Not every celebrity is like Sarah Michelle Gellar, the Buffy the Vampire slayer girl, who still rides a bike in New York and takes used bags to retail stores to get discounts. No, there are some like Nicholas Cage, who shakes and trembles his way into large boutique shops and real estate agencies and never has an idea of what and how much he is about to spend in the next 2 minutes. That’s crazy, really; even celebrities don’t have limitless amounts of money. Everybody, no matter who they are, should not be squandering away ridiculous amounts hard earned money.

Most people spend a lot on credit cards. It’s a psychological thing; credit cards give you the illusion that you have more money to spend than you have actually earned. They give you the illusion that you actually have $5000 to spend, when you are doing nothing but taking a loan –at a high rate of interest- to buy something you don’t need in the first place.

One good way to stop doing this is to use prepaid credit cards. What you do here is, you put in an amount of money into the card at the beginning of a month, say, and spend that money – and only that money – when you use the card. You cannot cross that red line and go into shaky credit zone. You stick to whatever you can afford to put in, and this system naturally puts in a limit to how much you can spend. What this does is basically let you use a card instead of bulky cash, but it puts a limit to your spending too. It’s a great way to budget your life.