Things You Need to Know Before Applying for a Credit Card

Applying for a credit card is an interesting step along the financial journey of a person. There are many rewards and pitfalls accompanying credit card ownership and use, however, if you use credit responsibly, the rewards will shine through and the pitfalls will be minimized.

First, you need to know your purpose for getting a card. If you want a credit card to buy something you cannot afford or because it makes you feel like a responsible adult, then a credit card is probably not right for you. However, if your purpose is to establish a solid credit report and credit score and to build your creditworthiness, then a credit card can be an important tool to achieve these goals.

Second, you need to know if you have a credit report or a credit score. If you do, you need to obtain a copy and know what is contained in the report. If you do not have either, this information is also helpful. The point of discovering this information is to help you determine the credit cards for which you qualify. There is no need to apply for a card that has requirements that you cannot meet. Therefore, find out this information to narrow your available options.

Third, you need to know your limits. This means that you need to know your yearly salary and how high of a limit you can afford. Additionally, you need to know whether you want to pay over time or in a lump sum every month. Knowing these limits (i.e. yearly salary, affordability, flexibility of payment, etc.) will help you make a wise credit decision.

Last, you need to know the interest rates and fees associated with the card in which you are interested. Never get a card with an annual fee and focus on cards with low, fixed interest rates. Avoid cards that have a low introductory interest rate that resets to a high interest rate. Additionally, avoid cards with a variable interest rate. If undervalued by the applicant, these rates and fees can add up quickly and make the credit card have more pitfalls than rewards.

Discover your purpose for getting a card, find out your relevant credit information, know your limits, and find a card with good rates and little to no fees. Knowing these specific points will help you make a wise credit decision from which you could benefit for years to come.

A Basic Guide to Credit

A credit guide can be summed up in three steps: (1) establish it; (2) maintain it; and (3) use it responsibly. There is nothing easier. This is the shortest way to credit success and also happens to be one of the best plans you can follow.

(1) Establish It

A person that tells you to never get a credit card is giving you bad advice. It is that simple. Despite what some people may think about credit card companies or credit in general, the fact is that we live in a time when a credit score is a powerful financial asset. Becoming monetarily successful is difficult enough without cutting off a significant financial asset. Establish credit by getting a low interest rate credit card.

(2) Maintain It

Many people have no idea what is in their credit report. Always do monthly checks of your credit reports in order to prevent identity theft. Additionally, you should check your credit reports monthly in order to make sure that no inaccurate information exists. Inaccurate information will affect your credit score.

(3) Use It Responsibly

This is the most important step. Credit is a privilege, not a right. Do not misuse your credit and you will have nothing to worry about. Do not charge something unless you have the money to pay it off; a credit card is not an alternative to lack of cash! Pay more the minimum balance in order to minimize interest payments. If you use your credit responsibly, you can always negotiate with your credit card company for a lower interest rate and a higher credit limit.

Following these three easy steps is the most basic and most successful guide to credit. In sports, the best teams are the ones that do the simple things well; the same is true in credit.

Common Sense Credit

The term “common sense” is a misnomer. Some people believe that it is common sense to get only one credit card. Other people believe that credit cards are evil and, therefore, it is common sense to never own a credit card. Still, others believe that credit cards are a necessity in today’s financial times and, therefore, it is common sense to own more than one credit card. Who is right? The truth is that they could all be right, and they could all be wrong. Everybody has a different situation, therefore, “common sense” for their situation will dictate.

My “common sense” tells me that most of us will buy a home and/or a car in our lives. Therefore, unless you are paying cash, you will need to have established some kind of a credit score in order to qualify for the loan that is necessary to pay for these things. You cannot establish credit unless you open a credit account. The most common type of credit account is a credit card. It is true that you can get loans from your bank, but without an established credit report, you will have to secure these loans with some sort of collateral.

If you do own a credit card or credit cards, there is “common sense” advice for you to follow. First, use your credit responsibly. People do not get into financial trouble overnight. It is a gradual process that people refuse to acknowledge before it is too late. Constantly monitor your spending habits and financial statements so that you know when to stop spending or when your finances will allow you a little more leg room.

Second, pay your bills on time. You would be surprised how many people, who have the money to pay the bill, just plain forget to pay. As a result, their credit score suffers. If you are that forgetful or lazy, as the case may be, set up an automatic bill pay through your bank’s internet site. If your bank does not have such a feature, there are many companies that can set up an automatic bill pay for you.

Last, get updated, monthly credit reports from the credit reporting bureaus. By doing this, you will be able to see if any incorrect information is reporting on your credit report. By checking monthly, you will be able to dispute inaccuracies as soon as possible and, thus, minimize your damage. It will cost you about $12-15 every month to get all of your reports, however, think of it as financial insurance against inaccuracies and identity theft.

Do these “common sense” things and you will be able to obtain and maintain a high credit score and sound financial health.

What are the Pros and Cons of a High Credit Limit?

A high credit limit can be a great thing. First of all, it gives you more flexibility for purchases. Second, it gives you a lot of spending power. Last, it can increase you credit score because you debt to available credit ratio will be smaller. However, there are also some negatives that come along with a high credit limit.

As stated above, you will get more flexibility with your purchases, and you will have a lot of spending power with a high credit limit. While good in some respects, a high limit can get you into to trouble if you abuse it. If you have a high credit limit, this means that you have practiced responsible debt management. However, like most things in life, in you fall out of practice, you can get into trouble. Here, just because you have more spending power does not mean that you should utilize it unless you are making a planned purchase for a particular purpose. Do not make a big purchase just because you can. Doing this can turn the “pro” of having a high credit limit into a very big “con.”

Increasing your debt to available credit ratio can have a positive effect on your credit score. The interesting thing is that it can also have a negative effect on your credit score. It is all about timing. If you dramatically increase your debt to available credit ratio in a short amount of time, a credit reporting bureau may see this as you stockpiling credit in order to make a big purchase. This makes credit reporting bureaus nervous because they believe that you may not be able to pay off the big purchase (if made). Therefore, if you are going to increase your debt to available credit ratio, do it over a sizeable time frame and increase your credit limit in small monetary increments.

Both pros and cons exist with a high credit limit, but if you practice responsible debt management and increase your debt to available credit ratio over a sizeable amount of time, your high credit limit can be a powerful asset.

How Many Credit Cards is Too Many?

I am amazed when I read literature from people that advocate that credit cards are evil and that a person should never own one. The reason that these people give is that the credit card owner will incur a lot of debt quickly and will be trapped by these devices of evil. These people automatically assume that you are going to irresponsibly use credit. That is an unfair assumption!

In order to support there arguments, these credit bashing people back up their arguments by quoting statistics. Mark Twain once said, “There are three kinds of lies: lies, damned lies, and statistics!” The point Twain is trying to make is that people become slaves to statistics. For example, a statistic exists that states that 50% of first marriages end in divorce. Does this mean that you should not get married because it is doomed to failure? Of course not! The same holds true with credit cards. Just because there are people that struggle with credit card debt does not mean that you are going to struggle with it. Additionally, in this day and age, credit is a vital asset. Unless you plan on paying cash for your home and car(s), you are going to have to have credit in order to be approved for a loan.

If you are a responsible credit card user, the number of cards you have is irrelevant. However, for purposes of providing a finite number to the question presented above, I think 3 is a good number, but 4 at the most. My reasons are simple:

First, there are four major credit cards: Visa, MasterCard, American Express, and Discover. I am not a big fan of the Discover card, therefore, having one card from each Visa, MasterCard, and American Express would give you a total of 3 cards. However, if you like Discover, then that would be your fourth card.

Second, when applying for a home loan, a bank looks to how many credit accounts you have open for a specific term. Most banks require that you have at least three credit accounts open and current that are at least 3 years old. Therefore, owning only 1 credit card will not cut the mustard.

Third, different cards give different benefits. Therefore, if your Visa has a low interest rate and you are making a larger purchase that will take a couple of months to pay off, use the Visa so you do not get nailed by the interest rate (of course all of your cards should have a low rate to begin with). However, if your American Express offers rewards points for airlines miles or other merchandise and your purchase is relatively small, use the American Express. The point is, tailor your credit card use to your purchases and the benefit you seek.

Last, most wallets only have room for four credits cards, therefore, you should only have four credit cards! I am just kidding about this last reason.

When I stated above that the number of cards you own is irrelevant if you are responsible, I meant that it is irrelevant in regard to debt management problems. There is a one other reason why you should not have more than 3 to 4 cards. As you maintain these cards, your credit limit will increase. Getting more cards adds to your total credit limit. If you have ten cards and a total credit limit of $100,000 (ten cards at $10,000 each), but you only make $50,000 a year, a home lender may view this as a risk. Think about it; you could borrow twice your annual salary! A home lender will be nervous that if you utilize that credit limit and ended up owing more than you can afford, you will default on the home loan. Additionally, depending on how and when you opened these accounts, you credit score could be negatively affected.

Here is the bottom line, use credit responsibly.

How to Get a Lower Interest Rate on Your Credit Card

A lower interest rate is a great asset to have. The most noticeable benefit is that you can save a lot of money on interest charges. However, you can also use that credit account as a bargaining chip with other credit companies. You can use the time tested “can you beat this offer” routine. Thus, the question is, how do you get a low interest card?

First and foremost, if your credit score and credit report qualify, you can apply for a low interest card. This is the easiest and most obvious way to obtain a low interest credit card. However, this method is only the easiest and most obvious if you have the credit score and credit report to allow you to get such a card. If you do not have the best credit score or report, there are some tactics you could use to lower an interest rate.

If you already have a credit card and your record with that card is flawless, you can call the credit company and request a lower interest rate. You have to be firm and you have to make a credible request. As a general rule, credit card companies want to collect at least between 8-10% interest on credit balances. Of course credit companies love when you pay more, thus, they never tell you that you can get a lower interest rate than the one originally given.

Anyway, back to the credible request. If your interest rate is 18%, asking for a 6% interest rate is just a waste of time. Even if your credit was flawless, no credit card company would drop your interest rate 12 points at one time. It is more realistic that your rate would end up somewhere between 13-15% based upon your relationship and history with the credit company and on your credit score and credit report.

The bottom line is, your options are limited unless you have a good credit score and credit report. Therefore, if your score and report are less than par, you are going to have to deal with your current credit account companies in order to get a lower interest rate. The worst thing that can happen is that your credit card company will not lower your interest rate. The best thing that can happen is that the company will lower your interest rate, therefore, why not give it a try? Just remember to keep it credible, but stay firm with your request and bring up your great history with the company from which you are trying to get a lower rate if the company seems reluctant.

How to Profit by Using Credit Cards to Pay Bills

You pay your bills month after month. Your either write a check and mail the payment, or (if your are technologically savvy) you make the payment online using your bank’s bill pay service. Paying bills with cash can actually cost you more money than just the cost of the bills. As you pay bills, your checking account balance is gradually reduced. Therefore, if you have an interest bearing account, you are losing the interest on those dollars. However, there is a solution that could not only take away this disadvantage, but could possibly reward you in three ways. The solution is to pay your bills with your credit card.

I know what you are thinking, “Why would I pay with a credit card? A credit card must also be paid, so what is the point?” The point is that you could be rewarded for paying things with your credit card. First, if you have a rewards card, you will earn points for the amount you charge. Rewards points are redeemable for cash, airline travel, and other merchandise.

Second, by the continuous use and timely payment of your credit card, you will be building a strong credit report and thus, building a strong credit score. A good credit score will save you tons of money in interest and will help you get approved for loans.

Last, you do not lose as much interest from your interest bearing account (assuming you have one) because the money stays in your account longer. Additionally, when you do pay your credit card, only that one sum comes out at that one time. Therefore, you do not gradually decrease your checking account. Additionally, paying the bills in a lump payment (by using your credit card and then paying off your credit card) will help you get an accurate number on your monthly expenses.

It is important to note that in order for you to realize these benefits, you must pay off your credit card balance in full every month. If you do not pay off the bill in full, you will incur interest and the whole reason to use the credit cards (to get the interest free benefits of reward points, a strong credit report and credit score, and more interest from your interest bearing account) will be frustrated.

Cash or Credit - Which Should You Use?

As a general rule, you should never buy something with a credit card unless you have the money to pay off the charge. Many people like to buy things on credit (even though they cannot normally afford the item) with the intention that they will pay off the purchase in the long term. This is a mistake because you will end up paying more in interest than you would have had you paid cash.

Another way to use a credit card is as a rewards point builder. First and most obviously, you must have a rewards credit card for this to work. The process is very easy from here. All you do is use your credit card to make specific purchases throughout the billing period. When your bill becomes due, you pay off the entire amount. Obviously, you have to have the money available to pay off the entire monthly amount. Additionally, you must keep very accurate records of your charges in order to ensure that you have enough money on hand to pay off the monthly balance in full. The whole purpose is to build reward points without paying interest on your charges. Keeping accurate records and charging only specific purchases will help you accomplish this goal.

Most people are surprised when they get their monthly bill because they do not realize how much they have spent on food and gasoline. These charges can add up fast. If you are responsible with your credit and keep accurate records, this should not be a problem. How do you know if you are a responsible credit user? Let me put it this way; if you have to ponder whether or not you are a responsible credit user, chances are that you are not. This does not mean that you cannot utilize the rewards points strategy; all this means is that you probably should not purchase food or gas on credit because there is a chance you will charge more than you can afford. If this is the case, you should use cash (or a debit card) for food and gasoline purchases.

Basically, everything comes down to responsibility. If you are responsible, you could use cash and credit interchangeably without worry of getting in over your head. However, responsible or not, always keep accurate records of your credit so that you do not lose track of your spending.

Protecting Yourself Against Credit Card Fraud

Identity theft has hit epidemic proportions. This used to be a random occurrence, but with the rise of internet banking, debit cards, and other electronic cash alternatives, identity theft is a crime that the normal, everyday person has to safeguard against. Like taking vitamins to ward off disease, preventive measures exist to ward of identity theft.

First, you can call your bank and credit card providers and ask that they call you and get verbal confirmation before approving an amount over X amount of dollars. The dollar amount is going to be different for everybody depending on his/her threshold. For example, you could call your bank and tell them that any withdrawal or purchase over $750 needs to be cleared by verbal confirmation. Therefore, if a purchase over $750 is attempted on that credit card, the company will call you on the phone number that you have provided (usually a cell phone) and will ask if you are making a purchase of X amount of dollars. If you say yes, the amount is approved and on you go. However, if somebody else is trying to do this, the purchase will be denied and the thief will be caught.

The effect of this measure is that you account is protecting against “abnormal purchases.” This measure does not prevent you from buying something over your confirmation amount. All this measure does is create an additional layer of protection so that if somebody tries to use your credit cards, they will not be able to make a “big” purchase.

Second, you can sign up for a credit report monitoring company. By doing this you will know if a new account has been opened or if an inquiry has been made on your report. The credit report monitoring company will immediately notify you and ask whether the opening of the account or the inquiry is valid. If it is not, the account will be disputed and the thief will again be unmasked.

Third, do business with a bank that will guarantee to replace all stolen funds within a short period (24 – 120 hours). This way, damage to your account is minimized. If you check your account balance everyday, this measure will be extremely effective because you will immediately know whether a fraudulent purchase or withdrawal has been and where it was made.

Last, be careful and avoid things you do not know. For example, I have seen letters from identity thieves that were sent via US mail. The letter usually purports to be from a large bank and asks you for your account number, social security number, or some other private account information that is necessary to steal your identity. These letters will provide a phone number to call in case you have any questions. If you randomly get a letter or e-mail like this, NEVER call the number provided. Open up the phone book or call information and get the bank’s number. Call that number and see if the bank really sent out such a letter. NEVER reply to these kinds of letters through the mail. Think about the situation; why would your bank want this kind of information? The bank provides you with an account number, so why would they need to “verify” it through the mail? Additionally, why do they need you full name and address; didn’t they just send you a letter?

Protect yourself and protect your assets using these safety measures.

Evaluating the Need for Credit Cards

If you have endless cash, you will never have a need for credit. You will never have to take out a loan because you will always have the money to cover any cost. However, many people do not have this option.

As a general rule, you should not purchase something on credit if you cannot afford to pay for the item in cash. This does not mean that you have to have the entire amount in cash currently available. This means that you have to be able to use your cash, without financial strain, to pay off the bill.

In this day and age, credit cards are essential for building your credit score. Why is this important? Like I said, if you have endless cash, this is not a problem. However, like most of the people in this country, a big purchase, like a house, if something that cannot be afforded if cash was required. Therefore, in order to qualify for a big loan (like a house, car, etc.) we have to build our creditworthiness. Building your creditworthiness is accomplished by raising your credit score. Raising your credit score is accomplished by the correct use of credit cards.

Therefore, the need for credit cards is important in order to be able to afford shelter for yourself and your family and to provide a convenient mode of transportation. If used correctly, credit cards can be a very powerful financial tool. Learn to use your credit cards correctly and you will be able to open financial doors that would otherwise remain closed to you.

Should Teens Have Credit Cards?

A teen should have a credit card in order to teach him/her about financial responsibility. Of all the subjects we learn in school, we are never taught about finances, credit, or money management. This lesson is usually left to our parents. The problem with this is that many parents are not qualified to teach their children about money management. Therefore, the children walk blindly down the financial road only to meet numerous pitfalls and debt traps. One way to combat this potential for financial failure is to teach children about money management.

I use the term “children” loosely. I am not advocating that you sit your six old down and tell him/her about interest rates, credit scores, and investment risk. Absent you child being a financial prodigy, a six year old will not understand any of these subjects. However, once your child reaches fourteen, fifteen, or sixteen, lessons about financial independence should begin. I advocate these ages because these are the ages when most teens get their first job.

Bill Gates could lecture you about “how to become a billionaire,” but none of the information will be useful unless you can put the information into action. I feel the same way about teens and credit. You could lecture your teen about how credit cards work, the importance of timely payments, credit limits, and credit scores, but until a teen actually uses the card and pays a bill, he/she will never fully grasp the principles of this important financial tool. This does not mean that you should drop a $10,000 limit gold card into your teen’s hands and tell him/her to “go nuts.” However, there are many credit cards with a $300 - $500 limit that should be used as the teaching card. This amount is high enough so that your teen could actually use it, but low enough so that if your teen has a job, he/she will not get into trouble.

The credit lesson has to be taught carefully and slowly. It is very easy to lose track of how much you are spending with a credit card. Therefore, it is vital that a teen learn that a credit card is not a substitute for cash. Meaning, if you cannot afford to buy something, you should not put it on your credit card.

Teens should have credit, but only as a privilege used as a tool for financial education. A credit card, like a driver’s license, is a privilege, not a right. Therefore, teens should first be educated, and then be allowed the privilege of credit card use. They should always start small and SLOWLY build their credit limit. As a parent, you can always monitor your teen’s credit use to insure that your teen is using credit correctly.

What is Universal Default and How Does it Affect Your Credit?

Universal default can be a big problem. Have you ever looked at the terms and conditions of a credit card? Somewhere in the fine print you might discover that your particular credit card is subject to universal default.

What is universal default? Universal default is a practice in the financial industry where a loan that you have goes into default (whatever the default terms are under the agreement of said loan) when you default on another unrelated loan. In other words, if I have two credit cards, Credit Card A and Credit Card B, and Credit Card A is subject to universal default and I have NOT defaulted on said credit card but I have defaulted on Credit Card B, Credit Card A would then be in default.

Why is universal default a problem? Universal default is a problem because it can negatively impact your credit score. If you are never late on any payments, then this financial practice is unimportant, however, if by misfortune, mistake, or some other accident you are late on a loan payment (and thus in default) you can get dinged twice (once for the account for which you are in default and once for the card that practices universal default) for one accident. This in turn has a double negative impact on your credit report and credit score.

Universal default does make some sense if you think about it. A person’s credit worthiness is based on how likely a person is to pay back a loan. The more risky a person, the more unlikely he/she is to pay back a loan. Think about it like this: If a person defaulted on Loan A before applying for Loan B, that person would most likely be denied for Loan B. Why should this change if said person already has acquired Loan B? Is not that person still just as risky before acquiring the loan as he/she is during (post acquisition) the life of that same loan? Although this may be true, my thought is, why put yourself in harms way? Do not take on more risk than you have to. There are plenty of credit card companies that do not practice universal default, therefore, acquire those cards and save yourself the headache should you accidentally or even intentionally miss a payment on one loan.

Credit trap: Keeping Young Adults on the Right Track with Credit Cards

I will never forget the time I got my first credit card. I signed up on my college campus. It was great because I got a university t-shirt when I applied for the card. The people working the kiosk basically guaranteed that I would be approved. I was sold! I took the application, filled in my details, and impatiently waited for my shiny new card to arrive in the mail.

It is funny when I think back about how young and naïve I was. I did not care about annual fees, interest rates, or credit limits. If I would have known then what I know now, I would have set a booth right next to that credit card kiosk and passed out fliers about how bad the credit card offers are on university campuses.

There is a popular military strategy called “shock and awe.” Basically, a military will use overwhelming force and spectacular displays of power to paralyze the enemies on the battlefield and destroy their will to fight. The same strategy is used by these university credit kiosks. They promise young and financially naïve adults all these great benefits, but fail to inform about high annual fees and interest rates. Eventually, the college kid finds himself/herself in a debt trap from which he/she cannot escape.

My advice is to do your homework. Make sure that the credit card offer is not all smoke and mirrors. Ask about the annual fee and interest rates. If the person working the kiosk does not know the answers, do NOT get the card. There are too many places where a credit card can be obtained, therefore, you do not have settle for the sub par cards that they hand out on college campuses.

Testimonies: How Debt Can Make You Feel

Okay, time to confess a secret. At one point of in my life, I could no longer manage my debt. I did not file for bankruptcy and all the debt is now paid off (it was all credit card debt), but there was a time when I did not know what I was going to do.

The constant worry is a nightmare. You never know how you are going to pay next months bills, and you are always wondering how long you can keep it up. The funny thing about credit card debt is that it does not suddenly appear. It is a process over many months. You keep spending and paying the minimum balance. Before you know it, your cards are maxed out, and paying the minimum no longer works because the interest on your balance is more than the minimum payment.

I had trouble sleeping and when I did sleep, I would have dreams where I would lose my teeth. I looked at that particular dream in a dream dictionary and found out that dreaming about losing your teeth means financial hardship. Crazy, huh?

I decided to do something to change my situation. My solution was to do debt consolidation. The advantages were that my debt was consolidated into one, low monthly payment and that the interest rates on the credit cards were reduced. Therefore, I was able to pay down the balance a lot quicker. The disadvantage is that once you choose this option, the credit card accounts that are included in the consolidation are closed. The disadvantage of this is that it negatively affects your credit rating. Your credit rating is not substantially lowered, but the decrease is noticeable. Additionally, when you are enrolled in the debt consolidation program, a note appears on your credit report that your are enrolled in a debt consolidation program.

This is how I dealt with the debt. Today, I am very responsible with my credit. My credit score has been completely revitalized, plus more, and I am debt free. Being debt free is the best feeling. Have you ever been in a similar situation? How did you deal with it or are you still dealing with it?

Conventional Personal Finance

There are many bad things that you can do with your money or to your money. There are also many goods things you can do with or to your money. What should you do and what should you avoid?

(1) Plan Your Finances – Budgets are very hard to stick to and can cause many headaches, however, planning the big purchases can help protect you from a financial blunder. Always plan out the big purchases before reaching a final decision. This will not guarantee that you made a wise purchase, but it will make you think out and research all the details before concluding one way or the other.

(2) Always Use Interest Bearing Accounts When Possible – Many banks offer interest bearing checking accounts, and various other interest accounts. While deciding between investment opportunities or for the money you keep in an account to pay the bills, collecting interest on this idle money can quickly add up. You will not become rich, but this is the easiest, risk free money you will ever collect.

(3) Diversify – This is very common and effective advice. The recent volatility of the real estate market is a perfect example. Many people lost everything because they threw all of their investment money into the real estate market during the boom. Unfortunately, like gravity, what goes up must come down, and that is what the market did, with a vengeance. If these people had been diversified (meaning they had spread their investment dollars through various industries and markets) these people would have minimized, and probably offset any loss they received from the real estate market.

Doing these three, simple things will help you generate and maintain income for many years to come.

Is it Possible to Live Without Money?

Technically, it is possible to live without money. One can barter for necessary items such as food, water, clothing, and shelter. However, this is more true in earlier times than in today’s modern society.

This question is more important in the context of determining what is important to you. Think of this question more as a “would you rather” situation. For example, would you rather be rich or happy? Therefore, the question of “is it possible to live without money” is more metaphorical. In my opinion, it is possible to live without money as long as myself and my family are healthy and happy. Keep in mind that I am not saying that I do not want money or wealth. If I am able to obtain all three (health, happiness, and wealth), I will do everything in my power to achieve.

The purpose of the question is to make you think. Think about what you are willing to do, sacrifice, or compromise in order to obtain your ambitions. Think about whether the things you are compromising or sacrificing are more important that the things you are compromising or sacrificing it for. In other words, do the means justify the ends?

Think about this carefully or you could be giving up more than you obtain.