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Time, Energy, and Money: Managing Family Resources

own little ideas. What stupidity.”
(2 Corinthians 10:12b TLB).
When we fall into the trap of
comparing ourselves to others or “keeping
up with the Joneses,” we find ourselves
buying things we do not really need. Not
only does this damage our budgets, but we
find we don’t really feel any better about
ourselves. How many times have we heard
it said that “the best things in life aren’t
things”?

Use Your Credit Cards Sparingly

Credit cards are readily available. Pre-
approved letters for credit arrive regularly in
the mail.While they are a wonderful
convenience, they also can sabotage
financial stability. Credit cards may
encourage impulse buying and spending
money the user does not have. Instead, you
can reserve your credit cards for
emergencies or for purchases which require
them, such as a car rental. Unfortunately,
many people use their credit cards when
theyknowthey don’t have enough money to
spend on something. They tell themselves
they’ll pay off the credit card balance“next
month”or in“just a couple of months.”If
you do use your credit card, make it a rule
to pay the complete balance each month.
In the United States, 78% of
households are considered eligible for
credit. This explains the frequency of
credit card commercials and the many

pre-approved letters which show up in

your mailbox. Of 282 million Americans

living in the United States in 2002, 185

million had at least one credit card; the

average number of cards per person is 6.5,

the average per household is 14.3

(Statistics, 2008). According to Dave

Ramsey, people who use credit cards

instead of cash will spend 12–18% more

(Ramsey, 2007). This may explain why so

many people who use credit cards for

everyday purchases declare bankruptcy.

On those occasions when you want to

use your credit card, consider using your

debit card instead. That way, you will

know your checking balance and can

spend accordingly. But exercise caution.

Debit card overdraft fees can play havoc

with your budget.

Using credit cards sparingly and paying off the balance

every month can prevent you from falling into the credit

card trap of owing too much to pay it off.

Image from BigstockPhoto.com / andres