Category: Budgeting

I recently decided to apply for a Walmart credit card  because of the additional benefits I’d receive as a cardmember. As an afterthought, I decided to add my daughter as an authorized user. She doesn’t overspend, and I know she would ask me before making a purchase, and so she was an added user. The thing is when I asked her about the card about an hour ago. She did not know where she put the card. Sighs, until she finds the card, I’ve locked the card.

What’s a credit card lock? A credit card lock pauses any activity on the card so that no one (not even the user) can usually make purchases. I say usually because from my understanding, some users might be able to make some purchases with the locked card if it’s in their digital wallet. I find that a bit odd; you’d think a lock would cover that also. That’s a non-issue since she does not even have a digital wallet.

I believe my daughter when she says that the card is “somewhere in her room.” Last month, when I handed the letter to her containing the card, I told her to put it in a safe place. I imagine she placed it down, intending to do that later. Of course, later never happened. Was I annoyed? Of course, however, I did the responsible thing (even though I was optimistic that the card was in her room somewhere) and locked the card. It was also a teachable moment on the importance of placing important information away immediately. Since at times, we can become distracted by various things, set things down absentmindedly, and later have a time figuring out where the item was placed. It’s why I put things away immediately. I don’t want to deal with the unnecessary frustration of figuring out where the item might be.

Updated to add:

Shortly before midnight, my daughter found her Walmart card. That was about an hour after I wrote this post, and it’s now in a secure place. I made sure of that.

Another update:

I’ve unlocked her card. I had her activate it and return it to its safe place.

 

 

From my research on the internet, Deadbeat is a term used, by credit card companies, for those people who pay their credit card bills in full each month. I wrote about the term a few years ago on this website. I’m not too fond of debt, and so I typically pay my credit card bills in full monthly.

When I was furloughed because of the pandemic, I decided to carry a balance since I did not want to pull additional money from my savings. However, I paid more than the minimum payment monthly. Shortly after returning to work, I went back to having a zero balance on my credit cards monthly. I must say it feels great.

Last week, I applied and was approved for two store credit cards; Walmart and Target. I already have an Amazon credit card. I checked out the rewards, and the incentive offered using them at each store is more than I get from using my two credit cards. For example, Both cards offer 5% off purchases made at each store. I have a credit card that offers 5% cashback; however, the store cards also have additional perks for using their cards. So, it makes sense, to me, at least to take advantage of what the cards offered. Since I don’t carry a balance, there’s no risk of me paying any additional fees.

 

I don’t shop at Walmart too often, so that won’t get too much use. I mainly purchase items for my parents from this store.

However, I do purchase items from Target at least a few times monthly. I typically purchase my frozen fruit for smoothies from this store. With the Target card, I’ll have an additional 30 days to return my purchase if something is wrong with it, so that’s 120 days total. I rarely return items. However, that’s an excellent option to have.

I’ve never got caught up purchasing items that I could not afford, so there’s no risk of me going into debt because of my spending habits. I live well below my means. Paying with a credit card is more for convenience than anything else, and the protection that credit cards provide if my account has been compromised is nice also.

Yesterday, when I logged into my credit card account, I noticed that my ‘available balance’ was much, much higher than normal. Initially, I was confused about that, but I realized that I had received a credit increase. If you’ve been following my website for… oh about five or six months, you’ll know that credit cards are ‘fairly new to me’. I haven’t had one in about thirteen years and when I had one, I used it for about two years and cancelled it. It wasn’t cancelled because of abuse. I paid my bills on time. Because of that, when I checked my credit report about seven months ago, I learned that I had no credit history. So no… overspending isn’t the issue, I just thought that what I could do with a credit card, I could do with a debit card and in many cases that is true. However, I decided to get a credit card in case I ever was in a scenario where my debit card wasn’t accepted and just like before, I’d pay off my credit card in full, so I’m not paying any interest fees and since my card has a cash-back feature for every item that I purchase, I’m getting extra money for using my card for expenses.

Well, guess what? Shortly after acquiring a credit card, my debit card was compromised, but no worries, my small local bank stopped those charges before money was even taken out of my bank account and so now, moving forward I’m now paying for the majority of my purchases with my credit card.

My spending habits haven’t changed since I started using a credit card, it’s called personal responsibility… I have that. I’m still living well below my means. I’m still rarely eating out at restaurants, I’m still sitting on my “wants” for long periods of time. Yes, I’m still saving and investing a lot to prepare for the unexpected. Because if the unexpected… happens and I’m not being proactive, I might get blindsided when the unexpected pays a visit. Uhm.. no thanks! I don’t want that. By the way, the “unexpected” just happened to me recently and I was prepared. My recent purchase of my Dr. Marten’s is a testament to how long I can sit on some of my wants. I wanted those boots since I was in college, so it’s over twenty years ago.

I’ve been on some financial forums where they avoid credit cards at all costs because it’s a form of debt. Interesting how they dismiss, electricity, cell phone bills, a variety of other expenses where you’re doing the exact same thing. It’s always made me wonder why some people specifically single credit cards out from the others? I think all of them are Dave Ramsey forums. I quickly removed myself from those groups simply because some people didn’t understand that you can be responsible with a credit card. Although I didn’t have a credit card at the time, the assumptions that some made about credit cards, was over the top. Here it is, six months after getting a credit card, and I’m still not being controlled by it. Guess what? A credit card won’t spend on its own. Someone has to do the spending and outside the purchases, I was already making when I actively used my debit card, I don’t spend what I don’t have.

In my last post, I mentioned that I was acquiring a planner and here it is, says hello to my ‘new to me’ Franklin Covey (Classic) Day Planner.  After a lot of research, I decided that my planner of choice would be a Franklin Covey and although I was impressed with the videos and written posts about them, I decided that I didn’t want to spend that type of money to purchase a new planner. From my research, new this planner cost over $100 however, I was able to purchase it for under $25. Yes, that included shipping. Where did I purchase my planner? Ebay of course! I went on the website and found exactly what I was looking for and it had the added bonus of this cute hangtag.  Do you see what it says?

“Attitude is everything!” Isn’t that the truth, if we’re constantly filled with negativity, is it any surprise that the ‘world is against us?” 🙂 The ‘world’ really isn’t,  but at times our negative attitude pits us against ourselves whether we know it or not. But back to the planner. It arrived at my house quickly. I won the bid for it on Friday and Monday it arrived!

This Franklin Covey Classic day planner was in amazing condition and after wiping it down with a soft cloth and adding my own homemade leather conditioner, it looked as good as new. I’ve had this planner for almost a month and I must say that I’m thrilled with this purchase. I use it daily. Currently, I am on the lookout for a Franklin Covey Monarch day planner. Why would I want one? For my 8″ x 11″ documents that I don’t want to fold in half when I give information to clients, I never fold their paperwork, however, what they do after I give it to them is their prerogative. Another bonus for the Franklin Covey planners is that they will last years since they only thing that “needs” to be changed is the paper and since I’ve been making my own inserts, I save even more money.

 

It’s Amazon PrimeDay!  Amazon has been promoting this day for several months. There are a limited amount of products available for the items that are reduced and you have to make the purchase in a few short hours, so in some cases you have to act quickly, otherwise the items will be sold out.

Today, I’ve seen many Facebook groups, sharing what they purchased. Of course, others responded within the comment section to show what they’d purchased. Some people were undecided, since they ‘wanted’ the items but were unsure if they’d make the purchase since it wasn’t in their budget. Did I purchase anything? Yes, but I’d budgeted for those purchases in advance, so I was fine. I had planned on buying one item this past weekend, but then I remembered that today was PrimeDay and so I held off until now to see if I could receive a better deal. I didn’t for that item, but I did for the other.

The cleaning sprays that I purchased for my Toyota Prius weren’t reduced more, but…

the sketch pencils that my daughter needed for an upcoming class were!  An additional $7 was knocked off the price.

How much did I spend on Amazon PrimeDay? $26.34. It was budgeted and I came out ahead. You want to know something?  It’s the first time I’ve ever purchased anything at Amazon on  PrimeDay. I’ve been an Amazon Prime member since the service was offered. Were there items that I wanted to buy yesterday, but didn’t? Of course, but those items were ‘wants’ and although I COULD have made the purchase without going over my budget, I chose not to do so. I figured those items that caught my interest would be good deals for someone else.

Towards the end of this week, I’ll be cleaning the Mass Air Flow sensor in my Toyota Prius instead of taking it into the auto mechanic to take take care of this for me. This past weekend, I drained/refilled the oil in my Toyota Prius. Another way to save money for car maintenance since the work was done by myself. I typically do most of my own car maintenance, some jobs I save a few dollars and others I can easily save over $100. 😉 To ensure that I have my 2003 Toyota Prius for a long time, I stay on top of doing the maintenance when it’s recommended. Often times, I do it at least a thousand miles before the suggested maintenance.

As mentioned, in May of this year, I acquired a credit card. I hadn’t had one for years. As l already mentioned in earlier posts, I stopped using it because my debit card did exactly what a credit card did with the added bonus that it came directly out of my checking account, just how I liked it to be.

For several years, I’d been using my debit card and I was fine with that, however, I started thinking about the possibilities of it not being accepted at some places. Now granted, I had never run into this issue, but I’m the type that typically has a back-up plan for everything (that’s just how I roll) so I must say I’m surprised that I went without a credit card for so long.

Approximately 14% of the population has no credit score whatsoever, and is labeled as credit invisible. As a result, these underbanked individuals will have difficulty obtaining new lines of credit.

I Have a Low Credit Score Because I Didn’t Use a Credit Card

When I went to apply for a card, guess what I found out? There was absolutely no credit history about me to report and I received a message (like the one quoted above) stating that my credit was invisible? I pay my bills on time and have no debt, but it still had no credit history of me within the system. I have read about this from some homeowners that don’t use credit cards and I suspected this might be the case if I ever decided to acquire a credit card.

 Personal Responsibility: I pay my credit card bill weekly

But as you can see, with the chart below, I make payments on my credit card frequently. It’s about personal responsibility, I don’t spend what I don’t have, even with a credit card. So yes, I treat it exactly as cash or a debit card.

As you can see the first month, I only used it for a few purchases, however, in June I increased the amount I purchased and this month that has increased even more. Sorry credit card companies, but you won’t make any interest off of me for carrying a balance. As mentioned many times, I pay my weekly and have a zero balance. I love paying for my credit card purchase as soon as it’s used. That might sound ‘odd’ to some, but being debt free makes me happy.

However, I’m not fooling myself into thinking they aren’t making anything. You see, when I make a purchase using my credit card, the merchant is charged a fee. It would make sense for the merchant to factor this into their listing prices, so I don’t feel bad about that at all. My credit card doesn’t have an annual fee so I’m not ‘paying’ that way. Also, my credit card doesn’t have an annual fee.

I have heard some say that people tend to spend more with plastic than with cash. I honestly don’t. My purchases are always planned and I don’t go over my budget. I am a natural saver. My debit card should arrive any day now, but I’ll still be using my credit card for all my purchases. I’m thinking I won’t use my debit card at all since it was compromised. You can read about the attempted unauthorized use of my debit card issue here.

What if  I lose my job or am ill?

As mentioned, I’m a natural saver so I do have an emergency fund in place to prepare for the unexpected, so my bills will still be paid, regardless. That goes back to personal responsibility and preparing for the unexpected in advance, so you aren’t scrambling when those unfortunate circumstances happen. I don’t indulge in my wants. I rarely go out to eat at restaurants. I much prefer cooking and it saves additional money that I can put aside to planning for our future. Also, when it comes to entertainment, most of it is free. This all ties into me being able to effectively set aside money for the unexpected. It’s just smart and being a wise steward, just like Joseph from the Holy Bible. Also, I’m not dependent on one source for an income, that’s the importance of creating multiple income streams.

I Budget

I use YNAB (You Need A Budget) for my budgeting needs. I’m enjoying it immensely. I still keep a budget on paper too, but YNAB is great since it gives me the opportunity to digitally record transactions when they occur. By the way, you can try YNAB free for 34 days by clicking on this link. YNAB contacted me a few months ago about joining their program and I was honestly thrilled, but I didn’t act upon it until now. This is an affiliate link. You can search my website to see what I’ve written about YNAB. After the trial, if you do decide to use their service we both receive a free month of YNAB! I manually enter all my transactions into YNAB. I simply like that level of control, however, you can allow it to link to your bank accounts.

Resources:

1. Does Your Credit Score Matter if You Don’t Do Debt?
2. Average Credit Score in America
3. Thank You To People With Credit Card Debt
4. How Paying A Credit Card Works

Wasn’t I just writing that one of the reasons I decided to get a credit card was in case of incidents happening out of my control? Well, last week, I had unauthorized access to my debit card, which is tied to my checking account. The good news is my bank stopped the fraudulent activity instantly, contacted me and nothing was removed from my account. They immediately froze the debit card, so no money was lost! This past Thursday, I went into my local back and signed the ‘hot form’ so I could receive a brand new debit card.

It’s a bit of a puzzle to me how the person gained access since that card has been used at the same places for years, so perhaps one of those businesses had to be compromised? Also, the past few months, I have not used the debit card. I’ve been paying for all of my purchases with my credit card that I acquired in that same month. The credit card is new to me since I haven’t had a credit card in years, not because of poor management, but because I didn’t see the need for one with a debit card.

Credit Card: I don’t spend what I don’t have

I just have one credit card, and as I mentioned earlier I acquired it recently. Before, I hadn’t had a credit card in about thirteen years. I was responsible with it when I did have it back in the day and I only had it for two years. With my credit card, I treat it no differently than my debit card, meaning if I don’t have money in my checking account, well I’m not making the purchase. There’s always money in the account.

 

I pay my credit card bill soon after making a purchase

But back to my credit card, I pay the amount owed to the credit card the same day or within a few days after the purchase. My final backup was setting up auto-payment so if something happens to me and I’m unable to do what I normally do, it’s still automatically paid in full before the monthly billing cycle. So regardless, my credit card balance will be zero every single month. This is an effective way to avoid credit card debt and eliminate finance charge, because every month I will have a zero balance. No, I won’t slip up and get into credit card debt. I’m wise and disciplined enough to know, what I purchase, I also owe. This again, is one of the areas where I disagree with Dave Ramsey. I disagreed with him even before I acquired another credit card, not everyone is irresponsible or will purchase items with money they don’t have. Come on Dave, give some of us more credit than that. I’m also taking advantage of the ‘points’ that some credit cards companies offer. I’m using those points to acquire free stuff. The beauty of it is that the credit card company isn’t making anything off of me since I pay the credit card of every single month. Lol, I love it and that’s winning with credit cards. 🙂

Fun Fact: Credit card companies refer to people (like me) that pay their entire credit card balances off in full each month, DEADBEATS. Because they make no money off of us. Well, in this case, I’m proud to be a deadbeat.

 

Resources:

What does it mean if the bank Hot Carded My Debit Card?