Cash. That is the only word you really need to know. That is the way it was in the old days. Sure, you could go to the corner grocer and get extended credit if he or she knew you. But you had better pay or you might get run out of town. Somehow, we have lost the good old-fashioned way of managing our finances.

My father always told me that credit cards would ruin this country. He was right. Just take a look at the trouble the banks are having. Delinquincy rates are up, people are getting foreclosed on, and the banks keep seeking new investors. Of course, it serves them right. Greed is the operational word in the banks and stripping the bones from your back suits them just fine. Do you really think they care about some crisis in your household, be it health or whatever that has put you in debt? Sorry, but no. Well, there is one thing that they will do or at least used to before they hung themselves....up your credit line. That's right, even though you lost your job and haven't got a pot to pee in your credit line gets extended. Now what is one to do when they are in crises? Through the card away? Nope, use it. That's right, get into more debt and worry about paying the piper when the time comes. Well, that time has come and you don't have any money. Now what?

So, now there is a world of hurt out there and you are part of it. Most of it has to do with the fact that the credit card companies don't do their homework. Put your pet's name on the application, throw an annual income of a hundred grand in there and you get credit. The banks didn't even check the social security number! They just wanted to addict the next person. Now I can't blame the banks entirely for the whole mess. People must be responsible to manage their finances themselves. But how the hell can one do that when the banks can up your interest rate at will, for no reason whatsoever! You think they need a reason to up the rate? Wrong again. If you were late on a cable bill two years ago and the bank caught wind of it, up goes your rate. And that is the good banks. Some banks up your rate even if you have been with the bank for thirty years and have never been late. They say "We have to stay competitive". What? Doesn't loyalty count like in the good ol' days. Nope.

So, let's get back to managing your money the tried and true way. First, if you don't have the cash, don't purchase. Second, if you don't have the cash, don't buy. Third, if you don't have the cash, no shopping. That's it in a nutshell. Forget about keeping up with the Jones's. The Jones's went bankrupt and you might be on your way if you keep charging.

The only piece of paper I believe in has Benjamin Franklin on it. Oh yes, and his peers.

Learn more about this author, Anthony Megna.
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