If it weren’t for the credit cards, we wouldn’t be buying so many things that we end up buying. The confidence that credit cards create about our purchasing power, more often than not, spur our urge for impulsive buying. If you ask me, credit cards are largely responsible for buying things that we really don’t need. In the absence of credit cards, it would be the amount of money in our purses that would determine whether we could purchase something or not.
Credit cards are pure magic. It is a miracle. It enables us to spend what we do not have. And, live in eternal debt. Paying for our impulsive buying during the last month. When we have money in our pocket, we tend to buy many things that we can do without. That is what a credit card does. It prods us to buy things we do not need or cannot afford in the normal course.
Today, we do not buy what we need. We buy many things because our neighbour has them and it is important for us to have them to maintain our social status.
That apart, we are often coaxed and goaded by advertisements and sales guys in buying things. They begin by trying to convince us that we need what we really don’t need. Then, they will introduce a brand of that product and tell us why it is the best brand. And, then they will coax us to buy that brand. Believe it or not, most of us fall for such sales gimmicks. We are gullible to the gut.
Once we decide to buy a product, we realise that we do not have the money to pay the price. So, we look around and finally decide on a loan or pay by some credit card. In either case, we do not have the money and are spending the money that we will earn later.
This is not a good idea because it puts unnecessary pressure on our scant financial resources and messes up our budget. Ultimately, it creates tension and stress because we have to squeeze this spending into our already cash-strapped budget.
It makes sense to stop buying things that we do not need. Always ask yourself if you really need what you are buying. Ask yourself as to what would be the utility of the product you are buying on a day-to-day basis. Above all, ask yourself when you will use the product you are buying and how often you will use it. That will help you decide as to whether you really need what you are buying.
It is important to match your spending with your earnings. If you are spending more than your earnings, there should be a good reason to justify such spending. Otherwise, you should desist from such spending.
Live a tension-free life. Do not buy what you do not need and do not spend what you do not have. Lock up your credit card in your safe and put away the keys in a safe place. Open your safe and use the credit card only in times of emergencies. Don’t use it for your daily transactions. That is the best way to remain solvent!
