Having Fun Without Credit

Life without a credit card is possible, it just takes discipline and patience.

I am a firm believer that you don't need a credit card to enjoy the finer things in life. Five years ago, my wife and I decided to tear up all of our cards to combat the growing debt problems we were facing. Sure, it's been tough to live with out credit, but we're managing just fine.

Instead of buying on impulse, we plan our purchases and splurges. For example, this summer we took a nice week long vacation in Belize. It took us over a year and a half to plan the trip, but it was well worth the wait.

First, we sat down and figured out how much the trip would cost (including air fare, meals, lodging, entertainment, and 'extras'). Then we decided to budget roughly $200 to $250 each month in a 'vacation fund'. In order to save that much money each month, we had to make cuts in our spending. We limited eating out, going to the movies, or spending our money on other 'extras'.

By the time it came to order our plane tickets and reserve our room, we had saved roughly $2,500 in our vacation account. By the time we got to Belize, we a little under a $1000 in extra spending money. By being patient and budgeting for the vacation that we wanted, we were able to enjoy a great away.

Six months later, we are able to look back at our great adventure travel vacation in the Caribbean without worrying about any credit card statements. We don't have the burden of making payments to Visa or Mastercard for the next 10 years because our vacation was paid in full.

Maybe we should go to France next.