When things start looking good financially for you...

[Thriftina]

do you start seeing yourself slack off in saving? Once that credit card is paid off, do you keep it for 'emergencies' only or do you end up charging just because? I notice that with a lot of people, once they pay off the debt and save some money, they start living like they did before and then they're in debt all over again. This is a problem with me, too. How do you keep the momentum?

[croland]

I find when things start looking good financially, honestly my mind starts to go to old habits. For example, "I can just eat out instead of taking my lunch". However, my new habits kick in and remind me to take my lunch and put the money in savings.

[skydivingchic]

I spent several years after college running up a CC balance of a few thousand, paying it off in a lump sum from a windfall or what should have been my EF, and then running it back up again. One day I finally decided that I knew better and was going to pay off the CC once and for all. First and foremost, it was an attitude change. I had to decide for myself that the savings goals were more important than spending on various stuff.

Second, having goals and automating savings helps me a lot. Much of my savings is automated so that I never even see the money. Besides having my 401k and Roth automated, I also have a good chunk of my paycheck direct deposited into my savings accounts for my EF, a new to me car and travel.

Travel is an addiction for me, so it is a goal and priority to save for it. I use Mvelopes, so anytime I want to spend more than is in my monthly "spending money" envelope, I have to decide where that money would come from. Generally speaking, the only place I could pull from is my personal savings account and that would mean taking money away from my travel fund. Sometimes it is worth it and sometimes not, but I'm forced to make that decision if I don't want to see red envelopes. Having a goal for my savings is hugely motivating.

[Staceyy]

I recently read a book that discussed this called, The Art of Systems Thinking by Joseph O'Connor & Ian McDermott. They state the problem is caused by our actual income versus our desired standard of living. Because we desire a certain standard of living our income cannot afford, we use credit cards to make up the shortfall or we dip into our savings. This puts us in a downward cycle as now we owe interest, or by using our savings it makes us more vulnerable to emergencies and unplanned expenses. The solution is to earn more money or lower our expectations. The book which is worth reading, of course explains it more thoroughly.

[Thriftina]

I recently read a book that discussed this called, The Art of Systems Thinking by Joseph O'Connor & Ian McDermott. They state the problem is caused by our actual income versus our desired standard of living. Because we desire a certain standard of living our income cannot afford, we use credit cards to make up the shortfall or we dip into our savings. This puts us in a downward cycle as now we owe interest, or by using our savings it makes us more vulnerable to emergencies and unplanned expenses. The solution is to earn more money or lower our expectations. The book which is worth reading, of course explains it more thoroughly.

I will check this book out.

[Seeker]

do you start seeing yourself slack off in saving? Once that credit card is paid off, do you keep it for 'emergencies' only or do you end up charging just because?

There's no reason to charge "just because."

I have no issues using a credit card and have never not paid off the entire monies charged each and every month. This from the college days when I first got a CC and before that when I was working part-time/full-time in High School and after.

People can and do keep CCs for "emergencies." But like all things, only you can do the right thing.

I notice that with a lot of people, once they pay off the debt and save some money, they start living like they did before and then they're in debt all over again. This is a problem with me, too. How do you keep the momentum?

Yes, this is a problem for a lot of people. "How do you keep the momentum"? You've taken that first step -- you've recognized the problem.

It's basically an attitude. From your other posting, you fell back to charging because of a "medical" issue. This is also quite a common thing.... many people start failing financially when these "sudden unexpected" events start happening in their lives.

But the attitude change comes in we start to recognize that we as humans are responsible for our own future. Nobody else is going to "take care of you" (me, or anyone).

When a person begins to look forward to the future, that's when we change. When we want to move out of folks homes. When we want to go to college. When we want to buy a home for ourselves. When we want to marry and have a family. When we want to take a vaction.

When we want something or need something, we have to work for the money to accomplish these objectives. Borrowing and incurring debts runs counter to these objectives... they delay them and sometimes make them unreachable.

Your future depends on how you handle money. Everyone's future depends on this on fact. Plan for anything and everything. That's the attitude change that needs to happen... to a lot of people.

Nobody else has your best interests at heart, only you. Remember your goals, and the attitude change will be automatic.

[illinigamer]

In my case, my friends have been a helpful influence. Some of my friends (but far from all) share my belief that accumulating wealth is more important than accumulating things. Spending time with them helps keep me on the right track (additionally the activities they like tend to be a lot cheaper than my other friends).

[tripods68]

Obama passed the Consumer PRotection for credit card companies just recently. As a result, credit card companies will now have the ability to charged @ higher interest rate especially for those who timely pays entire balances every month and interests starts to accrues at POS.

This is not a good thing.

[boosami]

Obama passed the Consumer PRotection for credit card companies just recently. As a result, credit card companies will now have the ability to charged @ higher interest rate especially for those who timely pays entire balances every month and interests starts to accrues at POS.

This is not a good thing.

What law is this???

[simpleyme]

do you start seeing yourself slack off in saving? Once that credit card is paid off, do you keep it for 'emergencies' only or do you end up charging just because? I notice that with a lot of people, once they pay off the debt and save some money, they start living like they did before and then they're in debt all over again. This is a problem with me, too. How do you keep the momentum?

you do have to resolve to quit borrowing money and pay for things,you seem to know what your problem is,so you have to be accountable to your self

I track my net worth that really keeps me on track

[GREENBACK]

Obama passed the Consumer PRotection for credit card companies just recently. As a result, credit card companies will now have the ability to charged @ higher interest rate especially for those who timely pays entire balances every month and interests starts to accrues at POS.

This is not a good thing.

I won't bow down to any credit card company. I use them extensively for buisness and personal use and pay them off monthly. If they start trying to milk any money out of me I have no problem whatsoever going back to strictly cash. I don't think they'll do this to good customers as a whole(it would be suicide) but I will definitely watch out for them.

[Thriftina]

What law is this???

From what I read, this law is supposed to benefit the consumer, not hurt us.

Obama proposes new consumer protection agency for credit cards, other financial services

Here's a breakdown of the act:
Summary: What a Consumer Financial Protection Agency would mean to credit card users

[Seeker]

Obama passed the Consumer PRotection for credit card companies just recently. As a result, credit card companies will now have the ability to charged @ higher interest rate especially for those who timely pays entire balances every month and interests starts to accrues at POS.

This is not a good thing.

Tripod68 -- where does it state that interest charges starts to accrue at point-of-sale?

The only POS I see, is for debit cards.... overdraft protection. As soon as the sale is debited, the person will know that it will go over the limit... and the person can decline at that point. Essentially an extra layer of user protection or warning that he/she will go over their balance with that sale.