I saw a
I had a bad habit of using my allowance to buy lunch 1-2 times a week when I was working. But, now that I stay home, I make it a point to eat at home.
I totally agree with the article about new cars, but I stumbled upon a way around it. Just keep your options open and look for advertised cars. Not in the paper, but on the lot. Dealers offer "loss leader" specials on certain cars. The dealer takes a big
The habits that are costing me are- Stopping at Starbucks for a drink and something to eat before work- Buying lunch/dinner at work
To escape the habit of buying lunch or dinner at work, I need to make sure I'm organized and make my meal the night before. More importantly I need to make sure that prepared meal gets put in my bag - since even when I do prepare the meals ahead of time, I regularly forget to put them in my bag.
To escape buying Starbucks, I need to be making more of an effort to make myself a hot or cold drink (depending on the weather) to go with breakfast. I have a milk frother at home and have hot chocolate and coffee in the cupboards. I have even found a decent chai tea powder - since I order chai lattes from Starbucks a lot. The reality is although I get 20% discount on purchases since I work for another arm of the group that holds their brand rights here, I'm not really saving because of how often I'm using that discount. I figure that once I'm making my drinks at home, I could have a Starbucks drink as a treat on an occasional basis.
In terms of the article, I kind of disagree with the point of not paying off student loans costing you. Here in NZ, if we spend at least 6 months of each year in the country we don't get charged interest on our student loans - which are administered by government departments. However, if legislation related to the budget that was announced in May passes, we will be paying $40 for each year that we have the loan after we finish studying. While I have every intention of targeting my student loan once I have paid off my consumer debt, I don't believe that the charge of $40 per year is really going to give a lot of people an incentive to make extra payments to their student loans.Of course, I know that things tend to be very different every year else in the world, so that's my take given the situation I have with student loans.
There are definitely some good points in that article. Not entirely sure about the student loan debt though, federal student loans have probably some of the best interest rates one can get. Private loans are another matter though.
I totally agree on the first one though. There have been some months that our minimum payment barely covered the interest charges. Plus whatever other fees they tried to charge. It was ridiculous.
The buying a new car is interesting too. We bought my car brand new and it feels like we'll never pay the damn thing off, like it will always be hanging over our heads. I'm in a wrangle with DH about this right now. He HAS to have a brand new car when he comes home from deployment but I'm trying to talk him into leasing instead. He has a habit of "NEEDING" a new car every two years. If it happens again, no purchase... at least we won't take the hit and if we decide to buy, it'll be a reduced cost :)
Whatever you do, don't get into a lease. That's the most expensive way to drive a car, even though the payments are low. It's an illusion. The cost is so padded if you choose to buy it or even if you just drive it too much, you'd be better off saving up money to buy a new car and keep it for 7-10 years. Talk to someone who has tried to get out of a lease they couldn't keep up with.
If the payments for anything are hanging over your head, that's a good sign it's out of your reach financially. I don't mean you, personally, Katie, because that's true for all of us.
I agree with every word you said (sorry for the thread jack). I've been hearing a lot of negative stuff about leases, makes me rethink the wisdom of getting one.
Our payments haven't been a stretch while we were two incomes but going down to one is going to hurt. I'm hoping to talk DH into waiting on a new car until deployment 2 is done.
We went from two incomes to one recently, too, and I'm not going back to work for a while. The only way we were able to get a new car instead of a used one is because we found the one on sale for 20% off and because we had saved cash for it when I was working.
I always think of my friend who had a few motorcycles and a Corvette, but when it came time to buy a house, he couldn't get the house he wanted. Boys and their toys, ya know?
It's sad this only listed smoking as the only addiction as a habit. Someone mentioned Starbucks, and that's more in line with what costs--perhaps even more than smoking! Also, the daily liquor drink(s) like a can of beer, or glass of wine to relax.
Sodas, microwave popcorn snack each night, pizza on Friday nights, etc They ALL