My financial life: Oh boy has it changed
Good morning Yes, I am Cheap friends. My name is Kristina and I’m the daily blogger over at Dinks Finance. Today Sandy has graciously invited me over here to share the story of how I went from being broke to being cheap. I turned my financial life around in three years and this is how I did it.
My out of control spending ended in $50k of debt
From my mid to late twenties I was living the high life, or at least I thought I was. I had a wallet full of credit cards and I spent money whenever I wanted something. I would spare no expense and I didn’t care how much anything cost. Why? Because I was making a six figure income from my personal finance job and I thought I could control my finances. Thought was the operative word.
Then the market crashed. One day I woke up and realized my excessive spending landed me over $50,000 in debt. I hit rock bottom and knew my income could no longer support my spending. So I had to make changes in my financial life to decrease my spending, lower my expenses and increase my monthly debt payments. That’s exactly what I did.
This is how my life changed from being broke to being cheap:
I only keep one credit card. Right now I only keep one credit card in my wallet. It is a no fee credit card with a $2,500 limit. I no longer have several credit cards with $5,000 or $10,000 limits. […]