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Critical Points In Each Chapter
[edit]Chapter 1: Credit cards and how to use them, when to use them, and why you should use them
Ramit Sethi explains credit cards in a way that is easy to understand in chapter one. Credit cards are a big responsibility and learning to use them the correct way will help you in your financial goals.
The question is how do I use a credit card, when could I or should I use a credit card, and why should even own or use one to begin with?
How do I use a credit card?
As Ramit states in the book credit and credit cards can help you be rich. " It's time to wake up and pay attention to it (and not just because of the credit crisis), because establishing good credit is the first step in building an infrastructure for getting rich."[1][2] Leaning to use a credit card in the proper way can also provide you with a good credit score [3]
Vocabulary
[edit]Investment Account:Account held at a financial facility for the purpose of a long term investment for capital preservation, growth or fixed income. Financial facilities for investment accounts include banks, insurance companies, and brokerage houses.
Credit Cards:A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Bond:A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
Loan:A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
Credit Report:A detailed report of an individual's credit history prepared by a credit bureau and used by a lender to in determining a loan applicant's creditworthiness.
Budget:An estimate of income and expenditure for a set period of time.
Frugal:Sparing or economical with regard to money or food.
Investment:The action or process of investing money for profit or material result.
Debt:Something, typically money, that is owed or due.
Negotiate:Try to reach an agreement or compromise by discussion with others.
- ^ Sethi, Ramit (2009). I will teach you to be rich. New York: Workman Pub. ISBN 0761147489.
- ^ https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/how-to-use-credit-cards-wisely
- ^ http://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx