Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-03-2010, 10:30 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by Enuff2Eat View Post
I tried so hard to pay off my credit card at the end of the month but it does seems harder and harder everyday since we tends to spend too much and it's extremely easy to swipe that card then worry about it later. Our expenses increase significantly because the kids are getting older too. Oh yeah, last month was xmas... Why can't all holidays be like Thanksgiving where you get to see families and friends instead of buying junks that noone needs.


What's monthly credit card charge?? Our is around ~$1500.00-$2000.00

enuff
Enuff I think most of the early retirees use charge cards pretty extensively, although there are exception like W2R. My charge cards are also in the $1500 month range, because I charge everything over $10. However, I think one characteristic that virtually all of us early retiree share is that we almost never incur finance charges on our credit cards. Paying off the credit cards balances at the end of the month is automatic.

If you are finding that you are having trouble paying off your card balances at the end of the month, I'd highly advise to stop using cards and pay cash instead.

There are many paths to an early retirement. However there is one sure one of never seeing it and that is pay 20% interest on stuff you don't need.
__________________

__________________
clifp is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-03-2010, 10:38 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
I don't know if a CC/DC/Cash is the problem/solution for the OP.

I think the solution is a budget.
__________________

__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 01-03-2010, 10:47 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by bbbamI View Post
I don't know if a CC, DC, cash is the solution/problem for the OP.

I think the solution is a budget.
I recently have been watching CNBC Till Debt do us Part, which I find to be much better than Suze Orman and even better than Dave Ramsey.

Gail, the host, puts the couples budget in cash in various jars. So while I agree that budget is absolutely necessary, making a budget is relatively easy sticking to it is hard. I think credit cards are the biggest budget busting device in the world.
__________________
clifp is offline   Reply With Quote
Old 01-03-2010, 11:02 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,863
Quote:
Originally Posted by clifp View Post
Enuff I think most of the early retirees use charge cards pretty extensively, although there are exception like W2R. My charge cards are also in the $1500 month range, because I charge everything over $10. However, I think one characteristic that virtually all of us early retiree share is that we almost never incur finance charges on our credit cards. Paying off the credit cards balances at the end of the month is automatic.

If you are finding that you are having trouble paying off your card balances at the end of the month, I'd highly advise to stop using cards and pay cash instead.

There are many paths to an early retirement. However there is one sure one of never seeing it and that is pay 20% interest on stuff you don't need.
I am an exception, too, using my CC about 5 times per year and my debit card maybe once a year. Anything under $50 (and some things over $50) I pay cash. But I surely agree with everying else you wrote.

I also watched some of that "Till Death Do Us Part" show recently. That's one pretty sad lot of people there and how bad their spending practices are.

I write only 1-3 checks per month on average, with most of my bills paid via automatic electronic payment for the last 10-15 years. My dividend income deposits are made the same way so most of my budget is on auto-pilot.
__________________
scrabbler1 is online now   Reply With Quote
Old 01-03-2010, 11:04 PM   #25
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,852
Quote:
Originally Posted by clifp View Post
I recently have been watching CNBC Till Debt do us Part, which I find to be much better than Suze Orman and even better than Dave Ramsey.

Gail, the host, puts the couples budget in cash in various jars. So while I agree that budget is absolutely necessary, making a budget is relatively easy sticking to it is hard. I think credit cards are the biggest budget busting device in the world.
I like that show, too.

One thing's for sure. As the saying goes: If you do what you always did, you'll get what you always got. She really changes how these couples handle money and budgeting, and this is very helpful to them.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 01-03-2010, 11:45 PM   #26
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 1,905
Charge most everything I can - between $3-$4 K/month. pay in full each month and have never had a late payment or fees. Have been doing this since the reward system started, (If memory serves it started with gasoline as the "payback" and only latter evolved to cash, airline miles etc). We follow a strict budget so there has never really been a problem of purchases getting away from us but I can certainly see the value of a debit card or cash if impulse purchases are a problem.
__________________
ejman is online now   Reply With Quote
Old 01-03-2010, 11:58 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by Enuff2Eat View Post


What's monthly credit card charge?? Our is around ~$1500.00-$2000.00

enuff
Also about $2000.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-04-2010, 07:14 AM   #28
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,528
Quote:
Originally Posted by Enuff2Eat View Post
I tried so hard to pay off my credit card at the end of the month but it does seems harder and harder everyday since we tends to spend too much and it's extremely easy to swipe that card then worry about it later.
That's why merchants love credit cards so much - it doesn't "feel" like spending money. I dunno about the accuracy, but I've repeatedly seen the number that shoppers who use credit cards exclusively spend 20% more than cash spenders.

We use a mix of cash, checks and credit cards. DW keeps a spreadsheet in which we record every cc expenditure, predicted utilities for this and the next month and of course income. It's just our way of making sure that the "left hand knows what the right hand is doing" because we do not like financial surprises. We pay the ccs off in full every month and when the outstanding balance approaches what we can pay in full without taking money out of savings, spending stops. Generally, individual spending under $100 we "just do" and anything over that gets at least minimal discussion/acknowledgment.

Funds do not come out of savings without extensive discussion.

Monthly cc bills are usually between $200-$500/month, although we'll charge some expensive items like furniture for the consumer protections that cc offer.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 01-04-2010, 07:18 AM   #29
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
Our bills are $1,500 - $2,500 /month. We're trying to put everything on card. Pay off each month in full.

Don't wan to hijack thread, but what's best card out there ? Lots of folks here seem to use Pen Fed visa.

https://www.penfed.org/productsAndRa...ewardCards.asp
__________________
Delawaredave5 is offline   Reply With Quote
Old 01-04-2010, 10:09 AM   #30
gone traveling
 
Join Date: May 2008
Posts: 3,864
I use an Amex cash rebate card for nearly everyhing, pay it off in full each month. My cash rebate has been averaging $750/year- this year it will be over $1000 with all the new home and moving expenses.
__________________
Westernskies is offline   Reply With Quote
Old 01-04-2010, 10:19 AM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
For December 09, $2700, which is a higher figure than normal for a 2 adult household. December serves as a good high end data point for monthly spending patterns.
I did my winter food stocking and of course some holiday/entertaining related shopping in Dec.
Everything but the recurring monthly bills (utilities, trash, insurance, etc) goes on the cash back card. Zero balance every month.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 01-04-2010, 10:33 AM   #32
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
Quote:
Originally Posted by Westernskies View Post
I use an Amex cash rebate card for nearly everyhing, pay it off in full each month. My cash rebate has been averaging $750/year- this year it will be over $1000 with all the new home and moving expenses.
Looks like that card is not available to new cardholders....
https://www217.americanexpress.com/c...ARDS/67/0/0/-1
__________________
Delawaredave5 is offline   Reply With Quote
Old 01-04-2010, 11:00 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
Quote:
Originally Posted by yakers View Post
Our two cards add up to $3K to $4K each month, paid off each month. We like the cash back on the cards. Appreciate the mediation the cards provide if there are problems with stores or service providers.
Quote:
Originally Posted by Bikerdude View Post
I try to charge as much (of every day expenses) as I can each month. I always pay the balance and never incur a finance charge. I benefit greatly from the rewards and other card perks. I probably average $1500 to $2000 per month. I would never consider using cash.
What they said. (Particularly the "never consider cash" statement.)

We average around $3,000 a month.
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Old 01-04-2010, 02:13 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,426
Quote:
Originally Posted by clifp View Post
I think credit cards are the biggest budget busting device in the world.
I think the biggest budget busting device in the world is the television. I've often told DW and DD that the reason they buy stuff and I don't is that they watch commercials. Of course, I'm usually saying that in response to their annoyed comments due to my channel flipping with the remote. But I stand by my claim. I don't watch commercials so I'm not under constant pressure to "improve my life", which I would accomplish by running out and buying something I don't need with my CC.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is online now   Reply With Quote
Old 01-04-2010, 03:47 PM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by harley View Post
I think the biggest budget busting device in the world is the television. I've often told DW and DD that the reason they buy stuff and I don't is that they watch commercials. Of course, I'm usually saying that in response to their annoyed comments due to my channel flipping with the remote. But I stand by my claim. I don't watch commercials so I'm not under constant pressure to "improve my life", which I would accomplish by running out and buying something I don't need with my CC.
I believe you are right. You can't covet what you haven't heard of. The science and technology of persuasion is very advanced. We may think we have resistance to it, but for the most part our resistance is weak. Best to avoid advertising altogether. And that is what a DVR is for.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Old 01-04-2010, 03:53 PM   #36
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
Quote:
Originally Posted by harley View Post
But I stand by my claim. I don't watch commercials so I'm not under constant pressure to "improve my life",
Right on !!!

"Marketing" has made millions of people miserable - there's a lot of depression over the holidays induced by all the marketing pressure of what the "perfect holiday" should be.

So sad.....
__________________
Delawaredave5 is offline   Reply With Quote
Old 01-04-2010, 04:27 PM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
My sister and her husband have never owned a TV. They are the least consumer oriented people I know so you guys maybe on to something.

Fortunately for my fellow marketers, the internet has come along providing wonderful and exciting opportunities for business to make consumer aware of fabulous new goods and services that will make their life richer and more complete. Thanks to credit card all of these can be obtained painlessly just by running your card through the reader or clicking the buy it now button on many websites.
__________________
clifp is offline   Reply With Quote
Old 01-04-2010, 05:55 PM   #38
gone traveling
 
Join Date: May 2008
Posts: 3,864
Quote:
Originally Posted by Delawaredave5 View Post
Looks like that card is not available to new cardholders....
https://www217.americanexpress.com/c...ARDS/67/0/0/-1
Try this link...
Search American Express to get help, frequently asked questions, and search offers

Even if you are not going to use the Costco membership, the cash rebate is worth the cost.
__________________
Westernskies is offline   Reply With Quote
Old 01-04-2010, 06:51 PM   #39
Full time employment: Posting here.
 
Join Date: Jan 2007
Posts: 582
We are on the high end, I guess, usually between 3-4K per month but for the past year (which involved a couple of moves and rather extensive home repairs) we were above 5K every month. It's nice to see the numbers finally dropping! We do put pretty much everything we can on the CC and pay in full each month.

I agree that spending with plastic feels less "real" than paying cash. So if we needed to cut expenses I would be inclined to go the cash route.
__________________

WM is offline   Reply With Quote
Old 01-04-2010, 07:23 PM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
Quote:
Originally Posted by WM View Post
So if we needed to cut expenses I would be inclined to go the cash route.
I find writing (virtually, of course) that $3,000 check to be incentive enough to control spending.
__________________

__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
RonBoyd is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Will closing a credit card hurt my wife's credit score? bank5 Other topics 4 06-03-2009 07:01 AM
Pre Paid Credit Card/ Gas Card or Credit Card nphx Other topics 4 04-29-2008 02:04 PM
Pay your credit card off monthly? calmloki FIRE and Money 24 11-18-2007 09:48 AM
Best Bonus for Credit Card Expenitures -Frequent Flyer cards or Cash-back card? ScaredtoQuit FIRE and Money 19 04-21-2007 04:29 PM
Charge new car to credit card ??? rjk514 FIRE and Money 29 03-20-2007 08:50 PM

 

 
All times are GMT -6. The time now is 06:28 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.