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Note: When I started writing this post I didn’t think it was going to get as in depth as it has. As such, I recommend you take a paper and a pencil and jot some notes on the issues I discuss here. The world of credit and credit cards can be a scary thing, but if you break it down, it’s actually not that complicated. Convoluted, yes, but not complicated. I’ve tried to make things as simple as possible, but I can only do so much: your brain has to do the rest. I trust you’re an intelligent individual, or else you wouldn’t be reading this, so put on your thinking caps and start reading!

A few days ago, someone over at 9Rules Notes asked about the best financial advice others could offer to someone coming out of college. Some of the answers were traditional, some where a bit “out there”, but the one that caught my eye was this one:

Get one credit card (one!) to build credit, but pay off every cent before you get charged a penny of interest.

She goes on to talk about a few items I not only totally agree with, but have started to live and swear by (treating savings and investments as fixed, monthly expenses; treating yourself once in a while). But it was the statement quoted above that really caught my eye, since it highlighted a misunderstanding of the purpose of credit and credit cards. (This is not to say that the author doesn’t understand these, but it does speak of a somewhat limited view of credit which tends to limit the available financial options at the disposal of most individuals.)

Most people think of credit cards as money they can borrow when their funds run low. They also think of credit as something that builds up over time if you take care of your bills on time. While both of these statements can be true (depending on your particular situation), they miss the point of the entire credit score and credit card system.

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One thing The Wife and I have realized that as much as we’ve focused on finances over the life of our marriage, neither of us had ever suggested actually making a step-by-step plan for financial freedom — until this past weekend.

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Someone once told me that America is a land built upon systems. This was why the nation had been so successful. And as I poke around the world of business (it doesn’t matter which type of business) the statement rings truer and truer every single day.

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Last week I did something I don’t remember having done for at least two years: I didn’t post anything on this site, at least nothing of consequence. If you’re wondering how it felt, don’t. The reason I took the hiatus was because I’ve been so swamped with matters of life, work, and money (learning, not financial trouble) that little energy has been left for blogging. This is why, for your entertainment and education, I’ll go over a few of the things I’ve been thinking about this week. (Believe it or not, this will actually be a useful post, so read on.)

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If you’ve ever read Lee Iacocca’s autobiography (Iacocca: An Autobiography), or heard any of the history surrounding him, you know one thing: he’s a straight shooter. (If you haven’t read his biography, for the love of God, go to your library and pick it up, or buy it at a bookstore somewhere. Heck, most thrift stores have copies of it which you can get for really cheap. Check out the Amazon retail partners (linked above) if you want cheap and convenient.) At the age of 82, this guy’s been firing off left and right about what he sees as right and wrong with America today, and I’ll tell you, I agree with him, big time.

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