In previous post I wrote about my misusing of credit-cards during my first years of working. I knew it had to stop but never took any specific steps towards it. Important notice – always have written goals! Like many of us dream of financial freedom I started reading related literature and was given a good book I advise reading very much!
It is written by Bodo Schäfer and is called “The Road To Financial Freedom”.
He writes much about why it is good to save money, gather money reserve that can help yo survive for 6 months and only then start investing. Also why using credit cards is not wise as these kind of loans have usually interest rates of >15% which is VERY high.
Reading all this made me want to act now and knowing myself just taking the card out of wallet would not help, so to help came mighty scissors. I took out cards and split them into many tiny peaces. This actually motivated me to think more towards on how to pay back missing credit and close the accounts.
I set up monthly excel sheet with simple income and expenses calculations and started to track my spendings. I will prepare and share it here also.
I decided that I will not use such services anymore ( lets try to stick to this) as really in most cases there is no real point! If You cant figure of a way to generate more income, just save the amount of money You would spend on paying back the debt + interest rates and buy the product out later. Grow patience by saving but i prefer coming up with ideas to generate more income and we will be getting into those later!