My 2¢ on Financial Fitness

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When I was a junior in high school, I got my very first credit card. Yes, I was a junior in high school. Older than most of the kids in my grade, I was 17 years old, and I was eligible to sign up without a co-signer, and my parents hailed the idea as great, considering I had a trip to New York City with the choir coming up and I needed what I like to call insurance, just in case, just in case I got mugged or robbed or found something really awesome to buy. So the card arrived with a $500 credit limit. I had never had so much money in one place in my entire life. The problem? No one ever told me about credit, credit cards, limits, late fees, etc. I thought I had the money, when, in reality, I didn't. Talk about a tough lesson in life. 

I couldn't pay my rent, my bills, nothing. My senior year of college I actually sold books, DVDs and CDs for extra rent cash. By the time I graduated college, I had four major credit cards and lots of store-based cards (JCPenny's, Lane Bryant, Avenue, and the list goes on) with a ton of debt on them. I was in such bad shape I had to borrow money from a friend to make the drive to my internship in Washington D.C. and to make some of my credit card payments. This was a financial low for me.  When I got to D.C., I was living alone, not dating, and I was focused entirely on my work at The Washington Post. I devoted all my time to work, sleeping, and blogging. The result? I suddenly had an excess of cash sitting around. I went through the tough task of researching on the web what was better -- holding onto the cash or paying off my credit card debt. Security blanket or debt freedom? After some careful Googling and watching those helpful snippets on the Today Show and other morning shows about financial smarts, I chose to start paying off the debt. 

I moved to Chicago in 2007, and with my new job, I had even more money to continue paying off the debt. I cut back on eating out, going to bars (where money just disappears), and threw money left and right at my debt. By August 2008, when I schlepped off to Connecticut for graduate school, I'd almost paid down some nearly $10,000 in debt. It was insane, and I was surprised with myself, but it felt good. Finally, in February 2009, I hailed my debt conquest here on the blog. Do you remember it? 

When I thought back on how I accumulated that debt, I remembered what really killed me -- I was withdrawing cash from my credit cards to pay for rent and other things I knew I couldn't afford but just had to have. That folks, is red flag for serious financial stupidity. 

Luckily, I've been blessed with a husband who happens to be an accountant, a very secure and financially brilliant husband who knows about investing and spending wisely, putting money where it needs to go. I thank his family for raising him with financial smarts that I didn't seem to acquire growing up. Although he handles most of the finances, I still have to step back and think before spending a single penny, because I know what the downward spiral looks like -- but this time, there's someone attached to it and that person is my husband. 

So what's my advice to you on the best way to stay smart when it comes to spending? 

• If you see something in a store that you want and just have to have, put it in your cart. Walk around, do the rest of the shopping. And when you get to the register, if you still feel unsure about it, if it's just a want and not a need, think about what buying that item means in the long run. Will it keep you from buying something you and your family need? If so, hand it to the cashier and proudly say, "I've changed my mind." (I do this all the time.)
• Or, if you don't have that much will power, put it back on the rack or shelf, go home. Give it a day or two. If it's still on your mind and bugging you, then go back and buy it. But remember to think about the repercussions of buying that single item. 
• There are a million websites for keeping tabs on your spending. And, to be honest, they're kind of addictive once you get tracking and planning. 
• If you have to have a credit card, make sure it's one with a great rewards program. I have a few, but my favorite is my Sears Mastercard :)
• Never fear calling your credit card company and tooting your own horn to ask for a lower APR. 
• Marry an accountant. No, seriously. They know all of the tricks and tips for tax write-offs, which can come in really handy when it comes down to tax time.

And, most importantly, keep it simple. Don't drown yourself in 10 credit cards. If you have them, you'll use them. I learned that the hard way. It took me eight years to dig out of my hole, and those should have been carefree years without financial frustration. 

Think, spend wisely, and, of course, marry an accountant if you know what's good for you! 

Good Riddance!

I hope everyone had a meaningful and restful Shabbos. This was my first Shabbos with the Artscroll Ohel Sarah in-hand, and I couldn't be happier with it. It's really the ultimate siddur for a gal like me, so mad props to Susanne for being awesome and having her's so it could be brought to my attention. As for the Shabbat itself? Well, it left a lot to be desired, but I don't want to dwell on it, so we'll move on.

Instead, we'll talk about some BIG NEWS for me that isn't Jewishly related*, but is a big thing for me. It's pretty personal, but I'm a full-exposure kind of person. So, folks, for the first time since 2001, I am debt free (except for student loans, but even those? I don't have as many as some in my position).

*crowd cheers!*

I got my first credit card, a Visa, my junior year of high school when I was 17. My concert choir was going to New York City for a choir competition and we were going to be there for four or five days wining (not so much) and dining, visiting Ellis Island, going to a Broadway Show, you name it. I was working part-time at an in-bound catalog call center, but I wasn't making much money. I had to pay for the trip all by myself, but when I was done I had no spending money. So, the parents suggested I get a credit card (sage advice ...), and I did. I managed to get my first credit card as a junior in high school with no co-signer needed. Why? Well, I'd been working for several years, so I had legitimate work experience, and I'd had a bank account for many years, too. So I got the card that had a $500 limit on it and went on my way. From that point? People borrowed the card, I got more cards, I kept getting credit at all sorts of places -- JCPenny's, Best Buy (though these two I never really used), a MasterCard, another Visa ... when I was done, in the past eight years, I managed to have more credit and credit cards than I could possibly handle. Being in school, I used the cards as a crutch (the downfall of most college students with no guidance on credit) and ended up maxing a few out, and making payments became a dreaded situation.

I can remember one month, my senior year of college where I had to sell DVDs and CDs, not to mention some much-loved books, in order to pay my rent because my paycheck went to pay credit card bills. When I think back on it all, I don't even know what I bought with my credit cards. Books, clothes, food, alcohol? Just things.

Since graduating, I had spent a great deal of time hoping, magically, that all of my debt would pay itself off. It never happened, but I continued to work hard, save money, and through a couple of years of trying, I managed to pay it off, without going completely broke. Now, I know what a lot of you are thinking -- why share such a personal bit of information? You know, the thing of it is, I know there are a lot -- A LOT -- of people out there with credit card debt. Maybe not my readers, but it's a big problem, especially now. To know that in such a crappy economy that I can pay off my debt, tells me that financial stuff is always fixable. There has to be a will, and where there is a will, there's a way. And the one thing I wanted was to pay off all my debt so that I wouldn't feel so bogged down while in school and so that someday (G-d willing) when I'm married I can start it all off with a clean slate.

So, I feel good, despite all the Shabbos drek. I feel like a weight is off my shoulders, but I also keep telling myself in the back of my mind that "debt free" does not mean that I can start charging up my cards again. Instead? It tells me that if (G-d forbid) something should happen, I have a cushion. Otherwise? I need to spend within my means, and that, folks, is what I'm starting to do. The only things I need these days are: Judaica books, siddurim (can't have too many!), skirts, kosher food, and a little extra cash to buy Shabbos flowers and things like that. The books are one habit I'm not willing to skimp on ...

Shavua tov, readers!

* I'm a firm believer that to be a successful blogger (and this is just the Chavi philosophy), one should pick a topic (in this case Judaism/Jewish things) and write about it 93 percent of the time. The other 7 percent is alloted to random things, personal quips, YouTube videos, and things like this entry here.