One of the hardest things to do is to save money. People always want to have more than what they could afford and spend whatever money they have so they can acquire them. Unfortunately, they generally spend more than they can afford because of one convenient plastic card – the credit card.
Ever since the ad came out, “Don’t leave home without it,” people who had credit cards spend more than they could chew. They know they cannot afford it and yet continue to do so, because of the convenience of the credit cards.
The current financial crisis that is felt by almost everyone in the US is because of this spoiled behaviour. Many came to believe that they had the right to purchase whatever they could on to satisfy their egos. In the end, they would have to pay for endless bills for endless years.
Take for example the Christmas season. One of the pains of modern day Christmas is the pain of having to pay for the gifts in the next five months. Most people cannot afford the gifts and yet continue to buy them.
To improve the financial situation, this type of behaviour has to stop. One should not think that they can keep on spending on useless luxuries simply because they could. Now some people would say they only pay in cash which they take out from the ATMs. Well, the fact of the matter is, ATMs are also expensive. If one takes out money from an ATM in a bank not their own, they can be charged about $2 per transaction. Try doing some multiplication. How many $2 transactions do you actually complete per month? Multiply that by twelve months and you end up with an amount that could put food on the table for a whole month.
If you want to improve on your financial situation, make sure that you only spend for what you can pay at one given time. Do not go through the credit cards like crazy, remember, credit card companies charge interests o every transaction. If you were a logical person, you should do the math.