How would you fare in the Ultimate Money Test?
The results here are very interesting to say the least. Just when you read a good result you quickly read a contradictory result. For example, 75% of Australians have good savings practices and beliefs, but more than 65% of Australians have attitudes and beliefs that are holding them back financially.
The contradiction usually comes from what we think is right and what we actually do. Most rational people when asked a question will give a rational answer. However, we are all subject to temptations, especially when it comes to spending money. We will be tempted and sometimes go against our rational thinking by loading up the credit card with purchases that we don’t really need.
A couple of scary numbers regarding credit card use
- 54% of people think that only using cash makes you feel like you are spending money! Wow, this means that more than half the respondents don’t think that using a credit card is the same as spending cash. Well, technically they are correct, they are spending someone else’s money who will want it all back with interest which is even worse!
- 39% of people carry a balance on their credit card from one month to the next. With credit card interest rates hovering up to 20%, this approach to managing a credit card is crazy. It’s a bit like volunteering to pay $120.00 instead of the asking price of $100.00, when buying goods on a credit card.
Have a look at the Infographic and find out where you may fit in with the results. And more importantly, consider where would you would like to be.