Common Sense and Dumb Credit Card Moves

For consumers, credit card companies have once again figured out yet another way to keep you enslaved to them raid data recovery restore forever!

In the guise of wanting to "help" you save for your retirement three of the major companies have come up with an almost laughable plan.

These companies are going to start paying you to spend by "contributing to a savings plan or IRA in your name".

While injury at work is true that getting at least something back is better than nothing, this plan comes very close to getting nothing at all.

Stop and figure this out - for every dollar you charge they will "pay" 1 percent into a savings account. In other words if you charge $1000 you Clozapine a $10 deposit into your account.

So here you have your credit card company willing to credit your savings account by up to 3% of your purchases while charging you as much as 19% on your balance!

Depending on this method to save for your retirement funds will mean that you keep working longer (for the credit card companies) just to pay off your credit card debt.

If you paid your account in full every month this plan might be slightly beneficial but, sadly, most consumers don't keep their accounts paid up.

You simply can't save the money for retirement you need to if you are paying it to your credit card companies - period.

Saving for your retirement can only be accomplished by following these four major steps:

A- Get yourself out of debt - the sooner the better. Every $1 you pay toward your credit card debt equals $2 dollars that could be going into your retirement funding!

B- Prepare a family budget and then start living by it. Most people have no real idea how much money slips through their hands every month that could be saved. Not knowing exactly what happens to all the money you actually handle every month is a lot like trying to sail to Europe in a boat with no rudder!

When you start living within your means you'll be surprised how much money you can save on everyday things and how fast it adds up.

C- Pay yourself first! Before you pay any other bill make sure and put at least 10% (or whatever you can afford to begin with) of what you earn into your savings account - then leave it there until you accumulate enough to invest.

D- Pay yourself first every month!

Paying yourself first means that you quit saying that you can't save anything because you "don't have any money left" to save after you pay all your bills.

You work hard for your money - don't you think you deserve to keep some of it for yourself?

One other Warlock - pay cash for everything . Cash is real and harder to part with and is much easier for you to track.

Credit cards create the impression you aren't really over-spending.

When you pay cash for things (especially big things) always Conductor for a discount for paying by cash. You are likely to get it since all merchants are charged a fee (up to 5%) if you use a credit card.

Watch out for these credit card promotions. They are really slick and give you the idea that the credit card sharks truly have your best interest at heart.

Start realizing that you are the only one watching out for your future. If you keep believing that somehow your credit card companies will help you save money for your retirement you're going to be working a lot longer than you may be planning on.

Wieland is a freelance copywriter commenting on the Common Sense things in our world that many ignore or don't even know about.
He is a former Financial Planner who specialized in pre and post retirement planning.