The very first thing we did when starting our year of saving to buy a house was cut up our credit cards. Yep!
We actually read one of Mr Money Mustache's blog posts and instantly felt like big idiots for even having them. Let me give you a little intro to myself, I am 31 and my partner is 30. We'd like to retire at the age of 45 with a couple of kids running around and complete financial freedom.
Lot's of people would laugh at the fact that we even think we can achieve that, but if Mr Money Mustache could have retired at age 30, then we can strive for 45! It does take discipline though and definitely a big change in the way we think and consume.
My partner and I both have very average wages, so we're not going to get there cause we're earning bonkers money, we're just getting smarter about the way we use the money we do make.
Now, back to credit cards.
If you have one and if you are using it to buy things you want, then they are most likely things that you don't need. You won't be remembered for the cool stripy t-shirt you wore to work that day, or those cute shoes that were really cute, but now you're paying the bank 19% interest on the $200 they cost you. That's just RIDICULOUS.
Cut it out!
If you have savings, transfer them over and close the card.
If not, you can actually do some research and transfer the balance to a zero-annual fee card with 6 months interest free payments. Then clear it, and close it.
If you really want to get savvy, you can take advantage of the banks that will give you free money for opening a credit card, then make sure you close it within the timeframe they have before they start charging you - or you decide to start spending on it. That's free money!
Once you've stopped with the credit card, I'll know you're for real and ready to move onto the next step.