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Jeff and Sue's Journey:

We Love Costco!

Like many of you, we love Costco. We arrive and wander the aisles, taste the samples, and get drawn in to the many specials they have to offer each month. You know, the tasty cinnamon bread, the rotisserie chicken and the chocolate covered pretzel chips. After wandering aimlessly, we would arrive to the checkout and be shocked at the amount of “stuff” we had just purchased. Project Money has taught us to write up a shopping list of our needs and stick to it! No more frivolous spending on items we really don’t need to bring home!

However much we love Costco, we love their credit card even more and take full advantage of the rewards it pays us back. We charge all of our fuel purchases to the card since it pays us back 4% up to the first $7,000 of fuel purchases per year. All of our Costco purchases go on this card as well and we earn 2% back on those charges. We also earn 1% off our monthly gym membership that gets charged to this card. This equates to a very large amount of charges to a single credit card each month.

In the past, the Costco bill would come and we would realize that the balance due was always more than what we had available in our checking account and we would end up scrambling to transfer the remaining amount from our emergency savings account. Enter yet another savings account for us…now, every time we charge something to the Costco charge card, we immediately transfer that amount from our checking account to the “Costco Savings Account”…it’s just as if we had paid cash for it. When the statement arrives, there is no more panic as to where we are going to pull the money from…it is already sitting in an account! We just have to transfer the money to the checking account on the day the payment is due.

This seems so simple, “responsible” and we truly do not know why we had not done this before. Perhaps it was our feeling of confidence we felt we had. We had money in our checking and savings, so it wasn’t a big deal. We now have true confidence that we are spending only what we can afford and adhering to our budget both on a weekly and monthly basis! The future is looking bright!


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