How to Manage Personal Finances and Save Money [11 Powerful Tips]
22/08/2019
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Credit cards are great tools for saving money. They allow you to pay for things you need right away, instead of waiting until you have cash in hand. But there are many different types of CCs available, each with its own set of advantages and disadvantages. Here are 10 ways to use your credit card wisely.
Moreover, this credit card checklist will help you avoid spending more than you can afford. In today’s world, it’s hard to survive without a card. With the average Indian holding three credit cards, many people rely on them to make purchases. But there are several types of credit cards, with different terms and rules, that allow you to pay for things without paying interest or even having to put down a deposit. If you know how to manage your cards wisely, you’ll be able to save money and use your credit card as a tool to buy things you need.
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1. Use it for emergencies only
If you’re going to use your credit card, make sure you only use it for emergencies. You don’t want to rack up debt on something you didn’t really need.
Otherwise, you may find yourself in a financial bind when the bill comes due. If you need to pay a bill with your credit card, check your balance first. You can do that online or over the phone. If you find you don’t have enough money to pay off the entire balance, you may be able to make smaller payments. It’s always best to avoid using a credit card for non-emergency purchases.
2. Pay off the balance every month
One of the biggest mistakes people make with credit cards is using them for everyday purchases. This means you’re paying interest on top of whatever you spent. Instead, pay off the full amount due every month.
Therefore, you’ll only be paying interest on the money you owe. This will help you avoid having to pay more than you can afford to pay each month. It will also help you build a good credit history.
3. Don’t charge everything
When you use your credit card, try to avoid charging everything you see. For example, if you see a pair of shoes on sale, don’t buy them right then. Wait until you actually need them. Or you could use other payment methods like your debit card, to make the purchase, avoiding any interest.
As a result, you’ll be less tempted to overspend and more likely to save for future purchases.
How can I make my spending less expensive?
A good way to keep costs down is to pay in cash whenever possible. This will help you avoid the temptation to spend more than you planned. You can avoid using card for ticket purchases like movie tickets, train tickets and more.
What should I do if I’m tempted to overspend?
If you find yourself overspending, try not to get caught up in it. Instead, analyze your spending habits and make a plan for how you can cut back.
4. Avoid late fees
Late payments are one of the most annoying things about credit cards. Make sure you pay your bill on time every month.
Otherwise, you will be charged a late fee, which is often expensive. If you have missed a payment, contact your card issuer immediately. You may have to pay a higher interest rate or lose some of your credit limit. Get rid of debt If you want to get rid of debt, you need to make a budget and stick to it. Paying off your balance in full every month will help you avoid late fees.
5. Shop around
Shop around for the lowest rate on your credit card. Some cards offer better deals than others.
If you have a rewards program, check to see if you can earn points or miles for using your card. If you’re not sure what you want to do with your money, just keep it in an online savings account where you can earn interest. Think about getting cash back.
As a result, most of the time, people who are new to credit will be surprised by how much they can borrow and how much interest they pay.
When you sign up for a credit card, read the fine print. It’s important to know what you’re getting into before you agree to anything. If you don’t understand any of the terms, ask your issuer for clarification. Don’t let your excitement pave way for piling debts. You need to be aware of your rights and responsibilities as a cardholder.
6. Check your statement carefully
Make sure you read through your Credit Card statement carefully before making any charges. Look for anything that doesn’t seem right, like unauthorized charges or charges you didn’t make.
A recent poll showed that many people have been charged for things they didn’t do. Don’t let it happen to you!
In addition to the information on your statement, keep a record of your transactions in a notebook or spreadsheet. This will help you see if there is any pattern to your spending. You can also check with your bank or credit card company to see if there are any unusual charges.
If you find something that looks suspicious, contact your bank or card provider company immediately. They may be able to reverse the charge or stop the charges from being made.
7. Get rewards
Some credit cards offer rewards programs. These reward you for spending money on certain products. Rewards vary depending on the type of card you have.
Plus, some credit card reward programs are free or they offer bonus reward. Some of these rewards are cash back, discounts on purchases, airline miles, or hotel stays. Others are points that you can redeem for travel, merchandise, or other items. The best way to find out about rewards is to check with your credit card issuer, or with the app through which you are shopping, or at the billing counter of the store.
8. Be careful with cash advances
Cash advances are another common mistake people make with their credit cards. Cash advances usually come with higher rates and fees.
What is a cash advance? A cash advance is when you take out a short-term loan against your credit card.
If you are having trouble paying off your balance, it is time to consider a cash advance. A cash advance is when you get cash for your credit card by borrowing money from a company. You are charged interest and fees on the cash advance.
As a result, they’re not a good idea if you have poor or no credit history. In fact, cash advances may not even be available to you, depending on your financial situation. If you do decide to take out a cash advance, make sure you understand the terms and conditions. It’s important to keep in mind that the interest rates and fees will apply to the amount of the cash advance.
Cash advances are not always bad. If you have a short term need for cash, they can be a great way to get the money you need.
9. Never max out your Credit card
Maxing out your credit card is another big no-no. If you go over your limit, you could be charged extra fees.
Plus, it can hurt your credit score. This is a major problem for people who have a lot of debt.
if you don’t pay the bill in full each month, you may get charged interest and late fees. It can also affect your credit score.
So, what do you do if you are tempted to charge more than the minimum amount due on your credit card?
You need to think about how much money you have available. If you are using a credit card as an emergency fund, it’s okay to use the card for that purpose.
10. Balance transfer
Balance transfers let you move balances from one credit card to another. It’s a convenient tool for those who have several credit cards.
However, it can be dangerous if you don’t use it properly. Learn how to balance your cards and avoid problems.
What is a balance transfer? A balance transfer is a way to move a balance from one credit card to another. If you don’t pay the balance off in full by the due date, the interest will continue to accrue until you pay off the balance. This means that if you don’t pay off the balance on time, you could end up with a huge debt.
There are many different types of credit cards available. Make sure you only use it for emergencies. Avoid late fees by paying off your balance every month. Don’t max out your credit card if you go over your limit. Don’t max out your card if you go over your limit, you could be charged extra fees if you go over your limit if you don’t pay your balance on time every month – even if it’s your first time using it for more than one credit card payment.
If you are managing or maintaining various credit cards, Invest Plus can help you organize your cards, track your expenses, set reminders for due date payments, and more, all at one place. The best part is that Invest Plus lets your import all your bank statements, eliminating all the manual entry work to be done.
Invest Plus is a Personal Finance & Portfolio Management software that helps you take control of your wealth. It helps you simplify your money management, invest smarter and build wealth by managing all your finances at one place without the help of any accounting professional.
Check the Invest Plus user guide to get more insights into the software.
