This is one thing you need to think about before you buy anything on credit (it will make a big difference in how much debt you take on).
If you're going into debt, at least do it with your eyes open. That way you can reduce the chances of making a mistake that will haunt you for years. The first step is realizing that there's nothing wrong with buying things on credit if you plan ahead and know what you're doing.
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A lot of people feel guilty using their credit cards because they believe they should be able to pay cash or save up first. If you have the money to pay cash, then by all means pay cash! But most of us don't have that kind of money lying around waiting to be spent. We need to borrow it from someone else, which usually means we'll end up paying more than we would've if we'd paid cash.
This is where the problem begins: when people use their credit cards without thinking carefully about whether they really want to go into debt, and what they'll owe later. All too often these same people are so determined not to let anything bad happen to them they spend their lives trying not to get hurt or disappointed that they'll sacrifice everything to avoid any risk whatsoever.
It's a problem I see all the time, especially among young adults just starting out in life. They seem to believe that being financially secure is impossible unless they never allow themselves to make mistakes.
I'm not saying that avoiding mistakes entirely isn't important; you have to learn from your mistakes and move past them if you want to improve. And yes, being financially responsible is a good idea, but you shouldn't stop yourself from enjoying life because of it. There's no point living like a hermit who has nothing to look forward to except the next day. You're only hurting yourself in the long run.
The best solution is to learn how to manage your money properly so that you can enjoy life while still keeping your financial future secure. So here's my suggestion: If you don't already have a budget, start one as soon as possible. Once you have a clear picture of how much money comes in and goes out each month, you'll be able to take control of your- finances and figure out exactly how much you can afford to pay back on your debts.
Then, instead of feeling like you're always drowning under a mountain of bills, you'll be free to buy whatever you want, whenever you want it. Of course, this won't work if you don't follow through and actually stick to your budget, but even if you slip up every now and then, at least you'll know you gave it your best shot.
Posted Using LeoFinance Beta
