You’ve heard the term that money is the root of all evil. You may also heard that credit cards are evil. While it is true that people can get in quite a mess if they fall into the spiral of credit card debt. And while it may feel impossible to get out of that debt and easy to blame it on the credit card itself, that’s not the root problem.
Credit cards make it easy to spend money. There’s a psychological effect of not using cash and having it feel less “real.” In the same sense that casinos give you chips to gamble with — to make you feel like you’re not gambling with your own money. Credit cards make you feel like you’re not spending your own money.
Don’t fall into that trap.
It’s easy to spend money and not keep track of it. Do not let yourself fall victim to that or blame it on credit cards.
- Pay your balance in full. Each and every month.
- Don’t buy what you can’t afford. If you don’t have the funds available in your bank account, don’t spent it.
- Keep track of everything that you buy.
- Create a budget for each spending category.
- Stick to the budget!
The key is to plan. If you don’t plan then you plan to fail. Figure out how much you spend each month on a particular category like groceries or entertainment. Then give it a good hard look to see where you can cut unnecessary expenses. If you can get rid of discretionary spending that hurts your bottom line then go ahead and do it. You’ll thank yourself later when you have a nice cushion saved up for emergencies.