Wednesday, February 25, 2015

NEVER Paid a Penny in Interest!

She was born in 1963. She was the fifth and final child in her family. Her mother was a stay-at-home mom and her dad, who is 91 years old and looks amazing, would work three jobs to keep food on the table. He knew where every single penny was spent. He never had debt and never wanted to pay interest on anything. If the family needed something, they would save up until they had enough money. He bought his cars and home with cash. He never overspent. She said their childhood was a happy one!

Her mom would go to the second day bakery and they all wore hand me downs but they had a lot of fun. Their vacations were at a friend's cabin at a river near their home. Children today get gifts all the time; they got a gift at Christmas and their birthday and that was it. They never felt as if they were struggling; they just lived on a very strict budget.

Her dad went through the Great Depression and she feels that he has the key to healthy financial living. He never paid a penny on interest. He has a relationship with cash; something this generation knows nothing about. We have a relationship with our credit cards. "In my day, you'd get a quarter and spend 15 cents and save a dime. Your generation gets a quarter, you spend the quarter; you borrow another quarter at 23 % interest."

His first pay check was $3.63. He's from the era of sticking to a budget. He had a couple of envelopes and used cash. He kept track of every penny he made; his income and every bill that needed to be paid were in a little book from 1942 to the day he retired in 1990. "You need to pay yourself first and save some each time you are paid. Save it as if you didn't have it because you are going to need it eventually."

Now, they own their home and they are well set financially but they still live frugally and within his budget. This is her dad's mindset: If you can't afford to pay it with cash, you don't buy it. Whereas, we go shopping, hand over the plastic and have no idea what we're signing or how much we've spent. If you had to turn over $100 bills there's no way we would spend so much. MIT did a study and there is a pain associated with turning over cash, but you do not have that pain when you turn over plastic.

Stay home. You don't need granite counter tops, stainless steel appliances and brand new cars. Learn to live simply and within your husband's income. Be content with buying needs instead of getting wants. Get rid of clutter and stop wasting time on the iPhone and computer. Keep your homes clean and tidy. Fix nourishing food from scratch.

We expect too much today. We want what we want, when we want. We are not willing to wait patiently for anything, therefore, we are a nation deep in debt. I encourage you to get out of all debt. Stop paying money on interest, if at all possible. Live simply, frugally and content!

Owe no man any thing, but to love one another: 
for he that loveth another hath fulfilled the law.
Romans 13:8

***To get you started, here are my recipes for homemade laundry and dishwasher detergent and a very cheap, non-toxic and effective all purpose cleaner!