Budgeting and Saving

Two key parts of money management to help you achieve financial success.

3 Lessons from a Leprechaun About Saving, Using Credit Wisely and Being Debt Free

By Julie Jaggernath

If you could trap a tricky little leprechaun, what would you ask him about being debt free? March 17 is a day when many people wonder what riches or treasures might be waiting for them at the end of the rainbow. While a leprechaun saves his gold and doesn’t need to use credit, what would he tell you about finding your own treasure?Save for your goals and your future, use credit wisely and plan to be debt free.

1.  It Doesn’t Matter If Your Credit Card Limits Are High or Low, They Can Still Lead to Debt

The first “treasure” that comes to mind is when people discover the convenience of their first credit card. At first the spending limit seems like an endless supply of free money, but those who fall prey to the temptation of spending more than they can afford to pay back, soon discover that their new-found treasure is anything but.

Regardless if your credit card limit is high or low, what you spend is still debt. And the more debt you have to repay, the harder it is to find money in your budget to save and get ahead.

2.  Debt Consolidation with a Mortgage Can Use Up Your Home Equity

A second “treasure” that many homeowners discover is the “miracle” of using their house to pay off their debts with a mortgage debt consolidation loan. This can either be a second mortgage or the refinancing of the first mortgage to include the debt that’s being consolidated.

Sometimes it’s worth using carefully built up equity and letting a house lend a hand. However, if the debts and maxed out credit cards are due to spending more than you earn, the leprechaun wants you to know that relying on your house as an ATM or to consolidate debt can spell trouble down the road when your luck runs out.

3.  Balance Your Personal Budget and Create Your Own Luck

The third “treasure” is little more elusive and can be harder to find. Some folks depend on “lady luck,” playing the lottery or banking on winning big to balance their personal budget and plan for the future. Others face unexpected expenses that they just can’t manage.

There’s no time to look for a rainbow when you’re running from one rain cloud to the next. Instead of counting on a lucky streak, create your own and stash your cash. Working towards a balanced budget lets you save and spend according to your priorities and what’s important to you. It also means having what you need when you need it. Kind of like your own pot of gold.

Leprechauns Might Just Know More About Saving, Using Credit Wisely and Being Debt Free Than We Think!

As the leprechaun wisely reveals, the only pot of gold is the one we create for ourselves by saving, using credit wisely and having a plan for being debt free.

While your gold card may seem like a pot of gold, as all clever little leprechauns know, things aren’t always as they seem.

 

<< Back to the Blog main page

 

Feel stressed about needing to save?

Get help making the best budget for you.

Budgeting and saving money are key to financial health, and the sooner you start, the faster you’ll be able to reach your goals. Get started now with free and confidential help from a non-profit credit counsellor. Our counsellors can review your financial situation with you, answer any questions you have, and help guide you towards concrete solutions.

Related Articles

Budgeting Guidelines

A breakdown of categories for your budget and how much to spend on each type of expense.

Top Budgeting Tools

Make budgeting easier with the right tools and tips for you. Free downloadable spreadsheets too!

Pay Off Debt or Save?

There are really good reasons to pay off debt, but the same can be said for saving. Here’s why.

 

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *