Using A Rewards Credit Card To Shop

When you want to seriously save big money you have to take big steps like cutting up your credit cards and going on a spending fast. But these action are so drastic that many times you quit a few weeks into the plan. Much like dieting, you have to take baby steps in the right direction.

This post is going to how you how you can continue to shop just as often as you currently do, yet still save money. The way you can do that is by using a rewards credit card.

Start Shopping

When you’re going out to shop, use a rewards credit card to do your spending. In fact, any time you buy anything at all, use this rewards credit card. This includes buying gas, food and clothes. See if you can even pay your utility bills with a credit card as well. By doing so, you will be accruing points on your card.

Redeem Your Rewards

These points can later be redeemed for gift cards (so you can do even more shopping or they can also make great gift ideas). If you’re smart about it, you can use the points to give you a statement credit to reduce the size of your credit card bill.

Analyze Your Spending

Another advantage of putting all of your expenses on a credit card is that you will see clearly on one page (or several) where your money is going. This makes it easier to create a budget. Some credit cards even give you nice pie charts that show you visually toward what services your money is being spent.

Don’t Over-Spend

The danger in constantly using a credit card for all of your expenses is that you will go overboard on your spending. That’s why using a rewards credit card can be risky. You should only charge as much as you know you will afford to pay off at the end of the month.

The Next Step

By using a rewards credit card you can hopefully take that first baby step toward responsible spending. The next step is to begin saving your money. You can use this savings calculator below to give you an idea of how much money you can save over time if you stick to a solid savings plan.

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