learn how to manage your money

If you use credit cards, do it properly.

Some of the wealthiest people I know live by swiping their credit cards. They buy everything from groceries to paying their electricity account on their credit card. The difference is that at the end of the month they payoff the balance, IN FULL. How often do you do that?

I’m not sure I’ve EVER done that.

The idea is that you put your weekly, fortnightly, or monthly payments into an account and drawdown what you need to pay back the amount on the credit card at the end of the month. If you’re living within your means, this shouldn’t be a problem, right?

That’s the real issue; most of us are not living within our means, we buy those consumer items we don’t need. Whether we do that to make ourselves feel good or because they’re so pretty, and we can’t wait to save our pennies to have them. It’s not good enough to be blunt about it and if you feel like you can’t operate in this way with your credit cards it’s time to cut them up.

Check out this post about how we managed to pay down our credit cards that I wrote earlier.