“Success is the sum of small efforts, repeated day in and day out.”

~ Robert Collier

This is the second of a three-part series outlining the path to financial freedom. The first was “Keep it Simple.”

Whether it’s the Weight Watcher program or the Dave Ramey Financial Peace University (FPU) Baby Steps, people like to revise, pick apart, and customize the program; their programs work if you work the program. So often, people want to save for investment or retirement while still carrying credit card debt. It doesn’t work. The most recent Macy’s credit card annual percentage rate is a whopping 34.49%. Can you believe it?

Here are some other common credit card rates:

· Capital One Venture Rewards Credit Card 19.99% – 29.24% (variable) APR

· Wells Fargo Reflect Card 17.24%, 23.74%, or 28.99% (variable) APR

· Discover it Cash Back 18.24% – 27.24 (variable) APR

Ouch!

No wonder credit card companies are getting taller. I live near one, Capital One, in McLean, VA. The buildings are funded with your hard-earned dollars through interest charges on credit cards and other consumer loans. I envision a world where single moms purchase homes to support the growth of their families, not taller corporate buildings.

I don’t know of any investment that can perform consistently at the rate that credit cards charge. Like at a casino, you WILL NOT beat the house! Banks make their money not from deposits. Their profit is from the interest they charge for loans they extend to consumers, targeting those with no business getting them. The reward points and 0% promotional rate programs are just enticements for consumers to fall for their scheme.

People often ask me for tips regarding getting out of debt plans. I share with them what works for me. Here are some practical actions that have made all the difference:

· Create a monthly budget and stay within the budget.

· Cut up credit cards and close credit card accounts. Mainly, use a debit card.

· Make payment options hard to access, such as not saving the payment information. I manually input them each time. I intentionally put a distance to resist impulse purchases or unwelcome temptations.

Over the years, it’s become increasingly easier to make purchases. You don’t have to walk out the door or pack up your kids. They include tap-to-pay, interest-free payments, Zelle, and probably others I don’t know about. They are TOO convenient for YOUR money to leave YOUR account, which funds someone else’s.

One of the best ways to achieve financial freedom is to pick a proven program, such as Ramsey’s FPU, and stick to it by walking through each baby step. It doesn’t have to be FPU; the most important one is one that activates you to action. We will explore the final piece of this path to financial freedom next time, Stay the Course.

Dare to Dream Again.