You can live without borrowing money

Too much credit and then a shortage thereof might be sinking the economy, but the personal attitude of blogger "NCN" is "Credit? Who needs it." He hasn't borrowed money in any form or fashion for four years -- and that includes using a credit card.

Remarkably, he's even saving up to buy a house with cash. Is this a radical approach that's impossible for most people, or an idea whose time has come? Either way, he explains how to do it.

Granted, NCN, who blogs at No Credit Needed, has an advantage on the housing front. He and his family live in a rental that's provided as part of his job compensation. However, planning for a house, car, the other big things we need to buy from time to time, let alone paying the daily expenses of life -- all without credit -- is remarkable and admirable. 

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Read his post "How I live without borrowing money" (and a follow-up post) to see how he does it. But, as is our way, we'll give you some of the highlights:

Here's a word people don't like to hear -- sacrifice. He writes, "There are no shortcuts. If you want to have enough money in the future, you have to sacrifice today." That means buying generic and not buying every toy and gadget. He and his wife also put a house payment into savings every month. Remember, they want to buy theirs with cash.

You have to budget. He swears that budgeting is a stress-reliever. With all the worry about the economy, we all need ways to reduce stress.

You need to plan. Otherwise, how else are you going to save so you can pay for a new washer and dryer or car with cash?

Keep your focus. NCN says it best:

When everyone else is buying new cars and upgrading to the latest and greatest, it takes a certain inner strength to be content with what you already have. As recent events have shown, however, most Americans (and most politicians) would do well to learn a little fiscal restraint.

Published Oct. 7, 2008