Making payments using a credit card makes people not feel sorry for the money they have and this is very different, when you shop with cash.
This has become one of the factors that makes many people tend to spend too much money on credit cards. Never think that credit cards are free money. The thing to remember is that you have to pay back money that has been used before.
Shopping based on ability, not based on credit limit
The credit card issuer will definitely give the user a credit limit that can be used. Even though you currently have a very large credit line, that doesn’t mean you have to use all the credit there. The thing to understand here is that having a large credit limit is not the same as having a lot of money in the bank.
The solution is that you can manage credit card spending based on the amount of income and expenses you have. It is important to always monitor your credit card balance to ensure you do not exceed spending limits when using it.
Consider Ripe When Using Many Credit Cards
The more credit cards you have, the easier it will also be to spend money to spend. Some people feel enough with 1 credit card and some others feel the need to use several credit cards at once. When opening a new credit card, consider a few important things why you should open a card there. The reason could be because of the ability to manage finances better or you just want to spend more money.
Don’t Follow Emotions When Shopping
A study conducted in 2008 showed that consumers tend to spend more money when they are sad. Not only that, being angry, jealous, and bored can also make you overspend. The best solution to overcome the above is that you should suspend shopping activities when the mood is deteriorating and wait until emotions have stabilized.
Use a Credit Card for Things You Can Buy
Many credit card users tend to think that with a credit card they can buy various items that previously could not be bought. Owned credit cards are used to increase purchasing power and this is what makes many credit card users stuck with endless debt. Use a credit card for various expenses that you usually spend, not use it to buy items that can not be obtained.
Have Financial Goals for Controlled Shopping Decisions
Excessive spending will always affect the financial goals that you will aim for in the future. Where too much spending will affect your progress to pay off debt, build investments, and save emergency funds. Think about your conditions and dreams in the future in the next 5 – 20 years. Instead of your income used up to pay a number of credit card bills better set aside the money to be invested in various investment instruments.
Starlight Finance could be one of the investment options that you use to achieve various financial goals in the future. Simply by preparing a minimum capital of $ 100,000, you can join and invest for the future in Starlight Finance. Competitive yields that can beat the annual inflation rate make the investment value that you invest can grow optimally.
Leave a Credit Card at Home
You will not spend by debt, when there is no credit card. It is best to bring a credit card only when you want to make important purchases such as buying groceries or buying new equipment. If you are among those who are easily tempted, then train yourself to be able to control the situation.
Put a credit card at home, when you go out and don’t intend to spend anything. By carrying out the 7 strategies above, we hope you become more able to control yourself not to spend more than your credit card limit. Instead of running out of money to go into debt, it’s better to set aside for the future by investing.