wantingwhatihave-blog1

[wantingwhatihave-blog1]

Is your credit card working for you?

Thankfully, my husband is really smart about money. Because he works hard and manages his finances scrupulously, he challenges me to do the same. I’d feel pretty guilty if I racked up a bunch of credit card debt from shopping, while he’s the breadwinner in our family and would end up having to bail me out.

However, we live fairly close to the paycheck-to-paycheck cycle. Living in Chicago, our monthly expenses total to roughly $3,000, before we do anything fun like go out to dinner. I know some folks live far more conservatively, I know a lot live much more grandly. But that’s approximately where we’re at right now.

We use credit cards a lot – I should say, as often as possible. We put as many monthly bills as we can (Comcast, Verizon, our gym membership) on credit cards to earn rewards (1.5%-2% back depending on the card). My husband keeps a note on his phone that lists by month which credit cards have different rewards (sometimes we’ll get more back on gas, or grocery stores, etc). We then treat those cards just like cash/check/debit, and pay them off that same month. If you can qualify for a credit card that offers you free rewards (in whatever is most valuable to you – maybe you want to earn miles and make that next vacation “free”), you should absolutely be using it to earn that “free” money.

We see it as, this is money we would have to spend anyway, so we get as much as we can out of it.

The key to being successful here is: we make sure we don’t carry a balance month to month. Nerd Wallet studied debt in 2016 and found:

-        The average American household carrying credit card debt carries $16,748

-        The average American household with credit card debt pays $1,292 in interest per year

-        From 2003-2016, the cost of living has increased 30%, while average income increased only 28%, which drives folks further into debt because they can’t afford the same quality of life as before.(https://www.nerdwallet.com/blog/average-credit-card-debt-household/)

It’s so easy to get caught up in a spending cycle, and to figure, “hey, I’ve already got a big balance on my card, what damage is this $4 Starbucks gonna do?” but I’d encourage you to flip your script. Try to see how *little* you can spend, rather than assuming that since you’ve already spent a lot it’s fine to spend more. A little guilt goes a long way here. I used to pick up coffee (and often a breakfast sandwich or muffin) EVERY MORNING. When my husband and I moved in together, we started to share financial responsibility, and I wanted to stop wasting money and save for us and our future. I wanted to hold myself accountable – because he wasn’t squandering $8 every morning on coffee and a muffin that could just as easily have come from home. I now make my coffee at home every morning, and we pack lunches almost all of the time (treating ourselves to a bought lunch maybe once a month). It keeps both our bodies and our bank accounts much healthier.

I’d encourage anyone who hasn’t to research credit cards (and hold themselves responsible! If you’re used to using your debit card, pretend every dollar you put on your credit card is a dollar directly out of your checking account, just like your debit card. Pay. It. Off.) Compare different brands and reward programs to find what best serves you – I’ve used Nerd Wallet for my research in the past (https://www.nerdwallet.com/credit-cards).

And for those of you carrying credit card debt – I’ve been there. Don’t feel down on yourself about it. Instead, challenge yourself to get out of it. Pay it down as rapidly as you can – and consider a balance transfer to a zero-interest account, if you are paying high interest rates and are motivated to pay it all off within a certain amount of time. It is so fun to see your balance dwindle, and when you can start a new month with a zero balance… you feel like a real responsible adult (okay, maybe that’s just me). Commit to bringing a lunch and/or skipping that coffee/happy hour for a week or two, and look at the amount you haven’t spent! Total it up, and still submit that amount to your credit card.

I love our rewards cards – I currently have about $150 in “free” money waiting for me to decide what to do with. I think I’ll add it to our savings account (another post for another day – but your savings account should be doing work and earning interest for you, just like your credit cards should be giving you rewards!) that’ll serve as our down payment this summer when we’re buying a house!

[wantingwhatihave-blog1]

Overspending April/No Spending May

Generally, we’re pretty conservative spenders. We don’t eat out a lot, we don’t buy drinks, we don’t shop much. When we have left over “fun money” – what’s available after paying bills and paying off credit cards – we try to funnel it into savings.

But this month, I’ve been playing fast and loose with my credit card. A couple stops at Starbucks, an extra dinner out, picking up McDonald’s for a quick lunch, and I was tempted into buying a few LulaRoe piece from an online group – all excessive of what is our “normal.”

This month, we also joined a new rock climbing gym. By paying the annual fee upfront we saved about $300. And since rock climbing is an activity that relies on equipment, we had to invest in climbing shoes, a harness, and chalk – which we bought in a new climber bundle, saving about $40. Total, I think we spent about $1700 for the two of us to join this gym. Drake has a credit card that is interest-free until October 2018, so we used that, and will take our time paying the balance down.

All of this to say – May is official a No Spending month.

This might be kind of tough; we’re going on vacation! My brother is working abroad in Germany for the next six months, and we are meeting up with him for a holiday in Ireland. Luckily, most of the trip is already paid for, as Kurt’s wedding gift to us, so we’ll just need to cover our food and any souvenirs or daily expenses that may come up. I don’t think it should be too bad; we’re happy with stopping in a grocery store to buy bread and jam, some fruit, etc to have for breakfasts or pack for lunches, limiting ourselves to one meal out per day.

But, I am going to do my best to not spend anything beyond our monthly bills and our vacation expenses. Wish me luck!

[wantingwhatihave-blog1]

Welcome!

Hello hello, welcome to this brand-new blog!

My name is Michelle and I’m a late twenty-something, recently married, midwestern gal, living in Chicago with my husband and my dog. We live a life exploring a semi-crunchy, healthy, active lifestyle, traveling, and trying not to spend so damn much money.

My goal on this blog is to keep myself accountable. It’s so easy to get caught up in a cycle of spending, wanting, feeling entitled or envious. I want to re-center myself and focus on what matters: relationships, health, and self-fulfillment.

I’ll probably post silly things like how much I want to go out to dinner, or stop at Starbucks for a treat, or buy yet *another* pair of cute everyday tennis shoes.

But I am also hoping to give myself space for reflection, recognition, and appreciation of what I have. I’m also trying to discover who I am and where my passions lie professionally, and I hope to understand myself further via this self-reflection.

If you’ve stumbled upon my page, welcome!