Tame That Credit Card And Leave It Be

When it comes to life, there are more than a handful of rules that one can live by. You can pick and choose whichever you like, but as you move through experiences, you develop a sense of understanding that gives you the wisdom to apply the ones that make the most sense to you. For some, there’s things as simple and classic as “An apple a day…”, and the prudent enjoy “A penny saved is a penny earned”. However, the wisdom behind these examples can be instilled in you without having to learn their meaning the hard way, and one such example that you should live by in regards to your personal finances is the old saying “Never bet what you can’t afford to lose.”

This is a saying that applies primarily to gambling, but it is a way of life for those people who learn to respect their money and make it work for them. In general, outside of the casino or within it, the principle is that you shouldn’t be working with money you don’t actually own and not have the means to pay for it. If there is anything in life that this rule of thumb applies to the most, then that is credit cards.

These financial pieces of plastic are very empowering, but with their power comes a responsibility that can seem quite deceiving. You can purchase anything you want within the limitations imposed by a card, but in the end, you have to pay it back. People are often blinded by the power that these cards give them, and in that blindness they end buying more than what they honestly can afford with their income.

Recognizing this possibility (and embracing it) the card companies present a wide threshold in regards to making ends meet when this happens. You don’t have to pay your balance off entirely or in full once a purchase is made; instead, you can simply allow yourself to make monthly payments that meet a required minimum. This seems safe and is much less ruthless than emptying your pockets at a casino, but truth be told, this is how people end up enslaved to their monthly bills. They take more than what they can handle, and the result is that they don’t know how to manage it all.

Credit cards should be treated with respect. In essence, they should be recognized as borrowed money. Never allow yourself leeway in this regards. You shouldn’t borrow more than what you can pay back friends or family, and the same applies to a company. With your close ones, it’s a matter of honor and compassion; for the companies, it’s simply about making money, and they’ll charge you whatever it is you agreed to under the card policies.

With that said, you should keep that card in control and make it something you control rather than a product that controls your spending. If you need to, leave it at home or limit your usage of it to only certain things you need every month that you have predetermined you would pay for with the card, and make certain that these expenses are something you can pay fully and on time each and every month. If you can do that, then you can master the plastic and make it something that benefits you.

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