They also have all kinds of incentives which can be used to buy gifts and travel. Incentives are based on how much you use them. However as part of being able to manage cash flow, you must be able to pay the full balance on the statement due date. If you do not, you pay high-interest charges.
We all have financial emergencies from time to time. It could be the car needing repairs, a new furnace, a major repair of some kind for the house etc. Or even the loss of a job. Building an emergency fund will not only give you peace of mind since you do not need to worry about these things, your monthly cash flow will not be affected since you already have the funds to meet the needs of the emergency.
Once you know you have paid all of your bills, set aside money for emergencies and also any savings you may be planning for, only then can you spend the extra money that is left over on items that you may be looking at and were thinking about buying on credit. If your saving for some large expensive item, this extra money can be set aside for that item to be purchased at a later date.
Many people get in trouble by spending money before they actually have it and get further into debt because they now have to pay interest on the debt. Manage cash flow to avoid these situations and save for emergencies.
Save
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