Credit Cards

I know a lot of people out there have them, and use them, and get in trouble by them.  If you find yourself paying for things over and over again using credit and not paying off the balance, do yourself a favor right now -- cut them up.  The banks make enough money.  Pay for everything with cash.  When you run out, you're done until next payday.

This teaches two lessons which are paramount to financial stability.  1) Discipline  2)  Budgeting.  It may be a simple approach, but it works.  Pay down those high interest rate cards and never get behind again.  I'm serious.  Cut up the card if you are paying 14% plus interest rates.  Your life in the long run will be so much better.

Discipline in finances is not an option if you ever want to "get ahead".  Without discipline, there is no tomorrow.  There is only today and your wants.  I know.  It's difficult.  Sometimes, you have only needs to pay for.  That's about the only time you should be considering paying by credit.  So, keeping one card for emergencies (and only emergencies... nothing else) is prudent.  But you should not carry it.  Emergencies do not happen to you every day.  So, carrying it daily should not be done.

Paying with cash has its advantages.  You bide your money throughout the pay period.  You should know exactly how much you have in your purse or wallet and how many days it is until the next pay day.  Giving yourself an allowance at payday and the rest goes to bills is a simple -- and effective -- money management tool.

I know these sound simple, but complicated is not what most people need.  They need simple and effective.  Aside from sitting down and mapping out a plan, this is as good as it gets for the average American.