I haven't had a credit card or a credit card balance in six years. Since then, I've used a debit card for everything. If there is something I want and I cannot afford it at the moment, I wait until I have the cash available.

That is so very true. We tend to shake our heads at $3.00/gal gasoline prices, but some people out there are willing to borrow money at 18% interest to finance a $12.00 lunch.

I review my budget quarterly and figure out how much money is being spent on things such as gasoline, groceries, dining, and other various expenses. This allows me to better analyze how much to budget and if and where to make financial adjustments.

As for some specific examples, running all of our errands in one day versus spreading them out over the week, and purchasing things online instead of driving around shopping for them.

For the approaching summer months, keeping the blinds closed on the sunny side of the house will help keep those rooms cooler and thus, keep the a/c from running as much.

Thanks Led. Good tips.

This is an article about changing food habits of people who once never thought twice about driving to the store just for a Snickers bar and Coke. My family has been doing what was described for a long time. People used to say we were cheap .... and they would be correct! :)

http://www.msnbc.msn.com/id/23882299/

My sister is a bigwig making big bucks at the University of Washington, but her greatest enjoyment is going to the outlet - not the Coach or Ann Taylor Outlet, but the Goodwill Outlet where things are sold by the pound. Now SHE makes the rest of us look like free wheeling spenders. :D

100% correct. My wife and I did our semi-irresponsible credit card use (which I define as ever carrying a balance that results in paying any interest) back in college, and have been free of ANY revolving debt for more than a decade.

Other stuff we do:

1) use compact flourescent bulbs.
2) digital thermostats, programmed to go down (or off) in zones of the house during non-occupied hours.
3) fill the major appliances before running them (washer, dryer, dishwasher) - no partial loads.
4) digital phone ($21/mo vs. over $40 for POTS)
5) clip coupons - but only for products or services we already buy/use!
6) buy big-ticket items through nontraditional channels when the price is better (cars and planes on eBay).
7) Use a library card.

Stuff we will try to do:
1) unplug appliances when not in use (most modern electronic devices consume power whenever they are plugged in...just turn off everything in your house some night, and then wander around looking for little red lights and warm black boxes...they are warm because they are drawing current!)
2) commute together (this is a big one - just commuting in the same car 1 day per week would save us $30/month in gas alone)
3) downsize our house when we relocate. Our "american dream" is bigger than it has to be, resulting in higher maintenance, taxes, etc.

If you pay it off, you are not paying interest. Just the cost of the stamp.

Have had several credit cards for 23 years. Never paid interest on any of them. Come to think of it, I've never had a loan--I don't know how you'd even apply for one.

Congrats, but sadly you and I represent less than five percent of consumers. Sadder still is that studies have shown that even among those that pay off their balances every month 95% spent more than they would have with cash. (Something to do with the psychology of scarcity) Only those in that ultra small percentage who not only pay off their balance each month, but spend no extra as a result actually beat the system.

I use a credit card for almost everything, but pay it off each month.

The problem with cash is that $2 ATM fee while on the road...I don't want to carry around $400, so if I pull $200 I'm paying 1% just to use the ATM.

I'm not going to give up espresso, but we did get a decent machine for home use so I can save the starbucks tax when not on the road.

If you're going to be in your house for a while, do all the insulation upgrades. This will save big on the energy bills, and increase value when/if you sell.

Get a new water heater and HVAC system if yours is old...new ones are VERY effecient.

I believe the number is in the range of 30% more spent with a credit card on average per purchase. It apparently hurts more to fork of the money when you hand over cash. It turns out from recent studies that we overspend using the debit card also. I still think that even using credit cards is bad news. My debit card gives back over 1% for anytime I use the debit card as a credit card. Airline miles/points are virtually a scam. You don't have to have a card to rent a car/hotel. No reason to play with fire. You can only get burned.

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Some banks will pay the ATM fee for you if you use other banks' ATMs and they don't charge for using their own. USAA Bank reimburses you 15 dollars in "other" bank ATM fees per month--and they don't charge for their own.