Fiscal Responsibility

[bigloo]

There is definately a lot of over spending going on. I am fortunate in that I am doing well currently and feel for guys loosing jobs, etc. However, over the last three weeks I have made several purchases on various forums from guys essentially needing cash, I did not need these sticks, I did it as I felt I was helping some folks out. Some of these were fair, some I got screwed but I never complained as I felt my $25-50 was helping a botl out. Truth is, my $25 is not going to help someone pay the rent. To a large degree I am beginning to think that the WTS sections on the various boards might contribute to the "cigars are an investment" mentality. I have sold cigars once on the forums because I did not have room for them, thats OK although I should not have bought in the first place right? Selling cigars you dont like, thats also OK. Selling swag, same argument, should we have bought it in the first place? (Hell, I admit, I am trying to sell swag now). But selling cigars to meet the rent is not good. I know this will sound like me being a royal a$$hole, but if you have debt on your credit cards you cannot pay off, struggle to make rent, you should not be smoking Padron 1926,Graycliffs, etc for the same reason I dont drive a Ferrari, yeah I could afford one by missing my morgage and getting action on the credit cards that would haunt me for a lifetime. The best cigars in my humidors come from folks selling them to make casht to pay the bills. Different strokes for different folks, and you do what you want with your money, but Mark is spot on and I am glad someone said it.

One final rant, I agree this should be a sticky. I have seen a lot of .edu email addresses lately. There are college kids in here with enough financial problems they dont realize they have yet without having to deal with a $300/month cigar habit!

[pnoon]

Originally Posted by bigloo

I have seen a lot of .edu email addresses lately.

I'm curious. Where have you "seen" email addresses here at The Asylum? Are you talking about those that were provided to you by individuals? If so, that's o.k. But if you can "see" everyone's email address, that is a problem for the Team of 11 to address.

[Redbaron]

Originally Posted by pnoon

I'm curious. Where have you "seen" email addresses here at The Asylum? Are you talking about those that were provided to you by individuals? If so, that's o.k. But if you can "see" everyone's email address, that is a problem for the Team of 11 to address.

Pretty sure its from when he is buying sticks from people.

(least thats what I got from the post)

[landhoney]

I agree with the OP, keep within your budget.

My only general disagreement is with people's idea that credit cards are bad, or that you shouldn't charge things. If you have the money, what's wrong with that? I pay my balances off each month and an amazing thing happens....I get money back from the CC companies for every dollar I spend, to the tune of several hunded dollars a year. I'm in the camp that guns don't kill people, people kill people. It's the same with credit cards, they're not bad, but irresponsible spending with them is of course.
They also are a great way to keep track of spending (debit cards will do the same though). We upload all transactions into a financial program to track spending and keep up with how and where we are spending money. Harder to do with cash transactions.

[bigloo]

With regards to posters asking were the .edu emails come from, it is from ****** accts, no security flaws for the mods to be concerned with.

Also, landhoney, I agree with you. I get all I can from my credit cards in cash back, consumer protection and even double warranties, but I pay them off like you which is why I said carrying debt. I treat my credit cards like charge cards and mostly enjoy up to 2 months (month+grace period) where big purchases go interest free. I think the message is that this is a restraint issue and that credit cards are the vehicle.

[pnoon]

Originally Posted by bigloo

With regards to posters asking were the .edu emails come from, it is from ****** accts, no security flaws for the mods to be concerned with.

I appreciate the prompt reply and am pleased that there is not a security flaw.

[zmancbr]

Originally Posted by landhoney

I agree with the OP, keep within your budget.

My only general disagreement is with people's idea that credit cards are bad, or that you shouldn't charge things. If you have the money, what's wrong with that? I pay my balances off each month and an amazing thing happens....I get money back from the CC companies for every dollar I spend, to the tune of several hunded dollars a year. I'm in the camp that guns don't kill people, people kill people. It's the same with credit cards, they're not bad, but irresponsible spending with them is of course.
They also are a great way to keep track of spending (debit cards will do the same though). We upload all transactions into a financial program to track spending and keep up with how and where we are spending money. Harder to do with cash transactions.

I have to agree... this is Great advice from Mark to stay within your budget, but it is also a good idea to use the perks given to you if you can.

I keep a credit card on hand for monthly usage and I charged lots of stuff on that card. I get cash rewards for using it, plus I keep my money in the bank to earn interest (which is a crazy 4.56% on my checking account). Then come the due date on my card I pay off the entire balance that month... It is my special way of sticking it to the man since he stuck it to me until I learned not to carry balances...

[Homebrewer]

I've often thought about this subject when I read about how some posters are waiting to get paid in order to buy cigars. If you're waiting to get paid to buy something, then that means you probably have zero savings.

I built up a lot of debt in my 20s, buying expensive meals, booze and cigars. When I was making $12/hr, I was smoking Ashtons and Hemmingways every day. Now that I'm going to be 40 I look back and can see the error in my ways. I'm fine financially now, but it took me YEARS to dig myself out.

That being said, now may be the time to extend yourself and buy some boxes. If these new taxes take effect, who knows how much they may cost in the future.

[pnutbutrsangwich]

Originally Posted by Homebrewer

That being said, now may be the time to extend yourself and buy some boxes. If these new taxes take effect, who knows how much they may cost in the future.

And here, I'd say the nail has been hit on the head. This attitude (unfortunately, in my own personal experience) is what can, if left unchecked, lead to destruction.

"Oh they'll never be this cheap again"

"I'll never see these again"

"That's a great price on those"

These are all thoughts that have cost me a considerable amount of money.

[RGD.]

Originally Posted by Homebrewer

I've often thought about this subject when I read about how some posters are waiting to get paid in order to buy cigars. If you're waiting to get paid to buy something, then that means you probably have zero savings. . . .

I don't know that this could be true in all circumstances. I may wait until I get paid to buy certain cigars because cigar money does not come out of house money - it comes out of whats left over - play money if you will. Currently I spend $150 every two weeks, budgeted, on my staple cigars. So any cigar money outside of that is from what ever is leftover after bills, savings, etc are paid. That money though could be spent on books, tools, computer parts, truck parts, etc etc - just about anything that I don't really need -


Ron

Nice!
I especially like what DGAR had to say.
There are so many good cheap sticks out there.
I grew up dirt poor so pinching pennies comes naturally.

[Da Klugs]

Nice post by Mark the OP.

Hobbies are supposed to enhance our lives with fun and inveraction. Most aspects of ours does. The downside of the "slide" is that it can addict those so inclined to an ever increasing load of purchases. Good news is that you can always resell them without significant material loss if you buy right.

One contrarian point that has only to do with timing. If as part of "your plan" regarding prudent cigar purchasing you anticipate and budget a larger than normal portion of your budget in the "now to christmas" period, much $$ can be saved by significant sales.

Or you could be homeless my January.

[hoyohio]

Originally Posted by Da Klugs

One contrarian point that has only to do with timing. If as part of "your plan" regarding prudent cigar purchasing you anticipate and budget a larger than normal portion of your budget in the "now to christmas" period, much $$ can be saved by significant sales.

Very true...but only if you are managing your collection to a finite space. If you simply add storage as your collection increases, then "sales" purchases become incremental -- rather than opportunities for "savings."

I committed to a space (albeit a big one) and that is how I keep spending under control. It is impossible for me to store additional cigars beyond my agreed upon storage space without compromising their condition. I also only buy cigars with debit -- never on credit.

[neoflex]

Great post and oh so true. This philosophy should be used on all aspects of life and if everyone used this mentality the country and economy would be in a lot better shape right now. I have put myself in the credit card hole many times in the past and now we try to use cash for most things to avoid that mistake again. I have been working my ass off to get rid of a lot of dumb bills with side work and it has worked and I feel so much better knowing I can pay cash for things now and can put money into savings again. As far as my Cigar budget, it is almost Nil these days just with the economy being the way it is and the fact that there have been major layoffs at work and you never know if your up next. Went a little crazy this month with a handful of purchases but I did it as sort of a reward for myself for working so hard the last year but overall I have cut my purchases down a lot but than again I could probably honestly go a year without making a single purchase and still have plenty to smoke. Yet another reason why I have slowed myself down.
Just don't do this with cigar purchases. Use it in every purchase of your life. Hell, I hate seeing the people in my neighborhood who over bought and than can't afford to do basic landscaping or improvements to their homes because they are house poor. Again, if everyone learns to budget a little better and not over extend themselves than the country as a whole will improve financially. Unfortunately, most of us learn this the hard way. I know I did.

[awsmith4]

Originally Posted by RGD.

I don't know that this could be true in all circumstances. I may wait until I get paid to buy certain cigars because cigar money does not come out of house money - it comes out of whats left over - play money if you will. Currently I spend $150 every two weeks, budgeted, on my staple cigars. So any cigar money outside of that is from what ever is leftover after bills, savings, etc are paid. That money though could be spent on books, tools, computer parts, truck parts, etc etc - just about anything that I don't really need -


Ron

I agree, I don't ever dip into my savings for my hobbies, I just use whats left over from payday. That is unless I set up an additional savings pot with the extra money specifically for that hobby.

Well said, there is a reason my humidor is pretty light, I want to buy a house soon, as much as I like burning money *yes enjoy the pun* I know there will be a time in life I have to enjoy more things, but right now school and work are #1.

They will put me in a better place, I can swing grabbing a few sticks here and there and I do and I enjoy it. I get to smoke almost as much as I'd like, and I feel really happy I get to smoke what I do as "often" as I do.

The more active I'm here the more I see what you mean about the cigars go with the people i've never seen a site with such a cool group of honestly caring people. If I never had another stick again I'd still be here often.

I work with a lot of people in my age group *early 20s* and you are right, they are swimming in debt, for foolish things at that not even investments like school. One of the most glaring cases that sticks out in my head was someone dropping a good degree one year away for a sports car.

It's a great hobby and great group, don't let impressions take you down, I feel if you conduct yourself here well you'll be liked and treated just as well if you smoked one stick a month then if you had a weekly flight to havana lined up to stock up.

[BengalMan]

Great post Mark! I for one have adopted a cigar budget for the New Year as well.

[M1903A1]

This is one of the reasons I try to hold myself to only a couple of cigars a week (more or less).

I have on occasion built up a balance, but I intentionally chose a fairly low limit on my card when I got it, so that it couldn't get out of control. And I've never done it on cigars...though the one and only time my card got declined was at a B&M. (I still carry that rejection receipt in my wallet to this day.)

[Studebaker]

Just want to add my AMEN. And I was pleasantly surprised to see this thread take a brief detour to endorse Dave "Better Than I Deserve" Ramsey's teachings. I couldn't agree more with the OP and with Dave.

I could buy more cigars and more expensive cigars than I do, but I try to stick to a budget! What a concept! I've got some nice cigars in my modest humi, and I'm content with them ( well, most of the time). I'm proud to day I'm debt-free except for my mortgage, pay my credit card off every month, and do it all on a modest salary. If you want to have a sense of freedom, try living on less than you earn! As Dave says, part of being an adult is having the ability to delay pleasure in order to achieve a greater goal! It's absolutely worth it.

[alley00p]

I'd like to agree with everyone that this was a great post that should cause everyone to stop and think about their spending habits.

I realized that I was becoming a "slave" to the emails from various vendors, showing the 'unbelievable price" on this box or assortment of sticks. I fell prey to these for a short time, especially on sticks that I favored.

In my case, I have a 0% card that returns cash when used for purchases. I only use it for cigars and accessories and pay it off each month. But, after a spending spree this summer, I realized that I had dropped almost $800 on cigars in a 30 day period - almost all "sales" or or "once in a lifetime" deals! Fortunately, my card didn't hit me for finance charges because I couldn't afford to pay the card off that month.

Since that time, I've been much more careful in buying cigars. I realized that I could probably go without buying for months and never run out of sticks! Now, I pick up a stick or 2 at my local B&M, but I have been ignoring the sales pitches that arrive in my email box daily.

I hope that all my BOTLs and SOTLs will have a Happy Thanksgiving Holiday!