I just had a great idea today....I have an American Express card that earns miles on Delta...I got the card because I got 40,000 miles just for signing up. I autopay my utilities on the card so I earn miles every month. Of course I'd like to earn more but I hate having a credit card bill. I pay most of my expenses with my debit card.
So -- Amex is running a promotion this month that you can earn triple miles for the next 2 months, and also double miles for gas and groceries. So, I decided that I'll use my American Express all month, but I'll tell myself in my mind that I've used my debit card, so every time I buy something, I'll subtract it from my checkbook just like I would with my debit card; I'll mark it somehow, with a highlighter or a star or something; then when the bill comes in, I will have already removed that amount from my balance (in my mind and on my register, but the money is still in there), so I'll just write a check --
This will only work if you are extremely disciplined -- I feel like I am with my money (not with my food, but that's a WHOLE other story!! lol) -- this way, I can earn the extra airline miles --
has anyone else tried this? I will let you know how it works. It's just a matter of subtracting it from your checkbook - so that way I'll tell myself, ok, I only have $200 to spend, or whatever amount it is - then I won't overcharge. I'm pretty excited to get some extra airline miles --
Good attitude.......I basicly do the same thing only not in my checkbook.....I keep a ledger of all expences. It does take discipline, but what a good feeling at the end of the month ! I also keep a :"cushion" in my checkbook just in case there is an unexpected expence that month.
We do what works for us; I have seen a number of people in here shy away from credit cards but sing praises to debit cards. Not me. I use credit cards and never understood the allure of debit cards at all. Naturally, for me to say that it practically goes without saying that I always pay my credit card bills in full and on time every month and pay no fees or interest of any kind. I enjoy all the perks that go with using the cards and can play float.
I can also be anal about my checkbook balance so I would have to record every transaction. Somehow, doing that with a debit card at the point of sale tends to defeat the purpose of its convenience to me; I may as well write a check. With credit cards, I just shove the receipts in a little compartment I have in my key case, and record them at my leisure at home so I can match them to the charges on my statement as they clear. If sh** happens (and eventually sh** happens) and an unauthorized transaction occurs, that money is removed from your account if paid with a debit card. Sure, you may eventually get it back after an investigation, but in the meantime, you are out the bucks and (God forbid) if the transaction is large enough, you may incur overdraft fees and/or start bouncing checks. With a credit card, you file a notice of dispute and can avoid paying while they investigate. Same holds true on purchases. If you pay for something you experience an issue with and wish to return it, the merchant is sitting on your cash if you paid with a debit card, but not with a credit card.
Back before my divorce I used to keep a cushion in our joint checkbook and do some creative bookkeeping so there was always more in there than the balance in the checkbook showed which I kept track of in a separate notebook. My now ex left it up to me to balance the checkbook and pay the bills. It was self preservation because if he wanted money he just took it out of the account at the ATM and never bothered to find out how much was in there or what was needed to pay bills. If he did look in the checkbook and saw much of a balance, he just HAD to spend it on something. I still have a cushion just to be safe.
Yeah, my daughter was doing the same thing prior to her divorce, but it wasn't working very well. He spent it faster than she could hide it, and then it was all her fault when they had to spend hundreds a month on fees. I brought her up to keep track of money, which ticked him off no end. Unfortunately for him, his mommy stopped bailing him out. Now he has a new girlfriend who is bailing him out. We'll see how long this lasts.
I track everything on Quiken and since Capital One is doubling my interest starting in January, I decided to screw them out of those fat fees, by tranferring the balance to a new card with 0% interest for the first year. However, I do have money available to pay off everything should I desire to do so, but I'll just pay 0% for year ( I have no plans to use that new card except for this purpose)
I think, though, I'll start using the Cap one for groceries instead of the debit card to get my rewards points to the point that I can cash them out (almost there) and again, I'll keep my receipts like I do now and enter the amounts as I go.
My daughter controls everything totally as my SIL (with ADD) can't manage money. He has no access to the checkbook, ATM card, or credit cards. That's just the way it is and he's OK with it.
Since I do most of my banking online, it' s easy to just come home and transfer the amount right away.... then it's all done and paid for, usually even before the charge hits the account. When shopping online, you're even already at the computer... easy.
I've posted about this before. I have the Costco/AmEx card that gets us almost two months worth of free groceries each Feb. I use another card that reward points can go toward paying travel or booking fees, toward our RCI membership or for merchandise. I find that using points for airfare can cost more in the long run.
I put most bills, except rent and utilities (cause they charge a fee) on the cards, pay both cards in full each month and reap the benefits of the rewards interest free. I never use my debit card, except on the rare occasions I want to get extra cash at the supermarket, because there's no benefit in it. Plus for purchases, credit cards are safer and provide protection in case something is wrong with the product. Schwab just reported other benefits that some credit cards offer in it's magazine such as travel insurance, car rental insurance and small additional life insurance coverage (free for basic).
I've blogged about making money using credit cards but ou are right, using credit cards is not for everyone. It's not for those who let it get out of control, don't keep track, keep a balance or don't make full use of it's benefits. I would rethink credit card usage only if they start penalizing me for paying balances in full.
Absolutely -- I never charge more than I can afford, and stay away from impulse purchases, and always pay my balance in full each month. As far as airline tickets costing more if you use free miles, my point on that goes to my first sentence "I never charge more than I can afford, and stay away from impulse purchases" -- I also signed up for other programs to earn airline miles, such as Dining for Miles, erewards, and emiles. I don't mind doing their surveys and they've changed the redemption process so that you aren't restricted to one redemption to airline miles each quarter, or whatever they used to have.
If I'm going to buy something anyway, then I'll use the credit card for points -- I still have my trusty old change jar, too, so that's how I pay for my hotel (unless I can stay at a friends house), rental car, and meals.
Some people prefer cash back -- hey, whatever works for you is the best thing! I was just excited to realize I can just subtract it from my checkbook as soon as I put in on my credit card, so when the bill comes, I'm not stressing about taking the money from savings to pay the bill! I just can't believe I never thought of it before and if someone else mentioned it I guess I wasn't paying attention.....
