Credit Union Mythbusters - Common Financial Tips

We all have that friend or co-worker or just that guy you met on the street that is full of financial tips.  Many financial tips are repeated so often that you begin to wonder…should I be doing that?  We are taking a closer look at three common financial tips* to determine if they are Myths or True good advice!

• Cut Up Your Credit Cards – MYTH! Some people’s opinions of credit cards is that they are a dirty word and should be cut up to get out and stay out of debt.  Don’t do this!  While abusing credit cards is a no-no, credit cards are WAY more secure than carrying cash, and in the issue of fraud or theft can be dealt with easier and faster to get your life back to normal.  Be responsible with your credit cards, but don’t cut them up!  If you have a hard time controlling your spending when there is a credit card at your fingertips, consider cutting up all but one and asking for a low limit so you can’t overdo it.

• Leave A Buffer In Your Checking – A great idea, but not true for everyone!  To avoid the issue of overdraft fees, it is always a good idea to keep a determined amount sitting in your checking.  However, not everyone can do this.  It’s a great goal to lead up to, but if this doesn’t work for your situation right now, don’t sweat it.  Just keep a good eye on your checking balance and budget to avoid overdrafting that way.

• Skip that latte – MYTH! While it may not be a great idea to choose that morning latte over your electric bill, treating yourself a little bit is alright!  Even if you are on a tight budget and watching your pennies, if you compensate in your budget in some other area and that latte is what really sets your day off on the right foot, then do it!  Once again, just keep an eye on your budget and balance so you can enjoy your morning treat, or whatever your splurge may be, without worrying or feeling guilty about it!

What other common financial tips have you heard that make you think twice?  Let us know on twitter @honorcu using #askhonorcu!

Listen to the Mason Jar Monday episode that aired on 97.5 Y-Country with Wild Bill! 

*Source: http://www.dailyfinance.com/2014/07/28/common-financial-tips-you-should-ignore/#!slide=2774313