Wednesday, January 27, 2010

Almost Free!

So, I've had a credit card since I was 18. Before I ventured away from the homeland, my parents made sure I had an "in case of emergency" card. To me, that translated into "in case I'm hungry and want Texas Roadhouse", "in case I find an extremely cute shirt", "in case I really need a new pair of shoes". Well, actually in the beginning I was really frugal with my shiny silver piece of plastic. It wasn't until about 18 months/2 years ago (and two new cards) when I decided to use it a little more freely than I should. Mind you, I by no means was or am a shopaholic. I'm a lot of holic's but not a shopa.

I did however make a few rash purchases that landed me a couple thou in debt. My last tax return (of a little over 2 grand) went straight towards the revolving balance that I once never had (yes, I used to pay the balance off each month). A washer/dryer purchase landed me another grand in debt and various odds and ends-mainly bars and food put me further behind.

I'm saying all of this because two years and several times of "almost" having my various cards paid off, I'm officially $170.00 away from being debt free. And let me tell you, it's an amazing feeling. With that being said, this experience has provided great lessons.

1. Budget, budget, budget: when splurging on huge purchases like a washer and dryer (or new wardrobe), plan out a pay schedule so the balance is paid off in a somewhat timely manner- before finance charges start amounting to more than the original purchase. This is extremely difficult, yes, I know. Before every social outting, I allow myself a preset amount of cash to blow. And almost at every outting, I end up whipping out the plastic. Leave it at home. When the cash is gone, it's gone. And unless your propositioning yourself to the savvy gentlement to your left, it'll save you a headache in the morning.

2. Don't buy it if you can't afford it: So Murphy's Law more than likely will apply here. If you can't afford it, more than likely you're going to need it. Like a root canal or hell, even groceries. But if your stargazing at the latest boots that will set you back a pretty penny, save up that hard earned cash and feel good that you haven't given into a whim.

3. If you have extra money, apply it towards the card: I think this is the tip that I should've (key word should have) utilized the most. If I had extra money at the month, part whent into my savings and the other half into my stomach (I'm a sucker for restaurants and booze). But that $300 I spent last weekend at various pubs and bars (and the boy's new shoes) would have paid off the outstanding $170.00. Not too mention, would have looked damn good in my/our savings account.

Believe it or not, I'm pretty good with money. I keep a certain amount of money each month (mind you, I only get paid once of month-stupid Congress) in my bank account for emergencies (I'm a tad paranoid). So when I get down to the wire, I stop spending money. Whether it be the 15th of the month or the 28th. And I've learned, this is when I bust out the credit card. Recognizing the error of one's ways is the first step.

I'm hoping 2010 is a great debt-free year for me. Crap! Debt-free and new mortgage are not synomyous... in fact. I believe their antonyms. Oh well, I can at least try and manage those plastic cards a little better.

1 comment:

  1. $170.00!!!!!!!!!!!!!!

    Congrats, lady, that is truly great!!!!

    ReplyDelete