Locking In The Budget

I have budget problems. You know this. I know this. I am a budget misfit. I don’t think I’m unusual, and I’m trying to get better—that’s why I have this blog.

I’ve analyzed my spending habits, and I’ve talked to a few other budget misfits, as well as read some good advice from the experts. After a lot of introspection, and a lot of examination of my spending habits, I’ve discovered where my financial problems lie. I now know what gets me in Credit Card Trouble!

It seems to be bacon and eggs.

Not just that, of course. It’s also flour and sugar, underwear and socks, gasoline and oil changes. All the necessities in my life get charged at the end of a month. Here’s the thing: I can’t fault myself for putting $100 worth of groceries on my Visa. Sure, I feel a little bad for buying the iPod earlier in the month, but that’s in the past. And besides, I paid CASH for that.

But I need my bacon and eggs, and underwear and socks. I don’t think I’m unusual. I know a few people who got themselves in trouble by coming up short, month after month, and while they’re quiet willing to slip by on the bare necessities (after they’ve splurged for a few weeks, beforehand) they have to eat. So out comes the credit card, and the macaroni and cheese gets charged. And, well, as long as we’re charging, we may as well stop over at a restaurant.

This is my problem. What’s my solution?

I’m going on a spending spree!

A careful spending spree, every month. I already mentioned in this post that I budget for gas by buying pre-paid cards (which also gives me a nice rebate on the gas). I’m expanding. I’m buying $200 gift cards online from Target, every month, through the Discover program. I am absolutely surrounded by Super Targets, and I do most of my food shopping there, anyway. As with the gas, if I use my Discover card, I get 5% cashback, which comes to $10. With the purchase of my gas and Target gift cards ($100 and $200, respectively), every month I will get $15 cashback on my Discover, which comes to $180 a year. AND, no more charging my groceries and gas at the end of the month, because I’ve not only budgeted, I’ve locked myself into the purchase by buying cards that have a specific use. As with the gas, I pay the card off at the same time as I make the purchase.

More rock star financing? I'll let you decide.

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I Get 27¢ Off Every Gallon Of Gas

Gas prices feeling kind of bloated? I may have the Alka Seltzer for your petrol allowance. After a few weeks of idle figuring, cutting whatever corners I could, I’ve finally come up with a fairly simple system to shave about 27¢ off every gallon of gas I purchase, or roughly 10%, depending on the price at the pump. Some of you can probably do the same thing.

Here’s how I manage it.

My Discover Card kept filling my mailbox with slick flyers reminding me I get 5% cash back on all my automotive purchases. Watching the illuminated digits rise on the gas station billboards, I decided to take them up on it. I’ve been putting gas on my plastic this month (making certain I already have enough in my bank account to pay it off). With prices bouncing around $3.00, I chuckled the first time I filled my car up, obscenely pleased with the $1.50 I saved. But.

After a while, it just wasn’t enough. I wanted more savings.

So I started to actually read the brochures at my neighborhood stations. Every store has their individual plan, but I finally settled with Super America. It’s where I go anyway because (and I’m embarrassed to say this) that’s where I do my banking, as they have a Wells Fargo ATM! I grabbed one of their Speedy Rewards cards. If you buy gas at Super America, you may as well get the Speedy Rewards card. You don’t have to fill anything out—just take one, run it through the pump, and you automatically get 5¢ off a gallon. I was gleeful, cackling in the aisles. But.

Not enough! I shouted. Well, I didn’t shout, but I did keep looking. Super America has fuel gift cards, also. If I buy a gift card for $50, I get $1 off (sometimes its $2!). Boring? Think of it as an additional 2%, and just wait, it adds up. Because by using the gift card, I get 3¢ MORE off a gallon.

Grand total?

By pre-purchasing a gift card (2%) for $100 with my Discover (5%), I save 7% at the outset.
Using the Speedy Rewards (5¢) with my gift card (3¢), I save 8¢ a gallon.

Today, at the pump, gas was originally $2.78. I paid $2.70, and as I already saved 7%, that made it, essentially, $2.51. At a 27¢ savings for 10 gallons, I saved $2.70.

Go me and my rockstar self.

ADDENDUM TO POST

I've decided that that there are people who can handle credit cards responsibly, and those who can not. I am the latter! However, I need to balance my lack of financial resolve with the advantages I can glean from using a credit card. Here's what I've done.

I checked with Discover, and the 5% cash back only works for $100 of gas a month. I set up a reoccurring payment with Wells Fargo to put that $100 in my Discover account. I have it set up for the day I get paid. On that day, I'll go and buy one of the SA gift cards for $100.

I like this methodology for someone like myself, who has credit card problems. I still get the advantages, but I keep myself on a short leash. It also acts as a budgetary device. I can keep track of my gas this way. I'm thinking of setting up similar methodologies with other regular purchases, in fact.

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