Living on Less Series Part 2

Living on Less
Part 2


Appliances:

We don't purchase appliances until the ones we have break. When the washer that came with the house finally died, my husband went to Home Depot and purchased a middle of the road GE washer. Oh, and he got it on sale!! When the dryer died the next year, he did the same thing. He spent about two weeks researching brands and prices before purchasing anything to make sure he was getting the best deal.

Before you go and buy a new appliance ask yourself the following:

1. Can your appliance be fixed?

The first time our washer stopped washing, I had my father come over and look it. He brought his handy washing machine repair book and fixed it within an hour. All it cost me was a ham sandwich and soda. A lot better than $300 for a new washer!! You can check out repair books at your local library for free. You can also go to a book store and get one. It might be worth spending $25 instead of $300! Or...you can do what I do and look at books at the book store, write down the info of the books you like, and then look for them on Ebay. I have purchased books on Ebay for 40% to 50% of bookstore prices!

2. If your appliance can't be repaired, instead of purchasing new, how about used?

There are yard sales every week in my area, and people flock to them in droves. I try to check the Friday paper to see who will have appliance for sale. Sometimes people list their phone numbers to try to sell larger items early. You may also want to check out Craigslist.com. People list their used appliances in there all the time. Also, a great list I found about a year ago is called freecycle.org. People list their items on there for people to take for free. Yes....I said free!! You have to check it every day though if you are looking for something specific.

3. If you can't find one for cheap or free, have you compared prices?

Don't just purchase the first one you see at the store. Shop around. Check out the different brands, features, and prices. Consumer Reports is a great place to check these things out. Most Libraries have these magazines for you to look at. Also, price your item at different stores. There are lots of places that carry appliance, don't limit yourself to one store.

It is well worth putting in some time to research the best brands and prices before purchasing a new appliance.


Credit Cards:

This is a bad word in our house. Credit cards are bad. Every week we get an average of 5 credit card offers in the mail. They tempt you with cash back percentages, and frequent flyer miles. What they don't put in large print is the high percentage rate.

We have 2 credit cards. That's it!! We use them for emergencies only. Like when my husband had his 2nd heart surgery, he wasn't working, so there was no money coming in. Our church helped with food, and his job helped with some bills, but the rest was put on the credit cards. Also, last month, we went 2 weeks without a paycheck, so we used the cards to pay some bills and buy food. When we get back on our feet, we pay what we can past the minimum. Then, when my husband gets a bonus, we pay them off completely.

I know people with 8 to 10 credit cards from this and that store who say it's worth it to get coupons in the mail for 20% off when they spend a certain amount. But is it really worth it?? Is it worth paying 25% interest on clothing, TVs, appliances, and vacations?

If you don't have the cash.....don't buy it! Way back when, there were no credit cards. Americans lived with what they had. They spent the physical money they had, or traded a few chickens for some flour, or fabric. They didn't have credit cards. If they didn't have the money, they didn't buy it. Why should we live any differently today?

The rule of thumb.... If you can't pay your credit card debt off in 6 months or less, you have too much debt. Here are the steps we used years ago to pay off our credit cards.


1. Gather all your credit cards, put them in an envelope, seal it, and hide it somewhere.

2. Gather all your credit card statements and list them out starting with the least you owe to the most you owe.

example:

A. 300.00
B. 600.00
C. 900.00
D. 1200.00

3. Using the example above, pay the minimum on B, C, and D, and put as much money towards A as you can. You want to pay off the credit card with the least debt first. When you pay off credit card A, you put as much money towards credit card B as you can, and so on. Eventually you will have your credit cards paid off!

When you finally have your credit cards paid off, you will be free of the stress that all that debt brings. You will feel like you have conquered the world. Well....your pocketbook anyway!


I will post Part 3 on Friday.

Happy Saving!!