Friday, May 29, 2009

Biggest Money Mistakes Series - 3

Just like many others, I have gone from broke to multi-millionaire by following some simple concepts that allow anyone to move from debt to wealth, on any income. One thing you will note about the following money mistakes; they deal more about attitudes, beliefs and values than specific tips.

Mistake # 3: Credit cards are more convenient than cash or checks.
This is one of the most frightening mistakes many people make. They operate unconsciously when it comes to using credit. They think that someday, magically, they will have enough money to pay off their credit card debts. Unfortunately, even if they refinance their home, get an inheritance or win a lottery and pay off the credit cards, the debts only come back again. Getting the money from anywhere other than systemically paying off the debts teaches the individual nothing about how to get rid of debt. It only teaches them that they can get another family gift or a consolidation loan.

Solution: Drop the credit cards cold turkey and live the lifestyle of “pay as you go.” Use the money you set aside for emergencies to replace the situations where you would have used a credit card. Also, wake up and realize the credit issuers are not your friends. Their advertisements are designed to put you in bondage, not provide freedom. Borrowing money against your home to go on a vacation is crazy.

Rennie Gabriel –
Author of Wealth on Any Income: 12 Steps to Freedom

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