One of the issues I feel that is facing a lot of families today is financial struggles. What do I mean about financial struggles? Living paycheck to paycheck, arguing about money, finding a working budget for your family, and the list can go on.
I’m writing this post to talk a little about my financial experiences and what I have learned that has made life a little easier financially.
One of the issues that is facing people today that is going to be the downfall of us is credit. Not so much the credit itself as most people couldn’t afford to pay cash for a new home or car. I mean the misuse of credit and how it can get you in trouble.
Follow me here for a second. You go to the store knowing you don’t have any money in the bank to spend on clothes. So, you plan on just window shopping. Of course, wouldn’t you know it, the store has this HUGE sale going on! Those evil people knew you were broke and couldn’t afford those jeans at regular price, so they lowered them to 50% off.
Well, it won’t hurt to just swipe it, I mean you can pay it off when the bill arrives, right?
So a couple of weeks go by and those new jeans are really fitting nicely as you drive your car down the road. Your motor sputters and dies. The two bill is $125 and the blown head gasket costs you $1200 to repair.
You are really strapped now, and of course, the credit card bill arrives for the new jeans and everything else you swiped over the last month with it. Heck, you can’t afford that with your car being broken and the tow bill and all…
The next bill comes with a whopping finance charge, you are deeper in debt that you can’t afford to repay…
Get the picture?
Lack of education about how to use credit and financing properly can really have a detrimental effect. Educating yourself about debt and student loans consolidation, and how to spend your money wisely is the best investment you can make for you and your family.