Pay Yourself to Use Household Items

One of the worst habits that people have when it comes to budgeting is that after they have made a purchase, they assume that the item is free to use.

The truth is that almost everything has a cost associated with its use. This includes the cost of powering the item through such means as electricity and gas, as well as the wear and tear that occurs.

Acknowledging the costs -- including replacement costs -- will allow you to set up a program in which you pay yourself per use (pay to use), so you never again have to pay for an appliance or car with credit.

Pay-to-use is a great way to set up an emergency fund, but once that's in place, the same concept can be used to set aside the costs for repairs and replacement for all your major purchases. ...