Found this gem back in April of ’09, and still very relevant as it was back then :) Except for maybe the “IM” part you’re about to see, haha… Does anyone still use that anymore?? Maybe I should log on into MySpace and find out (wha wha).
Please to enjoy, my archived post:
Had an interesting chat w/ my brother yesterday over IM (the same one who likens debt to kissing your sister), and thought I’d copy & paste it here for ya. Figured it’s much more interesting to read that way than me paraphrasing and trying to slip in silly banter all over the place ;) Plus, I’m feeling pretty lazy.
So here you go – let’s see if you can pick out the moral of the story!
(2:56:11 PM) My_Brother: i came across a stunning realization the other day about my spending
(2:56:22 PM) My_Brother: i mean, i knew all along, but this REALLY knocked me out when i sat and thought about it
(2:58:00 PM) J_Money: that tends to happen :)
(3:00:31 PM) My_Brother: 99% of my cash is spent on food and coffee
(3:00:40 PM) My_Brother: sure, i dont buy groceries really
(3:00:44 PM) My_Brother: but still, man that sucks
(3:01:02 PM) J_Money: yeah…but luckily you eat around the same amount every month :)
(3:01:17 PM) J_Money: so no matter how much you get paid going forward, you prob. won’t be spending that much more of your cash!
(3:01:24 PM) My_Brother: thats true
(3:01:33 PM) My_Brother: i prob spend what id spend on groceries anyway
(3:01:36 PM) My_Brother: just stinks
(3:04:37 PM) J_Money: yup, stinks indeed. but look on the brightside – you have a sexy brother.
(3:05:49 PM) My_Brother: i did not think of that
(3:05:55 PM) My_Brother: that is good to know. right on
Find the financial moral? Here it is: If you learn how to spend the same amount of money each month, anything “extra” you get can be dedicated to savings! Bonuses, raises, money you find in your pockets, all of it. Learn how to utilize that extra money *now* before upping your standard of living later. Leveling spending = leveling stress! ;)
EDITOR’S NOTE: I like how I didn’t even ask any questions on why so much of his spending is on food/coffee, haha… Or what the other 1% of his cash is going to, for that matter.
EDITOR’S NOTE #2: I also came to find out later that the term for this “increased spending with increased income” is called “lifestyle inflation.” Something we all gotta watch for in life no matter what our stage!
[Photo by Sam Howzit]
Bonus tip: Find a good "balance transfer" offer to help pay off debt faster!
If you’ve been making payment after payment (on time) and still haven't been able to get your debt under control, snatching up a good balance transfer credit card offer may be the ticket to try. That’s where in order to gain your business - credit card companies will let you transfer your existing debt to a new card and let you pay ZERO PERCENT interest on it. Saving you tons every month!
What's the catch? Usually balance transfer cards charge a fee (around 3% of your debt balance) to let you transfer your balance to their 0% interest offer. But we've found a great credit card that will let you do a balance transfer absolutely free. Click here to learn more and see if you qualify!
PS: If you don't trust yourself with another credit card, ignore this! This strategy is to help you get out of debt quicker, not risk adding more to it.