Credit card debt is on the rise – not surprisingly considering that incomes have remained stagnant while daily expenses have increased over the past few years. With inflation on the rise, consumers need to be vigilant about creeping emotional expenses that make a mess of a well planned budget.
The Dollar Stretcher.com pointed out recently that emotions can make someone poor – i.e. spending money when unnecessary. They offer some really good advice:
- Put good financial behaviors on “auto pilot”. I’ve always been a fan of this. Saving $50 a week can amount to a million dollars by retirement age alone.
- Take time to decide. They suggest waiting at least a day before making a purchase of more than $100. This is great advice, something that I should really think about doing myself.
- Don’t check investment balances too often especially if you are prone to hasty decisions to sell a stock if it’s not doing well.
- Leave the credit card at home. I’m rather old school and still use cash. Then if I don’t have the cash with me, I don’t do the buy. Why mess with what works? If you don’t use cash, at least a debit card would keep the purchase off credit.
We offer many more credit rebuilding/wealth building tips to our clients in an e-book “Reboot Your Life After Bankruptcy”. I’m in the process of adding this to our website now, but if anyone would like a copy in advance, please email email@example.com.