Fiscal Responsibility

[Mugen910]

Great advice Mark! I will be honest...when I first started in May I overextended myself with credit cards...not because I wanted to "Keep up with the Jones'" but because I usually jump in head first in most things I do. I have however been diligent in making cash be king. If I can't afford it on cash (not just cigars but in general) then I cannot afford to put myself in more debt.

[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.

[padronme]

One of the better posts I've read in a while.

[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.

[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...

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.

Thanks Mark, you just saved me and lost you money... no really thanks. Good advice. This forum is like poison to me - every thread I see - I end up asking myself have I tried that? Everyone else seems to have experienced this or that - why not me!? And I spend more than I should - That explains why I'm broke! My budget is zero - starting.... now......

One does not have to use credit cards in order to overspend...

This post was a great reminder to live within one's means (pot calling the kettle black here).. cigars are a luxury.

Something else one might consider when trying to enjoy the leaf while maintaing a budget is this..... if you didnt know the brand or cost of the cigar you were smoking you might be surprised.... You dont have to spen 5-10+ dollars to find a good smoke. Spend wisley... some great cigars out there that wont break the bank.

[Snake Hips]

I only spend what I don't need for anything else, and only spend what I've got. My responsibilities go first, and I only use debit.

But this is a good read, and should be stickied.

[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.)

[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.