Credit Card Budgeting: How to Stay Financially Responsible
Budgeting with a credit card can be a smart financial move, if done responsibly. Credit cards offer a convenient way to track your expenses, while providing fraud and purchase protection, automated alerts and assist in building credit history. These tips can help you use a credit card to manage your monthly budget effectively and get rewarded for your purchases, too.
Tip 1: Organize Credit Card Eligible Expenses
Effectively managing your finances starts with organizing your expenses. Itemize and categorize your charges to understand which categories you’re spending on with your credit card. Some financial institutions even offer a real-time breakdown of expenses by category. This organization is an important step for effective credit card and budget management, because knowing what types of expenses you habitually put on your credit card each month can help you manage your monthly spending.
Tip 2: Automate Credit Card Payments
Automating your credit card payments can be a game-changer for your budget. It ensures that you pay at least the minimum payment on time each month avoiding unnecessary interest and fees. However, when using a credit card to manage your budget, it is important to avoid paying just the minimum payment. If you are spending within your budget, you should aim to pay off the entire balance each month, avoiding a revolving balance that will become harder to pay off.
Tip 3: Enjoy Rewards
One of the benefits of using a credit card to manage your budget is the credit card rewards you earn. Maximize your rewards by aligning qualifying purchases with your financial goals. Whether it's cash back, travel points or other rewards, you can choose a credit card that best suits your lifestyle. It might even help your budget!
KEMBA Can Help You Choose the Right Card
If you are exploring your options for a new credit card to manage your money more effectively, KEMBA can help. Our rates are competitive and our cash back perks make our credit card options a great tool to help you manage your budget and get rewarded at the same time. With our 12 area branches, you can visit your local credit union branch or contact our dedicated member service team at 614.235.2395 and select Option 4.