Pre-paid debit cards

In theory, I think they sound great. "As good as cash," "protecting your money," "use almost everywhere"... 

But no one is really upfront about the fees associated with such cards.

Now they're popping up everywhere. Even rebates are starting to come on prepaid debit cards. I tend to use them all at once to avoid potential fees that I know are lurking in the fine print. But when I get a $100 one, that's a tough all in one use there. 

And now, in reading an article on cnn.com, Another twist for the unemployed: Debit card fees, it's becoming a real issue in my opinion. The agency makes it sound good, get your money now in a debit card or wait 10 days to get a check. The desperate are going to go with the former of course. Some people are already desperate enough and these fees are not helping the situation.

Maybe I'll never understand

How some people can complain about how they're not saving money, that they're in debt up to their ears and yet they continue to dine out, buy big screen televisions and new computers. One person told me they bought the TV "because it was a steal of a price." I asked how he paid for it and he told me he put it on his credit card since it already had a balance.

What?!?!

So that means that the $750 television (plus tax and shipping of course), started gaining interest the moment he swiped the card. At an average rate of 14%, I'd venture to say that the steal of a price he thought he was getting won't end up that way. 

Credit cards are a wonderful tool if used correctly. Pay it off each month. If you can't, and there will be times you can't, then pay it off as soon as you can and try to avoid charging on it. If you carry a balance, however small, each new charge begins to accrue interest. And with credit card companies jacking up those rates, those charges will add up quickly.

Costco rules!

Okay, maybe not "rules," but it's certainly a great place to shop. 

If I'm lucky, I get out the door spending $100 or less but that's a rare occurrence. I try to go more often just so I can avoid hitting the 100 buck mark. Of course, that doesn't really matter since it all adds up the same at the end of the billing cycle.

Let me say one thing though... I am not the person you seeing rolling a cart out of Costco loaded with the 18-pack of paper towels, the 50-rolls of toilet paper and the oversize cans of tuna. I'm a little more particular about what I buy and don't buy.

For instance, my partner goes through Miracle Whip like nobody's business ("you can't have too much on a sandwich") and we'll easily go through a couple of 32 oz. jars in three months time. Costco sells the huge (like 100 oz. huge) buckets for the same cost as three 32 oz. jars. But there's no way we could go through that much before expiration. So it ultimately makes sense to buy it at the store when it's on sale. 

Then again, I like Starbucks coffee to drink at home. Buying it at Starbucks, or even a grocery store will cost about $13 per pound. I can get that at Costco for $20 per a 2.5 pound bag. A no-brainer.

Things I buy there regularly: Cheddar cheese, butter, sour cream, shampoo, croissants (they have an awesome bakery), bottled beer, wine, bottled water...

Things I don't buy that I can get a better deal on sale at the store: soda, paper towels, eggs, chips, pizza, lunch meat...

Costco is a great store to buy a lot of things but not to do your everyday shopping at. There are specific items I like to get there and there are some I notice when I am there. But the down side is that sometimes you find a great product and/or a great deal and then they don't carry it after their supplies run out. It's happened a few too many times for me. But all in all it's worth the membership fee hands down.

Found my way to get my fix

I couldn't justify Starbucks, it's hard to. But sometimes you just have to treat yourself. It's always been my philosophy to not become obsessive with saving money to the point you couldn't enjoy it. I tend to look at Starbucks as my indulgence. At about $5 a hit, it seemed less of an issue than buying a bottle of wine at a restaurant. 

But I still didn't want to make it "feel" like I was spending that money. Sure I could reload a card in a $50 shot but finally figured out the best way to give me my fix.

I constantly collect change. I don't know why, I just do. And it adds up. I want to take it to the bank and deposit it, but most banks charge a processing fee, even if you have an account there. So I let the change sit and grow. But now that Coinstar allows you to turn your cash into a gift card (in my case, Starbucks) with no processing fees, that was the way to go. So I dumped a bunch of change into a paper bag and off I went. Just a dent in my collection netted me a $53.23 Starbucks card. Should keep me going for a while.

Coinstar is great. If you're looking to get cash, it's not the way to go. They charge a 8.9% processing fee, much greater than any bank. But gift cards/certificates have no processing fees and there are some good options. The ones by me are amazon.com, Starbucks, JCPenney, and iTunes. You can check out their website for locations near you.