So now that you have a few depressing, and yet enlightening,
points on the pitfalls of credit card spending take a few moments to empower
yourself with the tools to avoid getting stupid with the “plastic cash,” thinking
that you have to have it, or just spending it frivolously. Three easy steps, and questions, will enable
you to freely enjoy life without having to rely upon the Gods of credit.
Getting
that First Card
Most college students these days
have at least one credit card, and this is a very reasonable thing to
have. One credit card gives you some
leeway if you have an emergency (like needing to fly home—from Berkeley to
Pittsburg—for a funeral, or your car engine dies in the middle of your eighteen
hour drive home), and one card will also give you little edge way with spending
power. This statement does not mean that
you should purchase your CDs, lunch, or cigarettes on it.... No, instead use
it only when you are in dire straights.
For example, your paycheck doesn’t come in for two days, you have five
bucks to your name, but your period has just started and you are out of tampons
and pads. In this instance, using the
card for your purchase would be fine, but just remember—the minute your check
comes in write and mail the payment to the credit card company. This will prevent you from thinking of the
card as an endless source of money.
Making an immediate payment forces your conscious to ponder the reasons
why you didn’t have enough cash to pay for the items in the first place.
Living
By the Budget
Every month, set out a chart for
what you will spend. Track these
expenditures with receipts, and never go to the store without a list—shopping
without a list is a sure fire way to overspend.
If you only have 100 dollars to splurge on the newest look, then leave
your credit card at home. Don’t fool
yourself into thinking that you will pay it back next month because, after all,
next month there will be another must have—a new leather jacket, shoes, CDs, etc. Accordingly, spend your money on what you
need first, and then when you have some cash left over then use it freely and
unabashedly.