My Financial Resolution 2017

Photo by  Stylesnooperdan .

Photo by Stylesnooperdan.

Finances aren’t the sexiest subject but when you enjoy the finer things in life like me, it’s important to ensure that you're smart with spending.

My financial resolution for the year is to rid myself of a credit card. If you save, you shouldn’t need one at all. I have lived with one for the last few years and each month, like many of us, I get stuck with the interest . Yep, not very cool.

Credit cards are an easy trap to fall into. You either are great at paying it off after every transactions or should not get one at all. 

I’m following Scott Pape, The Barefoot Investor's 5 simple tips to set myself free of credit card debt.

Step 1

Save $2,000 in an online account.

I have an ING Direct account. It takes more than a day to transfer between accounts, which saves me from those spontaneous purchases.

Step 2

Calculate how many months it’ll take to pay off your credit card in full.

Step 3

Then double it. This allows for unexpected expenses.

Step 4

Apply for a zero-balance transfer card. The Vertigo Platinum 18-month interest free balance transfer card is what I've signed up for.

Once the card arrives, destroy it. 

Note: Destroying the card is a must. You don't want to fall for the siren's call with another credit card.

Step 5

Set up a direct debit each time you get paid, and get rid of it once and for all.

I’m heading to New York City in September and although it makes me nervous not having the safety of a credit card (what if I find that amazing piece that I NEED?!), I will feel better having saved for it.

What are your financial resolutions for 2017?

Lei xx