MONEY GAMES

Piranha “Do you really want to put your hand in there?” Remember the book titled Swim with the Sharks without Being Eaten Alive? Just as there are sharks in the business world, there are piranhas in the financial world. One could argue that there are actually many varieties of piranha out there, but we’re going to focus on just one: the credit card companies. Now, there are many excellent credit card companies out there, don’t get me wrong. However, you need to realize that they are in business, and companies who are in business have a goal of making what? Profit, that’s what. Your mission, should you choose to accept it, is to personally contribute less profit to the credit card companies and more profit to your own investments. Would you like a fun mental game to help you make that happen? Try this one. I call it “Piranha.” Imagine that piranhas have miraculously become our new legal tender. As a result, your wallet or purse is filled with swarming, vicious piranhas. Every time you are tempted to make a purchase and reach in your wallet or purse for some legal tender, imagine your hand being attacked by those voraciously hungry fish with viciously sharp teeth. Do you really want to put your hand in there? Piranhas (cunningly disguised as your credit cards) are not your friends. Every night, they eat up all the cash in your savings account, your checkbook, and your wallet. Even worse, come the next morning, they are still hungry and looking for more of your hard-earned cash to consume. Odds are good that you have credit card debt. Most consumers do. That debt costs you interest, maybe even exorbitant interest. Every dollar of interest you have to pay is a dollar that is no longer available for building your fortune. Is that really what you want? If not, then the next time you’re about to use that credit card, ask yourself whose fortune you really want to build—your own, or the credit card company’s. I hope that you already realized the dangers of credit card debt before I mentioned it. Have you started working on paying off your credit card debt? If so, good for you! If not, why not start now? Climb out of your hole. Here’s some great advice for anyone who has dug himself or herself into a hole: stop digging! It is great that you are working on paying off your credit card debt, but how efficient is it to fill in a hole by shoveling in two shovelfuls of dirt and then shoveling one back out? That’s what happens when you continue using your cards while trying to pay them off! Do you need some quick ideas to help you stop using your credit cards? Here are some possibilities. You can decide which one(s) might work for you. • Destroy the credit cards entirely and close the accounts. • Keep only one credit card, put that one in an empty soup can filled with water, and freeze it. (Why the soup can? It’s metal. You won’t be able to use the microwave oven to get the card out!) • Use a “no balance allowed” credit card. • Use a debit card instead of a credit card. • Use only cash. If you keep a credit card, just remember those sharp teeth and those voracious appetites whenever you are tempted to open your wallet and pull it out. Even one piranha can leave your fingers (and finances) sore and bleeding. Is it worth it? Okay, so visualizing piranhas in your wallet is unusual, to say the least. Nevertheless, if a crazy visual image helps you make a better decision, who’s to say it’s so crazy? ACTION STEPS 1. Remember that banks are in business to make a profit, not to be your best friends. 2. Imagine that the credit cards in your wallet are piranhas. 3. Carry some spare Band-Aids at all times. Until you toughen up, your fingers may be a little bloody. 4. Optional: Put some ketchup on your fingers and cover them with Band-Aids. When asked about what happened to your fingers, tell everyone about the piranha in your wallet. (You may get a free white coat with weird sleeves, a room of your own, and some heavy medications for a while, but you’ll have a fun story for your grandkids someday.)