Money - Does It Bring Happiness ... or Problem? (2/2)

(continued)

Credit cards are the modern magic that allows people to buy, fly, eat, and treat without cash. With credit cards, people feel rich, powerful, and happy. For many, however, credit cards are the first step to serious financial problems.

Charge cards or credit cards are an easy way of getting credit - that is, borrowing money. They are very convenient and safe to use. Shoppers get monthly bills for their purchases. If they pay their bills promptly, they avoid paying interest charges. If they pay only part of their bills, high interest charges are added on every month. This, in reality, increases the price of whatever they bought.

Many shoppers have trouble controlling their spending because of the cards. Because they can get all kinds of things just by signing their names, they don't think about the bills that will surely come. They are not efficient money managers. Financial advisers and counselors are in business to help people manage their money wisely. They teach their clients to make a budget. A budget is a written record that helps people see where their money goes, where they can cut down on spending, what they can cut out, and how they can manage better. Most often, however, the first bit of advice is to get rid of all credit cards!

Credit cards can make shopping a pleasure. However, the user must know how to control the cards and not be controlled by the cards.

Money - Does It Bring Happiness ... or Problem? (1/2)

Money! Money! Money! No ones goes through life without handling money. Millions of people work hard year in and year out to earn money. Some people are born into money; some marry into money; others inherit money. Millions buy lottery tickets hoping to win money. Some even break the law in order to get money. Everybody wants to have money, because it makes life easy... or does it?

Saving money is often difficult, but spending it can cause difficulties, too. The many different ways people deal with money reveal much about them. Uncontrolled spending may be a sign of personal problems. Some shoppers buy, buy, buy more than they can use. Psychologists say that this is a way of giving themselves love or power. Many people buy expensive things they don't really need in order to get rid of unhappy feelings. Some people are heavy gamblers and cannot stop, even though they lose all their money. Others find it very painful to spend money, even if they have a lot of it. People who misuse their money probably need psychological help for their personal problems. This help might also change their ways of using money.

For all of us, it makes good sense to live within one's income - that is, not to spend more than what one earns. For people with low and moderate incomes, it is not easy to spend less than they earn. Surprisingly, many people with high income have the same problem. How is it possible to spend more money than one has? Actually, it is quite easy. People can shop in department stores, stay in hotels, fly to distant places, order expensive gifts, eat in fine restaurants, yet not spend one penny in cash... temporarily. It is the small, plastic credit card that lets a person shop without using cash.


(to be continued...)