Best Tips on How to Make Credit Cards Work for You, Not Against You
“Money often costs too much,” said a wise person. In our daily thoughts and tasks, we’re acting like money controls us, but that is not true. Money is here to fulfill our needs, not the other way around. But at the end of the day, if we don’t have a black card without a limit, we are looking at the price tags and with sadness in our hearts, we open up our wallets. That’s exactly why somebody invented credit cards – it feels like we’re not even spending any money. It makes it easier for us to “go with the flow,“ but when the flow takes us too far, we realize using credit cards is just too damn easy. So it’s important to know a way to control your spending when it comes to credit cards – that’s why you need to keep on reading for a few tips.
Know your priorities
Lately, living the “American dream” is more often connected to debts than to a white picket fence. That’s because everything is paid in monthly payments – our mortgage, our brand new car, our school tuition, bills… The only way to avoid getting into credit card debts is to pay every monthly payment that has an interest in full. Seems quite simple, but when an unexpected expense comes up (the fridge broke, our friend is getting married, our tooth needs fixing), it’s hard not to say “I’ll pay it next month.” That’s a trap that can lead you into a never-ending circle of beating a dead horse. So here’s a tip that will never make you miss your due date: Set up your online account settings so your bill is paid automatically on a certain day of the month, just like Netflix, for example.
Choose a credit card that comes with benefits
In the 21st century, there are so many options for everything. Nobody has a monopoly over anything these days and that’s a thing we can use to our advantage. If you pay your bills regularly, a lot of cards offer you not just travel miles but a lot of perks that can make your life easier. For example, the David Jones American Express card rewards you anytime you shop, and it doesn’t get any better than that, right? For every dollar you spend at David Jones or anywhere where American Express is accepted, you earn Membership Rewards Points, you get a special invitation to sale previews and designer events, you get free delivery and gift wrappings from your orders at David Jones, and many more benefits that will save your money by spending it.
Treat it like a debit card
Our brain is wired to think that a credit card means you can spend money you don’t have. In economics, there is a saying – “There is no free lunch” which means nothing is free. So, a credit card just means you’ll pay it later and with an interest, so you must be aware of your financial dos and don’ts. It’s better to treat your credit card like a debit card – buy only things you can afford THIS MONTH. Use it as a credit card when it comes to big purchases (furniture, electronics, vacations), but be sure to pay it off over the course of a few months.
Download useful apps
Welcome to 2022 – there’s an app for anything; even an app that will stop you from spending your money carelessly. For example, if you do use your credit card, make sure you have an app that deducts money from your virtual bank account whenever you charge something to your credit card. That will help you have a better overview of your financial state at every moment of the day. There are plenty of other apps – the ones that calculate what you can save and set it aside, the ones that help you keep your expenses journal, the ones that round up your change and move it into a savings account – the options are limitless. Make sure you learn how to control your credit card and modern technology in order to serve you, not the other way around. That will surely increase your budget and decrease your fear of spending too much – if there is even such a thing.
Thank you,
Glenda, Charlie and David Cates
