# End of year rethinking my spending habits



## Marie5656 (Dec 31, 2021)

*I have been going through all my finances. I have one credit  card and my checking account.  I have found myself reverting back to my old poor spending habits, which is not good.
I have frozen my credit card and reduced my credit limit.
I have had my Amazon and utility payments on my credit card..bad move.  So, I have been switiching all recurring payments over to my checking account.
I am really embarassed as it feels that at age 67, I should "know better". Part of me wants to blame my parents for not teaching me good money management skills, or to be more responsible.  But I realize that I now need to blame myself for not learning and acting on such skills.   
So, part of the new year, new me....is money stuff.  Has anyone else dealt with poor money management?  How have you dealt with it?  As soon as my credit card is paid off, I am going to cancel it.  I find it too hard to give into temptation*


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## Pepper (Dec 31, 2021)

Credit Cards are very important for emergencies.  How about using self-control instead?


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## Marie5656 (Dec 31, 2021)

Pepper said:


> Credit Cards are very important for emergencies.  How about using self-control instead?


Valid thought.  I have taken my credit card out of my wallet, and it is now in my lock box .   Out of wallet, out of temptation


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## Aunt Bea (Dec 31, 2021)

I would keep the card and use it often enough to keep it active.

If the card offers rewards I would keep the recurring monthly charges on it and pay at least that amount in full each month as you pay down the outstanding balance.

I keep a rough tally of my fixed monthly expenses and subtract that amount from my monthly income.  I set aside a portion of the surplus to cover surprise expenses and the rest for a few splurges.

I keep a running tally of my expenses in a notebook and try to adjust my spending when I start to go over my income.

It only takes a few minutes to jot down the amount spent and tally the total, but it’s a powerful tool to help understand where the money is going.

I tallied up the expenses for 2021 and found that I went over my basic income by approx. $600.00 this year.  I consider that to be within reason.

Good luck!


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## Marie5656 (Dec 31, 2021)

*I did call my credit card company to have them LOWER my credit limit.  One thing I learned during that conversation was they would periodically review my buying and payment habits and raise my limit!!  She asked me if I wanted them to stop raising my limit. I said HELL YES.  Less of a limit means less of a temptation to over spend*


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## Pepper (Dec 31, 2021)

So what's all the stuff you've been buying?  Are most of your purchases totally unnecessary?


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## Pepper (Dec 31, 2021)

Little bits of overspending upset me.  For example, I always forget to use coupons.  Lost so much money over the years.  I just like to criticize myself.


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## Murrmurr (Dec 31, 2021)

Aunt Bea said:


> I would keep the card and use it often enough to keep it active.


I don't think she really needs to do that, though. Not at this point, anyway. She can keep it open, but not use it for a year or so. The cc company won't have a problem with that, especially after she asked for a limit reduction. Both those actions will initially decrease her score, but after a few months it will shoot upwards.


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## Pepper (Dec 31, 2021)

I have heard you're supposed to use the card for small purposes a few times throughout the year to keep it activated.


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## Murrmurr (Dec 31, 2021)

Pepper said:


> Little bits of overspending upset me.  For example, I always forget to use coupons.  Lost so much money over the years.  I just like to criticize myself.


Oh man, I'm so bad with the coupons. I get them plus my "rewards" in the mail from the major-chain grocery store I shop at, and even though I stick them on the fridge right next to the dang shopping list, I forget to take like 75% of them with me. I grab the list, forget to grab the coupons hanging _right there_.


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## horseless carriage (Dec 31, 2021)

Well done Marie, at least you are confronting your spending and thinking about it, so hopefully it will bring your spending into kilter. For what it's worth I still use cash, the real folding stuff. If my monthly income is, let's say: "Y" I make sure that my spending doesn't reach, "Z" I aim for the spend to be nearer "X" by doing that when I have to spend, say on a heavy winter utility bill, there's surplus in our account to cover the overspend. I check our account level at least twice weekly, at the ATM where I withdraw the cash we need. 

The one drawback to cash is security, so my wife and I have always been security conscious, for our own personal safety too.


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## Aunt Bea (Dec 31, 2021)

Murrmurr said:


> I don't think she really needs to do that, though. Not at this point, anyway. She can keep it open, but not use it for a year or so. The cc company won't have a problem with that, especially after she asked for a limit reduction. Both those actions will initially decrease her score, but after a few months it will shoot upwards.


She doesn’t really need to do any of it.  

It’s just my opinion.

I would continue to use the card at the gas pump and in a few other situations as a convenience, but that’s just me.


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## Murrmurr (Dec 31, 2021)

Pepper said:


> I have heard you're supposed to use the card for small purposes a few times throughout the year to keep it activated.


I was in the same spot several years ago. I called the cc company and we agreed the acct would stay open as long as I made the payments, and no purchases necessary.


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## Marie5656 (Dec 31, 2021)

Pepper said:


> So what's all the stuff you've been buying?  Are most of your purchases totally unnecessary?


Some yes...but often, rather than using my debit card, I would go for the credit..thinking I could "hold off" payment.  Dumb thinking, I know.  I think I already mentioned I called to have them lower my credit limit, And  they will no longer raise my limit "Just Because".


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## Ken N Tx (Jan 1, 2022)

Marie5656 said:


> *I have been going through all my finances. I have one credit  card and my checking account.  I have found myself reverting back to my old poor spending habits, which is not good.
> I have frozen my credit card and reduced my credit limit.
> I have had my Amazon and utility payments on my credit card..bad move.  So, I have been switiching all recurring payments over to my checking account.
> I am really embarassed as it feels that at age 67, I should "know better". Part of me wants to blame my parents for not teaching me good money management skills, or to be more responsible.  But I realize that I now need to blame myself for not learning and acting on such skills.
> So, part of the new year, new me....is money stuff.  Has anyone else dealt with poor money management?  How have you dealt with it?  As soon as my credit card is paid off, I am going to cancel it.  I find it too hard to give into temptation*


 Not me!! I want to use my card more!! I received $2009 in cash back last year..I do pay the balance every due date..We place everything over $50 on the card..
Most Months the cash back pays for our streaming apps..


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## hollydolly (Jan 1, 2022)

Marie5656 said:


> Valid thought.  I have taken my credit card out of my wallet, and it is now in my lock box .   Out of wallet, out of temptation


I do exactly that. I've not had a problem managing money in the past, but I don't like to put temptation in my way..so I keep my credit cards at home..always, unless I know for sure I have a large purchase to make.. and only then does it go into my purse

Like you Marie.. I was never taught how to manage money, and I've always wished I'd taken some kind of accountancy course.. but I never did..

My daughter otoh is a better money manager than me, and pays for EVERYTHING on her credit card , and pays it off in full every month, ( as I do when I spend on my cards). .. , she's also very mathematically minded ..  she's in a full time job and earning a good salary ..I no longer am, and I worry that there might come a day when I would overspend and start having to pay in instalments and thus have to  pay interest. Up to now I never had to pay interest.. and I wouldn't like to start now...


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## Alligatorob (Jan 1, 2022)

Marie5656 said:


> I am really embarassed as it feels that at age 67, I should "know better".


Don't be, I think we all feel that way at times.  I think we do gain some wisdom as we age, but not nearly so much as we would like.


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## charry (Jan 1, 2022)

Since the covid situation , I havnt gone in shops , or spent recklessly , so I’ve gained savings each month, so I’m a happy bunny at the moment .........
Maybe I can spend more on my new car lease in July ....


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## terry123 (Jan 1, 2022)

Aunt Bea said:


> She doesn’t really need to do any of it.
> 
> It’s just my opinion.
> 
> I would continue to use the card at the gas pump and in a few other situations as a convenience, but that’s just me.


I would too!


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## oldmontana (Jan 1, 2022)

Ken N Tx said:


> Not me!! I want to use my card more!! I received $2009 in cash back last year..I do pay the balance every due date..We place everything over $50 on the card..
> Most Months the cash back pays for our streaming apps..



===============================
"Most Months the cash back pays for our streaming apps.."

I also get cash back from my credit card without using apps...hell, I do not think I have a cell phone were I can use apps.


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## Packerjohn (Jan 1, 2022)

Don't blame your parents; only blame yourself.  There are tons of books on budgeting.  You can also google some information.  Live within your means and you will be a happier person.  Take it from me.  I budget well and at night I sleep "like a baby."


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## Ken N Tx (Jan 2, 2022)

oldmontana said:


> ===============================
> "Most Months the cash back pays for our streaming apps.."
> 
> I also get cash back from my credit card without using apps...hell, I do not think I have a cell phone were I can use apps.


The apps I refer to are used on my TV Streaming devise..Netflix,Disney. etc..


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## Marie5656 (Jan 2, 2022)

*A friend share this on FB. What do you think...I assume it means opening a savings account and adding money each week/month.  What do you think ??

*


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## Ruthanne (Jan 2, 2022)

I didn't manage my money well over the years and filed bankruptcy several years ago.  As a requirement I had to take an online course in management of finances.  It helped a lot along with elimination of my debt that I had no way of paying due to being disabled on SSI Disability which is an extremely low income.

I have not gotten back in debt and have no credit cards now and don't want them.  I watch what I spend in cash and online.


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## mrstime (Jan 2, 2022)

Marie5656 said:


> *I did call my credit card company to have them LOWER my credit limit.  One thing I learned during that conversation was they would periodically review my buying and payment habits and raise my limit!!  She asked me if I wanted them to stop raising my limit. I said HELL YES.  Less of a limit means less of a temptation to over spend*


A few years ago we went all over town trying to find a bank that would give us a low limit......$500.00 because we wanted to use it online, and figured if someone got it they couldn't break us. The bank assured us that they would not raise the limit. So we had it for several years and then one month we accidently went over and they let us and then charged us $24.00 more for going over our limit! We no longer have that card!


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## RFW (Jan 2, 2022)

There's this one quote I take to heart when I see a seemingly good deal on something I don't need.
_"You save 100% by not spending."_


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## Ruthanne (Jan 2, 2022)

RFW said:


> There's this one quote I take to heart when I see a seemingly good deal on something I don't need.
> _"You save 100% by not spending."_


That's what I say now too!


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## Aunt Bea (Jan 2, 2022)

Marie5656 said:


> *A friend share this on FB. What do you think...I assume it means opening a savings account and adding money each week/month.  What do you think ??
> 
> View attachment 201948*


Saving is a good habit.

I believe in the old adage *pay yourself first.*

This month when the new SS payment kicks in I would try to save the amount of the COLA inceease before it gets lost in the monthly expenses.

IMO it helps to have a goal.  That could be building a little emergency fund, paying down debt, etc…

Be realistic  about the amount.  Better a small amount that you can realistically manage than a large amount that is difficult or impossible to manage.

Don’t forget that we are retired. Be good to yourself and leave a little _wiggle room _in your budget for a few splurges.

In the end it’s all about balancing what comes in against what goes out each year.

_“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”_ - Charles Dickens


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## OneEyedDiva (Jan 3, 2022)

I agree with @Pepper about not canceling your credit card. Lowering the limit and putting it in your lock box are better alternatives. I wasn't necessarily a poor money manager in my early twenties, I just didn't make enough. But despite that, I started a savings plan and stuck with it so it became ingrained in me such that when I didn't save anything, I felt weird. I'll never forget, I started with $6 a paycheck (we got paid every two weeks), then when I got a raise, I doubled that. I kept doubling it. I thought I was *really *doing something when I reached $25 a paycheck. LOL  Over those years I learned to manage money very well. I haven't paid interest on *anything* since my mid to late twenties. Very importantly, I built up an excellent credit rating. There are definitely perks in doing so.  

Marie, I think you've taken the first and second steps to more successful money management because you
1. Recognize that there is a problem that has to be corrected and took the first steps.
2. Lowered you limit and locked away your card to avoid temptation.
*Congratulations* on taking those much needed steps!


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## Marie5656 (Jan 3, 2022)

*OK, it is now just after 2 AM here. I have been crunching numbers.  Expenses....rent , gas, etc.  I get SNAP (food) and HEAP (heat/electric).  I have a couple dr appts. coming.  I know I have this....just gott to sit down and have a meeting with myself remiding myself I have this.*


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