Friday, November 25, 2005

Why it pays to live within my means

I was browsing the yahoo finance section and came across a good article Why it pays to live within your means. Laura Rowley provided her reasons but she touch based on a lot of my reason as well.

We are a 1.5 income family. I make decent money working on my websites and affiliate marketing but it in reality it couldn't support us. My husband's income is decent but we got 3 kids and are close to paycheck to paycheck. We don't use credit cards even though people outside my little online frugal world think we are weird.

My husband was talking to some co-workers what would happen if they got laid off. (It is a possibility in the near future) Most of them were in a total panic-one just finanaced a new motorcycle to help with his mid-life crisis, another one said he didn't have any room on his credit cards to charge life's expenses. Neither one had any savings outside of retirement.

My husband who isn't too involved with our day to day finances knows the big picture said he would probably panic but then come home and realize that I probably had it under control since we don't have any credit card debit and a small but ok emergency fund that probably would be fine with unemployment insurance. While not an ideal situation, it would not be the end of the world.

1 comment:

SMB said...

Isn't that a wonderful feeling? It makes all of the "sacrifices" worth it.