tag:blogger.com,1999:blog-14245531.post112083541349342135..comments2023-11-18T01:21:55.631-05:00Comments on My Open Wallet: Rule #1: Credit card useMadame Xhttp://www.blogger.com/profile/11536189690094235926noreply@blogger.comBlogger53125tag:blogger.com,1999:blog-14245531.post-71234969683674256842011-01-12T04:33:00.077-05:002011-01-12T04:33:00.077-05:00Good rule - and if you have an outstanding balance...Good rule - and if you have an outstanding balance it is worth switching cards periodically nowadays - 3 months of 0% seems like nothing compared to what's now of offer.Cathttp://www.blugoogirl.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-17836750248280244802010-09-22T20:06:07.989-04:002010-09-22T20:06:07.989-04:00Thanks, very informative post. Also I found out ab...Thanks, very informative post. Also I found out about the NetWorthIQ website. I'm going to sign up and check it out. thanks!Aidahttp://dfwmoneymatters.com/DFWBlog/noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-2065750461941803492010-06-19T00:06:22.307-04:002010-06-19T00:06:22.307-04:00Is nice to have and use a credit card, the fun end...Is nice to have and use a credit card, the fun ends when you have financial problems and you start to cover your expenses with credit card debt. Don't do it. Instead of acquiring new debt, try to get more income. Yes, it's the harder way, but is the correct way.Ganar dinerohttp://www.escueladeriqueza.com/noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-83313614945276550182010-06-17T19:09:07.308-04:002010-06-17T19:09:07.308-04:00I love how you have this as your number one rule. ...I love how you have this as your number one rule. I personally try to use my credit card as much as I can as well. I've only had credit cards for about two years now but I have already gotten three gift cards from the prizes (a total of $250 worth from Macy's and Footlocker).<br /><br />And the best part is that I don't have to pay a fee (at least not yet). So the benefits outweigh the costs no doubt. Great post and I'm glad there are always others who feel the same way about credit cards.<br /><br />Cheers,<br />WahidUnknownhttps://www.blogger.com/profile/05246269086015696385noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-65696597846995924682010-03-11T23:04:39.483-05:002010-03-11T23:04:39.483-05:00Credit Cards are simply the best thing for the dis...Credit Cards are simply the best thing for the disciplined individual who knows how to manage his/her finances. In the last couple of years, I have practically held interest-free loans of up to 120 thousand dollars simply by using promotional credit cards, paying off my balance ALWAYS if there will be an interest accrual and making almost all my purchases with credit cards.<br />If you are not disciplined with your spending, you will get fried afterall the credit card companies are out to make money too!Mcnerihttp://personalfinance.mcneri.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-33136124018781877292009-11-19T16:55:58.589-05:002009-11-19T16:55:58.589-05:00I think that when people get a card they think the...I think that when people get a card they think they have free money because I know i did in college when I got a $2000 limit card and maxed it 3 months and spent the rest of the time paying it off.Ryanhttp://www.albertadebtconsolidation.canoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-87561309286862602902009-09-20T02:02:29.120-04:002009-09-20T02:02:29.120-04:00Hi, this is bugbear again, back after several mont...Hi, this is bugbear again, back after several months.<br /><br /> I have shifted to a cash envelope system from just using a virtual budget, at least for all of myweek to week spending (3 envelopes:food, gas, and fun spending, plus one for "Visa").<br /><br />I am saving an extra 300 dollars a month doing it this way because there is no way I can fool myself that something is in budget when it isn't, and I can't lose track of my budget because the budgeted money is sitting right there in the envelopes, easy to see and keep track of..<br /><br />I actaully still do use my credit card some of the time, but only after checking the cash envelope to see if the money is there to make the purchase and whether I will have enough left for the rest of the month.<br /><br />Then after using the c.c. (instead of the cash) to make the purchase, I take the equivalent amount of cash out of the food, gas, or entertainment envelope and put it in the "visa" envelope. <br /><br />My cash envelopes thus get adjusted, I have an aggressive system to keep myself within my predetermined financial limits and plan, and I get the paltry 1% back from my credit card. But it's still 1 percent. And I'm doing it without overspending.moociferhttps://www.blogger.com/profile/01325412523164314073noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-42113237607089810312009-09-14T04:26:10.667-04:002009-09-14T04:26:10.667-04:00i have made myself a set of rules when handling cr...i have made myself a set of rules when handling credit cards and it work fine for me so far.CUAhttp://www.creditcardoffers.com.au/cua.htmlnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-51769818244088165672009-09-03T22:25:45.978-04:002009-09-03T22:25:45.978-04:00Credit card are for everybody. People should only ...Credit card are for everybody. People should only know how to manage their money. They should limit their selves as to spending.Bank accounthttp://creditworld.com.au/noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-2217000546071833822008-12-16T00:08:00.000-05:002008-12-16T00:08:00.000-05:00Sure there are positive aspects to using credit, b...Sure there are positive aspects to using credit, but there are two that are seriously detrimental. First, you cannot accurately track how much you are spending in each area of a budget, making it near impossible to budget properly while using cards. <BR/><BR/>Secondly, it is proven that people spend 12-18% more for the same items while using credit cards as opposed to using cash. <BR/><BR/>Use cash, or when you need an electronic form, use a debit card.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-33124698050582481342008-12-16T00:04:00.000-05:002008-12-16T00:04:00.000-05:00Sure, there are some good things about credit card...Sure, there are some good things about credit cards, but the there are at least two aspects that are extremely detrimental. First, it very difficult to track how much you're spending in each area of a budget, making it nearly impossible to budget while using credit cards. Secondly, There have been several studies done (Dun & Bradstreet) as Bugbear pointed out that show that people spend between 12-18% for the same items while using a credit card as opposed to cash.The Oakeyshttps://www.blogger.com/profile/10677359482789497102noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-79575827574311527112008-12-14T10:48:00.000-05:002008-12-14T10:48:00.000-05:00Credit cards are only for smart people that know h...Credit cards are only for smart people that know how to spend money, if you don't you need a debit card.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-15071613609223894922008-12-02T18:43:00.000-05:002008-12-02T18:43:00.000-05:00Holy cow, blogger lost my whole comment!Ok, what I...Holy cow, blogger lost my whole comment!<BR/><BR/>Ok, what I said was, while this rule is a good start and will at least keep you at out going into debt for consumption items, believing that this is a great deal may be overlooking something important.<BR/><BR/>People tend to spend 15-20% more when they use credit cards as a form of payment, compared to when they use cash. Something about the little slips of paper with numbers on them just doesn't have the same emotional impact to register with us that a stack of bills leaving our wallet, or even a check, has.<BR/><BR/>So, by using a credit card, you could still be spending 15-20% *more* than you would have if you were using cash or checks. And the 1-3% cash back can distract you from that.<BR/><BR/>Really, the best way to make the most of your income in my opinion is to always have a monthly spending plan and check back with it. I do it with an Excel spreadsheet that slices and dices all my spending for me into like 30 different categories and tells me when I'm over budget, and if not, how much money I've got available to spend in each category. YNAB is a good option for this (much better than Quicken for base-level, household budgeting financial management0 for those who are not fairly advanced spreadsheet users. (knowing how to use array formulas and how to use the SUMIF command are key, if you want to know.<BR/>Keeping out of credit card debt by only spending what you can pay off in a month is a good start. <BR/>But....If and only if you use your *spending plan* as the primary reference when deciding on your spending, then I'd say that using a rewards credit card and paying it off may very lead to the best use and return on your spending money. Otherwise, I'd say using a cash envelope system is better, because you always will have a visual cue of how much $$ you have left until the end of the week or month.moociferhttps://www.blogger.com/profile/01325412523164314073noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-88627730036282820632008-12-02T18:29:00.000-05:002008-12-02T18:29:00.000-05:00The fact that you pay your credit card bill off in...The fact that you pay your credit card bill off in full every month is still not a guarantee that you are making the *best* use of your income. While on the face of it, it looks like you are "getting money back" for nothing from the credit card company, keep in mind that with credit cards you are very likely overspending beyond what you would spend if it were *cash* or a check coming out of your wallet with each transaction. Somehow, numbers on a credit card slip don't have the immediate import and weight to most of us that actual cash does. When using a credit card, most people spend 15-20% more than you would if you were spending cash or writing a check. So unless you actually decide your spending ahead of time by using a spending plan, you are probably losing money to the tune of 15-20% by purchasing things on the fly with a credit card, then getting back only 1-3% of the total purchase in c.c. rewards. <BR/><BR/>This is something to be more aware of. To me, if you don't have a monthly spending plan, there is no way you can be maximizing the use of your income. You could be doing fine in the sense that you are not racking up interest charges on your cards, but spending more than you might want to be if you really thought about your spending and planned and budgeted it out and then checked back in with your budget at regular intervals.<BR/><BR/>If you *do* have and use a spending plan (like the envelope system, but on a spreadsheet or YNAB for example) as a central map of your monthly finances, it is definitely safe to use a credit card and get the rewards, maybe even better than using cash.moociferhttps://www.blogger.com/profile/01325412523164314073noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-1898579777149821982008-11-30T01:13:00.000-05:002008-11-30T01:13:00.000-05:00I think if someone has a master view of their fina...I think if someone has a master view of their finances so that at any time they know where they stand, and they have proven to themselves that they can keep spending below their income for at least a year, then they can probably handle using a credit card as a method of payment and pay it off every month. It requires honesty with oneself and the ability to say "no" to purchases and to pressure from peers/girlfriends/boyfriends to spend beyond your means. With benefit of hindsight, I would recommend that 20 somethings not use credit cards until they have graduated from college AND have followed a budget successfully for two years. After that, they are probably good to go since they will at that point have the tools to know and control their finances.moociferhttps://www.blogger.com/profile/01325412523164314073noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-54539888718785405762008-10-05T21:29:00.000-04:002008-10-05T21:29:00.000-04:00I agree...credit cards have their place. I pay off...I agree...credit cards have their place. I pay off every month and go for the rewards. some great stuff I learned here:<BR/><BR/><A HREF="http://www.milecards.com/" REL="nofollow">www.milecards.com</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-20640217140741787372008-09-29T01:49:00.000-04:002008-09-29T01:49:00.000-04:00If you are in debt, it's also a possibility to tak...If you are in debt, it's also a possibility to take an Balance Transfer Credit Card with 0% interest rate! At that moment you can use all your money to pay of your debt, instead of paying interest.. Good option to work your way out!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-80907260960305352302008-07-21T04:32:00.000-04:002008-07-21T04:32:00.000-04:00HiI think it is a great and nice post and I really...Hi<BR/><BR/>I think it is a great and nice post and I really like this post.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-70962808137232586312008-07-15T03:42:00.000-04:002008-07-15T03:42:00.000-04:00Your blog is very informative. However, earning mo...Your blog is very informative. However, earning money and balance your credit cards is pretty hard task but your post and experienced serve and teach me how to handle and make it more simple and manageable.<BR/><BR/>Thanks for the tips… Best regards.<BR/>http://www.creditworld.com.au/credit-cards.htmlcredit cardshttps://www.blogger.com/profile/06759892919090000496noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-35517814148816021042008-07-12T20:15:00.000-04:002008-07-12T20:15:00.000-04:00Couldn't agree with you more, and the many posters...Couldn't agree with you more, and the many posters above who offer valid arguments in favor of credit card use.<BR/><BR/>I'm always surprised by those who are actively engaged in the personal finance community and try to DISSUADE others from credit card use. There is no argument here; credit cards offer rewards and short term loans on which you can accrue interest. The unbiased FACT is that NOT using a credit card will cost you more than using the credit card.<BR/><BR/>The opposing argument is that credit card use will cause us to accumulate out-of-control debt and promote unrestrained spending--are we really a nation of people who lack the responsibility to manage OUR OWN money? It seems to me the credit card isn't the evil here--it's our own incompetence.Adamhttps://www.blogger.com/profile/01684839473166329021noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-75423100284557974832008-07-10T16:18:00.000-04:002008-07-10T16:18:00.000-04:00When you pay cash, you can "feel" the money leavin...When you pay cash, you can "feel" the money leaving you. This is not true with credit cards. Flipping a credit card up on a counter registers nothing emotionally. If you use credit cards instead of cash you will spend 12-18% more. This is money you could have saved. So even if you're able to pay the balance every month, you're still spending more than you would be had you spent cash. Just my 2 cents.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-14076612907152389082008-06-16T20:43:00.000-04:002008-06-16T20:43:00.000-04:00I like your blog But, I've got to disagree with yo...I like your blog <BR/><BR/>But, I've got to disagree with your rule #1, but, if you can do it and it works for you - more power to you. <BR/><BR/>Reggie.D.R.https://www.blogger.com/profile/13358325203064481472noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-6872312462984225452008-04-20T09:26:00.000-04:002008-04-20T09:26:00.000-04:00Nice post! Just watching our expense and controlli...Nice post! Just watching our expense and controlling the way of spending money by credit card is good idea as u said.The reward program is good concept for credit card, so that we can spend it way accordingly the amount which we can able to pay back for it. For more information of credit cards click below link:<BR/>http://www.canadian-money-advisor.ca/secure-credit-card-info.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-55758661717588698972008-03-26T15:15:00.000-04:002008-03-26T15:15:00.000-04:00I Agree. Credit cards must be fully paid and while...I Agree. Credit cards must be fully paid and while using credit card one must always think if he would have shelled out cash for that purchase.<BR/><BR/>-Vats<BR/>http://www.vatsinvesting.comAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-21852554784276880232008-03-16T17:11:00.000-04:002008-03-16T17:11:00.000-04:00I do the same thing, I charge every dime I can (ga...I do the same thing, I charge every dime I can (gas, groceries, utilities, McDonalds, or any other purchase) and pay it in full each month. Around November or so, I've probably spent over 35 grand which translates to about $400 cash back.. this is my Christmas fund. I can do almost all my Christmas shopping thanks to my creit card company.Unknownhttps://www.blogger.com/profile/05696672069715973696noreply@blogger.com