Money, and the Triple Threat

I know I've said this before...but I love tinkering with money. I love thinking about it, managing it, saving it, budgeting it, and yes...spending it. I know myself well enough to know when I should avoid certain stores...how many credit cards I can have open at one time, and when to return that dumb audio-book.

Here are just a couple of tips. Take them, leave them...these work for me. I'm not at all saying that they will work for you. Actually, I'm not even sure anyone but Kelly S. will think any of this is interesting in the slightest... :). Here we go:

1. For the entire day today think about every purchase it terms of how many hours of work you had to put in to pay for that thing you have in your hand. $50 may not feel like a lot, until you say to yourself, "hey, I literally worked 4 hours for this thing in my hand. Hmmm, maybe I don't need it that badly (unless it's toilet paper...please buy the toilet paper).

2. For me, I really like getting packages. One way to stop myself from even perusing the "$1" section at Target (the quotes are there because some items cost up to $3 and the whole lot ends up being a lot more!). I found that I can indulge these two revelations about myself with this:

www.citruslane.com

$25 a month (I think it's worth it) for a few little treasures from Citrus Lane, some $1 store finds and others are really much much more. The goodies are mostly for kiddos but a couple of things have been really nice that we both can use. Last month we got a book that was worth the $25 by itself! But we also got Honest Co. body wash, a deep steep stick, and snacks! This month we got the best little hat, some really nice sunscreen (that is all natural, etc. etc.), a sand toy, and sidewalk chalk with a holder! I realized that I could skip going to Target all together and rely on these little boxes at a reasonable cost...but ONLY if you stop sneaking into Target on your days off...that's fodder another post! Believe me, if I didn't know these would be delivered to my door every month I would find things in any store that I "needed."

3. Here's the Triple Threat part:

     ********Spending money on your credit card for things you "need" is a triple threat against you and your financial glory.

              I. You just spent $50 that you don't have until your next paycheck with money that isn't yours.

              II. That $50 will rack up $8.50 of fees (on a 17% card like one of mine was) if you don't pay it off.

             III. You, like me, could (and would) have used that $50 to pay down other charges you've already made onto your card...getting yourself out of debt that much quicker. Or, you would have provided for your family and would not have had to use that money to pay down stupid credit cards...chew on that!

So instead of having a charge of $250 on your card, you now have $350 on your card.  See the difference??? I did. That $50 charge will actually cost you MORE than $100. And I returned that $25 audio-book that I thought I desperately "needed." That charge is set to go straight back onto my credit card. And tomorrow I'm going straight to the library to get it for free. Sometimes you can put your tail between your legs and return the item. You can do it.

Unfortunately it isn't just that easy. I want so badly to tell you that this is an easy gig. But alas, it is not. I learned from the many financial planning classes I've taken that your debt to credit ratio is important. The more credit you have and are not using to the limit the better. So, in theory, the more credit you have the better...that is, if you can use it for gas ONCE a month and pay it off you will earn credit.

I'm Kristen and I'm a Shopaholic. It's only been a few days since I last spent. Today is a new day. At one point in my life I had many cards (like 10) and I have, indeed, closed down many of them for fear of racking up the sort of debt that tightens my throat when I think about it. I have one remaining credit card that reminds me of the life I used to live and could be living again if I lose focus. This one is one that I recently paid off and then transferred two other balances to at 0% for a year. Then it goes back to 9.9% which is still much better than the 17% I was paying.

I have four other credit cards. One has a relatively small balance which I will pay off (with any luck) within the next month or so. The other is a high interest, high limit card with no balance that I may close. Both of these are dangerous.

My third I don't think about much because it's a discover that I have another 0% APR balance transfer on. I WILL pay this off within the year and never pay a cent in fees. I carefully calculated the balance to be paid off within 15 months of opening it.

My last card is my Victoria's Secret card that I use every six months and pay off fully within the month of using it. It seems odd to me that of all my cards this is the one I am truly responsible with.

So the paradox is really owning credit cards and using them once an month AND paying the full balance down every single time....and being a shopaholic. But hopefully your Citrus Lane box with never be late and you will not lose focus on your budgeting. And if you ever want to hear me pontificate about things like "debt stacking," balance transfers, budgeting for any number of paychecks/people, and possible tips on keeping yourself out of Target's "$1" section...just let me know.