I saved someone's life...financially

August 2010.

I was on a flight on my way back from Los Angeles. While in the air, the flight attendant announced that she would be passing forms from a major credit card company. It was a Master Card that had rewards of about $500,000. Really? Now, the flight attendant really sold the idea of this credit card very well...so well that even I almost saw something good in a credit card.

Over the years, I have put many hundreds of hours researching the financial industry -reading, listening to podcasts, talking to professionals. I have looked at the advantages and disadvantages of owning a credit card, I have listened to experts on the subject...looked at the Word of God, and put my own thought to it...after all that, I have come to a conclusion.

THERE IS NO REASON TO OWN A CREDIT CARD. Period.

So, after the flight attendant went through her spiel, she asked for people to raise their hand if they would like to fill a form. A few people raised their hands, including a younger sista who sat by my left. As I watched a dvd digital copy of a movie on my Macbook, I watched her through the corner of my eye as she tried to decide if she wanted to fill the form. It would be her first credit card.

As soon as she began filling the form, I stopped my movie and turned to her.

I asked for her name, she told me, and I told her mine. I said, "You don't need a credit card". "All that $500,000 reward-bonus-crap that she said, it is a lie." [Legally, she did not lie, but for 99.9% of credit card owners, it might as well have been a lie]. I explained to her why she did not need a card. I told her my story about credit cards, and how I had come to the conclusion that one can live well and survive in the U.S. without credit cards. I mentioned that I had not used a credit card in over 3 years, and here I am sitting in a plane that I paid cash for (Debit Card).

I explained to her that one's finances should boil down to a few simple rules:

Work for your money. Save your money. If you need to buy something that you cannot immediately afford, wait till you have saved enough, and then buy it. Also, give away 10% of your income.

She understood what I taught, and accepted it. Then I told her to tear the Master Card application form. The paper size was too thick to tear, so I helped her and ripped the form to shreds. We both laughed and exchanged more personal stories.

My hope and prayer is that she follows, not just this teaching, but the teachings of our grand-parents about money. Simple guidelines that work, that save people from financial disaster.