A Filmmaker Who Never Gives Herself Credit
It is not only ramen-eating college kids who are kicking plastic to the curb. Jenna Ricker, 35, expensed her award-winning film, Ben’s Plan, on her own dime. She used cash, just like she affords everything else in her life. (She stopped using a credit card ten years ago after racking up more than $10,000 in debt.) The discipline of using cash day-to-day gives her the ability to save for short goals like buying a new sofa and long-term goals, like her next film project.
You Can Give Up Plastic, Too
Now, even though they used to love it when we racked up charges, credit card issuing banks including Citigroup (C) and JP Morgan Chase (JPM) are raising interest rates, reducing their card offers and slashing our credit lines, with the hopes that we’ll either get more aggressive about paying down outstanding debt or open fewer accounts. Estimates say issuers will erase $2 trillion worth of available credit in the next 18 months. Which is all the more reasons why now is the time to embrace cash.
Although it may be anxiety provoking at first, living without a credit card is possible. “What’s better about it is that I am much more aware and responsible for my budget. I still get to travel, save money, buy clothes and furnish my apartment," says Ricker, the filmmaker. "The only difference is I do with respect to my monetary situation and not the idea that I can pay it back in the future.”
Catch more of Farnoosh’s advice on Real Simple. Real Life. on TLC, Fridays at 7 p.m.
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