As this blog is all I learnt about money in my ordinary life, I would talk about one of the most basic money tool of modern times, which I find very useful.
I frequently use it, and I would suggest it to every lady aspiring to become a Penny Pincher someday. This weapon of monetary independence is undoubtedly - the "Credit Card" and here is how I was Introduced and how I carefully learnt to TAP the plastic power.
I understand that many of us turn Paranoid at the above two innocent C lettered words.
Initially, having heard too many woebegone tales of lost credit cards and super-duper-fines, I too was reluctant to get my named embossed on that nasty little piece of plastic. But when I did, I learnt that it was not as difficult as I had imagined to deal with this "Complicated Clutter".
I often tell my friends (forgive my ailment of giving free advice) -- "Before you jump into the sea or decide to walk away, have a close look from the shore! "
And that is exactly what I did when I applied for my first credit card.
How I got the card...
I was getting frequent calls from banks to get their super-rich-featured credit cards. I used to assertively reply that I wasn't interested.
But at the back of my mind I would wonder-
why would anybody hand me down his money and say "You can keep it for 50 days, then return it interest free" ??
The answer was nobody actually was.
If I took the card and did nothing, no money would be handed down to me. The money would be lent to me only if I spent. The amount I spent was to be interest free for 50 days and then re-paid. This was clearly an encouragement to spend. Clearly, the bank's benefits lay on the my expenditure through the card. It would benefit more from my transactions than I would. ( And forgive me again, but I hate to be used like an instrument)
So I concluded that, as long as the card is idle, it is free, and the banks get no benefit through me. So, if I decided to have a card, that was free, and never used it, it wouldn't cost me anything!
Back then, my salary was tiny and I wanted to be financially independent. So, as a protection, I decided to get a CC which could rescue me in times of desperate crisis. Of-course, I would have to pay it back later, but that could be taken care of when "later" arrived.
I made very sure that I would make absolutely no transactions on my card unless it was a life-death situation or unless I learnt the wisest way to use it (Although 4 months later, I found myself purchasing with my CC). I surfed through the bank website and enabled every security procedure that was available with them.
Why I did not Splurge...
Now, my income was no longer a constraint on what I could purchase. That was temptation enough to splurge. But then my bank had somewhat tedious methods of credit card bill payment, which luckily discouraged me to get a bill generated.
Secondly, I was very firm on one self-formulated principle :
"Never swipe a card at the counter"
Well, this may sound funny, but I always feel that counting notes on the counter gives you the Pinch of parting with money and the intensity of the pinch is proportionate to the number of notes you have counted.
When a lighter purse is accompanied home with a heavier shopping bag, you tend to value and respect the contents of the bag.
When u swipe a card, u don't see it. Just a swipe and Swoosh your money has disappeared. You do not actually know the value of your shopping cart. Yes you do, but you do not! And thats why you don't really value the stuff you have bought.
Well... long post.. a longer story on How I learnt to use my card...
It's past mid-night now.. will continue in next post!!!
I frequently use it, and I would suggest it to every lady aspiring to become a Penny Pincher someday. This weapon of monetary independence is undoubtedly - the "Credit Card" and here is how I was Introduced and how I carefully learnt to TAP the plastic power.
I understand that many of us turn Paranoid at the above two innocent C lettered words.
Initially, having heard too many woebegone tales of lost credit cards and super-duper-fines, I too was reluctant to get my named embossed on that nasty little piece of plastic. But when I did, I learnt that it was not as difficult as I had imagined to deal with this "Complicated Clutter".
I often tell my friends (forgive my ailment of giving free advice) -- "Before you jump into the sea or decide to walk away, have a close look from the shore! "
And that is exactly what I did when I applied for my first credit card.
How I got the card...
I was getting frequent calls from banks to get their super-rich-featured credit cards. I used to assertively reply that I wasn't interested.
But at the back of my mind I would wonder-
why would anybody hand me down his money and say "You can keep it for 50 days, then return it interest free" ??
The answer was nobody actually was.
If I took the card and did nothing, no money would be handed down to me. The money would be lent to me only if I spent. The amount I spent was to be interest free for 50 days and then re-paid. This was clearly an encouragement to spend. Clearly, the bank's benefits lay on the my expenditure through the card. It would benefit more from my transactions than I would. ( And forgive me again, but I hate to be used like an instrument)
So I concluded that, as long as the card is idle, it is free, and the banks get no benefit through me. So, if I decided to have a card, that was free, and never used it, it wouldn't cost me anything!
Back then, my salary was tiny and I wanted to be financially independent. So, as a protection, I decided to get a CC which could rescue me in times of desperate crisis. Of-course, I would have to pay it back later, but that could be taken care of when "later" arrived.
I made very sure that I would make absolutely no transactions on my card unless it was a life-death situation or unless I learnt the wisest way to use it (Although 4 months later, I found myself purchasing with my CC). I surfed through the bank website and enabled every security procedure that was available with them.
Why I did not Splurge...
Now, my income was no longer a constraint on what I could purchase. That was temptation enough to splurge. But then my bank had somewhat tedious methods of credit card bill payment, which luckily discouraged me to get a bill generated.
Secondly, I was very firm on one self-formulated principle :
"Never swipe a card at the counter"
Well, this may sound funny, but I always feel that counting notes on the counter gives you the Pinch of parting with money and the intensity of the pinch is proportionate to the number of notes you have counted.
When a lighter purse is accompanied home with a heavier shopping bag, you tend to value and respect the contents of the bag.
When u swipe a card, u don't see it. Just a swipe and Swoosh your money has disappeared. You do not actually know the value of your shopping cart. Yes you do, but you do not! And thats why you don't really value the stuff you have bought.
Well... long post.. a longer story on How I learnt to use my card...
It's past mid-night now.. will continue in next post!!!
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