If i ask this question to any one of you reading this, i am sure you gonna answer this as NO. Really are you not ? To a great extent i think i am but i am learning not to be. The biggest economy of the world America went into great recession in the year 2008-2009 and the reason for it was that people were financially stupid and you still say you are not.... Go ahead read it further and i am sure you gonna answer Yes at the end. The reason for this crisis were that everyone of us wants a house of our own, and the greedy bankers to generate revenue gave loans to everyone who could not even afford it and thus began the huge crisis which everyone faced. People lost jobs, businesses were shut almost every country in the world faced it to some extent.
After being a shopaholic for years, i have now realized that every penny we earn should be well spent. At least 20% of your take home salary you should save every month, so if you are earning $1000 you must save $200 OR if you are earning $5000 a month you should save $1000 every month. Just calculate, if you started earning at the age of 24 for $1000 and you save $200 every month, you would have saved $16,800 at lest when you will be 30. Plus the interest on your savings and obviously you wont be earning at what you started six years ago.
I used to live on Credit cards in my earlier days of work but then i realized that this debt is sucking me every month. Whenever my salary used to show up in my account, it would be the last day for the payment of my credit card bill. So the salary used to show up and go off to pay the credit card bill, in short i haven't made any money by interest on my saving as i didn't had any. I am sure i am not the only one facing this. Then one fine day after some 3 years i realized that this Credit card is a big debt on me and i made the payment in full and destroyed it and threw it out of my life. I thought i should spend what i have, not what i want. I wanted a BWM, Clothing by Channel, Purses from Prada, Shoes from Steve Madden and Perfumes from Dior and Yes my credit card could afford it all by paying on monthly installments but then the question was can i afford it on my salary ? and of-course the answer was a Big NOOoo. I am neither a millionaire or a billionaire to have afford them. Wants are endless and who wont like expensive fashionable things,but can you afford it by your own money. That's a question you need to answer for yourself.
Our Banks are going smarter day by day, and we are getting dumb OR they are making us dumb. Our Debit card linked to our Savings/Checking account plays exactly the same role as that of a Credit card. Ohh you are thinking about cash back. Yes even the debit cards now a days give cash back offers. Then why do you stick to credit card. No one excepts the bank is making money with these Plastic Credit Cards by the late payment fees you pay or the interest they charge of your late payments. I bet if everyone starts paying off their credit cards bill on time or before time, banks will stop issuing credit cards. You buy Fancy cars on monthly credit but is it yours, the answer is NO. When will it be yours, probably after 7-8 years when it will become way too old and it will be the time to dispose it off. Really do you want to live like this. I would better goo for a used car which is 3 years old and paying less and paying in full for it rather then going in debt for whole of my life. I feel rather than me buying a BMW or a Fancy car, Warren Buffett a billionaire who drives a 2001 Lincon OR Sam walton of Walmart who drives a old truck should drive these fancy cars and their pocket allows them to buy even ten of such kinds easily. So start saving now to fulfill your dreams and don't just live in a life full of debts.
Will you still say your are Not financially stupid....
If the answer is still NO, i would say you are smart enough to take care of your finances But if the answer is Yes you should try to give up on your credit cards, i know its difficult for once but then you will learn to live on with what you have rather than what you want. Remember wants are infinite but money in you pocket definitely is not. Every penny you earn is your hard earned money don't just waste it on paying off your Credit card debts and making money for the asshole Bankers. Apart from my saving i have started to save just $100 per month and go for a good vacation once in a year with just this $100.
https://www.youtube.com/watch?v=JaiNA54JyNo
Soo what do you say ....
Are you Financially Stupid ???
After being a shopaholic for years, i have now realized that every penny we earn should be well spent. At least 20% of your take home salary you should save every month, so if you are earning $1000 you must save $200 OR if you are earning $5000 a month you should save $1000 every month. Just calculate, if you started earning at the age of 24 for $1000 and you save $200 every month, you would have saved $16,800 at lest when you will be 30. Plus the interest on your savings and obviously you wont be earning at what you started six years ago.
I used to live on Credit cards in my earlier days of work but then i realized that this debt is sucking me every month. Whenever my salary used to show up in my account, it would be the last day for the payment of my credit card bill. So the salary used to show up and go off to pay the credit card bill, in short i haven't made any money by interest on my saving as i didn't had any. I am sure i am not the only one facing this. Then one fine day after some 3 years i realized that this Credit card is a big debt on me and i made the payment in full and destroyed it and threw it out of my life. I thought i should spend what i have, not what i want. I wanted a BWM, Clothing by Channel, Purses from Prada, Shoes from Steve Madden and Perfumes from Dior and Yes my credit card could afford it all by paying on monthly installments but then the question was can i afford it on my salary ? and of-course the answer was a Big NOOoo. I am neither a millionaire or a billionaire to have afford them. Wants are endless and who wont like expensive fashionable things,but can you afford it by your own money. That's a question you need to answer for yourself.
Our Banks are going smarter day by day, and we are getting dumb OR they are making us dumb. Our Debit card linked to our Savings/Checking account plays exactly the same role as that of a Credit card. Ohh you are thinking about cash back. Yes even the debit cards now a days give cash back offers. Then why do you stick to credit card. No one excepts the bank is making money with these Plastic Credit Cards by the late payment fees you pay or the interest they charge of your late payments. I bet if everyone starts paying off their credit cards bill on time or before time, banks will stop issuing credit cards. You buy Fancy cars on monthly credit but is it yours, the answer is NO. When will it be yours, probably after 7-8 years when it will become way too old and it will be the time to dispose it off. Really do you want to live like this. I would better goo for a used car which is 3 years old and paying less and paying in full for it rather then going in debt for whole of my life. I feel rather than me buying a BMW or a Fancy car, Warren Buffett a billionaire who drives a 2001 Lincon OR Sam walton of Walmart who drives a old truck should drive these fancy cars and their pocket allows them to buy even ten of such kinds easily. So start saving now to fulfill your dreams and don't just live in a life full of debts.
Will you still say your are Not financially stupid....
If the answer is still NO, i would say you are smart enough to take care of your finances But if the answer is Yes you should try to give up on your credit cards, i know its difficult for once but then you will learn to live on with what you have rather than what you want. Remember wants are infinite but money in you pocket definitely is not. Every penny you earn is your hard earned money don't just waste it on paying off your Credit card debts and making money for the asshole Bankers. Apart from my saving i have started to save just $100 per month and go for a good vacation once in a year with just this $100.
https://www.youtube.com/watch?v=JaiNA54JyNo
Soo what do you say ....
Are you Financially Stupid ???
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