Lessons I have learned that have improved my financial life

USE YOUR CREDIT CARDS WISELY

I do have credit cards, but I don't carry debt in any of them. I have a main card I use to buy groceries, clothes, pay for gas, cable, phone, utilities, dining out, etc however I made sure I only spend what I can pay in full at the end of each month. I get rewards points which I later exchange for gift cards to buy clothes for me and my husband, or to pay for some of our dining out. Other times I give some of those gift cards to family and friends for birthdays or Christmas gifts.

LOWER YOUR CREDIT CARD INTEREST RATES

My husband and I moved balances from two of my husband's credit cards at 16.5% interest to my credit card at 11%. It might not seem like a lot reducing 5.5% but remember "a penny saved is a penny earned". Once his FICO credit score started to improve (originally 612), he began to receive credit cards offers for 1.99%. He applied for that card and transfer as much of the balances as possible to this low interest rate. we continue doing the same payments to the credit card but they were going mostly towards paying the principal. Before we were mostly paying the interest portion. Later he received an even better offer 0% for life unless defaulting in any of our financial responsibilities which are reported to the credit report agencies. We transferred as much as we could. There was a fee for $50 o so for the transfer. Happy to say we have paid this debt off!! It took us approximately 6 years or so because we were paying just the min payment since there was not need to reduce principal when the interest is %0! I was making sure we didn't default in any of the other financial responsibilities that would have make the interest jump up!

BE WILLING TO MOVE WHERE JOB OPPORTUNITIES ARE AVAILABLE

In 2004 my husband was offered a promotion but the new job implied to move to another city, leave our house, our family, our old friends. Sometimes we must be willing to move were the job opportunities are. That new job came also with more responsibilities and more money, 50% more that he was earning before. When more money is coming there is a tendency of spending more too. Having discipline and a budget in place helped us control our expenses and made a better use of the extra money. Most of it was used to pay off my husband's student loan and the car loan. It is a great feeling not carrying $40,000 student loan debt and having a car that is totally paid off.

BUY AN USED CAR IN GOOD CONDITION AND DRIVE IT FOR AS LONG AS YOU CAN

We bought an used Toyota in 2003. It was 3 years old and had 30,000 miles. We had a 5 year loan we were able to pay off in less time which save us some money in interest. In 2007 my husband was dreaming of buying a new car but I kept reminding him how well in track to financial independence we were because of not having car payments. We drove our Toyota for 7 years and sold it at the end of 2010. I could have driven it for longer but my husband was so desperate for having a "new" used car, so on December 2010 as a Christmas gift he bought another used car and paid cash for it! Hope I can be driving it for another 7 or more years.

SHARE A MEAL (OR SEVERAL MEALS)

When we were dating my husband and I used to go out for diner every Friday night (that was 10 year ago and we still do!) and order one appetizer, soft drinks and one entree for each of us. Once we started on our journey to get better financially, in order to reduce our expenses we began to share one entree. Think about it, this approach makes you get your finances in shape and you body too!

This lessons learned help me and my husband financially, hopefully some or all can also help you!