Mo' Money, Mo' Problems [Part Two]
[ 7 July 2010 ]
Life without a credit card?!
When Sheila interviewed me for the Post, I think she was surprised to hear that I don’t own a credit card. I think most people would be surprised to hear that! The fact of the matter is that I only recently moved to America, & as I have absolutely no credit history here, it would be nigh impossible for me to get a credit card (even if I wanted one, which I don’t!).
This puts me in the position of actually having to EARN my money BEFORE I spend it, & while this may sound like an epic drag, it is one of my keys to being financially secure. (Putting a bunch of your money into savings every month is obviously another good step!)
I was discussing this with Molly Crabapple the other day. She knows Sheila & I was telling her about the discussion we’d had — especially the part about not having a credit card. She said,
“Not having a credit card is so key! I don’t have one either. Not having a credit card is I think one of the best ways to allow yourself indulgences without getting into the sucking maw of debt. You know exactly how much money you have, and so you can spend it or save it without being irresponsible.”
I was definitely an irresponsible spender when I was younger. In New Zealand, I had been with the same bank since I was about 12, & when I got my first job, they happily offered me a credit card. I accepted with delight. ‘Free money!’, I thought, & so, with absolutely no regard for what I could afford, I spent my way through my youth, & at the end of every month I would sit around chewing my nails, unsure whether I had enough money to pay my rent.
When I started this website (at 23 years old), I was living off my credit card, & eventually I hit my limit. When that happened, things changed. I could only spend what I actually had in my hand, & while it was immensely stressful & difficult at the time, it actually turned out to be a good thing — & has set me up with good habits.
Credit cards can be wonderful (say, in emergencies, or as a way of building up good credit), but they can also be extremely dangerous! It’s so easy to rack up debt without even thinking about it, & if you know you’re irresponsible with money — especially when you’re young — you will save yourself a lot of anguish later on if you can put off getting one until you feel like you can be trusted to be responsible with it.
When your bank sends you a sweet little note in the mail asking if you’d like to increase the limit on your credit card, please be smart about it. Spending money you don’t have has consequences, & you will learn it sooner or later! I learned the hard way, & you shouldn’t have to. Bear in mind that collecting late fees from credit cards is a constant & easy stream of income for a bank. The majority of people will be paying off the interest on their card for years & years.
Here are some choice facts about credit card debt.
The average household owes $16,007 in credit card debt.
There are 576,000,000 credit cards in circulation in the United States… & the population is only 309,000,000.
98% of the U.S.A.‘s debt stems from credit cards, & it totals $864,000,000,000. That’s $864 billion!
The average credit card holder has 3.5 credit cards.
Half of all college undergraduates had four OR MORE credit cards in 2008.
Credit card penalty fees ALONE reached $20.5 billion in 2009.
(Source.)
If you do have a credit card, make sure you know how much you can afford to spend, & pay it off every month! If you can’t afford to buy something, don’t buy it! It’s a simple premise, but it will keep you out of a lot of trouble.
Another thing you might like to do is transfer the money you plan to spend in a month from your bank account to your credit card. Then just charge everything onto your card. It’s a good way to accumulate “points” (if your card is on a points scheme) & to generate a good credit rating. Additionally, this way, you’re never spending what isn’t there. You just need to keep an eye on it!
What is “shopping”?
The funny thing about the article on shopping that I was quoted in is that the word “shopping” wasn’t defined. I think we all have a different idea of what “shopping” is. Is it an all-out blitz, a credit card frenzy? Or is it more about window shopping & weighing your options? My view of shopping leans more towards the latter — I don’t think of “shopping” as purchasing, necessarily. When I say I’m going to go shopping, what that really means is that I’m going to see what’s available. So while I may spend some time looking in stores & browsing online, that doesn’t mean I’m handing over my dosh! It can sometimes be more fun to create an incredible outfit on Polyvore than to have your eyes roll back in your head with sticker shock!
I do love to shop, though — window or otherwise. I love the challenge of it, the thrill of seeing what’s new, the way everything is merchandised, the excitement of putting things together, comparing & contrasting items, & maximising the value of the things I buy.
I’m also in the fantastic position of being able to shop as research — & regardless of what anyone might think, it’s necessary to find out what’s happening in the world of fashion. While the top tier of fashion is what’s happening on the catwalk, what it REALLY comes down to is what people are buying! How do people look in those latest styles? What do they say to their friend in the dressing room over about how they feel in the clothes? Fashion is about what happens on the street, & you only learn about that by pounding the pavement, looking in windows, & observing other people as they shop.
It is absolutely possible to be a smart, intelligent & discerning shopper these days. There is almost no reason to pay full retail for anything, & I do so extremely rarely. I don’t care about being the first off the block with the hot new pair of shoes or the “it” handbag, because I don’t have any love for trends & I can’t think of anything worse than owning the same thing as everyone else. Who wants to buy their way into a clique? Other people perhaps, but not me.
Even beyond getting a bargain, the concept of shopping one’s own wardrobe, buying vintage & re-purposing what you already own is a fantastic way to get out of a sartorial rut & not feel the strain on your wallet. Way, way, waaaaay back when I started galadarling.com (2006 baby!), the reason I began doing daily outfit photos was to show people how useful it could be to document their wardrobe. You get an idea of what fits & what doesn’t, the items which suit your shape or colouring, & you realise what a treasure trove your closet already is! The idea was not to encourage you to spend like mad — a fact compounded by the fact that I had no money & couldn’t do so myself! — but to inspire people to wear their old favourites in new ways.
The site has changed since then, & I no longer find writing about fashion or style as satisfying as I once did. While I appreciate & adore clothing, writing about improving your life, learning how to be happy or the thrill of travelling is much more interesting to me these days!
Despite all this, I am still not the world’s most responsible person with money! I live in the realm of fantasy a lot (um, if you hadn’t noticed!) & previously, I have been less concerned with paying my rent than perhaps I should have been! But as I get older & more mature, I’m a little more thoughtful about where my money goes — & what my priorities are! I’m not perfect, but I’m working on it.
Tell us…
How much time do you spend shopping? Do you consider yourself responsible with money? Do you have a savings account? Did your parents teach you how to be smart with money or have you had to figure it out yourself? What’s the best piece of money advice you’ve ever been given?
RADICAL self-love & stardust,
Tags: life,
question Follow me on Twitter! Listen to my latest podcast! Love & Sequins 10: International Playgirls Unlimited!
Gala, first I’d love to thank you for being open about your past with a credit card. While I knew for a while you didn’t have one, I didn’t know that you HAD had one… and I think that makes a hell of a lot of difference. It’s easy to say, “Don’t have one!” having NEVER had one. But to have had one, conquered a bad past… it builds your street cred up, ya know?
One of my own personal goals is to pay off my credit cards and use them monthly to pay bills; I’ve got a bad past of being young with a big limit, and then using them to rebuild life after Hurricane Katrina (and badly using them for emotional recovery). Then use them as necessary for funding trips (or big purchases), but knowing that I can pay them off. Because credit cards DO have extra protection & security on them, so while traveling, making big purchases—they can be really great.
THIS—IS PERFECT: Despite all this, I am still not the world’s most responsible person with money! I live in the realm of fantasy a lot (um, if you hadn’t noticed!) & previously, I have been less concerned with paying my rent than perhaps I should have been! But as I get older & more mature, I’m a little more thoughtful about where my money goes — & what my priorities are! I’m not perfect, but I’m working on it.
As for my shopping habit… I look often. I buy rarely. I kind of joke that I have quarterly binges. I go months without buying ANYTHING, and then every few months spend a couple hundred dollars— new shoes, bras, whatever. This quarter’s binge included: new etsy earrings, a handbag, new sunglasses, new bras (which I actually NEEDED), and a plane ticket to Denver. But again, I haven’t bought anything since March/April.
My parents were always really quiet about money— and I think I address this in my own post…. I think a LOT of parents don’t discuss how money works. So we get off in the world, are given “free” money, and have no idea the responsibility we are holding.
The best money advice I’d gotten was from a friend who gave me Suze Orman’s “Young, Fabulous, & Broke” for my birthday. Priceless!
Ashe Mischief — I think I have also recently been on a learning curve re: buying cheap stuff en masse. In NZ, we have cheaper stores but the quality is still quite good, & made in New Zealand (for the most part). Their stuff is less expensive than most stores, but it’s still not a total bargain. I was used to going to them to buy basics (tank tops, cardigans, etc.).
I couldn’t believe my eyes when I got to the USA, where you can buy an entire wardrobe for nothing! I was so amazed & excited by the possibilities of that that I think I went a bit crazy. & NOW, I feel like
a) that’s not a cool thing to support &
b) all that stuff is falling apart now anyway, & I’m having to replace it with real stuff which DOES cost money & will last!
That’s not to say I will avoid chain stores & cheapie places always, because I think sometimes they have cool accessories which can make an outfit, & if you want to just try a trend without investing a zillion dollars, it’s an okay place to go. But I think I’ve learned my lesson. & I feel good about it.
Love love love this article! :)
It seems that what I’ve always known to be ‘common sense’ isn’t quite so clear for others. My parents have always raised me to not spend money that you don’t have. While i’m sure that there are situations in which a credit card is usefull, it’s one of the luxuries of life. I don’t understand people who say stuff like “Oh I have no idea what to do without my credit card!” ... Besides that it’s hard enough for me to keep up with my finances (rent, other bills etc. paid in time) let alone worrying about debt on top of that. My student loans are bad enough on itself!
& anyway it’s quite a weird concept anyway isn’t it? Spending money that you haven’t even earned yet? Think of what your gran (or in any case, my gran!) would think about it. She’d always say “if you want something, you’ll have to work for it!” & I believe that. It’ll give so much more statisfaction too, if it took you a while to save for something big + it really makes you think about your purchases so you won’t end up with something you don’t really like after all.
There are really people out there who will spend and spend and spend beyond their means JUST because there’s a slip of plastic in their wallet? I don’t think the credit cards are the culprit, I think it’s the psychology behind the desire to live beyond your own means. Do consider the fact that “compulsive spending/shopping” is a disease.
I have two credit cards, and have never been in debt. Ever. They’re there to build credit, because I’m not so short-sighted as to think that it’ll never come in handy. Believing that you won’t ever need it or want to buy property is an unfortunately prevalent but generally shortsighted way of thinking about money. If one is not enough of an adult to curb pointless spending, they can always hide the card away and use it to automatically pay off a bill or two once a month. You can even rig your bank account to automatically pay off the credit card at the end of the month, so you’re paying your bills and building credit without thinking about it at all.
I spend very little time shopping – there’s so much more to do and learn, rather than staring at clothing and wishing I could buy it – and much more time creating. Spending 2 hours a day MAKING your own clothes would probably be infinitely more satisfying and mind-expanding than spending 2 hours a day looking at other people’s work. I know it is for me.
great article! (is it seriously four years since you started the site? mental! i was just telling my mum about the fashion help for recovering goths article, it doesn’t feel like you wrote it that long ago!)
personally i don’t have a credit card and never will. i’m a student and i have friends who’ve maxed out credit cards already, and the concept terrifies me. the most debt i’ve ever been in has been about £200 into my overdraft (which is interest-free as i have a student account). luckily my mum has always been REALLY paranoid about debt so it’s rubbed off on me.
not that i’m totally responsible with money, it does burn a hole in my pocket, but only if i know it’s disposable – i’ve never, ever spent earmarked rent/bill/etc money. i have a separate ISA account that my travel money etc goes into when i get my loans, and i pay my rent as many months in advance as i can (e.g. if i get my loan for the autumn term, which is from september-december, then i’ll pay three months in advance.) that way my landlord loves me & i don’t get tempted to eat into it!
My dad has always had an excellent reputation with banks. He’s the kind of person who has premiere accounts and get personalized attention when he steps in the bank. He has awesome credit and he’s super responsible with it.
He has only gone into debt to pay for our new (super huge compared to our teeny tiny apartment) house and my sister’s first car. He never misses a payment and while we are not rich, we don’t have money problems.
My mum and dad have taught me to not spend what I don’t have and I stick to that. I’m not very fashionable and apart from technology and shoes, I rarely buy things that are on trend. I do shop a lot, I like to browse on the internet, look into windows, try things out, Polyvore like mad, but I rarely spend. I might not like to spend on fashion, but thhat doesn’t mean that I don’t like to look and play with items.
I have two savings account, one is for my business (web development & design) and the other one is my personal account (a special account for college students that doesn’t charge me for anything). I can’t use them for internet transactions (read: buy online but I can pay my taxes and other government fees via internet with the account that I use for my business).
My definition of “shopping” is a lot like yours – it includes window-shopping in stores, walking around and trying things out, whizzing through etsy and ebay and actually, you know, purchasing stuff once I’ve made up my mind. In all, I’d say I average about at least 5 hours a week? It’s hard to say.
I consider myself to be somewhat responsible with money – I put money into my savings account and on my credit card every month, but I don’t put as much as I could… Because I want to leave myself some spending cash! I can be a bit extravagant and frivolous with my free cash..
My parents were great role models. My dad always put money away for our college educations and my mom always squirreled something away too. I think they did a great job of living within their means and demonstrating the importance of savings!
The best piece of money advice came from my mom: to always, ALWAYS put something into savings with each pay check, even if it’s only $10. It’s good to just be in the habit of automatically putting something away, and all the little bits add up over time.
Thanks for writing this post, and I totally agree with you about Suze Orman’s book. I read it before I got my first credit card, and while I was still in college. It completely prepared me with the knowledge to proceed my finances with caution and responsibility!
i’m so glad i found your blog today – i just love it.
and i love money, lol!
i like to combine magic + practicality with my money. i set a number that i decided would be fun to have in my savings. and now when i use money from that account – to go on a trip or buy something extra special or whatever – i find the account levels back up within a month because i am so set on having that much in there. it’s pretty cool.
I got my first credit card shortly after I turned 18. I had a student checking account through a local bank and they helped me set up a student (low-limit) credit card and gave me tons of pamphlets about not getting into debt and monitoring your spending.
That really helped me make sure I wasn’t getting into debt. I used the card to fill up my car, pay for textbooks, and the odd online purchase. My school ID linked to a debit account for purchases like food from local restaurants or the pharmacy. I used cash on hand or what was available in my school account for fun purchases like ordering pizza on weekends.
To this day, I mostly only use my card for things like filling up my car or online purchases (which I rarely do). I go to the ATM once a week, make a withdrawal, and that’s my cash for the week for incidental expenses like coffee or movie tickets or a trip to the bookstore. If I run out of cash on Wednesday, then oh well, I should have planned better.
I will use my card for larger purchases like clothing, though. The best advice I got about these purchases is to invest in quality pieces. It costs more upfront, but it saves you having to replace items as frequently. I try to tailor and repair as much clothing as possible.
I don’t shop frequently, usually only as the seasons change. Even then, I try to get as many staple pieces through as many seasons as possible. The same t-shirts I wore during the summer go under sweaters in the winter unless they’re damaged or no longer fit.
My parents tend do disagree on certain money issues, and it has caused some problems. My dad will make a business purchase on their joint personal card without telling my mom about it until the bill comes or he gets a reimbursement check from his employer – whichever comes first. My mom handles the day to day finances for the household, and my dad pretty much doesn’t pay attention to it. I wish they communicated better since money tends to be the biggest cause of fights in marriages.
But in a way, I guess I’ve learned from them that I want to be more open and cooperative about money issues as a couple if I get married someday.
I have a credit card, which I only use for perks, when I’m not sure how much I have in my account or am abroad & get a better exchange rate. It’s online banking alongside my debit account so I go in and transfer the balance within a week most of the time.
My parents are frugal as they come and my mum will spend hours searching for deals so I have a good eye for a bargain. I do allow myself the odd indulgence, naturally. I’m pretty good with money, not great at saving though.
Wow, Gala! I never wanted a credit card, either…but my dad was worried that I’d come across expenses in college that I couldn’t pay for outright on my debit card (and I did!), so he “made” me get a credit card just in case – and to build my credit. It’s been the worst thing ever! I want to just pay it off and get rid of it, but I keep on coming up on things that I HAVE to have done (medical expenses, car payments, rent sometimes, software for school) that keep me from leaving it alone!
Otherwise, I’m…I wouldn’t call it “responsible”, per se, but reasonable with money. I buy what I need to when it needs to be bought, and I buy what I want when I have the money.
My parents taught me to do mental accounting, meaning that before I spend on ANYTHING, I think about how much I need each month to live. This is my rent, utilities, and about how much I need to spend on food. If there’s anything left over, half of it goes into savings (but usually there’s isn’t nowadays, I’m LIVING off my savings!). After that, it’s money I can do what I want with.
I don’t ever spend more than I have, and I haven’t bought totally crazy things. I spend about 30min – 1hr “shopping”, but that’s because I PLAN what I’m going for and what I’m looking at long before I go.
Planning goes a long way, even budgeting for “emotional spending” and everything else! :D
After buying a house I became a great budgeter. I actually enjoying going over my budget every month to see how much I have left over. I stay away from stores and browsing online unless I know I have money to spend. And I only have a credit card for emergencies, but I’d pull money from my savings before I’d whip out the plastic. Money for my mortgage is automatically transferred from my paycheck into my savings account so I never see it and I take my spending money out of the bank in cash every week. That way I know exactly how much I have to spend on going out and shopping. I’ve been doing it this way for almost a year and overdrafts have become a thing of the past.
Hey there my fine bunny friend. I sincerely hope you are in air conditioning right now as the weather outside is BRUTAL. I only went out to get my hair cut, which is now in a layered style and to my shoulder. I have a bunch of headbands I want to wear and having long hair in my opinion did not make the headbands look rad on my head. Anyway, let me get into the topic at hand and that is your latest blog about money.
The first question you ask is How much time do you spend shopping? I would have to say for myself I spend about an hour or so shopping on any given day. Does that mean I am shelling out the dough, heavens no. I usually keep a list of what I need and then I go to Amazon for a good deal. For example, I need music to survive a long trip on a bus or a plane and as I was coming back from Washington DC this past weekend, my lovely tangle free headphones broke. I weeped in horror and then asked David, my phenomenal, if I could borrow his headphones for the rest of the trip. Yesterday I went to Amazon and ordered another pair. I also ordered a pair of bathing suit bottoms as I plan on going swimming either in NYC or in my neighbourhood. Again, when it comes to shopping, it is all about necessity for me. I asked myself if I need it, if I can get it at a cheaper cost, and then I look through my closet to make sure I do not already have it.
Do you consider yourself responsible with money? One word answer for that—NO. I have a very bad spendthrift problem when it comes to books and food. My fiance’ is very responsible with money and is currently teaching me his ways of budgeting. He always has a notebook with him and he writes down EVERY purchase and always takes cares of bills by the end of the week. He is also the one to tell me to not penny pinch during vacations but to penny pinch going up to the vacation. He likes to have a good time while away and does not want the stress of “I can’t afford it” while away. He is the king of the word RELAX.
Do you have a savings account? Yes I do and I have a goal of saving $30,000 dollars by December 31st. I am well on my way!
Did your parents teach you how to be smart with money or have you had to figure it out yourself? My parents tried to help me as best as they could, but I fell into the phase of “I know it all and do not need my parents for anything!” Now what they tried to tell me in the past is coming back to fruition and I could not be more grateful and thankful for their help.
What’s the best piece of money advice you’ve ever been given? Simply put, if it is not green and in my wallet, DO NOT SPEND. This is a tough pill to swallow but it does work!
XOXO,
Danielle
I had the fortune, (please forgive the pun), of having parents who had learned their lesson with money issues. From the time I started earning an allowance I had a savings account. I learned how to balance a budget before many of my peers, and even had one of those official bank money pouches!
I absolutely hate credit cards! I had one, but soon learned what horrible sharks the company was when they raised my interest rate to 30% without notifying me! I clocked in so much overtime at work to pay it off. Now I have a low-limit one thru my bank, and it’s only for emergencies. (Specifically, only car repairs.) It eases my mind to know that I have it if I actually need it. But everything else I obtain the old fashioned way: Saving my pennies.
I’ve really enjoyed these money posts! Being financially responsible for ourselves is def one of the ways to happiness! Rock on, love. :)
My parents always taught me to only spend money that you have. My mom uses her credit card for everyday expenses, but pays off her balance diligently every single month. I doubt she’s ever paid a penny in interest! That’s the sort of mindset I grew up with. However, the man I married had a whole different idea! He grew up in a family where you bought whatever you wanted, whenever you wanted using your magic little money machine, known as a credit card! During our first year of marriage, not only did I take on his debt, but he sort of coaxed me into living that lifestyle as well. We bought an entertainment system, even though neither of us had steady jobs. We went on trips, and bought things here and there as we pleased. At about year two, I realized the error of our ways! We’ve been married three years now, and my husband and I are finally on the same page. We are on a strict no credit card diet! We’ve been chipping away at our credit card bills each month, and now we’re down to our last one! We’re hoping to be debt free by January, and I couldn’t be more excited! So, the best piece of money advice I could give? Make sure your future spouse has the same views on credit cards and spending as you do! It’ll make life a whole lot less stressful!
This is something I’ve really had to figure out the hard way. Credit cards are evil. You buy a pair of shoes on a credit card and you still paying them + interest off long after the shoes have become unwearable. Run up a bit of debt and, in reality, you are spending most of your pay on old clothes that are way out of fashion!
I can totally relate to your earlier woes, Gala. When I first got a credit card I went nuts and bought everything I could get my hands on. I think I was just thrilled that I COULD buy whatever I wanted, instead of having to save money slowly and painfully before buying only ONE thing. But I have definitely learned my lesson, as I’m still paying off my debts from that particular venture! (I only got a credit card a year ago.)
I think a great way to satisfy your need to shop is to go window shopping, either online or on the sidewalk. One of my favorite ways to spend an afternoon when I’m alone is to walk into Saks Fifth Avenue to scope out all their goodies (especially the shoes…). I also tend to go on online sites a lot to check out what I might want to buy. That way, I have time to think about what I want and will know exactly what to get when I DO have money.
Thrift shops are also a great way to satiate your consumerism without breaking your wallet. There can be some great finds buried there.
I grew up dancing on the poverty line, so going shopping usually just meant going to the grocery store every two weeks. I think that because I grew up without a lot of money has given me a ridiculous phobia of spending what money I have now. I usually shop at thrift stores (not only for the prices, but for the unique finds), but when I DO happen to wander into a department store, or a small boutique, etc. I find myself having a hard time justifying spending my money on clothing. Even walking into a Walmart, or Giant Tiger (a Canadian discount store), that usually have relatively inexpensive clothing is a task for me. Heaven forbid i spend more than 7 dollars on a t-shirt. Not to say that it doesn’t happen, I will eventually work up the nerve to spend a whole 7 dollars on that cute t-shirt, but afterwards I tend to spend a good ten minutes wondering if i couldn’t have found somewhere better to put that money. It’s quite ridiculous! As for credit cards, I’m looking into getting myself a “pre-paid” card, one that I have to first deposit money onto BEFORE I can do any spending. I’m mainly doing this so that I can make easy cellphone bill payments, but I think that once I have it, I may use it to do a little online shopping as well. Given that I can bring myself to spend money, at least.
:)
This article comes at perfect timing for me. I’ve recently been feeling a bit down about my current money situation and you’ve presented some fantastic tips which I’ll be actioning straight away.
One of the best reads I’ve had when it comes to money is Paul McKenna’s, “I Can Make You Rich”. I bought it on a whim hoping for some magic cure for my debt but it’s more about understanding your attitudes to money.
One thing that stood out to me was when McKenna talks about how your parents attitude to money can subconciously influence your own attitudes. For example, if your parents saw money as the route of all evil (like mine), you too will not have a healthy relationship with the stuff (like me). As well as helping you recognise if you’re the kind of person who spends their money quickly – and usually irrationally – out of fear that someone else will take it away from you (I’m terrible for this!).
One quote I always remember from the book is, “poor people save their money and spend it later, whilst rich people spend their money and save it later.”
Of course it is full of gargon on mind training techniques which I’m sceptical about but as I say, it’s great for helping you identify your spending habits and understand the reasons behind them.
But one of my words of wisdom for paying off credit cards is, start with your debt with the highest interest rate and pay off as much as you can each month, whilst only paying the minimum on others. It may take some patience to get it all paid off but you’ll save yourself paying double your debt through crazy interest rates.
I love that you are addressing this issue. I really applaud you for that and that is why your blog is a joy to read. Credit issues and spending I think goes much deeper than just debt. Its really emotional for a lot of people. Having endless access to beautiful coveted things has become how some people judge their self worth. Its compulsive and really very sad.
I got most of my money shopping/money management habits from my Dad of all people. My Dad looks for deals, shops thrift and vintage, buys a few quality pieces that go with everything and keeps them in good condition, saves 20 of all is earnings and only keeps his card for a few large purchases a year or emergencies. He is big believer in recycling and has so many amazing vintage clothing pieces because of it. He always looks cool and he is 65! I am most certainly his daughter in that regard! I am into clothes more as quality collectable pieces, so I scour and see what is out there before purchasing. I save up for purchases and I never use my card ever.
When I was 17 my mom got me a card on her account, that I could only use on groceries, gas, and emergencies so that I could start building good credit. My parents have never had debt, in 64 years my dad never had a credit card. My mom always pays the full balance on hers each month and doesn’t go over her month budget. Learning from them I’ve never been tempted to spend more than I have. I have both a savings account from when I was a kid and a checking account that I have a debit card for that I usually use in place of cash, and both accounts have a good amount of money in them.
I do shop too much but its usually on cheap stuff like nail polish or make up. I buy clothes about every other month or as needed. There are a lot of things I wish I hadn’t bought, but I guess thats how you learn.
How much time do you spend shopping?
I love looking, trying things on and being inspired. But I buy very little these days, after having spent thoughtlessly in my early 20s which took a long time to pay off, not to mention a small fortune in interest payments.
My wardrobe is enormous and I’ll have a field day repurposing when I eventually settle down. It’s kind of embarrassing but I have so many shoes and clothes I haven’t even seen for a couple of years, let alone worn. I always shopped well, always shopped vintage and went for things I really loved but I was young and silly. There are people starving in the world, and it is normalised in our society to be self-obsessed consumers…something is not right there.
Now, I really think about it before I buy anything. As I get older I care more about if something is well made and from sustainable sources. I do buy when travelling because it’ll be pieces that are unique at home.
Do you consider yourself responsible with money?
Now I do, having learned hard lessons. I’m super frugal to the point where I feel bitter having to spend my hard earned money on necessities like mechanic services.
Do you have a savings account?
Yes, but only recently as I’ve just paid off my foolish-early-20s debt.
Did your parents teach you how to be smart with money or have you had to figure it out yourself?
I grew up very poor living week to week and ALWAYS running out of money each week. That’s no way to live! Now that I earn my own income I’m kind of amazed that not only do I have enough money but I can even save. Not having to worry about money is still weird for me to get used to.
Also, I really wish I’d never gotten a student loan. That’s one thing that is dolled out to you with almost no guidance as a teenager in New Zealand, but you actually have to pay it back. Every single cent! By the time I’ve paid it off I’ll be nearing forty, and could have used the money to put a deposit on a house. It’s very hard to save when several hundred dollars a month is slashed from your pay to a loan you were given at 18. I wish somebody had spoken to me about how to avoid a student loan while I was studying, or keep it lower at least.
What’s the best piece of money advice you’ve ever been given?
You’re responsible for yourself – save! Pay off your debts!
How much time do you spend shopping?
I also window shop a lot. Online and in person. If I’m actually spending money I get the essentials or things for my blog, which I intend on reviewing (now ask me how I good at keeping up with that end of the bargain, the answer is not very). I definitely buy less crap now out of necessity and it makes me really value the things I actually do purchase.
Do you consider yourself responsible with money?
I’m getting better. I wish I could go back and convince my past self to not be so frivolous sometimes, but I know it wouldn’t have had any effect because I “knew” the results of credit cards, I just didn’t actually do anything with that knowledge. I am much, much better now.
Do you have a savings account?
Yes, is there anything in it? No. Mostly because every last dime I make goes to paying off debt and sustaining life at the moment.
Did your parents teach you how to be smart with money or have you had to figure it out yourself?
No, I got a lot of my parents bad habits when it comes to money, but I still was never as bad as them. At least I’m an improvement!
What’s the best piece of money advice you’ve ever been given?
All the tips for saving money and using credit cards responsibly I’ve heard, multiple times and they’re perfect. Unfortunately I didn’t really listen until I was too far in debt to take advantage of the tips.
I do think that even when you’re in really bad debt buying yourself one small thing that makes you smile a month can make a world of difference.
This is a great series of articles – I don’t have a credit card either. Never have. it just makes SO much sense to me.
I was born a complete cheapskate-bargain-hunter and I don’t know how. I suspect it is from my mother who growing up didn’t have a lot of money. I don’t ever shop when I’m at uni (I would rather eat!) but when I’m home I hit the familiar second hand shops. My theory however though is if I avoid these stores (especially H&M) altogether I won’t spend money that needs to be spent other ways! I have plenty of clothes – my overweight suitcase coming home was proof of that :P
Advertising and everything sends the message “YOU NEED MORE! more more more!” but this is so untrue – most of us have so much already!
Hi Gala, it’s very inspiring to know that you don’t have a credit card because I don’t have one either! I was wondering, how do you purchase things online like airline tickets or hotels without a credit card?
I’m loving all your tips, keep ‘em coming!
Christine — I have a visa debit card! All the convenience of a credit card (for online shopping etc.), but without the temptation ;D
I’m in London for Summer School and I’m taking a really interesting course on Marketing. I think you raise some intresting questions there, a lot of people are falling for cheap marketing for credit card companies and shops who offer credit.
Please do yourself a favor and read the small prints, girls! The rates are often twice (or even more) the interest rate on a bank loan, so if you are in credit card debt you should check out the possibility of refinancing with a normal loan.
Also, everyone with a credit card should be reminded that even though it feels like you’ll be able to afford more items with a credit card (since you can get it right now without waiting) you’ll actually end up affording less since you are spending on a hidden cost as well.
I have credit card, but actually use it for keeping a budget. My card limit is not very high, about $600 dollars a month.
I use it for all of my everyday purchases during the month and actually check my statements more often, because I sometimes get concerned that I may go over and have my card declined/overdrawn.
So I check my money more often than I usually would, than just swiping and trusting that there’s just a pool of money/savings to draw from.
How much time do you spend shopping?
I spend a lot of time shopping, actually. I used to be way worse, but as I get older it’s starting to lose ‘some’ appeal. I divide my shopping time into three categories: Acquisition, Hunting, and Purchasing. Acquisition is spending lots of time in thrift/charity shops getting items for my Etsy shop. Sort of counts because of the rush I still get from it even though the items aren’t for me personally. Hunting is my version of window shopping. Hunting usually occurs late at night online when I get inspired by a style or person and create a fantasy world filled with the things I could buy related to that idea (sometimes things come from this, and if it does it ends up being my one big purchase for a while). Purchasing is the last on my list, and usually occurs after much hee-hawing and guilt tripping myself over actually buying the item. “Do I really want it, or is it just the rush of buying it that I’m after?” is a question I’ve started to use, because I’ve found exactly that out about myself over the last year. Most things I don’t really want, I just want to buy SOMETHING.
Do you consider yourself responsible with money?
NO! No, no, and no again. My family growing up lived slightly beyond their means for a while, before it all came crashing down because we learned that my mother had a few maxed out credit cards she never spoke of. I was very fortunate in that I never had to go without most things in the way of fashionable clothes or fun toys, in addition to child support that was just handed to me as spending money. I never really understood the concept of saving. It was always ‘buy yourself something nice, get what you want.’ I wasn’t one of those rottenly behaved spoiled kids, my mom just thought she was teaching me how to treat myself nice. I’m now 25 and just learning what it’s like to not have everything you want right when you want it. I’m engaged and was supposed to be planning a wedding this year, but my fiance (who is super smart and fabulous with money, in my opinion) sat me down and had to explain why that isn’t going to happen. “What?” my debt prone soul cried. “It won’t be that bad, I don’t want a big wedding!”. “No,” he reasoned “you want a honeymoon though, and we have debts to pay off and your credit score needs to get better so ours doesn’t go down too far when we get married.” What a terrible shock to my non-saving self. I know he’s absolutely right though, I don’t want to start a marriage with a ton of debt and bad credit scores, but how I wish I knew then what I know now :/ .
Do you have a savings account? Did your parents teach you how to be smart with money or have you had to figure it out yourself?
Technically I have a savings account…but I’m not using it yet. The only time it got use was when I was saving money up to buy our house, and it never got over a thousand :/. My parents didn’t teach me anything about money, but my fiance has taught me tons. Sometimes I think it would just be best if I gave him all of my paycheck and had him sort out the bills so I didn’t accidentally spend what was supposed to go to a car note or something >_>. But, I actually DO want to be responsible, it’s just a tough personal battle I’m working on.
What’s the best piece of money advice you’ve ever been given? Don’t bet on the ponies :).
Ahh finally something with substance. Love you girl & thank you universe!
So agree with this. I’ve only had a credit card once but it was a joint one with my grandparents & it was only for 2 months while I was in Germany. I spent like crazy not even thinking how much I was spending. I didn’t have to pay it back obv. but when I got home I was back to my weekly lunch money as an income =( I don’t think i’d ever get a credit card unless it was a visa debit (which a lot of people in NZ are getting rather than true credit cards) ‘cause with visa debit you can only spend what you have but you can shop online too which was awesome because before you’d have to have a credit card to do that.
I have a credit card, but its thru my bank, and has a lower limit then what I imagine the ‘average’ credit card has. I usually only use my card for online purchases or filling my car up with gas. Other then that it’s for emergencies or big purchases ONLY and I make sure I pay off the balance each month. I thank god that I had responsible parents who taught me to not live beyond my means.
As for shopping, I browse a whole lot but I always make sure to really consider the purchase before I buy it. My boyfriend and I have also started something to curb our spending so we can save more: Things we think about buying (like clothes or books or movies) we put on a list, and then wait about 10 days. If we still REALLY want that item at the end of the 10 days then we buy it.
This is a great article! Thank you!
Here in Germany most people I know own one “real” credit card – or none. I own a credit card which I got because I needed it for my trip to New Zealand (to book rooms etc.) but scarcely used it.
I think that my credit limit is the lowest possible, as I don’t intend to use it. Since I’ve come home I didn’t take the card out of the house & only used it for some purchases (especially online) where credit card was specifically required, otherwise I’m fine with my “normal” cash card.
I would say that I’m good with money, I really like to shop the way you talked about it – browse online shops or window shopping or actually walking through (but not necessarily buy). I always need to have my account balance roughly in my head & rather put something that I like away than buy it. Also I tend to only shop for clothes if I really need them, otherwise I’m fine with what’s in my wardrobe – but I still spend some hours per week “shopping”, most of it online. I simply like to have a look what’s there.
I have a savings account that I haven’t touched so far. It’s intended for my studies, but as of right now there is no need to take money out of the account & I really want to have it as a backup.
To feel comfortable when shopping I have a look at my account balance before I go & take my cash card only. Buy stuff that’s in your limit or a only few small items, grab something when sale’s on. Put money away every month for something that’s more expensive – the moment you’re finally able to buy it will be a very happy one!
I have had to be pretty much financially independent since I was 17 (I’m 22 now). I pay all of my bills on time, & I do have some student debt & credit card debt, but the credit card debt is from things like medical emergencies when I didn’t have health insurance or groceries when I had no money & was still in school, so I try not to beat myself up about it. Instead I pay as much as I can off of my credit card steadily every month & am hoping by the end of the year to have no credit card debt! I think I might literally freeze my credit card in water once I finish paying it off— I want nothing to do with them again. I shop every once in a while, but I’m honestly just not in the place in my life where I can afford to shop all the time, & it usually stresses me out to do so (& I NEVER shop with my credit card).
The best “trick” I’ve learned is to just pay ALL of my bills & rent the day I am paid, then transfer money I don’t want to spend into my savings account, & then only leave a certain amount in my checking. I am usually too lazy to take cash out at an atm, so 90% of the time I won’t bother digging into my savings & will only spend my checking account via my debit card.
I have a visa debit card too! Love it. I’m also 26, living in NYC, and have no credit as well (and I was born here lol). It’s tough, but I feel good knowing I can save enough to buy what I want up front. :)
I don’t go shopping very often. I don’t have the cash to splash so I’d just be making myself want things I can’t have, what’s the point in that? Though I do volunteer in a charity shop and every few weeks I find myself reluctantly buying something there.
I am freakishly responsible with money and always have been. My pocket money never went as far as I liked, and I worried about being ‘broke’. I found a “financial plan” I devised when I was a kid that said I wasn’t allowed to get below £10 in my piggy bank! I don’t think I’ve bought new clothes since I stopped being an undergrad and getting student loans (two years ago now), new shoes and bags, yes, but they’re harder to get second hand. I hate spending money. I really have to talk myself into it. It’s easier when I have a job, but even then I’m very aware that buying lots of little things adds up.
I’m sure I’ll get a credit card at some point, but I’ll pay it off every month, it’ll just be for the credit rating/purchase insurance. The best piece of money advice I’ve ever been given was from my parents: pay your credit card(s) off every single month without fail.
Money makes the world go round and I think to an extent it can buy you happiness – your life can always be made worse by running out of it, in any case. If I didn’t have any savings I’d feel like my place in the world was kind of insecure.
I used to be shocking with my money, spending left right and centre. It wasn’t that I had a bad attitude towards money, but that I was naive.
I’ve always had a job, ever since I was 15 (I’m now nearly 21). Some summers I worked 2 fulltime jobs, working 6:30am – 2:30pm at a clothing store and then from 3:00pm – 11:00pm at a motel doing reception work. When I finished school, I started paying my mum board to live at my house, but I still always had huge amounts of disposable income. I wasn’t living outside my means, because I had LOTS of money coming in every 2 weeks. Some fortnights I would average $1500 – $1800, so it meant that I could by whatever I wanted, when I wanted, without a second thought.
Then, I moved to a different town, and started at University. I was BROKE. Living on $150.00 a week, which, now that I look at it isn’t THAT bad, but compared to how much I had before….
Universitys in New Zealand love, love, LOVE to cash in on the stupidity of youth, which is why, on your first day when you get your ID photograph taken, the room you have to walk through is lined with bank representatives, thrusting credit card and overdraft forms at you left right and centre.
Let’s just say I got a credit card, and then promptly realised that I hadn’t adjusted well enough to having very little disposable income to use the card responsibly, so I cut it up. I then had to deal with the banks giving me an unauthorised overdraft, which is where they let your EFTPOS card go into negatives without asking you, and then charge you through the teeth for it. When I went to the bank to try and remedy it, I ended up walking out of there with a $2000.00 approved overdraft, slightly confused as to what had just happened. I’m still paying it off.
My words of advice? DO NOT TRUST BANKS. They are NOT there to help you. They make money out of other people’s debt and misfortune. This is not to say don’t use banks, just be wary of them and the great things they may try to offer you.
Secondly, if you need new clothes, etc,and you aren’t very good at saving why not put them on laybuy? You pick what you want, pay a deposit on them (usually about 10% of the total bill), and then the store will keep them out the back for you until you have paid it off (which usually only takes a couple of weeks). It’s not good for if you urgently need something, but if you know you need warm winter clothes, for example, it means you can pay for them in the few weeks leading up to winter.
Money and shopping is kind of weird for me right now.
Growing up in the states, I had an anxious view about money. We were not poor, but as my dad was self employed, he was constantly having to worry about getting people to pay him on time, so that we could have money as well. While I don’t think we were ever in dire trouble, my dad’s anxiety became my own. To help out the family, to prevent problems, I was never a big spender in high school.
It’s so weird trying to type this out: I went to a private high school, paid for by my father, and he paid for most of my college education. At the same time, I was so hesitant to buy things. These were gifts given not because we had heaps of money to fling about, but because they were necessary for me (according to my dad). As the oldest child of a single parent, I was in charge of most of the day-to-day purchases, and had a joint credit card with my father in order to shop for groceries and anything else.
An unfortunate incident in which my brother was put in charge of the bills (LONG and stupid story) resulted in them not getting paid (partly my fault) and my credit card being canceled in my third year at university. I haven’t had one since.
Flash forward to today: I’ve just finished my second year on the JET program, teaching English in Japan. It’s my first proper yearly-salary job, and it’s CUSHY. If I translated from yen into dollars every time I made a purchase, I wouldn’t buy ANYTHING but because the price of the things I buy is what I consider affordable in relation to the money I earn, I buy them.
In other words, a 1050 yen item is about $12-13, given the exchange rate. In the States, there is no way I would just plop down $12-13 for something without really thinking about it, but here, 1050 yen is a deal for, say, a nice item of clothing or a lunch. The weight I attach to two different money systems is so weirdly different, and I’ve tried for two years to guilt myself into thinking in dollars, but I got so stressed and miserable that I stopped.
In conclusion… well, I try to save up, but my dad back home occasionally takes from my savings (still have that joint access). I’m fine with this. And so I would say I’m “partially” responsible with money. I don’t spend what I don’t have (because I can’t!) and I spend in proportion to what I receive in a year… which means my habits will change drastically when I go back to the states and am jobless!
This is all stuff I have learned on my own. Having felt a the heart-wrenching, soul-crushing feeling of being in serious money trouble (not having enough for rent, food, feeling guilty about money — hello high school, and final year of college, you awful time) I am hell-bent on not having debt. And so I don’t.
Love this post!
I only have one credit card and I pay it off every month and I don’t have any major debt. My parents are really frugal and they have shaped my ideas about money and shopping. Sure, I’m not perfect and every so often I do splurge, but I’m learning as I go about what I NEED to survive and what I want.
I never spent money when I was younger. I got lots of cash for birthdays and holidays. I saved it because there was nothing else to do. Then I started shopping without my mother’s company! All that money disappeared within the year. It was fun and a lot of the things I spent my money on are useful and versatile. But I didn’t really begin to understand money, till I had spent all the money I had. I wish I hadn’t had to loose all my money to begin to understand how to handle it. I do have a savings account, but no credit card, and experience has told me much that my parents neglected to tell me. The best piece of money advice I’ve ever had was “never buy something on sale that you weren’t going to buy at full price.” All my bad purchases have been on sale and not things I’d buy any way and all my good ones were things I would have bought at almost any price!
I’m enjoying this series Gala. Very interesting. I don’t spend alot of time shopping. When I go however, it is usually to a Westfields (in Australia) and I wander from end to end for a couple of hours. Most of my shopping is accidental like..“Oh I do like that…maybe I will just try it on.” So many of my purchases don’t have a lot of thought behind them and aren’t generally budgeted in.
I am relatively responsible with money, in that I always pay bills and rent etc on time and don’t have a credit card. On the other hand, I have no savings which worries me a lot.
My parents aren’t very good with money so I think I know that I will always ‘make do’ but I hate that I might be forced to just make do – I’d rather be comfortable.
In my 21st birthday card my aunt told me to always earn my own money and never rely on meeting a man to fill that part of your life. Good advice I think.
I don’t own a credit card either (and never have!) and that is DEFINITELY one of the best shopping tips that I could ever dispense! There have been so many times where I’ve thought (mostly when I was younger; not so much now) ‘‘oh, I really wish that I had a credit card so I could just buy that $400 dress for this party, I’d be able to pay it off.’‘ Pft, SURE I would.
I used to be really irresponsible with money in the fact that I’d just buy whatever I wanted whenever I wanted it (oh, the perils of disposable income!), but these days I’m much more conservative: a) because well, I have a mortgage and um, don’t have anywhere near as much money to fritter around even if I wanted to; and b) I’ve learned that if I had to choose between a magnificent, expensive dress to buy or a holiday or a series of delicious dinners with my boyfriend instead, I would MUCH prefer the latter. I’m a lot more interested in experiences now!
When I was little, I was so responsible. Now I spend money like mad, which isn’t great… I don’t have a credit card and I never will get one. My parents work at a bank and my mum has drilled into my head that credit cards are the devil.
I recently got my first bank account, because I need the card to go for my driver’s license. It has $100 in it which I’m not allowed to spend.
I’m spending my way through birthday money right now (:
Hey all!
Oh money. My love/hate relationship.
My parents always preached about the “value of a dollar, blah blah blah” but I think it fell on deaf ears in my instance. I am not very excellent at saving, although sometimes I REALLY wonder where my money goes! I kept a log for one week of every penny I spent and the little things add up ENORMOUSLY! Even something like buying a 3$ latte every day adds up…
My mum works at the bank and started me a save up GIC. Once a month, the bank automatically withdraws 50$ from my account and puts it into one that I cannot access yet. It doesn’t seem like much, but I’ve managed to collect over 2,000$ dollars AND that money collects interest! SQUEE!!!
I have a credit card, mostly for emergencies and to build up credit, but I have gotten in over my head a bunch of times. My card is currently in my mum’s jewelry drawer. I just don’t trust myself with it! I’m supposed to be saving for the upcoming school year, but I am SUCH an impulse buyer. I’ve been very very good lately though.
Great articles, Gala! I can’t wait for the next one!
I have been totally responsible with money since I was very young, both my parents are terrible with money and when I started working I was using my savings to bail them out.
All that responsibility was great to learn at a young age, but now I don’t feel comfortable spending money and feel really guilty and worried when I do!
I am trying to set myself a fashion fabulous budget, something like $200 a month. But I want to buy good quality pieces that will last a long time, these items seem to be more about the $300 mark say for a good dress or jacket.
But then what about waxing, hair, make up….and the list goes on?
What do you guys spend a month on fashion, hair, make up- looking fabulous?
I have just stumbled accross your blog & I utterly adore it!
Thank you so much for this article, it’s been along time coming. Credit card debit is such an issue especially at the moment, an issue that is often swept under a rug & ignored.
I didn’t realise that you were from NZ, I am a kiwi myself and over here it is utterly ridiculous how the banks behave, they will literally give a credit card to anyone and everyone – they constantly offer more & more money to people who clearly can’t afford to pay the debt they already have.
I am in quite a different position to most, I have recently started my own business and have no income, that’s right none. At this stage all the money we take needs to run back into the business. So i’m on a strict no-spend policy!
I “shop” in the same way you do, to check out what is avaliable and as market research for my shop (pre-loved clothing boutique)
I think that’s why I find the blogging world so amazing – it’s just like “shopping” but it’s not for sale, I can “shop” till my hearts content -soaking up all the inspiration without have to worry about money or lack thereof.
Thanks again!
xo
Awesome post, Gala! I really appreciate how honest you’ve been about your past with credit cards. I think coming out about it sets a great example for a lot of the young people that read this blog.
My parents got me set up with a bank account and a credit card very early, even though I had no allowance and only used it to store my holiday gift money. I’ve always paid my credit card bill on time and in full and it’s that good habit that I found really useful when I was applying to lease my apartment in NYC.
Excellent credit history is an important thing to have!
I keep increasing my credit limit, not to cover my expenses, but because being well under your limit is also a factor in having a good credit score. I guess I just never thought of having the card as a way to spend money I don’t have because it was a given that it would all come out of my account when my monthly statement arrived.
As far as shopping goes…I’m in a weird situation where I’m finally able to afford nice things…but I’m so conditioned to avoid spending that I feel SUPER guilty about unnecessary purchases. I end up doing a lot of looking and very little buying unless I have a girlfriend with me in which case it goes something like this:
“Just buy the lipgloss. You like it”
“But it’s 7 dollars!”
“So? It’s 7 dollars.”
“But that used to be a whole day’s spending allowance for food and everything…except on months when I got an oil change and it was less—”
“Buy it.”
“Ok”
One of these days I’ll learn to enjoy utilizing my buying power.
Another great article! I love this series! I’m learning a lot.
Well, I am definitely not a saver. I don’t have a full time job, so I don’t really earn enough to be able to save as well. I am a full-time uni student and I work about 10 hours a week on average…. and most of that goes toward food, bills and the occasional clothes shopping spree (but that’s only if I’ve been lucky enough to work on a public holiday and earn more than usual)!
I was bought up pretty spoiled, my parents always bought me whatever I wanted, and so I’ve kind of never learned the value of saving and spending wisely. I still live at home, so I don’t have to worry about rent or anything like that… my parents bought me a car when I turned 18, and they pay for groceries, utilities, etc… I think I will be in for a BIG shock when I eventually move out.
I don’t own a credit card, like you, I use a debit credit card, which means I never spend what I don’t have. I don’t think I could cope with having a credit card, the stress of debt would kill me!
I’ve recently gotten into shopping at op-shops, they are a great place to find one-off amazing pieces. I also like to shop on etsy a lot, I used to sell my own stuff on there and so I like to support other independent designers and the handmade community. I also like to shop from independent designers in my city (melbourne), and support the local community. Markets are great too!
Anyway, thanks for the food for thought again! x
Hey Gala, I really enjoyed reading this post.
To be honest, I actually made myself almost believe all the rumors I read on the internet; I just surfed across the net and when all these people were going “Gala is a liar! She has a trust fund and she doesn’t make any money!”, I almost thought, maybe that is the case. It’s ridiculous how people can get sucked in rumors, even if it’s just not true and plain malicious, or could be taken in a totally different context. I don’t gossip(one of my pet-peeves is celebrity gossip because I just don’t want to spend my time talking about that stuff), but it took me off guard that even I can fall into that trap of misjudging someone when I have possibly no way of knowing what her/his life is all about. I really enjoy reading your posts and I have realized that just being happy can be threatening to some people because they think “why are they happy? they must be faking! my life is miserable.”
Keep up with the good post(which you’re already doing) & thanks again for great words.
P.S I think a post about gossip/rumors(how malicious and absurd they can be) could be great! I’ve read probably all of your posts but don’t remember seeing anything about gossip or rumors.
Love you!
Thank you so much for this financial advice. I’m soon actually heading off into the dangerous world of living alone for the first time and was a bit wary of how I would go, but this advice is indeed very helpful!
I am actually proud to say that finance is the one area in which I am a goddess. I am so, so, so responsible with my money that even my mother has told me that I can spend it, it’s not just to look at. My father grew up on the poverty line, and he knows the true value of money. He has instilled this trait in me. Fortunately, I am not as bad as off as he was as a child—not able to afford shoes, having to quit school at age 12 to work, and eating only what he could kill or his sisters could steal— but my family has never been rich. We can afford nice things, but we budget carefully for them. I have zero intention of obtaining a credit card. I have no need for one. I even hate lay-buy or loans. If I dont have the cash for it then, I don’t like buying it. I hate having debt over my head. It diminshes the joy I receive from the item, knowing that it isn’t completely paid. Of course, there’s going to be exceptions to that rule (car for example, if I ever decide I need one), but generally, I follow that model.
I LOVE to shop. I window shop like a crazy thing, then see if I can recreate what I have seen on my travels at home. I rarely shop normal retail anymore. I am the op-shop queen. I got a beautiful dress for my graduation dinner for $4. I saw the same dress in a retail store two weeks later, and it was $95. Bargain! I love, love, love the history behind vintage clothing, and make up stories to go with the clothing when I buy it, because I’m just a bit spacy like that. And of course, nothing beats the service that you find in charity shops. The old women that run them are fantastic and chatty, and love asking you about what you’re buying, and giving you some history if you prod them a little. I often get discounts at charity stores because I bring my own bag, or I buy in bulk, or I just smile really wide and make conversation with the servers.
Hi Gala, that is funny I used to read your blog every day when you started in 2006.. there was an article in the nzgirl website I remember thats how I first found it.. then I went travelling and kind of forgot about it and found it again a few weeks ago. It is cool to see how it has evolved since the first year and how popular it is.. so many comments! I really like the blonde too.. I remember it was pink.. then purple.. then dark too I think! And now you live in NYC!? It is cool how you update it so often.. I think people like to check a website on a daily rhythm and find something new each day. Keep up the good work! x Sarah x
Wow, this post inspired other readers to write lengthy responses. I assume many are passionate about this subject.
It all began when I went to NYU for my first year of college. Every major credit card companies were stationed on every corner on campus, soliciting college students to sign up. Of course, I am their “target” customer and within a week, I had 3 credit cards and thought it was “free money”. Well, not intellectually speaking…...A month later I had occurred over $2000.00 debt. Living life without credit cards, as I do today (other than my debit card) allows you to only spend what you have and prevents reckless spending.
Thanks for sharing!!
Dana
@Dana (53) – did NYU eventually ban banks from targeting students on-campus?
My school did in 2005-2006 and it was amazing how many students had gotten caught in these contracts they couldn’t get out of. Some bank had offered them some free pizza or a t-shirt (or some other freebie) to lure them into the conversation in the first place. The next thing they knew, they were being encouraged to spend more and make minimum payments and then bam! Debt trap.
I think a lot of universities are starting to move in that direction, since student loans already leave so many people in a financial hole for years on end. No need to make it worse with targeted advertising to a susceptible audience.
Awesome. For me, it’s a generational thing. A lot of people my age think credit cards are a stupid idea already and I’ve always known that I don’t want one because the idea of debt gives be dread.
Having said this, I actually think talking about how to handle income is a really good topic for young girls who may or may not be future independent entrepreneurs since school sucks at this advice and it’s usually boring as hell in execution, what do you think? When I have money it tends to scare me and so I ignore the digits because I feel like it owns me somehow, does that make sense?? So I find myself with intentions to save but spending a lot and not very efficiently.
I like the idea of shopping mindfully and think a wish-list and then ‘shopping around’ and waiting out for things i already want seems better. Man, i think this would be a good agony aunt-style topic to write about, G.
As a first little note about credit in the U.S., Gala, you made the comment that you wouldn’t be able to get a credit card in this country because you have no credit history. Actually, that makes you the perfect customer for a credit agency, lol. When I got my first credit card, I did it because I had no credit history and I needed to build up my credit; had absolutely no problem getting a credit card. In this county, ANYONE can get a credit card because EVERYONE wants to exploit you.
Moving on to the questions…
How much time do you spend shopping?
I consider shopping any time that I look at a thing I may or may not want to buy and mull over my options… So, about an hour a day (for example, my shopping today was “Should I get my tattoo filled in next month or in October after I move??” and looking at potential tattoo parlors.).
Do you consider yourself responsible with money?
When I was a student, OH HELL NO. I spent very frivolously, as well as when I had my first job out of college. I was making a pretty good wage so I didn’t have to budget myself too much at that first job. When I started a new much lower paying job (as a sacrifice to be a musician), THAT is when I developed my money saving and budgeting skills. I had to take a serious crash course on living on the skinny. These days, even though I carry a balance on my credit card, I pay off large chunks of it every month and I anything I charge these days I pay down immediately. I plan to have it completely paid off by November of this year.
Do you have a savings account?
I did until I had an emergency and had to move into a new apartment in Tokyo (in which you have to fork over a several thousand dollar non refundable deposit to your land lord). That killed it. When I start my new job in October I plan to start a Roth IRA and start putting some aside again.
Did your parents teach you how to be smart with money or have you had to figure it out yourself?
My parents were the WORST financial teachers possible. Not because they were a bad example, not at all. They’re VERY responsible with their money, but on the other hand they’re very private about their financial matters and whenever I asked them anything about their financial situation they said it was private so I never knew what was going on, how they handled their money, or frankly, how my family went from being destitute living in a trailer to living on a golf course gated community in 20 years. I THINK it had something to do with how they invested back in the 1990’s but still have no clue and they won’t even tell me how it happened so I’m just like “durp.”
What’s the best piece of money advice you’ve ever been given?
“Start living on a cash basis and keep as off the grid as possible, except for tax season so you don’t get audited.”
I’m currently working to pay off my credit cards, (I’m 23) that I’ve slowly built up with so many little purchases, and then things like new tires, breaks for my car, and other expensive purchases I had to make… A few months ago I realized how long it would take me to pay off those mistakes, plus I have a lot of student loans I’ll have to one day pay off. :/
But now I always pay way over the minimum payment, and if I ever put new purchases on them, they get paid right away. One day they’ll be paid off, and I’ll have all the ‘extra’ money to play with, and that’s what keeps me motivated!
p.s. I LOVE your blog, it gives me so much motivation, and fills me with happiness. Thank you!
I enjoyed reading this article, my mother was the one who offered me to get a credit before my first semester of college for emergencies, and for buying books for my classes. I’ve worked hard for my money since I was sixteen, and college has shown me what the read world is like with money – you can’t go too crazy with spending or you’ll dig yourself into a huge hole! I’m happily building credit, and I’m very wary about my money and issues that I have. I prefer actual paper money, and not having access to my bank account via debit card. It helps keep me in check.
Nice article!!!
I do love shopping, but I do it very seldom… I don’t know if it’s a matter of personality or of what I’ve been taught, but I go shopping only when I need something (or feel like I need something!), I take my time to compare stuff and prices.
I’m not, and have never been, into fashion, so having the latest “hot” items is not my business, I always loved markets, flea and vintage markets, and sewing my own clothes.
Maybe this is the best money advice I ever got: don’t shop on impulse, see what’s available and take your time to decide where to spend and how to save!
I also have a credit card, but I’ve been taught (my father works in a bank ;)) that it’s for emergencies only, like when you’re abroad travelling and don’t want to risk your wallet, and such. So I don’t use it that much at all!
Thanx for all your advices Gala!
I think my parents set a great example for me about their finances, even when they didn’t talk about it directly, they didn’t have a credit card (and still don’t), their big purchases were made with their own money (most of the time), and I became used to giving a good tought about my birthday/christmas/etc. presents, even when they didn’t really tell me to do that, but I guess it just made sense to me that buying anything required time and thinking, since my mother did put a lot of tought in what she wanted to buy, especially on clothes and shoes. She visualized if that item was “wearable” with the rest of her clothes; she only bought pricy things when they were something she could wear a lot, or were something that didn’t go out of style, etc.
Plus, most of the time we just went to shops to browse, which was (and still is) fun in itself.
This simply stuck to me and nowadays I think a lot about my posible purchases, I’ll wait for a week or two, and if after that I’m still thinking about it and I’ve given it a lot of tought, I go out and buy it (most of the time, I do have impulse buys now and then), which works for me because I have no intention in buying the ‘it’ anything and I enjoy window shopping a lot.
Am I responsible with money? I think the answer is a bit complicated, because it depends on your point of view. My parents are Chinese, and both grew up poor. Now they have several property investments, a big house and don’t want for anything. Everything they have now is a result of their hard work. I didn’t get pocket money or anything like that until I was well into my teens, and when I was school-aged I hated to ask my parents for money for anything, because they would be loathe for me to spend it on what they viewed as frivolous items and activities.
In hindsight I can see that my parents’ frugal ways was a result of their own life experiences, but as an angsty teen I hated their penny-pinching ways! I remember that I couldn’t wait to be earning my own money.
I am grown up now, and yes, I do have a credit card. It’s especially useful for buying things online, and offers me peace of mind if I don’t have any cash on me. It’s also useful for travel. I’m pretty good with my repayments each month; I’ve only incurred interest fees twice in the five years I’ve had my card. I also try to transfer some of my pay into a high interest savings account each week – no matter how big or small.
My parents consider me a really big spender! It’s true that if I want something I will usually find a way of getting it, but like you Gala, I rarely pay full price for anything. I am patient enough to search and wait for a cheaper price, OR save up until it is viable for me to buy. I don’t consider myself a big spender at all though, not compared with a lot of people I know!
I have a friend whose purse is stuffed with cards, she has a store card for everywhere and 3 credit cards plus her student account. Her credit cards are maxed out and she is at the top of her student overdraft. We have just finished university too so owe just over £21,000 to the student loans company. She now is working in a job she despises, 12 hours a day, 6 days a week to pay off everything. And all she has to show for it is a macbook pro, iphone 4, ipod touch, blackberry, and lots of exspensive shoes! And she keeps on buying!
I don’t have a credit card, just my visa debit and I don’t spend unless i can afford it. Life throws enough things at you to stress over so why put yourself in such an insanely stressful, terrible situation?? (unless you absolutly have to, of course.)
It’s sad seeing people you love struggle so much when its completely unnesscessary!
I HATE MONEY!
How much time do you spend shopping?
I don’t actually know – by either definition, some weeks I ‘shop’ every day, other days I don’t care who’s doing what in the realm of consumables. I tend to enjoy window shopping though, so that’s where i rack up time.
Do you consider yourself responsible with money?
I don’t, but I think maybe I should. I’m not very good at saving however I have no interest in a credit card & the only time I’ve ever been in debt was a loan that I didn’t really need – I just wanted the credit history in case I need it someday (i.e. I want to buy a house). I think the only reason I don’t consider myself responsible is because my family places a big emphasis on saving money for a rainy day & so there’s that idea that because I’m not putting everything into an account and not touching it I’m ‘bad’ with money.
Do you have a savings account?
I do, I wish more went into it though.
Did your parents teach you how to be smart with money or have you had to figure it out yourself?
I think I taught myself – many members of my family have only just recently learned the whole concept of spending more for better value which is something I learned pretty fast, though I am still coming to terms with it when buying something I haven’t used/had before. I’m getting better at the mentality of it though.
What’s the best piece of money advice you’ve ever been given?
That it’s okay to spend it – that it’s better to die with a life well lived than a million dollars in the bank (though having both is the best plan). I think it’s important to be smart with money but it’s also important to realise that spending $100 on concert tickets or something you’ll LOVE is better value than leaving it in a savings account to collect interest and being depressed because you missed something you really wanted to do/have.
I’m super cautious with money and have only ever spent what I own. I think I get it from my mother who always drilled that into me from a young age and also encouraged me to save. We also went through some really tough times financially when I was a child, so she showed me how far money could really stretch.
I own a credit card and use it for every purchase, but I always pay off IN FULL. The reason I use credit over debit? On my particular card you get cash back at the end of the year after builidng up ‘points’ on each purchase. I’m probably a rareity for using one for that purpose but I could never get my head around spending what you don’t have on trivial items that aren’t necessities.
I also save into an ISA which up untill the recession gave back a belly worth of interest but the draw back being it was to be used pureley as a savings accounts to withdrwals are limited.
I think it’s awful we’ve moved into a society that thinks its acceptable to have $xxxx amount of debt because you know just as many people in the same boat. Again though I’m talking about luxuries not owning cars or needing to get by in a difficult time.
I live on absolute peanuts that just comes down to being frugal. That and I feel proud to keep a hold of as much disposable income as I can. So that when I have splashed out on an expensive guitar or currently lusting an imac for creating film, I know I can pay it off in full.
I do not have any real money problems. I just spend what I have and I am usually the sort who would rummage through sales sections and love to browse racks of clothing way at the back of the store as I can always something delicious and tantalizing.
I learned about money ever since I was a child I just got 80 cents pocket money and once a year red packets on New Years day. These would go straight to the bank and over the years my accumulations of red packet money and hard earned money from holiday jobs have set me up considerably to live reasonably comfortably.
I am quite happy to say that I have much more money in my bank account than some of my friends who have started working much earlier than me. Partly because I save and I am extremely particular when I come to spending my money.
I turn 25 in October, and I ordered my very first credit card yesterday. I’ve never spent money I don’t have, and I don’t plan to – I only got it because I’m traveling abroad and want the safety that comes with a credit card. Being able to catch a scam while looking over your credit card bill is so much better than discovering it because your bank account is empty! I like to save money. I like to know that I’ve got money to pay my rent not only next month, but the month after that. Don’t get me wrong, I like to spend money as much as the next person, but I dislike the agony of not having money a lot more :)
I think “not spending money you don’t actually have” is so mind-numbingly simple that I don’t understand why more people don’t do it! I’ve never known anyone who went into credit card debt so maybe I live in a more responsible corner of the world when it comes to finances.
I definitely consider myself responsible with money. I save a lot more than I spend, and I do have my parents to thank for it! And no, I don’t own a credit card. :)
I owned credit cards and I had a super fun time shopping until I dropped, overdrawing my bank account (and covering the overages with my credit cards), and basically not opening my bills for six months. And then, BOOM, I was in the hole in a big way and had to completely humiliate myself and ask my parents for a bailout.
Seriously—SERIOUSLY—if any of you are amassing debt, just imagine telling your parents that you need help because you’re an idiot. It’s awful.
Anyway, I got OUT of debt just under three years later. By myself. With no help after my parents’ initial boost (I paid them back, in full).
I have one card and I got it within the past three years (I’m 27) to build good credit. I never spend more than I have, it’s just the way I was raised! :)
I’m 23 years old and I don’t have a credit card. I have a debit card and I have overdraft a couple of times. I used to be really bad with money,spending everything in sight. Lately, I’ve been using cash all the time with my tip money. I feel like in this point of my life I don’t need things all the time. I want to travel evrywhere and that’s is my main goal. Also buying a new car.
I just paid off, (as in the last 15 mins!!) my credit card!!! I had racked up a nice balance, oh -$1600 maybe? Between December and January. Picking up a few christmas gifts, applying to graduate school, and going to a conference. I finally stopped doing the “monthly” payment, and started sending the largest chunk I could afford off of each paycheck, and I was amazed at how fast I was able to pay it off!! One more to go, and then I’m on to tackle my student loan debt! I can’t believe how satisfying it is to finally get rid of something that’s been lingering over your head like mad.
“Always protect your credit,” might be the best advice Mom gave me. I don’t shop at all unless I need to replace something that is irreparable. That’s not because I don’t have money. It’s because I save all my money for traveling.
I have thousands of dollars socked away for an extended travel adventure in May 2011.
How much time do you spend shopping?
Not that much, I haven’t really thought about it. I go to stores about once every other week, sometimes more often. It’s summer now so I spend a lot more time shopping now than at other times. I do a little online shopping too, but not that much, once or twice a month, maybe. I browse a lot though.
Do you consider yourself responsible with money?
Yes, I never spend money I don’t have(and there is a credit option on my card)and I put away money when I know I have to pay something big sometime within the next few months. Though I do spend a bit of my money on stuff I don’t really need, but never money I’m meant to be using on something else(or very large sums), so I figure it’s okay.
Do you have a savings account?
yes, though it will soon be a lot less there as I am moving out and putting half of those money into a deposit I probably never will see again.
Did your parents teach you how to be smart with money or have you had to figure it out yourself?
My parents never sat me down and talked about it, but they don’t just spend and spend and send. They never use money they don’t have for regular purchases either, so I guess they’ve showed me the way by living sensibly. They have debt, but it’s from loaning money to buy property(cabin), and they have the finances to pay it back within a few years. If they didn’t they wouldn’t have done it.
What’s the best piece of money advice you’ve ever been given?
Don’t spend what you haven’t got, and keep some for emergencies.
loving these posts! i do have credit cards, but i just use them because i don’t like to carry cash around. i’ve never been unable to pay off a bill yet!
my parents definitely taught me to be smart about money, i think, and i feel like i’m pretty responsible…my fiance wasn’t brought up in quite the same way though and i have to say i go into a complete panic when he seems to be spending more than he’s making. i’m horribly terrified of being in debt!
I think the comments are interesting! It’s amazing how finances vary in each state, country, age, etc.
I look at people’s credit reports everyday. I think EVERYONE should look at your credit report at least once a year. I also recommend Suze Orman’s book “The Money Book for the Young, Fabulous and Broke” It has excellent tips for handling credit card debt, dealing with personal loans and reading your credit report.
Phew! It’s good to hear that you don’t have a credit card, Gala, and are financially secure.
My parents are kind of hinting that I should get a credit card for those ‘just in case’ moments, but I really want to avoid credit cards as much as possible. I was given the opportunity to have a credit card as a teen when I went to Europe, and as luxurious as it sounds (...it kind of was…) I realized how easy it was to spend money you didn’t feel like you needed to pay back.
So now, I’ve given myself a small budget to tide myself over. I’ve taken your advice on budgeting and you’re right! While I haven’t bought myself a little ‘something’ yet, being able to avoid the temptation of buy-buy-buying makes me feel like a stronger person. Someone WITH willpower!
I can’t thank you enough for this series on money. It’s doing wonders for me, and I’m sure many others as well!
Your loyal nonpareil,
-Skye
Not having a credit card is key to my happiness! haha. Sure, I have a couple of friends who have credit cards but their limits are lower than what they make in a week, (a few hundred) so they know that if they spend it all, it can be easily paid back. I don’t want that though because I have wrestled with banks before over DEBIT cards, I don’t even want to see them with their credit card claws out. That was my main financial mistake as a teenager, I wanted to spend my money online, but my bank wasn’t offering debit cards yet, (they were pretty new) so I went to another bank and got one, and put a little money in it, I was on my way. But, as time went on I used it less and forgot about it, and because I had no income going into it and my accounts were not linked, they started to charge me monthly fees and overdraw. In the end, I owed them a fortnight of pay and I didn’t even KNOW because they didn’t send me correspondence about it until I got a threat letter claiming legal action. That was my wake up call, paying that bill in the nick of time…saying goodbye to all of my money, not being able to eat lunch, because the bank needed my fees.
“(Putting a bunch of your money into savings every month is obviously another good step!)”
I do this and it’s very important to me, I have two accounts, my spending account and my savings account and as soon as my pay goes through I put 40% of it into the savings account so I can get as much interest as possible. Then, what is left in my spending account is just that, spending. Because I live at home with my family, bills aren’t a GIGANTIC part of my life, I only really need to focus on a couple of utility bills a month, (which my Mother will give me to pay if she cannot) my car insurance and registration (but of course, only once a year) and internet bill (which is prepaid anyway, so I can fob it off if need be, but only in a very extreme circumstance! I NEED INTERNET!)And I pay the smaller bills out of my spending money and if I have a larger one, out of the savings…so I always have money for the scarier bills and don’t need to struggle, and if there aren’t any, I can save for my next important investment…whatever that may be in the future.
I shop. Oh boy, do I shop…but lately a lot smarter and only for things I really NEED. I make compromises and if I tell myself I need new shoes for work, I can realise, “no…no, I just need to wear those old heels I just found, I need some new stockings so they don’t hurt my feet, so I will spend six dollars instead of a hundred and thirty.”
My father taught me that credit cards are a bad idea, when I was very young he had about four of them, and we didn’t have enough money to eat. We would have to try out all of them at the supermarket checkout and cross our fingers. He was up to his eyeballs in debt. These days things have greatly improved, and he still owns cards, but rarely uses them, to the point where his bills are about thirty dollars.
The best piece of advice I have been given is to always save money…make sure you have something to fall back on cause one day a tonne of things will go wrong, you’ll need surgery, or teeth fixed, your car will break down or you’ll forget about a bill…you’ll need money for an emergency and you won’t have it. So, save, save, save. I’ve seen so many family members and friends wonder if they will be able to eat AND keep their house, I never want to be in that situtation.
I’m quite responsible with money, and I rarely go shopping, simply because I know I can’t afford to fall into temptation! I have also as of lately started to be a lot more critical to what I actually buy when I first go for a little shoppingspree, don’t buy it if you don’t LOVE it and rather buy one expencive thing that you really adore, than 10 cheaper, but not so wickedly fantastic things that you know you won’t use as much and you buy mostly because they are indeed cheap. So for my ‘young’ age I think I’m handeling my money quite good :)
In Norway, credit cards are seen as a “last resort” – and it is usually an additional card to the normal debet / VISA card most of us have. Alternatively, it’s a common business card… where you have a credit card like MasterCard that you use when you’re travelling for work (booking flights, hotels, taxis, etc) and the expenses are covered by the company you work (and travel) for.
I have a VISA (debet) card, and one of those business-type Master/EuroCards that I have yet to use. Since the most common form of banking/paying bills in Norway these days happens to be Online banking, where you log in with your card and a code, and pay your bills online it’s fairly easy to keep track of your personal economy since you look at it once a month or so. And I have two normal bank accounts (one for the VISA card, and one with no card attached to it for savings / unexpected expenses / etc) which I have to physically transfer money to/from in my Online bank. In addition I apparently have a savings account that I hardly ever use.
My bank also have this option where I get an SMS every Monday which tells me the status of my VISA account. I’m currently employed and earn a decent salary, and I’m paying off my student loan. Once the student loan is paid off, I’m allowed to splurge a little more on nice things, such as a Burberry trench coat or Chanel bag.
:)
(Do excuse the horrid English – I’m out of practice in that sense…)
My parents are older (they’ve always been the age of everyone else’s grandparents) and don’t believe in and didn’t have credit cards. So I never got one either. I was offered many when I was fresh out of high school. Now I wish I would have accepted one because, despite what some people have said, I have recently tried to apply for a couple and they say “insufficient credit history” or something similar. I am into traveling too and I would like the cushion of having one for an emergency or just for that little extra (like $15-$20 here or there) experience that comes with visiting a new city. It’s nerve racking to go somewhere with your cash and the money you have on your debit card and have to keep it in the back of your mind, like I have exactly this much, I can’t get that or this or whatever. I make far below minimum wage so it’s not like I can sock away a bunch of money in a savings account for a rainy day.
I’m horrid with money. I try, but I’m not the best. I don’t know why, i’ve been told it may be because of one of my mental disorders & that i’m good with money compaired to others, but it takes A LOT of restraint. I’m also an emotional shopper. Shopping makes me happy, until I get home and realise that money would have been better spent on groceries.
Since moving into a house with my boyfriend, I have learnt a lot. Now if I want anew outfit, I layby, and I use the whole time to pay it off. Sometimes even going in with a whole heap of change. I have my bank account split in two, so I can transfer money into a savings account for when I need to travel home. (I grew up in Sydney, which is where my family is based, but I currently live in Adelaide).
I don’t have a credit card. I WONT get a credit card. I don’t trust myself with one. I know I couldn’t do it. My boyfriend however does, a really small one, but it’s good for emergancies.
I guess I browse quite a bit, but only once a month do I set out to buy things. I have tried to get better at making a list of things to look for rather than buying whatever I want, to make myself be a little more selective and less regretting of making a purchase I wasn’t happy with.
I do have a savings account, and I was good about transferring money into it for a long time. This year I am changing the way I get my paycheck so money is automatically put into my savings before I even touch it. Hands free savings!
I do have a credit card but the biggest improvement I’ve made with it is “hiding” it in my wallet. When I go to pay for something I only see my debit card so I have to consider – do I really want this item? I am spending my own money, and can’t overdraw. It has worked wonders. I rarely even have to make payments on my credit card and don’t have to pay those nasty interest rates.
One last tip I love – I was told to remove my credit card number from any online accounts (like Amazon.com, which can save your info to allow a quicker checkout). Having to type in my card number and all that manually has made me more conscious of what I’m spending.
Haha, I was surprised to hear that you didn’t have one! But I’m enjoying these financial posts a lot… it’s something that people never talk about although we all should.
Interesting subject about shopping. I do not own a credit card I’m not a fan of them either, but I used to buy a lot of stuff in one go but I’ve improved over the years. I either save up for a expensive item or look for sales, I buy one item a week or fornightly it gives me my fix the week or 2. How ever it has made me think about about what I am I spending on.
Really cool, a lot of my friends would love this, gonna let them know about it right now. Cheers!
ghd australia elps give shine to your hair and enables you to create styles that were previously unimaginable.
www.ghdstraighteners
ghd straighteners
You are absolutely right about credit cards. I owned them at first. And I think that people truly don’t understand that its not free money. I’m even wary of keeping it for “emergencies” because its too easy to need that dress for an emergency meeting or party or whatever.
Not to mention the fact that the credit card companies have far too much freedom. Thanks for putting this out there.