Cap flying everywhere as graduation season comes into play and reality slaps you right in the face. Aren’t you entitled to some sort of a reward after that torture called exams? Well, this is where you get into debts. Let us look through your wallet before it gets looked through by interest rates! 🎓
One of the best tips would be to stop treating your credit limit as your monthly salary. It is a loan, not a salary. You think that you are super rich now because look how much money you have “I got 5K! “. This will make you even poorer in the end. 📉
Start your financial journey with the zero-based budget. There are plenty of apps such as YNAB and Copilot, which help you track every single transaction you made down to the penny. Knowing your finances will help you to avoid those awkward questions “why am I so broke?” at the end of the month. Do not spend something you don’t have. If you cannot buy it using the money from your bank account, you cannot afford buying it on a credit card. 💸
Don’t try to beat those rich kids showing their luxury vacations on social media. Chances are they are heavily in debt while enjoying that fancy lifestyle. Living beneath your means is not boring, but a strategy. Always choose generic products at Trader Joe’s and ignore those influencers. Your bank account will thank you for that.
Pay off your entire statement balance each month. Never ever pay the minimum payment. Hundreds or thousands of dollars fly out of your pocket in this way. Make an automatic payment of your payments so you don’t miss the deadline. Late payment fee is the fee you could spend on fancy dinner. 🍽️
If you have your balance right now, you should stop using your credit card. Put it into ice if you want to. Look for balance transfer cards such as Chase Slate, where you can freeze interest rate. And then attack your balance with extra money you have. This process takes time but works efficiently.
Remember that the credit card is the tool you earn money with, not just another toy you play with. You earn money with the points, protect yourself from frauds with the card and immediately pay it back. Do not give a bank an opportunity to take away your future paycheck. Financial independence tastes much better than expensive takeout. ✨