Probably my number one financial rule in life is that I do NOT like to spend my money on managing money. This means I don’t want to pay for my bank services, I don’t want to pay for my credit card services, and I don’t ever, ever, ever want to pay interest on my credit card.
As you know, I am a fanatic about paying off my credit card because compound interest works both ways, baby. I have never carried a balance.
But this year, I have a fellowship that comes with a significant amount of professional development/travel funding. I get to go on awesome trips (New Orleans, St. Pete, Canary Islands!) but I have to front the money and then I have to wait 6-10 weeks to be reimbursed.
I just can’t afford to front the money, pay off my credit cards and still make rent. So, for this year only, I broke my cardinal rule (sort of).
I signed up for a credit card that allows me to pay no interest on a balance for 14 months. I carry a balance on this credit card, and as soon as I am reimbursed for my travels I pay it right off. I don’t include this credit card in my Mint reporting, because it’s money that is outside of my budget and it is money that I would not be spending if not for this fellowship.
I normally would NEVER advocate for this sort of financial planning, but in this situation I needed more cash flow flexibility. I could really get myself in trouble if I forgot that the money that I am getting reimbursed for has already been spent..so I am very strict with myself, and it has saved me a lot of worry and money-transferring.
Moral of the story: it is ok to break your own rules, as long as they make sense. Be flexible. Try financial yoga!
Hope this will work out for you… not nice of them to ask you to finance the cost upfront!
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It’s working out great! It took me a while to figure out a system but for now it’s like an interest-free loan, which is all that I needed! Unfortunately, I think that reimbursement instead of fronting the money for things like a move at the start of a job is common (at least among nonprofits), so hopefully this system will help when cash flow is tight but you know that money will come in eventually!
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