Control your Expenses and Credit Card Use

One thing that helps me out even today is setting limits. This is something we just don’t do enough of. If I really want a big ticket item, then I put a little extra aside every month until I can afford it or make sure I get it with “interest free” monthly payments that I can afford. There is no shame in saying that something is just not in your budget at the moment. If fact, it may just empower you and relieve potential stress and guilt over buying something you just don’t have the money for. Try the following steps:

Create a monthly budget and stick to it. Never purchase more than you can afford to pay off that month! Obviously, we are not talking about emergencies here. Paying the full amount each month saves you a ton of money in the long run because you don’t pay interest and you get to use “their” money for a full 35-50 days! I haven’t paid a penny of interest on any charge card in the last 20 years!

Use one charge card about 90% of the time if you can even though you may have several. By simply using one charge card, you’ll be better able to keep track of the purchases you've made during the month. Once a week, gather all your receipts and write them down on a piece of paper and check your card total on-line. Constantly checking your total is a must and keeps you on track. If you get to close to your limit, consider making the purchase next month.

Apply for a no-fee reward charge card. These cards actually pay you a percentage of your monthly purchases and then make deposits into a saving account in your name while others deposit money into your child’s college 529 saving account which can grow tax free (depending on your state.) I think this is one of the best ways to maximize the benefit of using a charge card in the first place. The key here is to set limits, keep focused and make your charge card work for you.