We all know that if we want to eventually retire without being worried about our financial situation, the smartest thing to do is to start saving and investing now.
You can start saving and cutting off expenses now. But to be able to invest, experts advise that it is best to pay off all your debts first as well as build your emergency fund before investing.
To effectively pay off your debts, you have to stop incurring more and commit to paying for it monthly. One way of easily incurring debts is to own a credit card. Here are some credit card myths that make you believe that you need one when you don’t.
You need a credit card for emergencies
Chances are, you’ll be using it even if it is not an emergency, giving you more debts to pay off. It is better to keep your emergency fund somewhere safer like a bank or a safe.
You need a credit card to save on purchases
You may think that you are being able to save because credit card purchases are way cheaper than cash purchases. But little do you know that those are just marketing strategies that they make in order for them to earn more through the interest that your debts accumulate.
You need a credit card to shop online
You don’t. A credit card is just an easy way to do so, but if you don’t have one, you can still shop online using virtual credit cards like Paymaya or Gcash. You can even opt for bank deposits. In this way, you’ll think twice before purchasing something online, because you need to go to the bank to pay.
You need a credit card to earn rewards
How do you think are the credit card providers able to give you rewards? The rewards that they are giving you are just a fraction of what they are earning. They know that when they offer rewards, more people will purchase, so they will have more earnings. You will just contribute to an endless cycle with you incurring more debts.