We’re never too old to learn what we could have learned as kids.
Let’s have some fun and watch a Warren Buffett cartoon.
Credit cards can seem like an easy way to buy things, but it’s not a good idea to make a habit of using them.
Credit cards have:
Seemingly small, painless minimum payments
Almost invisible, compounding interest
High late fees and penalties
Making those minimum payments while you continue to charge is like bailing out a sinking ship with a teaspoon. Pretty soon you’re way in over your head.
It seems like free money that doesn’t have to be paid back.
We may not appreciate what we bought with a credit card.
We may buy things we wouldn’t have if we had money.
We may show-off what we got.
We may try to impress others with our credit.
We may intend to pay the money back and not be able to.
The chains of habit are too light to be felt until they are too heavy to be broken.
Instead of using a credit card, Warren suggests to:
Save, earn interest and pay cash for what you want.
Always be responsible and dependable.
Think of the long-term consequences of what we do today.