Do you struggle to stay on a budget? You're not alone. Many people with sustainable income find it difficult to budget or even stay on one.
But there's a solution to this problem: use your personal credit card to pay all your utility bills and buy any household items you need. Thereafter make sure to pay any balances incurred through the week. It’s as simple as that.
While this strategy won't resonate with everyone, it is proven and tested. It won't harm to give it a try. After all, you want to stick to a budget at least for the longest. And that's a good thing. There are benefits that come with employing the use of this card to stay on a budget.
- You don't need to have different accounts to balance your checks
- It's easy to track how much money you spend up to the last cent
- It makes for easy bookkeeping
- Increases your cash reserves
- It is easy and less confusing to account for all your expenses
- You get plenty of cashback rewards
If you've been having a problem accounting for every penny you use or sticking to a set budget, this post will shed a light on how you can achieve this goal using a credit card.
- Use your card to pay all your bills
This is one way of managing all your finances in one place. The key is to employ the use of your personal card to get qualified for cash back rewards. Then make sure to pay all your bills including cell phone, internet, and other household utility bills.
When you do this, you make for proper budgeting. You even reduce unnecessary expenses you may incur had you used your bank account to pay for bills. Having everything in one place is perhaps the key benefit of using this card.
- Stick to one card for all your daily purchases
For any item you buy, whether its coffee, gas, groceries or other household bills, make sure to pay using this one card alone. Don't be tempted to pay cash for easier and proper accounting of money. Having just one card for everything you purchase on a daily basis helps consolidate your bills and all your expenses on just one card.
This helps for proper accountability and tracking of each and every expense you make. Then review each transaction after every 7 days. If there are any disputes on a purchase, you can request for a refund something you can’t easily do when using your bank account.
- Review all transactions after 7 days
Make it a habit to review each and every spending on your card every week. It is easier to spot any unwanted expenses or double charges incurred on your card. For someone with an unsustainable income, it is easier to review every purchase you make.
You can decide on a particular day of the week and make it a habit to review your credit card then. You can choose Monday or Sunday to review your past week's transactions and make it a habit. By reviewing every transaction ensures easy management of your card’s balance. It also prevents you from taking or accruing any debt from the card.
- Control how you spend money
The best way to stay on a budget is to learn your spending patterns while on the credit card. It is not easy to limit your spending, but it is achievable. Set a budget much like you would a traditional budget and stick to it on a regular basis.
By doing this, you'll get into a habit that forces you to continue limit how your spending’s for the longest. If you set a limit to how you spend your card money, you are on your way utilizing your money well. Alternatively, if it is difficult for you, you can employ the use of a money management app to warn you when you surpass your spending limit.
But even with an application set to warn you every other day or week, it is easy to fall out of this habit if you are not consistent and committed to achieving your goal. Remain committed and focused and you won’t need a tool to remind you to limit your spending.
- Repay the cards balance regularly
Once you get to learn your money spending habits on a weekly basis, it gets easier to know how you spend credit card balance each month. While reviewing all your weekly transactions, make a point of paying off any credit balance you may have.
This doesn't have to be complicated. The same way you schedule a review of your weekly transactions like all your bills, justrightloans installments paid monthly, or other necessary expenses is the same way you can schedule to pay off any balances on your card.
- Redeem your cashback rewards and point
Whenever you pay all your daily purchases using your card, you amass points that you can cash in for rewards. This is perhaps the major benefit of paying all your utility bills and purchases via card. When you use your card to purchase everything, your cashback rewards add up so fast.
The rewards will depend on the card you use and how much you spend on your card. You'll be amazed at how much rewards you can garner. If you're a couple, you can take advantage of the cash back rewards by using one card for all your purchases. This will not only help you see where your money goes to every day but also ensures you stick to a budget with little or no effort from both of you.
You'll be surprised at how much you can earn back every month for every charged use on your credit card. As a couple, your expenses will be higher meaning your cash back rewards will be equally higher every single month. The idea is to make all purchases including utility bills and groceries and pay with a card. It's a good thing to consider.
Using your card could help you stay on budget without breaking a sweat. Also, your credit card can be used as a tool to manage and save as much money as you can. If you are self-employed and you're finding it difficult to stay on budget on a regular basis, the idea is to use your personal card for everything. You'll be glad you did as your card can transform into a tool for managing your money.
The best way to create a good budget is to begin paying all your bills by using just one card. Also, make a habit of using the same card for all your household bills and utility bills, and any other daily purchases you may have. This will help account your money well as you will review your transactions every 7 days.
Don't forget to limit your spending. This proves difficult you can get a money management application to alert you when you exceed your budget. Remember to repay your card’s pending balance while reviewing your weekly transactions. Finally, cash in those rewards. If you're in a better place to use your credit card, do so to manage your money.
Newly middle-aged wife of 1, Mom of 3, Grandma of 2. A professional blogger who has lived in 3 places since losing her home to a house fire in October 2018 with her husband. Becky appreciates being self-employed which has allowed her to work from 'anywhere'. Life is better when you can laugh. As you can tell by her Facebook page where she keeps the humor memes going daily. Becky looks forward to the upcoming new year. It will be fun to see what 2020 holds.