Listen to Andy's Answer
Let me start this by saying that our buddy Dave Ramsey would say there are no items that you should purchase by credit card. And that’s what Dave would say. And I don’t disagree with Dave as you know that I think that is very drew. If you are in debt, then you need to get rid of them. Okay? But my answer to what types of items should you purchase by credit card is…I don’t know what types of items can you purchase and pay their credit card off every month. Because you don’t ever need to carry credit card debt forward ever. Okay? You, you know, this is a very simple.
Understanding that little kids know and they an understanding that they have that somewhere along the line we lose the understanding. Little kids understand that if they have a quarter, they can’t buy anything at the store that costs 40 cents.
They understand little kids. You find little bitty like six and seven year old kids and they understand that if they have a $5 bill that of grandma gave him a $5 bill, they cannot buy a toy that costs $8. And so somewhere along the line we lose this understanding it it seems like, but to put it very plainly, if you cannot afford to pay that credit card off every single month, and I’m not talking about, I’m not talking about almost every single month, I’m not talking about 11 out of 12 months or the year, I’m talking about every single month. If you cannot afford to pay off what you put on that credit card and if you’re not keeping up with it as you go, you don’t need to use the credit card. At all.
Now the only reason that I give a little grace here is because I travel a lot. And I know, you know, you can’t check into a hotel without one. You can’t rent a car without one. And so if you travel it is a, but um, you know, but you can use debit cards. As I say, it’s a necessity. You can use debit cards. The bottom line is you don’t spend what you don’t have. And so if you need to only have debit cards and not use current cars at all, that’s, that’s good. Now I use American Express, which requires you to pay it off every month. There is no carrying it forward. Okay. You pay a fee for that American Express and uh, but they don’t, you know, they don’t play, none of these people play when you get in trouble. And so there is no reason to get in trouble.
Spend money like a six year old. How’s that for an answer? but you understand what I’m talking about. A six year old is pretty stingy with their money. Yeah. Was the only $5 bill he has. Well, you know, yes. And that $5, it’s going to be gone.
Think about six year olds, you know, you’d get this $10 thing from grandma, you get this $5 thing from your grandma, you get this $5 from aunt so and so for your birthday. I mean, how many six year olds do you know? Like the kid has like $600 in his piggy bank.
I was, because I save everything.
They’re stingy with it. They’re careful. And they know they can’t spend more money than they have. So that’s my answer. Use your credit cards and spend your money like a six year old.