Would a good way to budget and keep control of spending be to put absolutely all of your spending on your credit card, then make a massive payment at the end of the month?
says Diego on Aug 1st 18 (#821703)
No. I wouldn't do that! I just pay the bills as they come. I pretty much know what they'll be and budget from there. At least I don't have a house payment to bother with. Nice paying cash for a house. I'm pretty good with handling money after owning a business for years.
says Rooster on Aug 1st 18 (#2798716)
Bad idea. Using a credit card for purchases you can make via debit card or cash is stupid, You're paying interest on money you borrow which is a liability.
Use credit cards for things that require CC, like booking a hotel, plane or concert tickets. I see people using it for grocery shopping, gas, clothing etc.
Regardless of the interest rate you have with a CC company, you're still paying interest on borrowed money.
People that say I need to use my CC so I can increase my credit score no nothing about credit ratings and how to increase your score and maintain it.
says SynysterGates on Aug 1st 18 (#2798721)
You can use credit cards and never pay interest; you just have to pay the balance in full every time.
says JerryHendrickson on Aug 1st 18 (#2798763)
That's kind of what I was thinking (as in "huge payment at the end of the month")
says Diego on Aug 1st 18 (#2798764)
Yes but you do have some fees tied to the card, at least we do, even with the best credit rating.
says SynysterGates on Aug 1st 18 (#2798765)
Lay payment fee is about the only one I have.
says Diego on Aug 1st 18 (#2798766)
No annual fees?
says SynysterGates on Aug 1st 18 (#2798768)
No, no annual fee. No over the limit fees.
says Diego on Aug 1st 18 (#2798771)
I don't either, but I guess people with not so good or bad credit have fees etc.
I've had my CC with the same bank for over 15 years, cots me nothing to use it, but I still rather pay via debit card.
says SynysterGates on Aug 1st 18 (#2798774)
I had a card with an annual fee, but once things picked up, got a different one (no fee, lower apr) and I closed out the fee based card.
says Diego on Aug 1st 18 (#2798776)
With both my Visa and Mastercard, I pay no fees or interest. I do keep receipts and a running balance sheet for each card so I know what I'm looking at when the bill comes.
says JerryHendrickson on Aug 1st 18 (#2798781)
Yeah I should've clarified that my Visa CC has no fees or interest, I was talking about people who's credit isn't that good or poor and use a CC that has monthly interest or fees or even both.
says SynysterGates on Aug 1st 18 (#2798841)
They all have interest if you don't pay the full balance every time.
says JerryHendrickson on Aug 2nd 18 (#2798949)
For a person? No.
For a small economy (like a business, state or small country)? No.
For the world's only legitimate economic super power whose currency is the de facto fiat currency which most other currencies use as specie, then yes. It totally makes sense to treat debt as an asset under those conditions.
says VicZinc on Aug 1st 18 (#2798722)
I'm using a debit card. Obviously I have VISA on it, so I can make international purchases, if necessary, but never over the limit of my actual limits. Also, there is a spending limit, with the bank. I did set it up, when I created the account about 12 years ago.
says ZonkeyBalls on Aug 1st 18 (#2798734)
I know people that do that. They get points or something that use for travel.
It seems to work for them.
I wouldn't do it myself. I'm not built the same way I guess. I know what regular bills I need to pay and budget to ensure I've got money ready to pay those when due. Money left over is what I stick in savings first and then the rest goes for fun stuff - on the debit card.
says Budwick on Aug 1st 18 (#2798782)
Exactly. I learned early on in my marriage that my husband was a spender...therefor why I had to put money away every week(for emergencies or if he got laid off etc.) in a separate suffix of our joint account that he can't access... ONLY because if he knew we had that EMERGENCY money that I've saved to pay for 6 months of our family's fixed monthly expenses, he'd think we were "rich" and want to spend that money on stupid sh*t as him being a spender.
What's ironic is that my husband grew up feeling poor, and I grew up feeling "rich" knowing my dad had money when I was a kid/teenager...yet my husband is the spender and I'm the saver for a rainy day, go figure.
says Gronk17 on Aug 2nd 18 (#2798945)
It's not ironic; it makes complete sense. Spenders don't have money; savers do.
says JerryHendrickson on Aug 2nd 18 (#2798955)
Back when I was a single working mom in the 80's and early 90's, I always had a cushion of money in my savings account, thus why I wasn't devastated(like my co-workers) when we got laid off from the Fortune 500 company we worked at for 10 years.. because I knew I would be financially all set if I couldn't find a new job in a year...I found a better paying job within 2 weeks.
says Gronk17 on Aug 2nd 18 (#2798978)
It's almost as if we had the same momma.
says JerryHendrickson on Aug 2nd 18 (#2798979)
I loved and adored my stay at home mom...however for ME it was my Sicilian Marine dad AND my mom's Irish LEGAL immigrant working mom(tough as nails nana) who were the most influential people in my life when growing up.......My dad was my rock/hero, and my nana was a tough as nails working mom who would walk everyday to work at the "Soldiers Home"(VA) when my mom and my aunt were little, and continued to do so(walking to work EVERY DAY) to care for our veterans) well into her late 70's, and only retired from her job after having a sever hip injury(needing surgery) where she knew she could no longer walk to her job anymore.
says Gronk17 on Aug 3rd 18 (#2799198)
You guys are lucky to have you in the relationship to bring some sanity to your personal economics. I bet you make a good team - as long as you are holding the purse strings.
Not a slam on hubby either. We all have strengths and weaknesses.
Thanks for a peek into the Gronk household! Your experience may be helpful to others.
says Budwick on Aug 2nd 18 (#2798988)
In most marriages there's a spender and a saver...for those of us who are the savers, we have to deal with being called "the fun killers" by our spouses when the spender wants to spend money on WANTS, whereas you as the Financial Planner of your family's finances KNOW that you can not afford that want/expense...thus being forever deemed as the "fun killer" in the family lol!!
says Gronk17 on Aug 3rd 18 (#2799200)
Your family is lucky to have you.
says Budwick on Aug 3rd 18 (#2799265)
I have a debit card and no credit cards.
I pay bills, then buy what I want as I see fit...no problems for me.
says DandyDon on Aug 1st 18 (#2798805)
My wife and I don't budget by using a credit cards but we make purchases on them. This is mainly because my wife has financial discipline. She does not let balances exist from month to month so we never pay interest.. and we do earn points for using some of the cards.
says PhilboydStudge on Aug 1st 18 (#2798834)
There really is nothing but to learn the business and then control yourself. Anything else is like a tightrope: fine until the first time you fall off. You can take personal finance classes at the local college. Now that is a good investment!
says that_guy on Aug 1st 18 (#2798854)
Some people have financial discipline and some don't and it is wise to know which you are. Some people need to escrow their taxes and some are ready for the tax bill when it comes. Putting everything on a CC would be a disaster and very probably end in bankruptcy for quite a few people. I don't recommend
it for everyone.
I would say to write down all your expenses for a year and then decide how you would want to handle it.
says ozzyboy on Aug 2nd 18 (#2798890)
Exactly....some people are financially smart/disciplined, therefore they pay ALL of their bills on time and have the know how on how to take advantage of these 0% interest/money back credit cards..my sister is one those people, therefore using her points to purchase a new washer/dryer, using her points to travel for free etc., etc.
HOWEVER, my sister is a rarity... a lot of college educated/smart people in our country unfortunately do not have that kind of financial discipline OR know how to balance a budget OR know how to reconcile their monthly bank statements...therefore why they get themselves into outrageous credit card debt.
says Gronk17 on Aug 2nd 18 (#2798934)
It's not a way to "budget", but can be a good choice. It depends upon your fiscal accountability. If you are financially savvy, it can be a good way to go. If you get a card that gives you points towards something you might use or cash back on purchases, it is a wise move provided you pay it in full every month.
says Bozette on Aug 2nd 18 (#2798930)
The last 7 words in your comment are the key.
says JerryHendrickson on Aug 2nd 18 (#2798957)
says Bozette on Aug 2nd 18 (#2798959)
In general not a good idea, due to the temptation on any given month(especially during the holidays) to put off paying a monthly balance in full to instead opt for the minimum payment due, thus being charged interest to pay your fixed monthly expenses.
In my opinion in regards to credit cards, if one does not have their own money in the bank to be able to use their ATM/Debit card to purchase a "want", they can not afford that "want".
Credit Cards IMHO should only be used as a safety net when there's an unexpected expensive NEED that one didn't see coming/budget for....not to be used for things one WANTS.
says Gronk17 on Aug 2nd 18 (#2798931)
It doesn't hurt those with the will power to pay that balance off in full every time though. In fact, if you're disciplined, I can make life easier.
You just have to know how to keep your books and priorities straight.
says JerryHendrickson on Aug 2nd 18 (#2798958)
I agree....However there's a lot of people in our country who do not understand AT ALL how finances or credit card work....thus why back in the 2000's so many people signing on to buy homes that their budget could not afford..but signed on anyways BECAUSE the bank was willing to lend them that money, thus them THINKING "well if the bank is lending me this money I must be able to afford the monthly payment."
Whereas back in early 2000's when re-financing our home ONLY for a lower interest rate, I eventually HAD to call out the sleaze bag broker who was trying to convince my financially clueless husband(who is a master carpenter/builder) to take out the 150K in our home's equity back then TRYING to convince my husband that our house would be worth a 1/2 million dollars with the 150k his bank was willing to lend us on our existing 100K mortgage...I flat out told this guy that there was no way in hell that any home on our street would EVER be worth 1/2 millions dollars one day, and that you clearly know based on examining our income we provided to you, that you know our family's income could never afford to pay double what our current mortgage currently is.
IF not for me being "wicked smaaaaaaat"(lol)...my husband would have blindly agreed to sign on the dotted line to take out the 150K in equity of our home back then...flash forward to 2018, a new home being built right across the street from our home is on the market for $300k NOT for a half a million dollars!!! lol
says Gronk17 on Aug 3rd 18 (#2799210)
I agree with you. The problem with credit cards companies is they thrive on people with bad money management. People that live their lives on credit. Income isn't high enough to barely pay their bills yet they buy stuff of their CC.
Credit card companies hate people like me, i pay my balance many times before the due date, I like my card with zero balance, cause ya never know.
says SynysterGates on Aug 2nd 18 (#2798998)
I never use credit cards.I pay cash.
says hootowl on Aug 2nd 18 (#2799008)
Must be fun buying a car.
says Diego on Aug 2nd 18 (#2799060)
They except checks or cash .
says hootowl on Aug 2nd 18 (#2799085)
That's how I do it...saves a lot of money.
says DandyDon on Aug 3rd 18 (#2799112)
No. I charge groceries, gas, clothing, misc. and pay off my charge card in full each month, so there is no interest, but pay all utility bills by check as they come due.
says StarzAbove on Aug 4th 18 (#2799642)