If you are able to budget appropriately and live within your means, a credit card is a powerful tool that can help you track your spending, build credit, protect your purchases, get you discounts, and provide you with awesome rewards.
We all need to spend money to live, might as well do it the most efficient and profitable way!
Simplify your life (and your budget!)
You guys know I love to take the easy way when it comes to my finances, and one of my favorite shortcuts is charging all monthly bills to a single credit card. That way, I only have one bill to pay each month (the credit card bill) rather than a dozen small ones. I always set up automatic payments from my chequing account to my credit card to ensure I’m never late on my bill. Never missing a payment helps keep my credit score high.
I charge virtually everything to my credit card and rarely carry cash. This makes it easy to track my expenses. With cash, it’s very easy to spend $20 here and $40 there, and then by the end of the week, have no idea where it all went. With a card statement, there’s a paper trail of exactly where my money has gone.
Protect your money
Additionally, credit cards are safer than cash. If someone steals your wallet, they can spend your cash with no questions asked, but they’ll have a harder time using your credit card. If they do find a way to do so, you are not liable for anything they buy. Usually all it takes is a simple phone call to the credit card company to have items you did not purchase removed from your account.
This has happened to me with bank cards and credit cards, and I’ve always been relieved by how quickly the situation was handled and my money was returned to me!
Use your cash back rewards to bolster your savings
The SimplyCash Card from American Express gives you a market leading no annual fee flat cash back rate on everything you buy with the card. You can earn a great 1.25% cash back rate on all your purchases – and the best part is, there’s no limit on the amount of cash back you can earn!
By receiving cash back rewards credited directly to your credit card statement, your budget gets a welcome boost. If all your regular bills are charged to your credit card, getting a cash back statement credit is like receiving a discount on regular expenses!
Supersize your cash back by combining offers
When shopping online, you can really rack up the points and cash back.
Before I buy anything online, I search for a coupon from RetailMeNot. They typically have coupon codes for 10-15% off. I then go to eBates, which is an online site that provides 1% to 10% cash back on your purchases, which you can claim as real cash or gift cards. I search for the online store I’m looking to buy from, and then click through. It’s that easy.
To further maximize my rewards, when checking out from the stores website I enter my discount code at checkout and use my cash back credit card – so I separately earn 1.25% on SimplyCash, that’s even more cash back coming my way! Remember to never pay more than you have to, kids! And grab a discount whenever you can.
Personal finance is personal, and your credit card should be too
When it comes to your money, make sure you’re getting the most bang for your buck! By using a no-fee cash back credit card, you can not only manage your spending, but make your spending work for you!
This post was sponsored by Amex Bank of Canada. The views and opinions expressed in this blog, however, are purely my own.