Simple Ways to Save Money

Many people are on a tight budget. However, in order to break out of the norm and achieve success, you have to take a chance, a true entrepreneurial risk. Ninety-nine percent of the time, you have to make a monetary investment in order to change your situation. Therefore, the question becomes, “how can I make a monetary investment if I do not have the money to do so?”

Interestingly enough, the easiest way to make more money is not by earning a larger salary (because we all know that if getting a bigger paycheck was so easy, everybody would do it) but by cutting costs. This leads us to the topic of the article, “simple ways to save money.”

Step one: cut your costs. Some people have a very limited income, but have a top of the line cellular phone, the best cable package, and eat at a restaurant several times a week (including breakfast, lunch, and dinner). Reevaluate your situation and cut out what you do not need. Do not buy the $400 cell phone when a $100 cell phone will be sufficient. Do not get the unlimited minutes plan for $150 per month, when a smaller plan for $50 per month is all you need. Get rid of all the movie channels that cost $2 extra per channel per month on you cable bill. Bring lunch to work, and do not run to your local coffee house every morning to buy a $3 cup of coffee.

Taken individually, all of these costs seem insignificant. However, if taken together, you could be saving well over $100 per month on your expenses. This money could then be used for investment purposes, thus creating an income stream. Therefore, not only have you saved money, but the money that you saved is actually making you additional money.

Another good way to save money is to automate the process. Many banks will automatically take a portion of your paycheck and put it into a savings account at no charge (you will have to fill out some paperwork, but everything is usually very easy and takes almost no time to complete). By doing this, you are guaranteeing that you will save some money every month and makes the savings process easy for you. Keep in mind, every little bit can help you. Therefore, something as small as $50 per month is a good starting point if that is all you can afford. If you can do more, by all means, save more!

Just remember, you want your money to work hard for you. Therefore, put your money into a banking institution that pays you a good interest rate. There are many Internet sites (such as www.bankrate.com) that will give you the interest rates of the banks in your area as well as national banks. This way, you can choose the best option for you.

Start saving and you will soon see a difference. Once you have a little capital, keep your eyes open for investment opportunities that can help you achieve success.


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Moral Issues Involving Credit Cards

Some moral issues exist regarding credit card use, ownership, and providing. Credit card companies are faced with the moral issue of offering credit to people that cannot afford to have credit. On the other hand, credit card users are faced with the moral dilemma of maxing out a credit card with the intention of not paying back the debt. Both issues are equally important and both can be viewed as business decisions.

In regards to credit card companies; sometimes, a credit card company will target people with bad credit and/or low income. A credit card will be offered to these people. The credit card will have numerous fees and an astronomically high interest rate. Credit card companies will argue that these fees and high interest rates are necessary in order to offset any losses due to people defaulting on their debt. However, another way to look at it is that a credit card company can charge these high interest rates and numerous fees because people with bad credit and/or low income do not have an alternative option. Therefore, the moral issue of taking advantage of people comes into light. Should credit card companies be allowed to offer these sub standard credit cards to people with few assets? The quick answer is that credit card companies are not doing anything illegal. Then again, the plain for what is legal is far below the plain for it is considered “moral.”

In regards to people; many people take advantage of credit card companies by obtaining many credit cards, “maxing” them out, and then refusing to pay the debt. Basically, this is fraud because the person never had the intention of paying back the debt. Other consumers are hurt by this default by way of higher interest rates and more fees (as discussed above). Therefore, what if a poor person used a credit card to buy food and supplies with the intention of never paying back the debt? Should they be punished? Isn’t that person merely trying to survive and not trying to take advantage of a credit card company? Is it the credit card companies fault for giving such a person a credit card?

I cannot provide any answers to these questions because everybody has a different sense of what constitutes “morals.” There is no general standard for moral behavior. Therefore, the situations presented above are for personal consideration. What do you think the moral standard should be? Do you think that a degree of morality should be infused in the practices of a credit card company and an individual credit user? Would you be willing to pay more fees and a higher interest rate in lieu of a credit card company giving credit cards to people with bad credit and/or low income?