Personal characteristics to make your Credit Card work for you
The fastest way to accumulate debt is by mis-using your Credit Card. Despite our current unstable economy banks are still much too lenient when it comes to offer credit, and their marketing strategies are ruthless and persistent at any given time. After all, the more money (credit) you spend – the more money they make.
Let’s face it – having a credit card makes life easier when it comes to internet transactions and when you don’t have cash on you.
But the very word credit in this instance actually means spending money with attachments (read hefty interest).
To ensure that your Credit Card works for you, here are 3 characteristics you need to have (or hone):
Discipline means adhering strictly to aspects of spending that is in an affordable range of your income. Don’t fall for extra credit that the financial institutions will offer you. I know people who use their Credit Cards purely as a means of financial transact and at the end of every month they manage to return to ‘green’ status. That is called true Credit.
Prudence means spending money on things that you need, not want. Good sense when it comes to money matters matter. As simple as that!
Yes, rewarding self. This may seem contradictory to the guidelines set above, but in order to enjoy life and reward yourself for your hard work, you need to spend a bit of money on yourself every now and then.
This factor is a very important aspect that goes deeper than ‘want’. It means that you love and respect yourself.
Although I have a debit-credit card, and work mostly with cash, I spend a quarter of every large amount of money I receive, on myself. I’ll have a haircut, massage or purchase something beautiful that adds esthetic value to my life. It rejuvenates me, and motivates me to carry as well as confirming the fact that I value myself.
You need to do this, but keep discipline and prudence in mind.
If all else fail and you don’t have the above personal qualities to make a success of your spending, don’t despair. You can hone these qualities. If it seems unlikely, my advice for you is to pay off your debit as soon as possible, and work with cash. That is the ultimate freedom.