Many financial advisors tell their clients that if they want to save money, they should make all of their purchases using cash, not credit. While this may be true for some people, it simply does not work for me.
I pay for almost all of my purchases with credit cards.
Most people think that credit cards are evil and that if you use one, you are going to suffer the consequences for the rest of your life – and I disagree.
The reason I use a credit card for everything, is because I have a hard time swiping them. It’s much easier for me to hand over cash, meaning I would spend alot more money using that than I would if I used my credit card. I also couldn’t track everything I spent if I paid with cash (unless I brought a notebook with me, and I know I would forget to use it sometimes).
So, for me, using a credit card for my purchases just makes sense. Not only am I able to track all of my expenses, but it’s also harder for me to “spend” that money – I really have to think about my purchase before I whip out the plastic.
Another bonus? I earn money just for using my credit card. I make most of my purchases on my TD Visa Rebate Rewards card and earn up to 1% back. I know that 1% is not much at all, but it’s better than nothing, right? I have earned close to $200 this year!
I make sure to pay off my entire bill at the end of every month. If I didn’t do this, I would be paying an obscene amount of money in interest and that wouldn’t be fun!
Whether you chose to make your payments with a credit card, or with cash, it’s important to track your spending so you do not go over your monthly budget. It’s also important to remember that even if you get cash back on your credit card, if you’re not going to pay off your credit card at the end of every month – don’t put a single penny on it!
Do you use cash or credit?