Spreading yourself too thin

[Open123]

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@Anonymous wrote:

However when you start spending more than you would have or making bad deals to spend in places you wouldn't (i.e. buying an overpriced two liter because it is at a gas station and you get 5% on that but only have a 3% grocery card or something) normally then you are playing a game and losing at it.  If rewards on credit cards are convincing you to spend money you do not have or on things you do not need then you are coming out behind even if you are getting "amazing" deals like 15% cash back. 

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I try not to do this, but it happens to me more than I'd ever care to admit.

I find Apple products overpriced, and not really worth the value I pay for them, relative to their competitors.  However, if the 10% Discover iPhone deal is affirmed, I'll likely spend a fair amount at the Apple store for the Holidays, whereas I wouldn't without the cashback.  I know this trick is causing me to spend more than I should.  Even knowing what's happening, I'm unable or unwilling to alter my choices.

In the end, I spend more money, Discover makes less, and Apple has a great Q4.  What's new, right?

[Anonymous]

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@Open123 wrote:

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@Anonymous wrote:

However when you start spending more than you would have or making bad deals to spend in places you wouldn't (i.e. buying an overpriced two liter because it is at a gas station and you get 5% on that but only have a 3% grocery card or something) normally then you are playing a game and losing at it.  If rewards on credit cards are convincing you to spend money you do not have or on things you do not need then you are coming out behind even if you are getting "amazing" deals like 15% cash back. 

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I try not to do this, but it happens to me more than I'd ever care to admit.

I find Apple products overpriced, and not really worth the value I pay for them, relative to their competitors.  However, if the 10% Discover iPhone deal is affirmed, I'll likely spend a fair amount at the Apple store for the Holidays, whereas I wouldn't without the cashback.  I know this trick is causing me to spend more than I should.  Even knowing what's happening, I'm unable or unwilling to alter my choices.

In the end, I spend more money, Discover makes less, and Apple has a great Q4.  What's new, right?

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I'm just as bad and wish I could follow my own advice.  I've been buying more stuff off Amazon than normal with Discover It since it's 10% cash back.  I tend to go in spurts where I'm really good about not spending money to get rewards and then have a bad month or two where I'm spending stuff I know I wouldn't buy without that reward. 

I never pay interest though so I guess I'm good on that portion. 

[Open123]

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@Anonymous wrote:

I never pay interest though so I guess I'm good on that portion. 

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This is the key.  

The *one* thing I mastered after my college mistakes is to NEVER spend a penny more than what I can comfortably afford.  In my view, discretionary expenditures should never exceed 20% - 25% of one's annual income (from all sources).

[Gmood1]

Not this kid! I buy what I need with my cards or what is considered regularly monthly spending. I'll take my rewards over nothing for the same effort any day. A penny saved is a penny earned no matter how you twist it.

I've given away money long enough, using debit cards for years. Time for me to get some of it back. 

I have no problem balancing my cards. Again it's different strokes for different folks. For those that can't handle it, enjoy the 3 or 4 card spread.

[kdm31091]

Even at 10 percent off, you're still spending 90 percent. Never spend just to get a reward.

[redpat]

The best thing about my credit cards is getting reimbursed for my business expenses, after that who cares.

[Open123]

Only downside is Discover's cashback (even if used personally, must file on personal return) is taxable if earned from business expenditures that are written off, whereas points/miles are tax free, even when it's for personal use.

[Anonymous]

I guess for me, the thrill of being approved was the most amazing feeling. After my disasterous 20s, i couldn't even get approved for a store card, I just avoided credit all together. It made me feel so bad about myself. I had nobody to teach me about money or credit. Ever. I'm proud of my credit cards, not like Im trying to look cool throwing down my plastic. But they are sort symbolic to me. Where I've been and where I am now. Where I'm going.

[Open123]

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@Anonymous wrote:

I guess for me, the thrill of being approved was the most amazing feeling. After my disasterous 20s, i couldn't even get approved for a store card, I just avoided credit all together. It made me feel so bad about myself. I had nobody to teach me about money or credit. Ever. I'm proud of my credit cards, not like Im trying to look cool throwing down my plastic. But they are sort symbolic to me. Where I've been and where I am now. Where I'm going.

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Likewise, was in the exact same predicament coming after college.  Back then, I really didn't appreciate that you had to pay back what you charged.  It was, as you said, terrible for a long time, including a sense of low-self esteem just eating away at me daily.