The Worst Financial Tip I Ever Got—and What to Do Instead

10 Aug 2025 #misc

“Use your credit card only for emergencies.”

Sure, there are good intentions behind that tip. Credit cards have some of the highest interest rates on the market. And, like any debt, they’re a loaded gun. Treat them carefully or they’ll hurt you.

But for emergencies, taking on debt with a high interest rate isn’t a good idea. So how do you prepare for emergencies? With a financial cushion.

The Richest Man in Babylon taught me about a financial cushion. It’s one of the best money books I’ve read. “From every 10 coins you earn, keep 1 and spend the other 9.” That’s how I remember the lesson. That simple habit helped me survive a layoff and even afford a mini-retirement.

Use your credit cards like cash. If you can’t afford it, don’t swipe. Cards are a payment tool, not a source of money you don’t have.