Cash, Credit, Debit 

First, I honestly don't know how I made this happen, but since it is snowing I thought this would be a good visual!

Let's start the year right by getting charge of our finances!

I've been thinking a lot about the use of cash, which is the first step to take if you are trying to wrestle your spending down to size.  When I first got separated from my ex-husband, I was very worried about my budget.  I put my credit cards away and forced myself to use cash.

Some people put their cards in water and freeze them so they are only available in an emergency.  I recently heard a financial guru recommend you perform a "plastictomy."  As my old boss Diane Sawyer used to say, "A girl's gotta do what a girl's gotta do."   I like to think I'm pretty disciplined so these measures weren't necessary.

Hiding my credit cards was a wise choice.  Cash forced me to spend only the money I had.

I have never been a fan of debit cards because they didn't have the same protections given credit cards and I was worried if they were stolen, the thief could empty my bank account.

Then, one day I went to the Post Office (ask your parents) and learned that my ATM card, which I used all the time to get cash, was also a debit card.  Light bulb moment.

Last year, while shopping at Aerosoles (my favorite comfortable shoes) my ATM card was stolen, along w/ a few credit cards.  Turned out the ATM (debit) card was safer because the professional thief did not have the code.  She went on a spending spree w/ the credit cards, but got nowhere w/ the bank (debit) card, though she tried.

At this point I have to give a very big shout out to the NYPD, who came swiftly, took me to the station to notify the bank & credit card companies and investigated all the stolen charges.  A year later, the thief was caught and pled to some serious charges.  I know because I was asked to testify before a Grand Jury, but it never came to that.

The point is you already have a debit card in your wallet.  Keep track of it, and use it instead of a credit card to reduce your debt.

If you are good w/ your credit cards - which means paying them in full every month - be sure to get something back when you do. Many cards change their rewards every quarter.  I put a small piece of masking tape on the corner of the card and mark it w/ a Sharpie to remind me of what items I should pay for w/ this card.

For example, this quarter (January 1 - March 31) Discover is giving 5% back on charges at restaurants and movies, Chase Freedom is giving 5% back on gas, movies & Starbucks, Old Navy is giving back 5% on groceries, gas & restaurants.

You'll have to change the stickers at the end of March.  Don't worry, I'll remind you!

Swift Thrift

Crumbs, the decadently delicious cupcake store, has created Throwback Thursdays.  Every Thursdays, a different special cupcake is named and it sells for $2.95!  Of course, I'm not suggesting that this be a part of your daily diet, but as a treat cupcakes make me very happy.  I even took a cake decorating class @ Michael's so I could create yummy cupcakes for my daughter.  If  Sign up on their website and you'll get a weekly email telling you which flavor is this week's indulgence...

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Keep calm & carry on...Lori A. Bores