Anyhow - on Money Mondays we've been getting back to the basics.
Week 1 - Organize a Space
Week 2 - Balance Your Checkbook
Today we're going to get you ready to start managing what comes in each month, but first you must STOP USING THOSE CREDIT CARDS. I'll say it again:
STOP USING YOUR CREDIT CARDS!!
Can you hear what I'm screaming??
If you can't afford it this month, you shouldn't buy it. It annoys me when people insist that they're making money off of their credit cards. Do you realize what the credit card companies are making??? If you play with snakes, you're GOING TO GET BIT!!
In fact, I just saw this morning that the credit card companies are adding more hidden fees. You all know the recent changes they've been making in the last two years: tripling your interest rate just because they can, changing your billing date without notifying you so they can charge you late fees, and lowering your limit so that, all of the sudden, they can charge you over the limit fees. They're even randomly and suddenly closing accounts.
Now you'll see more annual fees and charges for balance transfers, and even fees for receiving paper statements in the mail!
For those of you who only use your credit card for EMERGENCIES (instead of putting a cash stash away for a rainy day) - many are now CHARGING FEES for cards that remain inactive for specified periods of time.
Did you know if you pay the minimum payment on a $3000 balance with a 14% interest rate it'll take you 10 years to pay it off???
To read more about how the credit card companies rip you off, read this story I saw on the news this morning.
PEOPLE, is this REALLY what you want to be playing with????
Cut them up. You don't need that new TV and you can get by with your old black pants. Start using cash.
But I can't make online purchases with cash: You can use your debit card JUST like a Visa credit card. I haven't run into a problem yet.
But I'm not as protected with my debit card: When you use your debit card as a credit card, you are under all of the safety nets of the Visa credit card. You are EQUALLY as safe using a debit card when it comes to protection from the card companies.
But I don't HAVE cash on hand for emergencies: We're going to talk about how to get yourself out of that hole next week. For now - THINK LOGICALLY. You know that borrowing from and owing money to cheaters and thieves is NOT the game you want to play OR the position you want to be in.
If you're someone who takes the Bible to heart, borrowing money is NOT biblical.
Proverbs 22:7 The rich rule over the poor, and the borrower is SERVANT to the lender.
Romans 13: 8 Owe no one anything except to love one another.
Proverbs 13:11 Dishonest money dwindles away, be he who gathers money little by little makes it grow.