Baffeling

stomachmonkey · 05-20-2010, 07:58 PM

My wife's mind.

She handles the household finances. I have no issues as the bills are paid and money is saved. She's made us ~$40-50k this year managing our portfolio/advisor. Even with the market they're up ~100k over the last 3 years so she's no dummy or maybe just lucky but who cares.

She says to me "we can move some money to our Citicard, 0% interest till 6/11."

OK, how much you gonna move?

"Well I wanna clean up the Capital One card which is around 8 so I figure I'd move 5. The Discover is at around 3 but the interest rate is lower. You've got 5 on your 0 interest Citicard so that can sit a while."

So tonight she sends me the email from Citibank. Limit on that particular card is 25 so i look at her and ask her how much is on that one.

"Around 2."

But the limit is 25, why not move it all there?

"Well that would be like 11, it's a lot"

It's 11k now, it's just spread over 2 cards WITH interest.

She's got this thing about large chunks of cash. $11k spread around for some reason seems like less money than $11k in one place. Weird.

She also stashes cash all over the house. I know a couple of spots but I'm sure there are some I'm not aware of.

One day she is home really sick and the weather is pure crap, typical North East winter day. Calls me at work complaining there is nothing in the house that she wants to eat. She really wants some Chinese.

So order some and have it delivered.

"I don't have any cash"

You've got a couple of grand stashed all over the house.

"That's for emergencies"

You're home sick with the baby, the weather is for chit, you can't go out even if you wanted to, I think this constitutes an emergency, you can spend $10 bucks.

cstreit · cstreit's Garage

I think I married her sister.

All in all, I think you have a good one there.

tabs · 05-21-2010, 12:11 AM

Her growing up must have really been insecure with regards to money. My dog does the same thing with her food, hiding little bits all over the house...just for the rainy day that she has to do without.`Or maybe she thinks that it is going to be taken away from her and she wants to have little stashes to tide her over. This would go to haing a number of small amounts on various cards..she wants to stay flexible and keep her options open. So if the day comes she has room to dump more or all in one place if the need should arise.

oldE · 05-21-2010, 02:16 AM

You've got 11K on cards?

Even the thought of that makes my stomach unhappy.

It's funny how money affects some people. Large sums, strategic planning is abstract and decisions can be made to place assets for growth.

Then there is the 'real stuff'. My wife doesn't like to carry anything more than a small amount of cash. She will deposit cash then use her bank card for purchases.

Age and background have a lot to do with it.
Les

stomachmonkey · 05:17 AM

Quote:

Originally Posted by tabs

Her growing up must have really been insecure with regards to money. My dog does the same thing with her food, hiding little bits all over the house...just for the rainy day that she has to do without.`Or maybe she thinks that it is going to be taken away from her and she wants to have little stashes to tide her over. This would go to haing a number of small amounts on various cards..she wants to stay flexible and keep her options open. So if the day comes she has room to dump more or all in one place if the need should arise.

There is something to that.

Grandparents on both sides are from the old country, came here with nothing and built themselves some nice businesses.

Here mom exhibits these habits and she is very much like her mom.

Her Dad did very well for himself. Owned a Supermarket and the building that it was in, had tenants. He retired 1st time at 57 but bought another business to keep himself busy and out of the house.

M.D. Holloway · 05-21-2010, 05:14 AM

Back in the day when Lisa had vision she would juggle the CC's like a bookie - few years ago I took over the bills cuz she couldn't see and got overwhelmed with trying to do all that - made the decision to pay all of them off and cancel all cards except the debt card and the corp AMEX.

Life without credit cards is like sex without a rubber - its the best there is but you better be careful!

stomachmonkey · 05-21-2010, 05:20 AM

Quote:

Originally Posted by oldE

You've got 11K on cards?

Even the thought of that makes my stomach unhappy.

Yeah don't like it either and we never carried balances either. Few years back one of my companies went Ch 7 overnight and it was a major impact on us financially.

Think it spooked her a bit.

on2wheels52 · on2wheels52's Garage

I'd ask her how much you'd save if you didn't have ANY credit card debt.
Jim

GH85Carrera · GH85Carrera's Garage

I can't think of any valid reason to keep a balance on a CC.

gprsh924 · 05-21-2010, 06:07 AM

If you are up $50k in investments, cash some of that out and pay off the debt. It is unlikely that you are earning 10+% on those investments.

Zeke · 05-21-2010, 07:23 AM

Quote:

Originally Posted by GH85Carrera

I can't think of any valid reason to keep a balance on a CC.

Quote:

Originally Posted by gprsh924

If you are up $50k in investments, cash some of that out and pay off the debt. It is unlikely that you are earning 10+% on those investments.

Absolutely! And balance ratio to limit is very important. If you must keep a balance, do spread it around on no fee cards at the lowest rates.

But I have to totally agree, pay them off. Then use them and pay the total each month. That's financial prudence.

notfarnow · 05-21-2010, 07:37 AM

Quote:

Originally Posted by cstreit

I think I married her sister.

Same here!

My wife keeps a TIGHT budget, especially for discretionary spending.

Good example: Driving home after a long week, a hot day and we're both beat,

Me: "let's stop and get an icecream"

She hesitates, then starts counting fingers and mumbling "$4 for lunch on wednesday... $13 for tennis balls, had a chocolat bar yesterday... OK I HAVE TWO DOLLARS TO SPEND!!"