Saturday, October 18, 2008

Manage Credit Cards Wisely

Managing your credit cards wisely is a hugh saving to any household budget and you can make it a fun challenge!

I know many of you are going to argue the point about having and using credit cards but if you choose the right credit card, one that will give you a "cash back reward" for just using it, why not? Of course you still need to spend responsible and in accordance to your income but these are all things that you would have purchased anyway so why not reap the benefits of using a "cash back rewards" credit card. I think this is a no brainer and that's why I call this using "other peoples money. I know it is only for a period of time (usually 30-45 days) you can have it "free" of charge but that's the money game you play to earn a "cash back reward".

You will now be able to track online a summary of all your expenditures and this will or should encourage you to start budgeting your spending. I find that when I carry lots of cash on my person that it can disappear and may not remember where or what it was spent on. Yes, we all need a certain amount of emergency cash on hand but if you will remember to use your credit card wisely for everything you buy this will maximize your "cash back reward" at the end of the year, called a rebate check.


WORD OF CAUTION ********** This method of charging everything will work best if you pay your credit card in full each billing cycle otherwise you are paying the credit card company a monthly finance charge and we don't want to do that. :)

4 comments:

Giancarlo said...

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Sherry said...

Thanks for stopping by!

info4beingrich said...

This is a good idea, but dont you think increased use of credit cards makes it difficult to manage your budget since you spend today and have to pay later on.. doesn't it reduce the chances of putting a check on your expenses..

Sherrykins said...

infor4beingrich,
Thanks for your comment. Using a credit card for all your necessay purchases is more convenient as well as rewarding at the end of the year.

This means the cash you do have should not be spent as to have enough money the following month to pay the balance in full on the credit card bill.

This is a way for you to enjoy a couple hundred extra dollars at the end of the year in the form of a cash back rewards check.

Hey, even John Chow approves of this method. You can only imagine the size of his cash back rewards check, the more you charge the higher you rewards check will be. hehe

Like I said before, this isn't for everyone expecially if you are an impluse shopper and don't watch your spending habits closely.

Someday you should give it a try, see the results and be sure to stop by and thank me for the great idea. :)