The main mistake you should avoid when using a credit card is to treat it like extra moneyedit
Seeing a credit card as free money is one of the fastest ways to find yourself buried up to your neck in debt with no apparent way out of the situation. And it happens to more people than you’d expect – in most cases just because they were careless.
It’s not that, it’s just extra time to get money you were already expecting to get in the first place
Remember that a credit card is also a financial asset like any other. You should do your best to protect it and keep it secure. Credit cards tend to be targeted very often by hackers and other types of malicious actors, so follow any guidelines and recommendations that your bank might have regarding the use of your credit card. And as soon as you notice anything out of the ordinary, alert the appropriate department.
Adjusting Your Life to Increased Income
Landing a promotion at work is something you should be striving for in any case. But it’s not just about getting to that point – you should also know what to do with all that extra money to begin with. Some people go about their careers in a very undirected manner in this regard, and then end up wondering why things aren’t lining up as they expected.
The truth is that it takes some skills to deal with additional income, and you have to know how to integrate it into your life properly. Otherwise, you’re just going to waste that money in the best-case scenario. And in the worst, you’ll find yourself spending more and more until you can’t afford your lifestyle even on your new increased salary.
Saving is of course always an option. But in general, it’s only a viable one if you don’t already have enough savings built up in the first place. There’s a reasonable limit to how much money you should have saved up, and continuing to pile up more after that is more or less a waste of that money’s potential. If you’re not sure, talk to your bank. They should have some suggestions based on your current situation, and what they’ve seen in other customers in the past.
Of course, it’s never a bad idea to maintain a good level of savings, so it should go without saying that this is exactly where your money should be going if you don’t have that foundation established already.
You might be tempted to boost your lifestyle in this way or that. After all, you can afford it now, and you’ve earned it. So why not switch to a faster internet contract, upgrade your computer, buy a new car, and more? The problem is that all of these things are attached to a higher lifestyle, and you have to be prepared to truly make that switch.
Because once you do, it will be very difficult to go back. And it’s also easy to overstep and start spending on things that are above even your new level. This can lead to disappointment once you realize that you can’t keep up with that lifestyle in any realistic manner, and you’re going to have to cut back on your expenses eventually. Needless to say, this can be a very soul-crushing moment if you’re already used to living life another way.
On that note, consider if you can continue to maintain that new lifestyle in the first place. If it’s because of a raise at work, that’s great – you can probably reasonably expect that your life will continue in the same manner in the future. But if the boost was only temporary, like hitting the jackpot from the lottery, that’s a completely different story.