“Cha-Ching” Spending

Sometimes, at the end of the month, I’m scratching my head thinking “Where’s the money?!”

Well, I know where it is: gone from “Cha-Ching” Spending, that’s where!

Grrrr, it gets me mad. So, I’ve put together a list of spending watch-outs.

Credit

Even in Subprime Meltdown World, credit is too easy to get.

I beware the credit card…

• -offers.

I have one credit card, with a 2% rebate. I use it for everything, and pay it off every month. I apply for credit cards to get the sign up rebates. I never use these. It’s my way of fighting back against questionable credit card company practices. Congress is discussing legislation to control them right now.
CNN reports: “Critics have charged that many credit card issuers engaged in “unfair” practices such as raising interest rates on debt even when consumers pay on time or imposing excessive fees.”

• -checks.

Credit card checks are a no-no-no for sure. They’re Totally Off Limits for me. They have higher interest than my regular card does, and 1-3% initiation fees.

• -no interest loans for a specific time.

I did this once and got burnt. If I do this again, I’ll verify with the company when exactly it needs to be paid off. They’re often vague about this date. I recently paid off a loan of this type on February 14th. The fine print said “in February.” It did not say February 1st or February 29th. I had to pay 14 days of high interest amounting to $40. But that aside, I would do this again if I needed to- like for a mandatory capital expense such as my refrigerator dying.

I beware the car loan.

• -The easiest loan I can get is a car loan.

I’ll be needing a car in about two years. I’ll need to decide how much I can afford per month, not let them do it. They’ll let me buy a Rolls Royce if I let them.

I pay more than the minimum payment.

• minimum payments are designed to make the credit card company shareholders rich, not you. I don’t carry money on my credit card, so I’m paying my mortgage down a little extra each month.

Social Pressures

Here are some scenarios I’ve been guilty of:

“If Joe can afford it, so can I.” Maybe Joe can’t afford it either.

“Drinks on me!“ My generosity is inversely proportional to the number of beers I’ve had.

“OK, count me in.“ And that night at the Red Sox game cost me $300 dollars!

Good Causes

I’ve learned to practice “controlled generosity.”

Again, the scenarios:

“I need to help out the kids.” As much as I believe in this, I need to keep reminding myself “If the ship sinks, we all go under.”

“It’s for a good cause.” Define your donation limits and stick to them. If you don’t, be sure you account for it in spending less somewhere else.

Emotional Pressures

“I work hard, I deserve it.” This happens to me mostly with books. I can control the big stuff, like vacations. but I nickel and dime myself with books, and those specialty Starbucks coffees.

“But I love them.“ This was especially bad for both of us before we got married. My spouse and I had a few credit cards we had to pay off after the honeymoon! Now we can talk about it, and are more careful.

To sum up-

Each opportunity I have to “cha-ching” blow money, is also a chance for me not to blow money.

If I keep tomorrow in mind, today will take care of itself.

Related Posts

• May 10, 2008 -- I Had a Dream That I Maxed Out All of My Credit Cards in One Glorious Day (8)
• April 29, 2008 -- Running the Gauntlet on Debt: A Debt Reduction Plan (6)
• July 25, 2008 -- Finally Some Relief for Struggling Home Owners (2)
• May 5, 2008 -- The Psychology of Money: Which Money Personality Do You Identify With? (3)
• April 14, 2008 -- When People Go Bad: A History of the Subprime Mess (12)

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