Finance How to use a credit card to finally stay on Budget Posted on October 4, 2018 8 min read 0 6,656 Contents1 Choose one card to pay all bills2 Make all daily purchases with the same card3 Make smart use of Rewards4 Set a monthly spending limit5 Review your statement regularly6 Frequently pay off the balance Most people would tell you that credit cards and staying on budget don’t go well but when used smartly they do go hand-in-hand. A credit card, in fact, can make the hard-to-accomplish task of making and sticking to a smart budget significantly easier. Here’s how to use a credit card to finally stay on budget: Choose one card to pay all bills To pay all bills select one credit card. Ensure that your partner is an authorized user on the same credit card to make using only one card for all bills a realistic practice. Start with making a list of all your personal bills including phone bills, electricity bills, and household expenses. Update the payment method on the online accounts of all items in the list. Make all daily purchases with the same card Once you’ve selected one credit card for your bills, extend its use for all your daily purchases, too. Use it at all places – grocery stores, petrol pumps, restaurants. By consolidating all your bills and purchases on to one credit card, you will easily be able to keep track of all your expenses. Make smart use of Rewards One important thing you should look out for while selecting a credit card for all your bills and purchases is that it should offer good rewards in terms of cashback and discounts. It will pleasantly surprise you to know how much you spend each week and how quickly the rewards add up, saving you a lot of money. READ The Role of Accounting in The Corporate WorldFor example, the RBL bank credit card allows you to earn reward points on every transaction you make and gets you discounts on movie tickets and other exciting benefits such as ATM cash withdrawal and easy EMIs. Set a monthly spending limit One thing most people using credit cards get wrong is spending more than they intend to. Since you’re looking at a credit card for the purpose of budgeting you need to set a monthly spending limit and then religiously stick to it. You can use any money management app for alerts and reminders to help you stick to your budget. Review your statement regularly Reviewing all your expenses regularly is pivotal to budgeting. That’s how you realise not only how much you’ve already spent but also how to plan for the remaining weeks before your paycheck comes. Using a single credit card for all your major expenses like bills and daily purchases makes reviewing all your transactions extremely simple and convenient. All you need to do is review your RBL credit card statement. You can do it weekly or every two weeks, whatever is feasible according to your schedule. Frequently pay off the balance Another great way of staying on budget with the help of a credit card is to make your RBL credit card payment frequently. You can set a fixed day for this, maybe the same as the day you decide to review your statement. Not only will this habit help you stay on track with your budget but will also lead to good financial behaviour and a good credit score. With these tips you can finally stay on track with your finances using the convenience, ease and benefits of credit cards.
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