TMM Journey: Life Without Credit Cards!!

So it has officially been three weeks since we COMPLETELY cut ourselves off from any credit card usage. Prior to this, our policy was basically that everything would go on the card and we'd pay it off at the end of the month, earning us 5% on gas/groceries and 1.5% on everything else. Only a few payments a month and we didn't have to keep track of a debit card. Sounds logical, doesn't it? Here's proof it's not!

1)Gas - How can one over-spend on gas; you fill up when you're empty, right? Not really. When you set up a budget and only allow so much gas$ per month, you will think twice before you drive anywhere. By using a debit card, the money HAS to be in there! I now try to do only one shopping trip a week. Anytime I do go out, I try to multi-task as much as possible to keep our gas costs down.

2)Groceries - Here is our biggest area of savings. We set aside $40 a wk. now for groceries. I set up a weekly grocery plan; Put my $40 cash in my purse and grab my coupons/binder and set off. By having only $40 CASH in my purse, let me tell you, I stick to my grocery list! How embarrassing to not have enough $ at the check-out! If I see a good deal that's not on my list, I will either pick it up if I have enough or log it for reference for later. (It's better to think about the deals than to act impulsively!)Over the past three major shopping trips, I have probably passed up 8-10 items I would have normally just thrown into my cart.

3)CVS & Walgreens - I both love AND hate these stores!! I love how shopping right can have you walking out of the store for just a few bucks and a bagful of items! But sometimes, there's just too many deals for one transaction! So you either drive to multiple locations or make several trips. Since our closest stores are 18mi.(round-trip), I have to figure in $2-4 in gas. So now, I pick the best deals and pass up on the others OR I only pick them up when I'm already out on a different errand.

4)Online Shopping - What's that? I haven't made an online purchase since our budget. Yeah, in part I am still leary about using my debit card online but mostly, I think about the deals more and pass up on them. They'll be around again before Christmas! :)

5)Other Shopping - For the most part, I'm not a big shopper. I hate crowded stores and long check-outs. I used to do most of my shopping online. Most who know me know I love eBay and Amazon! :) But now having a small amount of my own personal money, I REALLY think twice before spending it. And quite honestly, I am valueing the items I do buy for myself more because I know of all the items I "sacrified" to save for that one item.

Overall, while we were earning up to 5% credit card rewards, I think we were FAR spending that by not being super-smart-shoppers. Even though we were paying them off, we were still buying things we didn't need. And that money could have been put towards our vehicles or house. So in the end, I am a BIG fan of cash/debit only now!

So here's my challenge to you. (Do you DARE take it?) Give up your credit cards for one month and see how your shopping habits change! And in case you haven't already checked it out, think about reading Total Money Makeover. It might just make you over, too!

Good luck!