Anne Rice Blog Tips Books Call Center Life Comp and Tech Dogs Family and Home Fashion Food Trip Foolish Heart Friendships Hollywood Horror Story Inspiration Jokes Labrador Living and Loving Macro Pics Married Life Music and Lyrics News and History Pathetic Moments Philippines Photos Press Release Project 365 Shih Tzu Sophie Kinsella Sports Sunsets Thoughts Travel TV and Movie Website and Tools Work and Finance
i have been thinking of getting a credit card lately and have actually applied for one.... nice article to read regarding this issue....
Right Way To Use Credit
by: Stephanie Dychiu
Generally, there are only two reasons to buy something on credit:
1. When the item being purchased is an asset or something that retains or increases its value after you purchase it. Examples of assets are real estate property, high-value artwork or jewelry, and property or equipment used to start a profitable business. It’s usually okay to use borrowed money for these because their increase in value has a good chance of outpacing the interest payments.
2. When you need to make an emergency purchase. (Read: legitimate emergencies, not your usual conundrum of having nothing to wear on a Saturday night gimik.) Examples of legitimate emergencies are unforeseen medical expenses, replacing lost luggage while on a trip abroad (assuming you’re not insured), or paying for the tuition fee of a sibling you’re supporting through college.
Here’s a sample list of items you’re better off paying for in cash to keep in budget:
Clothes and shoes
Meals in restaurants
Three-way Test for Smart Shopping
Things to ask yourself before you make a final decision to spend:
1. What’s the worst thing that can happen if I don’t buy this now?
2. Can’t I splurge on the little things I can afford?
3. What are the other things I can buy for this amount of money?