Everyone needs a cozy blanket for rainy days…

I had some extra money (lets say $1,000.00) a few months ago- from a bonus and moving a 401K around- and instead of putting it to savings, I used it to pay off some cc debt. Now, this SEEMS like a wonderful plan demonstrating my extreme financial fortitude, however, it has royally ****** me.

And the reason is really simple. I put  that money to my credit card and neglected to create a security blanket for myself.  Unfortunately, the time came when I had some unexpected expenses and  I didn’t have the cash to protect myself. So I had to use my credit card. AGAIN.

What were my options?

Option A: Lets say I had put $1,000 dollars into my savings account and paid normally for my cc. And let’s say that I needed to use that $1,000.00. Ok. $1,000.00 came in, $1,000.00 went out. Although its hard, its ok.

Option B (what I actually did): I paid $1,000.00 dollars on my credit card and now (a month later) I need to spend $1,000.00 on it again because a few unavoidable things came up.  The psychological ramifications of this are intense. I feel like I’m BACK PEDALING, I feel like all the progress that I made was for nothing. I feel like a failure and how I feel about my financial situation is ultra important.

So this month, I’m getting money (taxes) and instead of paying off my cc with it, I’m putting it in savings. That way if and when something comes up, I have a lovely little blanket to protect me and don’t have to TOUCH my credit card again.

And this month, I am stashing my credit card in a bowl of water in my freezer:)

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