I transformed into my prior self a few weeks ago. The prior self that caused me to get into major credit card debt. The prior me that I don't like anymore and try to keep hidden deep in the closet.
I'd been wanting to purchase a MacBook Pro every since my buddy got one and told me how cool it was and all the awesome things it did (I swear he should be a salesman). I haven't had the best luck with PC's lately so I decided I would give the Mac a try.
I told myself I was going to wait until I had the purchase price of the laptop (approximately $1500 with taxes, accessories and protection plan) saved in a separate account. I have multiple savings accounts at my credit union so I picked one that didn't have any money in it and promptly changed the name of it to my "MacBook" fund. I'd planned to purchase the laptop in about 6 months which means I would need to deposit $250 a month into the account.
I made my first transfer of $250 and setup an automatic transfer of $250 each month from my checking account to my "MacBook" savings account. In five months, I would be able to purchase my MacBook...I didn't make it five days.
I made the mistake of going to my favorite store in the whole wide world (Best Buy) just to look around and play with the computers. I remember my buddy telling me that they had a special financing promotion on any purchase. If you apply for a Best Buy credit card, you get eighteen months no interest financing. Needless to say, I left the store with a MacBook Pro and $1600 in debt (laptop, taxes, protection plan and case).
I'll be sure I pay this off well before the eighteen months are up. I don't want to take any chances on missing a payment and having to pay interest on this purchase.
I'm not upset about making the purchase but I am upset with myself for not following my plan and delaying instant gratification. I should have known better than to just go look. Me going to Best Buy is like taking an alcoholic to the bar. I can't control myself. I know electronics are my weakness.
That's too bad. If you had ordered online you could still pickup the same day. You would have earned 5% thru online cashback which is nearly $100.
I avoid stores where I know I would spend too much money. But still it happens sometimes. Don't beat yourself up and enjoy it!
Yeah, I have this tendency to buy things unplanned. And like you, I've got a weakness with electronic items too.
But I never beat myself up for those purchases, I just keep myself focused more on my things-to-buy list. It will be very hard for me to get over with the purchase if I always view it as a big mistake. So sit back and relax, just this time, swear to stick to your plans. :)
I've never posted on here before, but I read your entries all the time. While I'm sure you may be disappointed in yourself for the momentary weakness, I appreciate that you are honest enough to admit it. I can't speak for others, but I know that I struggle with the ability to keep my wants in check when there are so many methods available to "get it now." Your admission is an example of the traps we can be led into if we are not constantly fiscally vigilant.
Sorry you had a misstep....I heard someone say one time if you have a problem spending at malls just don't go. I apprecaite your honesty and hope you knock that debt out quickly.
I commend you for your honesty! While it's at 0%, it's still $1600 in debt. Some stores just need to be avoided all together for those with trouble curbing their spending urges.
I'm in the market for a new laptop myself (after nearly 7 years, my current desktop computer is on its last legs), but I will be paying with cash. We're close to paying off our credit cards, so there's no way I want to add more debt when the finish line is near.
I don't think you did too bad. You are using their money for 18 months and you have plenty of money should you need to pay it off at any time. At least you recognize the instant gratification which is what most people do not notice.
Props on the Mac purchase, I too just got a macbook (with cash) and while it sucked to drop 1k it feels good now knowing its paid.
You should RETURN it and WAIT until the NEW MacbookPro's come out in just a month or so. Its gonna be a new cycle.
The change from PC to Mac is great though but pay that off quick.
"Using their money" is a piss poor reason to buy something... youre not "using their money" youre slowly "losing your money..." Laptops are a dime a dozen.. Unless you are an avid videographer or a digital photo editor, you just bought yourself an overpriced Facebook updater...
Patience and research are key when purchasing big ticket items... If you would have hunted around on sites like dealhack, slickdeals, heck, even gizmodo points out deals, you woulda saved a couple hundred bucks... Or even gotten on board with the previous model at a discount...
But you got suckered into opening a BBY card for no interest financing... The goal is to live consumer debt free... You should be able to walk into a store and say "gimmie that," Pay it with a credit card that gives you cash back, AND THEN have the cash to pay it off the next morning...
your spreadsheet of your finances shows you shouldn't be buying this... Esp with a $2400 mortgage... Next time you want something, say to yourself Twenty Four Hundred Dollars...
@Angie: That's a good idea, I'll remember that next time.
@Stephen: Thanks. Glad you understand my addiciton.
@John: Thanks for reading the blog and feel free to leave comments more often.
@Ken: Yeah, I probably shouldn't have gone to "play".
@RainyDaySaver: You're right, debt is debt. I'll be sure I pay it off in plenty of time before interest kicks in.
@Z Farls: Crap, there is a new one coming out? Maybe I should buy that one when it comes out. LOL (just kidding).
@Andy: Thanks for your comment bud. But before you beat me up over my $2400 mortgage, that is for 2 mortgages (my primary home and my rental property mortgage). Also, I didn't get "suckered" into the credit card, I knew what I was signing up for and yes, I could have paid cash for the laptop.
I feel your pain! I am shopaholic and an impulsive buyer! I don't walk out of a store empty handed, even if it's just 7-11! :D
At least you have a mac pro, right? I bet the debt is all worth it.. :)
Look at is this way...all of the extra time and frustration you will now save by avoiding the constant freezing of applications on Windows will make you more efficient.
Assuming you use the computer for business, you will get more done in less time all while tying someone else's money rather than your own at no cost (other than the potential credit score impact of opening a new card).
I am considering doing this myself to replace my Vista laptop. I am a web developer and I figure I lose at least 30 minutes of productive time everyday because of it. With 2.5 hrs each week @ $120/hour, it would pay for itself in six weeks.