A BASIC RULE OF FINANCE
How To Cut Your Household BudgetConsumer guide to frugal living. Discount and money-saving household budget and personal finance strategies. Reduce living and home expenses with no extra work and no change in your lifestyle once you learn all of our simple easy tricks.
By $5000 A Year
50+ Page Online Book By Rick Doble - Complete and Free
This is a free service of SAVVY-DISCOUNTS.com
the nation's #1 free newsletter for smart consumer ideas
click here to find our more about Savvy-Discounts
7.3 A BASIC RULE OF FINANCE
Borrow short term for short term needs; borrow long term for long term needs.
For example, you should never, never, never charge dinner, gas, or groceries and then finance them long term. In the year 2000 you could be paying for a meal you ate in 1995! Everyday expenses should be paid out of your monthly budget, not paid with borrowed money. This is exactly how people start sinking in a sea of credit card debt.
However, if you buy an appliance, it might make sense to borrow and pay for it over time. That's because you will be using the appliance for a number of years. A low interest credit card such as Card Type B (see 2) might be appropriate for such a loan.