Appreciate you sharing this as I can relate deeply. I think we need more visibility into the fact that even those of us “financially literate” are feeling a squeeze financially and, what or how we handle that squeeze in the moment. It’s tough, but it won’t be this way forever. Keep going!
Yessir! You're absolutely right, Rahkim. It's tough for so many people in this climate -- even those of us who are "financially literate." Thank you for your encouragement. I know you have had your fair share of challenges as well. I hope things are progressing favorably for you!
Just a thought and not criticizing your perfectly rational situation and actions. Is car body work essential? Unless it’s a true safety issue vs an “image” issue, some polish and dealer brush on paint might be good enough? I am unclear if you filed damage with auto insurance but I have found rates increases more than make up for money paid out as insurance companies can’t lose money so I always try to pay these expenses out of pocket from cash reserves
I appreciate the insight, Phillip. The body work was essential. My front end underneath the car had damage and was dragging. It definitely needed to be repaired. The cost of the repair job was $1,262. I would not have felt comfortable paying that out of pocket for road debris that hit my vehicle after another driver ran over it. I also feel like isn't that why I'm paying insurance? What would you have done knowing those additional details?
I get the highest deductible possible for all insurance needs and pay out of pocket for anything under around 5k. I only insure for catastrophic situations like total property loss and liability. I keep a large bucket of safe assets and self insure for all “small” stuff which is anything under $5k. I’ve paid cash settlement directly to car owners twice (one for my kid and another for wife) which was $1300 and $550 and cut out the insurance completely. I know I saved money as the insurance rate would have gone up more than they would paid out in less than 3 years.
Love the rationale, Phillip. Again, thank you for sharing. These are exactly the types of Money Talks I envisioned when I launched the publication. You have helped me think about insurance differently, particularly insuring myself. I know that your words will help others here as well. 💸
Darnell, read your column in the Cleveland Plain Dealer, and just found this substack. Just a thought for a potential future column would be if you shifted your spending from using a credit card to paying cash/ using a debit card. I found this advice in a Dave Ramsey book years ago & for me it seems to hold true that I always spend more money (oftentimes significantly more) when I pay with a credit card than with my debit card. The research supports that the average person does as well. Obviously not everyone, but many do. It would be interesting to see how your results tracked, and to see if it helped reign in spending in the food/drink or other categories that you can control.
Always enjoy the column. Here to hoping that August comes out better than July did!
Hi Mk. Welcome, and thank you for following our journey! I'd encourage you to sift through the Money Talks archives for many more topics that haven't been published in the Cleveland Plain Dealer. I believe you will find them to be insightful and beneficial.
Before transitioning to a credit card for the majority of my purchases, I used a debit card exclusively. The credit card is the better option for me. I accrue airline points that help me fly for free domestically (among other perks) whereas I got nothing from using my debit card, in addition to a lack of protection.
My spending isn't dictated by the form of payment. I've just been in a legal battle that has increased my spending. But that's reaching its end, and I am looking forward to sharing a better report in August! :) Thanks again. And I truly appreciate the well wishes.
Appreciate you sharing this as I can relate deeply. I think we need more visibility into the fact that even those of us “financially literate” are feeling a squeeze financially and, what or how we handle that squeeze in the moment. It’s tough, but it won’t be this way forever. Keep going!
Yessir! You're absolutely right, Rahkim. It's tough for so many people in this climate -- even those of us who are "financially literate." Thank you for your encouragement. I know you have had your fair share of challenges as well. I hope things are progressing favorably for you!
Sending prayers for better months to come. Meal planning definitely helps. Hang in there.
Thank you. I believe better days are on the way. I appreciate you, Christina. 💜
Just a thought and not criticizing your perfectly rational situation and actions. Is car body work essential? Unless it’s a true safety issue vs an “image” issue, some polish and dealer brush on paint might be good enough? I am unclear if you filed damage with auto insurance but I have found rates increases more than make up for money paid out as insurance companies can’t lose money so I always try to pay these expenses out of pocket from cash reserves
I appreciate the insight, Phillip. The body work was essential. My front end underneath the car had damage and was dragging. It definitely needed to be repaired. The cost of the repair job was $1,262. I would not have felt comfortable paying that out of pocket for road debris that hit my vehicle after another driver ran over it. I also feel like isn't that why I'm paying insurance? What would you have done knowing those additional details?
I get the highest deductible possible for all insurance needs and pay out of pocket for anything under around 5k. I only insure for catastrophic situations like total property loss and liability. I keep a large bucket of safe assets and self insure for all “small” stuff which is anything under $5k. I’ve paid cash settlement directly to car owners twice (one for my kid and another for wife) which was $1300 and $550 and cut out the insurance completely. I know I saved money as the insurance rate would have gone up more than they would paid out in less than 3 years.
Love the rationale, Phillip. Again, thank you for sharing. These are exactly the types of Money Talks I envisioned when I launched the publication. You have helped me think about insurance differently, particularly insuring myself. I know that your words will help others here as well. 💸
Darnell, read your column in the Cleveland Plain Dealer, and just found this substack. Just a thought for a potential future column would be if you shifted your spending from using a credit card to paying cash/ using a debit card. I found this advice in a Dave Ramsey book years ago & for me it seems to hold true that I always spend more money (oftentimes significantly more) when I pay with a credit card than with my debit card. The research supports that the average person does as well. Obviously not everyone, but many do. It would be interesting to see how your results tracked, and to see if it helped reign in spending in the food/drink or other categories that you can control.
Always enjoy the column. Here to hoping that August comes out better than July did!
Hi Mk. Welcome, and thank you for following our journey! I'd encourage you to sift through the Money Talks archives for many more topics that haven't been published in the Cleveland Plain Dealer. I believe you will find them to be insightful and beneficial.
Before transitioning to a credit card for the majority of my purchases, I used a debit card exclusively. The credit card is the better option for me. I accrue airline points that help me fly for free domestically (among other perks) whereas I got nothing from using my debit card, in addition to a lack of protection.
Here is a column I wrote about my credit card and some of the reasons it works for me: https://www.moneytalksmatter.com/p/transform-your-finances-today-with
My spending isn't dictated by the form of payment. I've just been in a legal battle that has increased my spending. But that's reaching its end, and I am looking forward to sharing a better report in August! :) Thanks again. And I truly appreciate the well wishes.