Give Me Some Credit

Credit seems to be the factor that makes the world turn anymore. Everything stems off of it, from homes to cars and even jobs. But what if you're young and are just starting out. How do you build up positive credit without getting in over your head?

If used correctly, store credit cards are a great tool. They help build positive credit and many offer ways to save money on purchases or get rewards for future purchases. But for your credit to benefit rather than suffer, there are a few cautionary principles you should always follow.

1) Pay off the balance immediately

    This is honestly the most important thing because the interest on store credit cards can be rather high, and the whole point of this card is to help you save money rather than spend more. So never spend more than you can afford to pay that day. Not by the end of the month or the end of the week but that day. If your paycheck hasn't come yet and you think well I'll just put it on my charge card, that's a bad idea cause you have no idea what other emergency expenses might spring up. My best practice is to actually pay off my credit card in the store as soon as I make the purchase. That's actually one of the few reasons I still have a check book. Most stores will allow you to make a payment toward your account that way. So you get the awesome savings that the credit card provides or the points that go toward your next purchase and the insanely awesome thrill of knowing that you already have it paid off and taken care of. And your credit score is boosted by your timely payments.

2) Use the coupons and rewards



Purchased at Kohl's from the clearance racks all for less than $85
thanks to coupons



    Every woman should have a Victoria's Secret card. Victoria's Secret sends rewards dollars. Most the time that's a $10 off coupon. Buy something that's right around that price point and you might only pay a few cents or if you need something else that's a great way to save on it. They also send you free panty coupons: use those! Free is great especially when its something like that because you really can't have to many. If you know you have a coupon at home, don't go shopping without it. Those percentages off can really help especially if you're in the shopping in the sale section anyway. Kohl's is great for allowing you to save on everything including the clearance sections.

(Clearance is your friend. It will still be in style next year and usually is still wearable when you buy it anyway because they start marking down mid-season. That tip was free. You're welcome.)

3) Don't feel like you have to buy

     Just because they have a sale and sent you that 30% off coupon doesn't mean you have to buy anything,. Yes those coupons are awesome, but I get them every month and if I used every one, I'd be broke. Use them when you need them, not just because you have them.

4) Pay the balance off immediately

    So important it bears repeating. This is not only true for store credit but for regular credit as well. If more people followed this principle we'd have far fewer issues. *Le sigh*

Rules to Shopping Happiness

I'm known for being cheap. I don't think its so much that I'm cheap but that I know how to divvy out my money into a set budget and know how to shop for quality pieces and items that fit within that budget. I think the biggest problem most people have is that instead of being able to wait for a deal or look for their best option, they are impulse buyers. So the three important rules when shopping for anything are:

1) Know your budget:
     Literally sit down and figure out your budget for everything. Take out payments for bills and credit cards first. Factor in an amount to go toward savings. Next take out money for groceries and fuel. Go through your expenses like that. BE REALISTIC with yourself. Nobody else is going to see this budget but you, so go ahead and factor in the money you spend on snickers bars. Do you have a spa day every month? Factor it in. Obviously, you should be able to determine the difference between wants and necessities but prioritize your splurge budgets too. Are snickers more important than the spa? Are new shoes worth bringing in your lunch a couple extra days a week? You decide.
   Once you have a budget, STICK TO IT!

2) Know where (and when) to shop:
    For clothing and accessories shop off season. You can usually find the best deals in those clearance racks and if its something that you think will be completely out of style by next season, you probably shouldn't be buying it anyway. Also don't be afraid of Goodwill, thrift stores, and discount retailers like Marshall's. I find some of the best items at places like thrift and vintage shops. Especially for jewelry. Instead of paying twenty bucks for a necklace that is supposed to look vintage, I get an actual vintage piece for a fraction of the cost.
    For bigger purchases--think appliances, cars or whatever--do research before buying. It took me eight months to buy my car. I waited for deals and did a lot of research on models and reviews and ended up buying through the internet. Of course, I had test driven the car at a dealership long before I made that decision, but I got a great price which brings me to my last rule.

3) Know how to say NO:
    This is a lot of people's huge downfall. You have a budget, you did your research but when you get there to purchase your item something else catches your eye or the salesperson tries to add in extra money. That dress you see on the hanger is more than you really want to pay or more than your budget says you should pay. Learn to walk away. 
   The price will go down or it wasn't meant to be yours after all. The sales person will have some magic wand that somehow makes the price go down to close the deal or you find a new place to shop. It works and you feel good about your purchase today and tomorrow and a month from now.