helped you become better with money?

My response:

I threw away the credit cards and started using cash only. If I didn’t have the cash in the bank, I didn’t buy the item. Period. Over time I paid my balances down and have been credit card free since 2004 and it’s marvelous.

I get paid monthly, as I am on disability. As soon as my check drops, I pay my bills off, without wasting a minute. I know pretty much what my bills run every month, so I don’t wait for the invoice to arrive, I just issue a check for the amount it usually is.

For example, my electric bill runs right around $300 a month. My electric company sends my bill on the second week of the month and it is due on the third week. I send $325 on the first day of every single month, and generally build up a bit of a credit balance. When that accrues to about a month’s worth, I skip paying them for a month, leaving me a nice bit of cash to buy things needed for the house, or clothing I need, or whatever. Same with the water bill. The garbage, internet, phone, and mortgage are all the same amount each month, flat rate, so I just pay what I know they are going to be, again on the first.

I buy my clothes at the thrift store, use a lot of grocery coupons and grocery sales. I feed my husband and I on about $350 a month. We eat mostly chicken and a small amount of beef. Fish occasionally, but it’s pretty expensive. Store brand items instead of name brands, etc. We have stopped drinking soda, as it is crazy expensive, and drink iced tea or iced coffee instead.

My brother rents a room from me and pays $100 a week, and I use that for incidentals during the month such as milk, bread, dog food, etc.

The key is going cash only, and paying bills BEFORE you spend a single dime on fun or things that can wait a bit (like that new video game you really want). The MAIN thing was going cash only. Credit cards are an absolute financial nightmare. 25 years ago, I was $40K in debt to credit card issuers. I was using one card to pay off another, a fair bit of the time and having a HELL of a time getting out from under (it was NOT happening at that rate). I no longer need to do that.

Throw your credit cards away. Carry cash. Whipping out plastic, even a debit card, is wayyyyy too easy.