Why I Pay for Everything on a Credit Card

I have read many posts in frugal blog world about how people save money, and many times one of the steps is to never use credit cards. I definitely believe in "to each their own", and I have read each one of those blogs to see if that technique would work for me. Perhaps it's because my husband and I already try to live below our means (okay, I've slipped on it in August, but I plan to get back on track this September. But boy was it fun.), but I feel like the benefits of the credit card outweigh the bad.

1. First things first, which should be the mantra of everyone in the world: Do not charge something that you can't pay for on the spot. Every time I use my credit card, I treat it as if it were cash. I log onto my credit card account once a week to track spending and see if I need to tighten the belt. My credit card bill has always been paid in full every month since I first got it at 18-years-old.

2. I limit my spending to the categories of need: Shelter, Food, Clothing, Utilities and Transportation, always using bargain shopping to lead the way. I limit my purchased meals to once a week for lunch and once or twice a week for dinner (since I started going to grad school at night, but that will end when I'm done in Spring!!). I do not buy anything unless it is reasonable (or free!) and is in the basic categories of necessity.

3. Convenience of use. When I don't have to constantly think if I have enough cash in my wallet for a purchase, it helps me to have one less thing on my already frantic, overworked mind. This also means less gas used for running to the bank.

4. I get rewarded for it! I use a credit card that gives me cash back on all purchases. Every time the reward reaches $100, I apply it to that month's bill. By using a credit card, I also don't have to keep all of my money in a checking account or in an envelope at home. Instead I transfer it immediately after every paycheck to a high-yield online savings account. So while my purchases earn money back on the credit card, my real money is creating interest while it's waiting to pay my bill each month. It's like double earning power!

5. I'm also lucky enough to not be in dire need of money. I have some flexibility in my savings which I can use to purchase items that will receive a full rebate in 6-8 weeks. I really feel for the people who don't have that flexibility in their spending, but I feel that I should use it to my advantage to get paid back for using products.

I feel like my self-control (except for the fun August) and naturally frugal ways allow me to effectively use my credit card for my benefit. I hope that this helps myself, my family, and everyone who reads this.