4 Money Rules to Break
Some long-standing financial ‘truisms’ are total nonsense. Feel free to rebel against these…
A little plastic can go a long way towards establishing a stellar credit score, something you’ll need to buy a car, a house and even some phone contracts. When you skip getting a card, lenders have fewer ways to confirm you’ll pay your bills on time. Worried about sinking into debt? Start small. Keep your balance low, or use your card only a few times a year to build up a charge history. Pick a card with no annual fees, and opt for a rewards one (they have higher interest rates and lots of fi ne print) only if you can pay off the balance each month, says Beverly Harzog, author of The Debt Escape Plan.
Your R15 morning habit could add up to almost R5 400 a year – but depriving yourself of small pleasures can make you less likely to stick to bigger savings goals, says Cathy Derus, a fi nancial planner and the founder of Brightwater Financial. Pinching every cent may eventually lead to a spending binge. Rather than fi xating on each cost you can cut, shift your attention to how you might earn a bit more, whether that means seeking some extra part-time work or investing in a skill-building class now to become a more competitive job candidate later.