Would You Like To Save 10% on Your Purchase?

It’s so funny, I started writing this post and the next day I was in Target. All I was buying was a pack of pens, and the cashier (I’m not knocking her – she was just doing her job) asked me if I’d like to save 10% on my purchase. I politely said, “No, Thank You”. But I was thinking to myself, first of all, why do I need for you to run my credit in order to save 59 cents on some pens? (the pack of pens was only $5.99).  Secondly, the minute I get really busy and pay the bill a day late (don’t act like you haven’t done it), I get slapped with a $25 late fee. So much for saving money! Let’s take it a step further, though, and pretend the bill was $100. Then I would save $10, right?  It’s still not worth it, because the interest rates on store credit cards can be up to 28% – that’s almost $28 – and again, don’t mess around and have even one late pay…

Ladies, we have to think first about randomly signing up for any kind of credit. Some of us have 10 different cards that are still on our credit history – that may or may not have balances. After a while, we’re paying $20 on this card, $30 on that card, $119 on a loan, $49 on a computer, $98 on furniture – FOR YEARS – and we wonder why we run out of money after every paycheck…and why we can’t save money. We don’t have any LEFT to save! The amounts listed above add up to  $316.00.  That’s $316 every month that could be used to both save  for later and save up for stuff to buy.  How much do all your “extra” payments add up to?

THE SOLUTION:  The solution to this madness is to just wait and save money until we can pay for things in full. Furniture is NOT AN EMERGENCY.  A flat screen is NOT AN EMERGENCY. Bras and perfume are NOT EMERGENCIES (think Victoria’s Secret). It doesn’t feel good to have debt and payments hanging over our heads. It feels great, though, to have saved up for whatever it is we want, pay cash for it, and walk away free!! No bill, no 30 days later forgetting that the bill was coming…

The best thing we can do for our financial futures – next to having a written monthly budget – is to develop the self control to say “No” to things that are not emergencies. Ouch! That hurt me, too!  It feels good to be in charge of my own future (no pun intended)! It feels good to only have my utility bills coming to the house, instead of managing 7 different credit bills.

If  you have them, pay them off – smallest to greatest – and CLOSE THEM OUT.

By the way, did you notice I only got one thing in Target?! So proud of myself! ?