What is the Real Value of $500

How do you feel about $500 or $600? I got to thinking about this with the recent stimulus checks hitting American's bank accounts over the last week. Just looking at the actual number, it looks rather large. But looking at it according to your personal bigger financial picture, it may look quite small. I can only come to one conclusion: the psychology of $500 is dependent on if you're spending or receiving it.

My wonderful husband was recently looking at laptops, not for him, but for me. He pipes up, "Look, I found one for $499! I have the credit card right here." My reply: "Do it and I'll break your fingers." First, I don't need a new laptop. Mine does everything I need it to do. Just because it's 5 years old, a little slow, and the DVD drive no longer works reliably does not justify spending that kind of money on a new one. I can't imagine ever putting $500 on a credit card for something that we don't absolutely need, again.

Yes, I said again. We were those kind of people, once upon a time. We have managed to change our habits for the time being because the temptation is always there and the credit cards are always available. It's a constant struggle. We just paid off our credit card, for the fifth year in a row, with our tax refund. One of these years, I would actually like to keep our refund and use it for something fun instead of paying off long forgotten items.

I have an acquaintance who just put $470 on her credit card for a limo. This limo was not for a wedding or a prom; it was for a night out with the girls. The five girls were going to split the cost and rent the limo for four hours. I asked her why she was the one who had to front the money. Her reply, "Everyone else's cards were maxed out and they didn't have the availability on them." All I could think was if all these girls had maxed out credit cards, then why does she expect to get paid for their share of the limo. I decided to keep my comments to myself.