Money Mondays

Emotional Spending

One of the great benefits to doing this web page is finding out all this fun information. When I thought what I might do for today’s “Money Mondays” I remembered a friend of mine talking about how she shopped to ease her pain or sorrows. While the thought of buying new articles is rather invigorating, the flipside to that is paying for that article(s) and usually it is through a credit card payment.

I am not a big fan of credit cards, never have been. It use to be, when they first came out that you had to have a good job and substantial money in your bank before they would approve you as one of their lenders. Now, pretty much anyone can get himself or herself into debt and at 19-20% interest no one has to wonder why the dividends to those who own bank stock is the reason why these companies and please think of it in this way, banks are companies that are making money for their stock holders, are the richest institutions in our country.

It’s a lot easier to use a credit card because it is money we don’t see we have used until months end, and even then it just seem like a different part of our money intake /output for it is never really money we see in our hands until we have to pay the bill. Then that is a whole different story. If we have been spending money we don’t have, then it is robbing Peter to pay Paul.

We think that we are off the hook somewhat by paying the minimum payment but that is just how the banks want you to feel because while you are paying the minimum amount, they are charging you each month you don’t pay the full payment 19-20% interest rate on the full amount. So in some cases it’s like you are just paying the interest rate every month and your bill never really gets smaller.

Now really think on this people, loan shark, banker, doesn’t matter, either way they are taking your hard earned cash and that to me is the price we pay for borrowing through those institutions.

Now there is some positive to credit cards. For instance, many offer deals through points when you buy products on their card. This is only beneficial to you though if you pay your card off every month. This takes great discipline and organization of your bank funds.

While searching for web pages to help save money I found two that I thought would be of interest to you. One is simply called “Save Money” and it has all sorts of tips on how to save and spend safely. It is a Canadian site and I think it has some interesting and helpful information on it.

www.taxtips.ca/save_money.htm


The other is site on emotional spending. Although it is an American site it does have some pertinent information on it that may help you understand and over come the urge to spend when you are feeling you need an emotional boost.


www.moneycentral.msn.com/content/Savinganddebt/Savemoney/P118762.asp

Have a great Monday and see you tomorrow!