Credit Card an amazing tool for saving money

 

Plan a Monthly Budget

To save money, you should first have a plan/ Budget for a month.

You need to create a monthly budget, so on a piece of paper write down all the upcoming expenses for a month such as Rent, Grocery, Fuel, Car maintenance etc...

For example, if you have a monthly salary of 10000 then keep aside around 4000 for your monthly expense and rest 6000 rupees put them in the bank in a saving account and try to Limit your expense only to 4000 this way you can experiment and check if you are able to limit your expenses to only 4000 per month, experimenting is the key. 

Use a Credit Card instead of your Savings!

You have a Credit Card, first thing first, use your credit card strictly for all your regular monthly expenses of a month. 

And the cash/Savings from your salary, which you would have used if you didn’t have a Credit Card, put that cash in the bank and get at least some interest in that money. 

and make sure that you don't make any unwanted expenses on your credit card and at the end of the month you pay the credit card bill from my salary. 

so, in a Nutshell you will use your credit card money instead of your savings to pay for all for all your expenses and put all the cash in the bank for any capital gains 

 

Manage Credit Card limits!

Once you have figured out your monthly expenses now it's time to add a limit to your credit card. Your credit card company will provide various options where you can set a limit on your credit card expenses.

Once you reach that limit you will no longer be able to use your credit card until you reach out to your banking app to reset or increase your limit

Now it’s one's own will to raise the limit or not but it’s not advisable to do so as the whole purpose of saving money will go into vain. 

Cash Back

Credit cards can be a great way to get cashback on daily purchases. Some credit cards offer introductory cashback on online purchases, Shopping, Dining, Travelling & bill payments. 

While paying through credit card these cashbacks are an easy way to get around 2 to 5% cashback on daily spending which you will not get while paying through cash