the best investment

i have long said that instead of forcing highschool students to get through algebra II there should be a new requirement to graduate, a course in basic personal finance. included in the curriculum would be things like balancing a check book, and key things that impact your credit score (not to mention the impact of your credit score on your options for housing and other major life purchases) and most importantly how to read and comprehend a contract for a credit card.
people know that you have to pay off a credit card with intrest, they know, but so many dont really understand. the intrest rate most will get on their first few credit cards and likely all of their credit cards they will have over their lives, will be very high and are subject to change for no reason by the company. this means if the balance is not paid promptly that over time it is likely that the purchases made with the card will cost about three times whatever they originally cost when purchased.

paying off your credit cards is the best investment one can make. do you really want to pay $300 for the $100 printer you bought so long ago? or still be paying months down the line for the shoes you long ago banished to the back of your closet because not only can you not afford a nice night out but they also hurt your feet?

if you dont have the money to buy something, dont buy it. just because you have credit does not mean you have money.

paying the minimum balance gets you nowhere, pay as much as you can as often as you can. its good for your credit score and it reduses how much you will pay in the long run.

you need credit. you need it, for emergencys and large one time purchases, but dont go buying stupid things, needs and wants are not the same thing. you dont need new shoes if your current shoes are appropriate for your daily life and in decent shape. you dont need $4.00 lattes or $15 meals. knowing what you are spending your money on is the first step to curbing those habbits.

cat joke

there were two cats trying to cross a river,

the first was one two three cat,
the second was un deux trois cat,

so which cat won the race

one two three cat won because un deux trois quatre cinq