Should I use credit card?
Is this your lifestyle?
- Lives in a metro city, frequents shopping and spends online for cabs, food, etc. and goes to supermarket, malls, uses high end salon, etc.
- Got at least 1-2 months of prediction in how much money is going to come⦠types of salary.
If yes, youβll save money with credit card.
First month: Get salaryβ¦pay rent and other EMIs. Invest the remaining in any liquid fund (7-9% interest rate). Spend everything on credit card. Keep only about 10k cash.
Second month: Get salaryβ¦pay rent, EMIs and credit card bill. Invest the remaining.
Repeat the above. Keep credit card bill payment date to be around 7th of every month. In any unfortunate scenario where you donβt get salary or credit card bill is higher than your usual, withdraw the above money and pay it off.
How to keep your spends in limit?
While I understand the irrational fear, donβt spend anything on you canβt afford. Never go for EMIs (not even no cost, naah!)
Add spending limits, especially for online. All credit card apps now give an option on each mode of payment. Youβre likely to do several transactions but unlikely to do large ones like 10k at once. So, put a reasonable limit.