Would you buy a $260,150 handbag?

Even if I have all the money in this world, I just know, I wouldn't.

According to Forbes magazine, this handbag is the priciest of them all. (Well, at least, for now.)

Chanel's "Diamond Forever" handbag is more like a collector's item than a bag really. The C's are peppered with 334 diamonds set in 18-k white gold. The alligator skin is matte-finished.

But man! $260,150? I could feed thousands with that kind of money.

Why I Pay in Cash and Not with Credit Card

Consider this scenario.

You're in a posh hotel cafe hanging out with your friends. You call the waiter to get your bill. He comes back -- 260 pesos for a cup of extra thick hot chocolate served in fine china. You hand out your Visa.

Admit it. In that kind of setting, it's sexier to pay with plastic instead of some paper with a dead president on it.

If that was me, though, I would have paid with cash, be it as crisp as chicharon or as soggy as old pechay. Less trouble for me.

Here are four reasons why I prefer cash over card.
(By cash, I mean cash I earned and not loaned. By "paying in cash", I mean purchases in malls, markets, bargain shops, etc., and does not include huge things like cars, houses, and other things you normally pay for on installment.)

1. I lose the tendency to overspend by limiting my purchases with what I have in my wallet. This is especially useful when grocery shopping. I mean, we all do have that urge to get things not in the list, but with just the right amount of cash in the pocket and some will, I don't. Besides, it will be too much of a hassle to find the nearest ATM machine (of my bank, take note, to avoid transaction charges) just to buy those stuff not needed.

2. Unplanned purchases are avoided. I won't be able to buy those yummy-looking pumps if I only have "taxi money" in my wallet, will I?

3. I can "feel" my purchases. Yes, card purchases are quite "numbing". You won't feel how much you have spent on something until the time you see the monthly bill. More often than not, when you see it, it hurts. Especially if you have not kept track.

4. Discipline. Yes, discipline. With just having enough, I am are forced to discipline myself regarding my spending habits.

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Note: I do use my card on some things like airplane tickets and hotel rooms. However, I avoid using it on things I don't need and I pay on time.

Great Christmas Shopping Tips

'Tis the season to be jolly... and shop for gifts.

It's fun to shop, but I must admit, Christmas shopping can be really stressful.

Here are my tips for stress-free shopping.

1. Set your budget. Before I actually make my Christmas list, I first decide on how much money I can afford letting go.

2. Make your gift list. Almost all of us do this, I think. My list would be separated into four categories. (a) Family - mom, dad, sister, brothers; (b) extended family - lolo, lola, cousins, titos, titas; (c) Best friends - friends I often see; (d) Acquaintances - officemates, etc.

3. Set an amount per gift. Beside every name or group in this list, I put the estimate amount of my gifts. Then after that, I add everything and see if the total amount fits my set budget (see No. 1).

4. Assign possible gift options. Before I hit the stores, I put possible gift items that I can get for each person which will be within the amount that I have set (see No. 3).

5. Buy in bulk. Bulk items are cheaper. 'Nuff said.

6. Personalize. I get creative when giving gifts for let's say, officemates. I would sometimes make desserts and ribbon them. Or buy bulk cookies, candies or something. Repack them and put colorful ribbons.

7. Schedule your shopping. This saves you both money and time. Set a shopping day. Find out sale schedules and bazaar schedules that interests you. Also, being early eases some of the stress.

8. Hunt for the best deals.

9. Give. Always give something for the less-fortunate. It feels great for both you and them.

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Here are Christmas shopping tips I got from the Philippine Daily Inquirer, Take Charge of Your Money.