Manage credit cards to build momentum

There are so many popular finance-related terms that have a “nature” tie-in, especially related to debt. There’s the debt snowball, the debt snowflake, and more recently, the increasingly popular debt tsunami.  I’d imagine it’s not going to be too long before we see a debt avalanche.  It’s fun and extremely motivating to model a part of your financial approach after a powerful, growing force.

The reason these methods are successful is that they all revolve around one thing: momentum.

Momentum: Impetus of a nonphysical process, such as an idea or a course of events (what’s an impetus? a stimulus or beginning)

When an object or an idea builds momentum, it becomes more difficult to stop. It picks up speed and moves more and more quickly. Snowballs, avalanches and rock and mud slides can all be talked about in terms of momentum. These natural forces grow extremely quickly, and are extremely powerful.

Why is Momentum So Important?

It’s important to recognize momentum as it comes into play with your finances. It can either be a positive or negative force.

Negative Financial Momentum:

• Interest Rates – continually dragging you backwards as they add to the amount you owe every month
• Debt – adding new debts also slows your momentum
• Disorganization – not knowing what you are spending on, which bills are due, and not having a financial plan at all
• Fees and Charges – Add up very fast every month if you forget to pay things on time!

Positive Financial Momentum:

• Good Financial Habits
• Compounding Interest (from savings and investments)
• Saving Consistently (automatically)
• Removing Debt and Increasing Savings
• Paying Bills on Time
• Paying off credit card balances each month

Use Momentum to Your Advantage

Momentum can be a powerful ally in your fight for financial freedom. Building good financial habits and continuing with them will strengthen your “debt-crushing, bill-eating, money-saving” financial energy and help you to do even more and more with your money.

By removing instances of negative momentum as much as possible from your finances, you can reduce the heavy weight of the debt you’re carrying.

If you increase the opportunities for positive momentum to find a place in your financial life, you’ll be much more successful and reach your debt-free goals quicker.

Getting into good habits financially will improve your credit and allow you to have the freedom of the option of getting a big loan such as a mortgage in the future as a way to invest your money and grow your personal wealth. You may be surprised after getting a free credit report to see how poor planning and disorganization in the past affects your credit score today.

Momentum is important because with every payment you make and every loan you pay off, you’re strengthening not only your financial situation but you’re also increasing your ability and your resolve to keep moving towards a debt-free financially independent lifestyle.

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The first time I heard about being frugal……I was at a friends house and she had a newsletter called “The Tightwad Gazette”. I was fascinated that you could reuse items and make food from scratch. I read all of her copies and then discovered older ones were in a book. I then went to the library and read all that I could on frugal living. I took so many notes, years later I’m still taking notes!

Frugal living has touched my life…..in so many ways. When I was a single mom, I had no tools or previous knowledge of these things. I thought everything had to be bought retail. I had no idea how to cook. It wasn’t until years later that I learned these things, after I remarried. I could have stretched my dollars so much further.

I wasn’t raise to be frugal, ….My parents never taught us anything about money. Meals consisted of hot dogs, fish sticks and beef soup from a freeze dried mix. I’ll tell you that my kids shop second hand and use coupons.

The joy of frugality

My new husband hasn’t been frugal at all. We’ve spent 11 years fighting over money. He would spend and spend and go into debt. I tried to get him to use coupons and shop at thrift stores but he said why, we can afford it. Well, his job of 16 years closed this last December. The new job is at half the pay. Getting out of debt and staying out is now his new goal. Yay! We use coupons (got a great deal with a straight talk promo code recently), shop second hand when we can, eat out once a month, watch movies from the library and have more fun being together as a family.

I also shop for holidays months in advance. I buy gifts at half price or lower. The recipient doesn’t care how much I spent, just that they receive something that they wanted or needed! A “gift box” is something all frugal minded people need. I try to keep it stocked for any occasion and never have to run out and get that last minute gift. It’s also great at Christmas, at work when you receive a gift from someone you weren’t expecting to, you always have a small gift in your bag! he he

I subscribe to all the big coupon sites and visit them regularly too. These days (especially when you shop online like I do) you can find promotional codes and coupon deals for practically anything that you buy. Even if you are buying a new phone or changing to a new cell plan you can use a verizon promo code to spend a lot less money.

Frugal isn’t a dirty word! Embrace it, change your lifestyle accordingly and enjoy your financial freedom.

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