I have a confession to make.
I, the biggest cheapskate on earth, overspent this month. (Well, my husband is partially to blame too.)
And I’m not talking just a little overspending. I’m talking a lot of overage here. It’s not overage on a larger-than-life, Owning Mahowny level. We will survive, pay our bills, keep a roof over our heads. But we spent more than is comfortable for my husband and I.
Where did we go wrong? Our credit card statement had a few clues. (We use an American Airlines Mastercard and pay it off every month to get frequent-flier miles. They come in handy when you live 12 hours from relatives.)
There were some large charges on there. Electric bill, phone bill, a big charge from Babies R Us from when we bought the expensive – yet absolutely necessary - car seat for our 2-year-old son, who at 32 pounds and 36 inches tall is likely going to become an NFL linebacker. But those big dings weren’t the problem.
It was the little things that made up the bulk of the bill. $5 for breakfast at Sonic. $20 from when we all went to Subway for dinner one night. A $40 charge at Target for my friends’ baby shower presents. At the time, they all seemed so insignificant…but added up, they amounted to a big deal. A REALLY big deal.
Obviously, something has to be done. But what? This is where my husband and I diverge in our schools of thought. He’s of the opinion that we should each set a monthly limit for discretionary spending and keep a running total in our heads of how much we’ve spent. To me, this is a recipe for disaster. All those Sonic breakfasts and Starbucks treats tend to run together, and by the time you realize you’ve gone over…it’s too late.
My proposed solution: Get two prepaid debit cards, like these, and load them each month with the monthly allotment. When your money is gone, it’s gone. No more gingerbread lattes, McFlurries, or new outfits until the month is over. End of story. Even though there is an initial fee for each card, they can be reloaded free if you use the direct deposit feature.
“Why not just keep an envelope full of cash?” asked my hubby.
For many reasons: 1. I’m an unlucky person. If a thief is going to rip someone off, it will probably be me. And if you get robbed, your cash is as good as gone. 2. I tend to overspend when I have cash in my pocket. Because it’s not coming out of a bank or credit account, it just doesn’t feel real to me. 3. I lose things frequently.
What do you think is the best way to control discretionary spending, and why?
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