Motivational speaker Jim Rohn famously said we are the average of the five people we spend the most time with.
One significant reason this happens is because of their example and model. As we recognize their positive aspects, we seek to emulate those characteristics in our own lives.
Another reason is because of the conversations we have and the advice we share. The more quality time we spend with people, the more nuggets of wisdom we begin to hear from them.
Over the years, I’ve been blessed to have countless positive influences in my life. Their example and their wisdom have shaped me in every way—including my financial practices. Here are seven specific ways.
The 7 Most Life-Changing Pieces of Financial Advice I’ve Ever Received
1. “Most people who overspend their income do so in one of three ways: 1) Too much house, 2) Too much car, 3) Too much entertainment.” // Financial adviser, 2008.
I made a passing statement to a financial adviser friend of mine one particular evening over dinner. I had no data to back up the claim, it was purely an observation made on anecdotal evidence. I told him that most people I know who are living in debt seem to carry a monthly car payment. That’s when he offered the financial advice above in the form of his own personal interactions.
There are outstanding circumstances for sure (medical emergencies, tragedy, job layoffs, etc.). But generally speaking, if you have a hard time living within your income, check your spending on your home, your car, or your entertainment (dining, tickets, trips). I have tried to keep all three modest ever since.
2. “Begin your marriage living on just one income.” // Boss, 2000.
My wife and I got married in June 1999. During our first several years of marriage, we both worked full-time jobs. My boss at the time, a man I looked up to in countless ways, offered me financial advice one day during a short conversation by the coffeemaker. He suggested, even though both of us had steady incomes, as a newly-married couple we should work hard to live on just one of the incomes and save the other.
So we did. My wife’s income each pay period went immediately into savings and my income went into the checking account.
One year later, that savings account became the down payment on our first home. And four years later, when we had our first child, we were still living on one income which freed up my wife to choose to stay home if she desired.
3. “Buy your car with cash.” // Friend, 2004.
My first car, a Chevrolet Corsica, I bought from my parents and paid them back monthly over the course of one year. When that car began to sputter eight years later, I entered the marketplace to purchase another. Talking it over with my friend one day over a roast beef sandwich, he offered me his thoughts:
“Whatever you have in savings,” he said, “make that your budget for your next vehicle—even if it isn’t much. Then, rather than making a payment to the bank on your existing car, begin making a monthly payment to yourself for your next car. Whatever you would have paid for a car payment, put into a savings account. When your next car dies, you will have a bigger budget for the next one—then, repeat the cycle. You’ll be surprised how quickly you are able to upgrade your vehicle over the course of your life.”
This is advice I have never strayed from. And it’s totally true.
4. “If you can’t keep a monthly budget, use a spending plan instead.” // Writer, 2009.
In 2009, as we were just beginning our journey into minimalism, I was introduced to the idea of a Spending Plan. Contrary to a monthly budget that requires detailed tracking and frustrates many, a spending plan provides flexibility as it offers more of a snapshot, moment-in-time glance of your current spending. But the knowledge and lessons learned from the snapshot view of income vs. expenses provides valuable insight for course correction.
The idea is worth the effort for everyone. First, determine your monthly take-home pay. Second, subtract your fixed monthly costs. The money left over is your monthly discretionary income. With that number in hand, you are in a good place to determine where you’d like that money to go. Here’s a more detailed explanation.
5. “You are never too poor to give.” // Parents, 1979.
Growing up, there was not excess money around our home. In fact, only years later did I begin to hear the stories and understand how tight it was at times. The most significant involves a local grocery store raffle contest that happened to draw my parents’ names on the very week they seemed entirely out of options to feed their young family. And yet, through it all, my parents lived with a simple philosophy on generosity: “We will give to charity, and we will teach our children to do the same.”
Their example and their advice have revolutionized my life and my view of money. No matter how tight my money situation has been over the years, I don’t think I have ever missed the opportunity to give away at least a small portion of every paycheck I have received. This is not because I made lots of money. Quite the contrary, it is because I learned from a young age that generosity has rewards of its own and is always worth the sacrifice.
6. “Never take a job just because of the money. Always consider the money, but never let it be the determining factor.” // Mentor, 1998.
In 1998, following a two-year internship after college, I began the search for my first full-time job. I remember, at that time, seeking the counsel of a spiritual mentor of mine. Sitting across from his desk, I asked about money and how much I should let that factor dictate my decision.
He responded with some of the best advice I have ever received: “Joshua, you need to consider the money. A job that pays too little or seeks to take advantage of you will ultimately add stress and worry to your life and keep you from doing your best work. So you have to consider it. But never let it be the most important, determining factor in your search. Always consider your talents and skills and strengths and the opportunity to make a difference in the world first.”
I have tried, throughout my life, to consider income in the jobs I have taken, but have never allowed it to be the most determining factor. And I have literally no regrets concerning the path that career advice has taken me.
7. “One extra monthly payment per year on your mortgage shortens the length of your loan by years.” // Real Estate Broker, 2001.
While working through the specifics of our first home purchase, our real estate agent made a passing comment concerning our mortgage payments. For her, I think it was just a simple fact about the mechanics of amortization schedules. But for me, it became a life-changing goal—make one extra monthly payment each year on my mortgage.
Over the course of the next 16 years, we’ve worked hard to add a little extra each month to our mortgage principle—even if it’s just $50. In the end, most years it’s added up to a full extra monthly payment. As a result, we’re on-track to have our mortgage fully paid well before 2031. And for that, I’m forever grateful.
I don’t always ask a specific question for the comment section. But I’d love for you to add your wisdom to this post:
What is the single most significant piece of financial advice you have ever received? And how has it improved your life?
Over 20 years ago a friend told me something that totally changed my perspective on personal finance. He said he was paid twice monthly, and lived off only one of those paychecks. The other paycheck he saved and invested. As I wrapped my head around his comment, I realized he was saving and investing one half of his net income. I made more money than he did, but I was saving next to nothing. Upon further reflection, I decided I had to stop focusing on how much money I earned, and instead focus on how much I saved and invested. As I now approach retirement, I am thankful we had that conversation.
Thank you for the good advice. I’m new to Pinterest.
My piece of advice to add..
When you get an increase in your salary then keep budgeting on the old salary and autosave the actual increase received into separate savings until you have a purpose for it.
Take the time to live the difference between wants and needs.
Contribute to your $ matched 401K. Why? Someday you’re going to be old.
My favourite quote: “don’t buy something just to impress someone”.
Never ever buy anything with money you don’t have. If you can’t afford to pay cash this month, why would you be able to next month?
It was said by my father and I live by it. We never use our credit cards, only debit. Eventually the bank gave up on us and took the credit cards back, since they were never used. We had told them as much, when we opened our accounts at the new bank, that only debit was needed, but it took them awhile to believe us!
“If you live like no one else now, you will LIVE like no one else later.” And “Live beneath your means”…Meaning don’t accumulate the fancy cars, huge houses-when you are young and you won’t be a slave to it later…you will be FREE. It was hard at the time, but so awesome now! It allowed me to be a stay at home mom and I wouldn’t trade that for any amount of money!
Pay tithes first, it blesses the rest. Pay off your credit card every month, don’t use the card if you can’t do that. Add extra to pay down principle with every mortgage payment, we’ve paid off two houses early this way. Don’t impulse buy, think about it at least overnight before purchasing.
My financial adviser asked me in 2005, what are the 3 things you’d regret on your deathbed. Those told him what my goals were and he taught me to use money as a tool to achieve them.
Credit can be a trap. Use a credit card only as necessary, and only if you can pay it off at the end of the month. Never carry a balance forward. If you can’t afford it, you don’t need it.
My grandpa said: If you can’t afford to pay for it, you can’t afford it. That’s his way of saying to save your money and pay cash for things. I also learned to look at things for their basic value. A car’s purpose is to reliably get you from point A to point B. I don’t need a status symbol. A particular color, or luxury interior like leather. And I have never owned a brand new car. I have always purchased a car with factory warranty left, usually a year old. I keep my vehicles for 10 years and between 150k to 200k miles. Keep up with maintenance. Clothes…I love Clothes that are unique. So…Marshall’s clearance rack. $7-$10 is fine by me…and thrift stores. I got a red Eddie Bauer down filled coat for $3. I quit smoking several years ago, probably have a 1-6 drinks a year. Eat out once a month. My mother was the most thrifty person I know and I learned a lot from her, but I learned a lot from others along the way too.
This is an awesome article and the comments are equally awesome! I am a retiree who learned years ago to be frugal, take care of all of my possessions, give, save, invest and learn contentment! It’s amazing how small savings can add up to be quite impressive. I purchased/read books to instruct me on how to budget, invest, sew, prepare meals, decorate my home, purchase quality used clothing items, etc.! Now, with the availability of YouTube videos, I can actually see how to do certain things. My parents were frugal and they maximized their earnings. They stressed the importance of saving some of your income and to pay your obligations on time. You must master your wants as you make steps toward the life that you want to live…not the life that others think you should live!
I love coffee and I used to order it at work or just grab one on the way. I think it was two years ago when I decided to buy a vaccum flask to help save the environment by reducing the amount of disposable cups I use and at the same time save some money. That is one of the things that changed my life.
Both hubby and I are in our 60’s and have made our fair share of good and poor financial decisions. We found ourselves in a position to invest, we discussed for several weeks all the lessons we had learnt and worked out a plan that we both completely agreed on and even more importantly gave us flexibility and peace of mind. Now two years down the track we are still at peace with our decisions and the future options that they provide.
Money is an asset – get the most bang for your buck
Preserve the asset so you can revisit the benefits it provides
Consider what stage of life you are at – accumulation V’s retirement
Peace of mind is more important than high returns – get a smaller return but a hassle free situation
Manage your expectations – you cannot have everything – move those goal posts and find pleasure in daily fun
Your financial advisor friend isn’t including women in his analysis. Research finds that women spend the most money on clothing/accessories. Pressure to look good.
Thanks for the comment Hima, but that is not true according to my research. If you would like to cite your research, I’d be happy to look into it. But I cannot imagine a single scenario where women spend more money on clothing/accessories than they do on housing.
Based on data from the Bureau of Labor Statistics, women’s top six expenditures are:
1. Housing
2. Transportation
3. Food
4. Personal insurance and premiums
5. Utilities and Housekeeping
6. Apparel and Personal Care
Source
??
Thanks for sharing the top 6. Very impressive and i agree 100%
good ideas – and still 401 K keeps dropping dramatically
may be life insurance would be best to start with
Thank Joshua. I only wish those numbers were within the last 5 years.
Sorry, this was more a comment to Terri reply
All those are very helpful and I appreciate your posting them here. I just think this is speaking more to the GenX and the Millenium are now staying home and don’t pay rent because they don’t have any to pay for. Cars are what they spend on the most and personal care.
It doesn’t refer to all the women ( can be for few ) Thanks
Start funding your IRA with your first job.
Pay off your credit card every month.
Cash is harder to part with than swiping plastic for a purchase & helps prevent impulse purchases.
Are you speaking about the Milleniium generation?
This is surelys so true in our house with my two kids.
For them buying hair shampoo, cream and nail polish are what they like to do. For cars, it is also a good amount spend on monthly insurance and fuel before they decide to take the bus and Marc
Grocery has become less important to them too because they are working mothers and eat on the run. The grocery is only done once a week.
My youngest is still living with us and he is soon to be in his thrities.
Invest! Put money into a low-fee index fund like Vanguard’s VTSAX fund. Compound interest will change your life!
Only borrow money to buy assets.
The only good loan is a home loan.
Mine is when you are getting your paycheck, pay yourself rst
My motto had always been, ” Its not how much you make, its how much you don’t spend.”
Love this
Mine is when you are getting your paycheck, pay yourself first
That’s what Dad ALWAYS taught us!!
I have separate savings accounts for house maintenance, paying cash for a car, and fun. At the end of each month, I take whatever extra money I have leftover and I put a predetermined % into each of these accounts. Then I am prepared to pay cash for these items. This is in addition to my emergency fund and investment accounts. Thanks for all you do!!!
I’ve always been thankful that my mother took out savings bonds for her 5 kids (I’m 63)…back in day when they paid 3 to 4 percent. In which I had also done with my kids now mid 30s. Over the years, I had several envelopes in which I also paid myself, my kids (savings), and money for charity. I still do the savings envelopes for various things.
Sometimes all that you can do is start small and work your way up. We have only 1 credit card for emergencies. We still have a mortgage which we try to pay more each month. We’ve had our share of struggles of unemployment, etc. I didn’t realize or didn’t want to make myself aware of how much money I was spending on coffee, lunches, gas, etc for work. I have been working from home now, able to save on those expenses Reading these articles and reading people’s stories has really opened my eyes about my spending, do I need or want this. We are doing a garage sale soon, trying to look to retirement soon, getting rid of stuff. Slow, one step at a time. Wishing you all the best in your financial and health endeavors.
I came into this world in the middle of WWII in Germany. Hardship was our daily life. Eventually my family immigrated to Canada. We arrived with a suitcase each that we could carry and a steamer trunk and very little money. Our passage on the ship was a loan from the Lutheran church. It had to be paid back as fast as possible so they could help another family. My father who worked until age 65 never earned more than $3.45/hour, yet they bought their car and home with cash, never owned a credit card or checking account. If they did not have the money, they did without, patched what they had to last a bit longer. Had simple entertainment. Concerts in the park and parades and public events are free. Day trips in the country and a picnic with food you made yourself costs little. They were prolific savers. Their mantra was: “ a dollar in is better than a dollar out” so they cleaned a bank and an attorney’s office at night for years. On one of my visits we had a conversation about their neighbor who was going into retirement with a mortgage. They said: how can that be? They worked all their life. They did not experience war in their country and never had everything taken, yet they still have all this debt? My parents taught me well.
My home and car are debt free. I have free and clear investment properties and I am still working part time at 79 not because I need to, but to take care of my old clients who became good friends. And yes, the money will add another investment when the opportunity presents itself.
I’d love to read a book about your life :)
Wow ?
Thank you for sharing. Your parents’ legacy is remarkable!
We have 10.000$ cash need a car.would it be better if we saved the money put it down on a. New car
My personal experience…. I thought similarly, so about 3-4 years ago we purchased two relatively new (2 yrs old at the time) vehicles. we put a hefty down payment on each, but had to finance. Fortunately, we got a GREAT deal through our credit union, and worked aggressively to pay those down.
I think it was about 15 months later that the first vehicle was totaled in an accident. Since it had a loan, of course, we had comprehensive, and we got a payout from the insurance, but no where NEAR enough to replace with a similar vehicle after the loan was paid off. So we used what we got and bought an older car outright.
Another 18 months later, the second of the two vehicles was totaled in a second accident. That one had been paid off by then, but again the value/insurance payout was not enough to replace it. Now we have two older vehicles (and unfortunately a higher car insurance rate).
Hmm… shoulda had GAP insurance.
Dave Ramsey recommends to NEVER have a car payment and if for some reason you “have to” don’t EVER buy new unless you are a millionaire. Because as soon as you drive it off the lot you loss money
1) Save for luxuries, and only borrow for assets that produce income and/or capital gain.
2) Only borrow what you can afford to pay on half your current income. While things are good, put the excess into a) an emergency savings fund to cover 6 months of basic living costs and b) debt repayment. In the event of job loss, injury or illness, you have a backstop, and you’ll pay debt down faster.
3) Never invest/risk more than you are prepared to lose.
Never borrow money for a depreciating asset, I.e, a car. Wise advice, not always easy to follow.
My 31-year-old son and his 29-year-old wife have been married 9 years. When they married, they vowed to live like college students until they were debt free. The both have paid off Master’s degrees, paid off cars, maximized 401ks accounts and their house will be paid off in no time at all. Meanwhile, they have 2 to 3 roommates living in their home since they first got married. The roommates have been paying a good portion of their monthly mortgage payment. They are so wise!
I was 22 and in my first ‘real job’ after college. I didn’t have a car and really wanted to buy my first vehicle. While saving towards that goal my father told me to take advantage of my company’s 401K plan. I was making very little salary at the time and couldn’t figure out how I could spare any for a retirement plan (retirement seemed so far away and I thought there would be plenty of time). Dad said “even it it’s as little as 1 or 2% it will get the ball rolling. It takes money to make money”. And that is where I learned the compound value of money. I didn’t save a lot that year but I did start my 401K plan and it has served me well through the years. It’s still not time to retire but I’m fortunate that it is still working for me even now that I’m a stay-at-home mom and haven’t contributed any new earnings in years.
Carry a low balance debit card/account for online shopping so if your account gets hacked, the thief is still very limited as to how much they can steal.
When you first start earning and have no overheads, spend half and save half.
Look after what you’ve got.
Mend and make do.
Going without is a valid option.
No. It’s a complete sentence.
Do not loan money to pay another loan You will be indebted for your whole life. Settle the matter to your first creditor, ask for consideration like making the terms longer.
It started when my father got illed, we were financially broken that leads us no choice but to borrow money. When the term is getting near, I made decision to loan another to pay the former, without trying to ask for considerations. (Who knows, the lender will be considerate enough to understand our situation).
And now, I managed to only have one creditor left. And very soon to fully pay the whole debt.
My dad always said never buy a house that is more than 3 times your yearly income or a car that is more than 3 times your monthly income. We have always stuck to this philosophy although we have had to sometimes drive a car a few years old and buy a fixer upper house, but when we retired everything was paid for and we have learned to make due and not live beyond our means. Minimizing is easy for us!!
That’s a great one Nina! Although It doesn’t really work for the houses where I live in SF bay area. Homes are 1 million and up.
That would be nice but you can’t even get a vacant block of land or a studio apartment for less than 5x average salary in Australia
My parents taught me to ask…”Is it a need or a want?” before making a decision to buy something.
My parents taught me NEVER borrow for vacation, entertainment, toys, etc. I’m thankful now to watch my adult kids practicing this.
We would grocery shop three weeks a month. The fourth week, we’d create our menus from the items in the pantry, refrigerator and freezer. This way, food never went to waste or was forgotten in the freezer, and it cut our grocery bill dramatically. We could use up those items we had purchased at a great price during the month. Yes, some of those 4th week meals were strange and interesting!
Work to buy assets let assets pay for liabilities
Please explain further.
I treat my credit card like a debit card, if I do not have the money for something I do not purchase it. I chose a credit cash with no fees that gives me cash back and since I pay my credit card off every Tuesday and every Friday I have never paid a penny in interest which means the credit card company is paying me to use their card. Also each payday all the money left in my account is stashed away so that I start with a zero balance in my account, the stashed money adds up fast in case I need something I would not normally buy, say my vehicle needs to be replaced or upgrades on the house.
Hi SB – Sounds like you use many great techniques. I also use a no fee credit card that pays cash back and I pay off the balance each month when it is due. You mentioned paying yours twice a week (Tuesday & Friday). May I ask, what is the advantage to do this? Thanks!
Zach you sound a lot like me… I’ve had a myriad of health problems most of my life, including extreme chronic fatigue with its own host of symptoms including anxiety, brain fog and inability to do much else other than work for the past 30 ys. I’m 53 now. But I’ve pretty much always worked as a non-negotiable. When I look back I’m glad that I just worked, no matter what, because there’s no one left, no parents to care for me, and I am financially stable. I remember seeing a 100 year-old woman (if I remember correctly) on the news who had never missed a day of work, and her motto she’d tell people who wanted to stay home when they were sick was, “You’ll feel better when you get there.” We’re much stronger than we give ourselves credit for. If you can exist at home doing the minimum, or you can exist at a minimum-responsibility job and get paid for it, but have the joy of being at least somewhat self-sufficient. Warehouse work, office work, library, picking up dog poo, landscaping, answering phones, anything – my advice is to get someone to write a very professional and flattering resume and look for something that’s a good fit online – daily. You will eventually find something you enjoy and are good enough at, that it will give you motivation you never thought you had. That’s been my story. I can’t judge your particular situation but I do feel that if we kick in 50% and pray, God will kick in the other 50% to sustain a will to keep going in our lives. Pray and do your part to have financial stability as much as you’re humanly capable, and see how it works. Prayers for you!
I only make 50$ a week where i work. I have intense health probelms but the doctors don’t see it as an issue. There isn’t any compensation for it. It is hard to work even part time jobs or even at all. I put in hours but only get 50$ at this “work training program”. i am stuck at these very low level jobs, i am directed by people 10 years younger then me, and live at my moms whim. I am 31. but feel trapped. i have so much motivation and creative talent.. but i can’t even get the ball rolling. i don’t like to take on big projects (that could make money) in ongoing stations that involve years of high stress.. panicked about having enough to eat. very precise limited spending. limited options of where to go and what to do. even just 25$ more a week would make a big difference with food experience.. and then i could feel more conflicted about my projects. this is not a healthy way to live. and everyone treats it as normal. or they say “work more”. i am sounded by a lot of people who are ten years younger and very energetic. i also have a lot of intsne health probelms that are not normal for my age that started as young as 25, but i have no disability support and have begged for years. people just give me a cold look and say “we could give you an extra 25.. but what difference will it make really.” it just feels like a very counterproductive way to live. I’m not a big spender. but there is a certain minimum threshold to reach healthy living and get the momentum going to take on bigger projects. i know I’m not crazy. people normalize it so much. it’s really bad and has gone on like this for years. it would be different if i was in peek health. but even then not recommended. 75$ a week is not a lot.. but I’ve calculated that this small improvement would go a long way. but i am surprised how hard it has been. “working more” may not be completely impossible. but there is some kind of minimum i need just to do the things that matter. i have intense heart problems and don’t want to put any more pressure on it. often the solutions people gofer seem to create more problems. I tried selling my books but their was a glitch on amazon and the money never gets to me. it feels like a crazy way to live. like this never ending “catch 22” where i loose either way.
Zach you sound a lot like me… I’ve had a myriad of health problems most of my life, including extreme chronic fatigue with its own host of symptoms including anxiety, brain fog and inability to do much else other than work for the past 30 ys. I’m 53 now. But I’ve pretty much always worked as a non-negotiable. When I look back I’m glad that I just worked, no matter what, because there’s no one left, no parents to care for me, and I am financially stable. I remember seeing a 100 year-old woman (if I remember correctly) on the news who had never missed a day of work, and her motto she’d tell people who wanted to stay home when they were sick was, “You’ll feel better when you get there.” We’re much stronger than we give ourselves credit for. If you can exist at home doing the minimum, or you can exist at a minimum-responsibility job and get paid for it, but have the joy of being at least somewhat self-sufficient. Warehouse work, office work, library, picking up dog poo, landscaping, answering phones, anything – my advice is to get someone to write a very professional and flattering resume and look for something that’s a good fit online – daily. You will eventually find something you enjoy and are good enough at, that it will give you motivation you never thought you had. That’s been my story. I can’t judge your particular situation but I do feel that if we kick in 50% and pray, God will kick in the other 50% to sustain a will to keep going in our lives. Pray and do your part to have financial stability as much as you’re humanly capable, and see how it works. Prayers for you!
Basically going through the same thing you’re going through. I’m an epileptic and can’t get disability. It’s tough to move, but hopefully it will get better. Stay up!
My Grandfather never used credit. He believed that “If you can’t afford it, you don’t need it.” So, like your friend’s car advice, (which Grandpa also suggested) he believed in paying yourself first (no matter how small the amount) rather than paying a creditor. That way you saved the interest and if you couldn’t make a payment, no one was going to come take anything away from you or charge you late fees, because “A penny saved, is a penny earned”. He also tried to negotiate the cost of just about everything because “It didn’t hurt to ask.” [The stories I’ve heard about his negotiations! For example: He took a treasured Mustang to a dealership to use as ‘trade in’ for a new car. When all was said and done, he was sitting in his new car about to drive off when he asked the sales guy “How much do you think you’ll get for that?” and the amount quoted was incredibly underpriced, so my Grandpa says, “Okay, I’ll buy it!” and he turned off the engine, pulled out his wallet and the salesman had to sell it to him for that super low price, which he paid cash for!]
He was a man who stood by the value of quality. If you can’t do it right, don’t do it at all. He employed a number of men in his construction business and if they couldn’t give him quality, he would make them do it over or he would let them go. He built his own house and most all of the furniture he had in it. My experience with his work quality is a the bookcase he built in the 50’s and gave to me for my High School Graduation in 1980. It still endures the test of time, weight, and being moved around. It is now in my daughter’s possession! He never bought “the cheapest”, but he also never lived beyond his means.
He passed away in 1993 owning everything and owing nothing!
The fact that there were a few million dollars in his savings when he passed validates in tribute to the values he lived!
When we were young we used to buy groceries for 8 days every week so that every 8th week we could pay our grocery money off our mortgage. Worked well for us.
Pay your total credit card bill every month.
Why not just pay cash and be done. Credit cards are terrible products.
Credit cards are a great tool if you pay off the balance each month. You avoid the interest, but earn perks such as airline miles, cash back, etc, and you build your credit. They only become an issue when people carry a balance they can’t pay off each month.
Agreed!
Agree with the credit cards being a great tool if you pay the balance I full each month. I use mine to pay every recurring monthly bill, such as phone, insurance, electric, water, trash, as well as gas and groceries. In 15 years I’ve earned over $15,000 in cash back without paying a penny more than I would have had I stuck with cash or checks/debit. Plus, since everything goes on the one card, tracking my finances and taking care of the bills is a snap.
I always remember my grandfather telling me to “Pay yourself first” then pay everyone else. I have always had a 401k or IRA to put at least 10% of my income in.
Agree, the money I get back from my credit card is amazing! Pays for groceries and a couple of extra treats when we can