Please excuse my tardiness. It has been a busy few weeks for good old Fake Cheap. I battled late March and even early April blizzards that caused power outages. I’ve enjoyed the annual March Madness tourney, and have keenly been watching the end of the NBA regular season and beginning of the playoffs. I’ve even managed to get in some much anticipated video gaming, which I haven’t enjoyed in a very long time. Also the dreaded second vehicle search and research was and is in full swing, update to come in a few weeks.
For today’s post, I would like to introduce you to two people I know. Spendaleigh and Savica. In general Spendaleigh likes to spend money, money she doesn’t have. Savica has a vicious savings rate that would make the most frugal bloggers blush.
Lets meet Spendaleigh first. She is stuck in the never ending payoff credit card with lower interest rate line of credit (loc) cycle, but not enough cash to pay off the line of credit, so the loc balance increases each month. Spendaleigh actually has some financial smarts, she knows what she is doing wrong, but keeps on doing it. We typically have conversations that go like this :
Spendaleigh : “Fake Cheap, why do I never have any money left? Why do I always spend so much?”
FC: “That is your issue, your SPENDING.”
S: “But I like shopping, and I need the stuff I buy.”
FC: “No, you don’t, and 90% of what you buy is crap. Crap you don’t need. ”
S: “That is not true at all.”
FC: “If you can tell me 10 things you bought in the last month, then I will agree with you, you need this stuff.”
S: “Ok, I bought nice boots, a nice shirt I saw online and…and….OMG…what did I buy!?!?! Where has my money gone?!?!?”
These similar conversations have gone on for months. Again, I will point out that she does seem have some money smarts, she just chooses to ignore her own financial flaws. She is smart enough to enough she is overspending, and realizes it is an issue, but just doesn’t have the willpower to make significant changes. She also drives a big ol SUV, *glug glug*. I will also point out that she is not currently saving anything for retirement.
On the total opposite side of the financial spectrum is Savica. Savica is great at saving money, really great, probably too great. She will hoard every dollar to the end I’m sure. However she doesn’t know what do with that money, keeping a very high percentage in a basic RRSP & TFSA savings account.. This probably won’t hurt her in her case as she will NEVER over spend and she plans to work until 65. She lives in a cheap apartment, has a very reasonable used vehicle which she uses sparingly, and has a low entertainment budget. I would estimate her savings rate at 70% of net. Very impressive for someone living on their own away from home.
Do you know a Spendaleigh? A Savica? Im going to keep my eye on them and will post updates in the future so we can see if any changes occur. What are your friends/relatives/co-workers issues? Please comment! Thanks for stopping by.