To Make That $$$. Wealthy people use cards to expand their businesses. They use it to make that $$$. Here is the key! They pay off their balances at the end of the month. They generate income with their cards and then pay it off. They hate paying interest. I am an affiliate marketer and I use my credit cards for marketing and I pay the balance every month. There is a daily limit on your debit card usage. But not with credit cards and I don’t need limits on my spending. My credit cards help me make money. If your plastic can help you increase your income then by all means use it.
Not for Personal Use. If you can’t pay the balance by the end of the statement do not buy it. If you couldn’t buy it with cash then don’t get it. I know you will pay it off later. If that was true there wouldn’t be all this credit card debt floating around. Don’t even carry it with you. Just having it will give you an urge to buy stuff. Stuff is what kills people financially. Broke people pay fees and interest rates because they can’t afford to buy with cash. That is the consequences of not having enough money to buy what you want. Fees and interest add up. You are just giving money away when you can’t pay it off before the statement date. Here is a trick I use. I always have a monthly budget. I know where every dollar is going. I take that budget and put it on my credit card. In fact I create a positive balance on my cards. Then I stick to my budget and I am never owing a balance.
Your Personal Bookkeeper. This is why I use my credit cards for every purchase. I get a statement at the end of the month, quarter, and year. I see where my money went and they add graphs too. I download the statements to my Quick Books software and give the year-end statements to my tax guy. Boom accounting is done.
Perks, Privileges, Rewards, and Points. The icing on the cake is all the perks, privileges, rewards, and points you get by using your cards. I am a cash back guy and I will get a lot of cash back this year (which I save to my investment accounts). My business credit cards gives me all the perks. I get points, miles, discounted VIP event tickets, and I don’t have to pay exchange rate fees when I travel around the world. I get travel insurance, rental car insurances which saves me $$$ on rental cars, and much more. Plus all this stuff is free when you pay your balance off. When you use your credit cards correctly you can cash in on the benefits