Skimm Money: Are Big Wishes Worth Big Credit Card Bills?

The money stories everyone’s talking about.

It’s OK if you’re not down to hustle for that dream job. Some of us are perfectly fine with a “good enough job.”

Many Americans’ SSNs may have been stolen in a data breach. But don’t freak out — just maybe freeze your credit.

Roses are red, violets are blue… Gen Z is going broke buying dinners for two.

Hunting for a last-minute ticket to the US Open? You’ll need to cough up at least $150 — but you can’t forget the necessary $40 hat and $23 Honey Deuce cocktail.

Everyone seems to have a podcast these days, but only a select few get to sign a reported $125 million deal with SiriusXM. Being a Kelce brother doesn’t hurt either.

How the news affects your finances.

Are Big Wishes Worth Big Credit Card Bills?

If there’s one vacation souvenir you don’t want to bring back home with you, it’s debt. Still, one survey found that more than 33% of Americans have taken on debt to fund their last getaway, and another survey found that a whopping 45% of families with kids have done the same just to take a trip to Disney. 

So, is this YOLO or a no-go? “Just this once” purchases have a tendency to snowball. Carrying debt can be stressful, and sky-high interest rates are making it tough to stay on top of payback plans. “This year, it's the Disney trip, but next year, it's the special anniversary,” says R.J. Weiss, a certified financial planner. “This is what prevents people from getting ahead.”

Still, you don’t want to miss out on all big-ticket life events just because you’re not made of money. Here are some ways to keep your financial goals on track while saving up for that pricey item or experience.  

Your Move:

• Build your emergency fund. Before you even think about putting a big purchase on plastic, make sure your emergency fund is in place. Having one will help you be “much less stressed about finances on a day-to-day basis,” says Weiss, adding that this bucket should be for real emergencies only. 

• Have a payback plan. Breaking the expense into smaller increments can help you come up with a realistic strategy and decide if a loan makes sense. For example, if your trip costs $5,000, you’ll need to find an extra $833 a month (or roughly $208 a week) for six months to fully recoup the loss. Could you feasibly spend less or earn more to hit those numbers? If yes, then taking out a loan might make sense.

• Look for a 0% APR credit card. Some credit cards offer low or 0% interest for a set period of time, like one year, when you open an account. Look into your options. Just be sure you can pay the loan off within the terms.

We asked you to vote on a question you’d like answered. The winner was:

How can I politely decline a relative’s request for financial help?

FEATURED EXPERT:

Annie Cole

Money coach and author of 101 Ways to Earn More, Build Wealth, and Live Rich in Your 30s

Oof. Family + finance = massive stress. But it’s important to remember that you don’t have to share your money with any family member — regardless of whether you can afford to or not, says Cole. Before you respond, assess the situation: Do you have the bandwidth to help elsewhere, like with childcare, meal prep, or other nonmonetary ways? It’s fine if the answer is still no, but knowing this will help you decide how to best respond, she says. Here’s the script that can help:

• Open with something like: “I'm glad you felt safe enough to share your financial situation with me, and it sounds like you're in a tough spot.” Then …  

  • if you’re not in a position to help, say: “I prefer to not mix family and finances, so I won't be able to help financially.” 

  • if you’ve helped before, but you don’t want to again, say: “I'm sorry, I don't have the extra cash to help right now.”

  • if you want to help, but not with your wallet, say: “I don't have the extra cash to help right now, but I would love to support you in other ways. Can I help with X for Y time, so you don’t need to pay for Z?”

How to win at work, according to successful women.

Oludara Adeeyo calls herself a  “self care queen.” Whether she’s making Bad Bunny appreciation videos on TikTok or penning books like Self-Care for Black Women, everything Adeeyo does centers around taking care of herself and teaching you how to do the same, authentically and without shame.

Self-care isn’t selfish.

“The better you take care of yourself, the more you know yourself, and the more tools you’ll have to create a life that you love.”

Alone time is a luxury — embrace it.

“I wasn’t really able to fully experience practicing self-care until I moved away from my family. I went through life circumstances that taught me a lot about building boundaries. I feel like people should experience, at least once, a time when they have to figure out life on their own for a bit. You discover your likes, dislikes, strengths, weaknesses, and goals.”

Words are more powerful than you think. 

“My go-to no matter what: ‘I am more than enough. I am doing my best, and it’s more than enough.’ Two other affirmations that I love: ‘Giving up on myself is not an option.’ And ‘I welcome new opportunities and people that bring me joy.’”