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, you’ll save money with credit card.

First month: Get salary…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 salary…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 don’t 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, don’t spend anything on you can’t 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. You’re likely to do several transactions but unlikely to do large ones like 10k at once. So, put a reasonable limit.