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    Great minds think like me...

    https://dqydj.com/the-perfect-credit...ding-strategy/

    A credit card has two main functions:
    • Credit Cards allow you to purchase goods and services today and allow you to pay for them later (the dangerous credit card strategy)
    • Credit Cards increase your liquidity by allowing you to spend money on days you do not collect a paycheck (the ideal credit card strategy)


    Most people don’t collect a paycheck every day. Most people also have a good idea how much money they make in a month. If you are one of those people (and I imagine most of you are) you can use one simple strategy – pay for things on your credit card (preferably a rewards card), and pay the balance at the end of the month. Think about it – it is much simpler to have a credit card (which by the way protects you from fraud, is easier to carry than cash, and, if you use a rewards card, even gives you rewards to use it) than to withdraw a huge amount of money at the beginning of each month, spending it down on each purchase.
    The only difference is that I pay our CC bill every Sunday (which I did not 30 minutes ago).

    #2
    There are a couple of other related benefits of using credit cards.

    1. I only have one transaction to record each month instead of a couple dozen. I would go nuts if every time I bought anything or paid for anything, I had to record that transaction. I just looked at our 2 main credit card statements from last month. There are a total of 48 transactions. It's nearly 60 with our 2 Discover cards. I know I'm old fashioned but I still keep a paper registry for our checking account and record everything by hand and balance the account each month. That would be far more difficult if I switched to debit.

    2. Debit cards might do this too. I honestly don't know. But our credit cards give us year-end statements that break down all of our charges by category (auto, travel, dining, etc.). It's a very useful financial tool to review that summary each year. It's great for budgeting purposes.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      Originally posted by disneysteve View Post
      1. I only have one transaction to record each month instead of a couple dozen. I would go nuts if every time I bought anything or paid for anything, I had to record that transaction. I just looked at our 2 main credit card statements from last month. There are a total of 48 transactions. It's nearly 60 with our 2 Discover cards. I know I'm old fashioned but I still keep a paper registry for our checking account and record everything by hand and balance the account each month. That would be far more difficult if I switched to debit.
      I keep the check register on a spreadsheet, and "pre-fill" most expenses, because I know when and how much they'll be.

      The rest aren't a chore (for me) if I keep up with them every couple of days.

      our credit cards give us year-end statements that break down all of our charges by category (auto, travel, dining, etc.). It's a very useful financial tool to review that summary each year. It's great for budgeting purposes.
      Last time I looked at my EOY breakdown, the automatic category placement was pretty mangled, especially since we spend so much a Wally World.

      (Also, monthly numbers are more important to us, and year end budget numbers are uninteresting.)

      Comment


        #4
        Originally posted by Nutria View Post
        (Also, monthly numbers are more important to us, and year end budget numbers are uninteresting.)
        We don't do actual budgeting so for us, the summary is a good overview to see where things stand and how we made out for the year. Comparing it to the prior year is useful.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment

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