Come on, get to know the money trap and how to prevent it

 

(Image source: Image by Tumisu from Pixabay)

What are money traps?

Money trap is a money trap that can cause us to behave consumptively. One of them is like a Credit Card (CC) which has the potential to become a money trap when your needs exceed your financial limit. The reason is because of a lifestyle that exceeds the limits of your financial capabilities, for example buying every item that is up to date or buying a mehong gadget just because of prestige.

Actually, if what you buy is according to your ability, it doesn't matter, because from the start the bank has set a CC limit according to your salary or monthly income. So, as long as you use CC according to the function and ability of your monthly payment limit, you don't have to worry about money traps from this CC.

So what if you've been trapped in a money trap because of using a credit card?

If the bill has swelled and is in arrears, you should reset your financial management. Can you separate your income from expenses, focus 50 percent of your income to pay the installments.

If it's still not enough, you can increase the percentage, because no matter what, you still have to prioritize your CC bills. Hold on to your desires and minimize your needs, so that interest or fines don't swell. Finish it as soon as possible and don't go into the same hole a second time.

How to prevent money traps?

Separate which one you want to save, fulfill your needs and wants first. Make a list that fits into your needs category, for example paying for motorbike installments, house installments, monthly bills, shopping and transportation costs.

Carefully calculate the total amount of all your needs, then you can use the rest for savings and fulfill desires, for example buying motorbikes, gadgets, branded goods or even traveling, because that desire can be a self-reward. As long as you can manage your desires according to your capacity, your finances will be safe and life will be more calm and comfortable.


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