Cee Mo Money

Back to my old spending habits!

You know you’re back to your old spending habits when you realize you’re scourging Internet deal sites like:

slickdeals.net
bensbargains.net
fatwallet.com

and buying random unnecessary crap. After purchasing  a whole bunch of things which will lose its novelty by the time it reaches me, I’m certainly going to have buyers remorse after this.

Discount products online are discounted for their apparent reasons [going out of style, low demand and overstocked items, etc.].  These sites are evil, especially after depending on them for so long as a college student.  You still go with the flow.  Albeit there are some hidden gems at these sites, the rest are crap items.  So the next time you end up on one of these sites, you need to ask yourself…

“Do I really need this?” or “What am I going to use this for?” or even “If I buy this am I going to use it more than once?”

The cool thing about these sites is you’ll come across a lot of stuff that you passed up as you were window shopping through the mall since they were too pricey.  I’ll admit some of the items may be a bit dated, but in some people’s eyes they are steals!  For example, Newegg.com is selling Soul Calibur IV for Xbox 360, brand new, for $17!  To think I was going to plop down $40 for this game used only a couple of months later to find the game cheaper, brand new.  If you throw in NBA2K9 for about $20 in there too, I bought 2 games for the price of the used game I was going to buy. Note: This only works if you’re willing to wait out on it, you won’t find a deal on popular games yet.

I would only recommend visiting these kind of sites when looking for a deal on a TV, Monitor, Laptop, PC, Cameras, Hard Drives [Ok tons of Computer accessories], and cables [Why cables? Who in their right mind would spend $100 for a 6 foot HDMI cable? When you can get it for only $15].

Although I may have gone back to my old spending habits, I’ve managed to catch myself before I piled up my apartment with worthless crap. Then again, I can always use them for Christmas presents.

Impulse Purchases!

I’ll admit it.  I am (or was) an impulse buyer.  I’ve learned to control my urges since.

What is an Impulse Buyer and why do they make Impulse Purchases?

According to Wikipedia:

An impulse purchase or impulse buy is an unplanned or otherwise spontaneous purchase. One who tends to make such purchases is referred to as an impulse purchaser or impulse buyer.

So now you know what that means, how many of you guys are impulse buyers?  I’m pretty sure a majority of you are.  It’s human nature and a lot of marketing!

I used to be so bad, I’d go into Fry’s Electronics and leave with some random electronic device or goto Foot Locker and pick up the latest Jordans. I racked up a ton of debt in impulse purchases when I was in college it was nuts now that I look back on it! I can now go out, have my wallet filled with cash and credit cards, go walk through the mall and not buy a thing.

Let’s do some quick math with my previous spending binges so you have a better understanding:
Monthly Jordan Purchases: $120-$180
Electronic Purchases: $100-$200

Let’s say we go with the averages:
@ $300/mo for Shoes/Electronics Yearly Cost: $3600

Minimum:
@ $220/mo for Shoes/Electronics Yearly Cost: $2640

Maximum:
@ $380/mo for Shoes/Electronics Yearly Cost: $4560

Let that sink into your head for a bit….

Are you ready to listen now?

There are TONS of ways to approach this.

The way I personally do it is by asking myself “Do I really need this?” and “Will I be still be using it in the next 6 months?”.  If they meet the criteria, then I’ll go through with the purchase. Telling yourself “I deserve it” or “I can’t live without it” are the worst excuses you can give yourself.  I have a collection of electronics I no longer use and my Jordan collection still stands, at the same time I don’t have to buy shoes for a long time.

You can try using a list.  Before you go out for the day, write down a list of things you NEED to buy and go do your errands.  I live and die by my list.

I also keep a budget aside for “toys” and “entertainment” so if I feel like spending, I’ll go buy it guilt free. If you don’t have any kind of budgeting setup, better get started!

Or another way of looking at it is, add up all of those purchases you made in the past year and see how much value it’s worth to you now. Not worth much when it’s piled up in your closet or garage is it?

If you’re the worst of the worst… take your Credit Cards, chop em’ up, or freeze them in a block of ice!

It’s all about discipline.  Make the changes you need. If you want out of debt, you’re going to have to make a ton of sacrifices.  Sell all the old crap you’re no longer using! If you have a goal to buy a house, a car, or go on a lavish vacation, make that your motivation to save up.

ps. I would’ve used a picture of a woman, but then I would’ve gotten a lot of heat from women out there. Enjoy!

Buying a Car? Do Your Research!

From most people that I know coming out of college and that land their first job, they’re either going to purchase a car OR purchase something that costs tons of money.  Usually they choose the car from experience with friends.

So if you’re still reading on, it seems that you’re ready to buy a car?  First, I’d like to inform you to DO YOUR RESEARCH!

I emphasize research because if you plan it out carefully then you won’t rip yourself off in the long run. Research involves not only the car you’re going to buy, but also factor in the loan, monthly payments, insurance, maintenance, etc.  The loan is essential [and this is where your credit score comes into play] because you want to get the best rate on your vehicle, because that $40k car can easily become $60k with interest if you don’t pay attention.  The monthly payment on your vehicle is the focal point of your purchase [unless you decide to pay thing in cash], the higher the down payment the lower your payments will be.  Another thing you’ll have to factor in as part or your monthly payments are car insurance and maintenance.

When purchasing a car I hope that you find something reasonable within your means.  This means, don’t go trying to get that BMW M5 you’ve been salivating for years if you can’t afford the monthly payments on it.  Besides if you don’t make enough green, they probably won’t even talk to you.  I’d rather have you living in some kind of establishment rather than living out of your car and I find it quite sad when people actually do that.  Just find a car that fits your budget!  If you have the money to support it, then get your dream car.  Otherwise, stick with the affordable route.  Affordable, meaning, that your monthly car payments should NOT be taking up half of your paycheck, because it’ll be well over your debt-to-income ratio which obviously makes you a large liability to the creditors out there.

Car loans are very important that I emphasize RESEARCH again, because there are TONS of them available to you.  Some are good and some are bad, do the research so you don’t fall into any traps. I may be over exaggerating a tad, but car loans are easy to find.  However, not many will give a low rate.  Some may give you the average and some may give you higher.  You’re most likely to find a gem if you look hard enough and sometimes it’s probably around the corner at your local credit union.  Credit unions, from my experience, have given competitive or even the lowest interest rates available.  Why? Because they want your business! I highly recommend checking out the local credit unions in your area first, then work your other available options.

Car insurance, like car loans, are abundant.  You can find them pretty much anywhere.  You just have to look around for the best deal.  You’ll find a lot of insurance companies marketing on TV, billboards, radio, and the like.  Most of the larger companies have comparisons of competitors prices along with theirs.  So finding a car insurance policy isn’t too hard to do.  I suggest speaking with the insurance company to point out the best policy for your needs.

NO DEAL: $1.50 Cheesecake @ The Cheesecake Factory

But there’s a catch….

THERE’S ALWAYS A CATCH.

As quoted on The Cheesecake Factory’s site:

…featuring all cheesecakes at $1.50 per slice, limit ONE per guest, dine in only…

Bummer.  They could’ve at least gone with a 2-5 slice limit. Geez.  I feel ripped off for wasting my breath and time reading about this.  I can’t help it, I like to eat!  A 2 slice limit @ $1.50 would’ve been better.

Gotta love the fine print!