In in earlier article I described the benefits of simplifying your spending to help you control your budget. In it I discuss how I started using my credit card for most of my bills and everyday spending. This has helped me because I just pay off my credit card each month, it consolidates my spending considerably, plus I get rewards. This approach has been very successful for me, but it may not work for many others. There are a lot of people who cannot use their credit card in this manner because they struggle with being able to be disciplined enough to pay it off each month. If you’re not careful, it’s very easy to fall back into the same bad spending habits by not paying off the entire balance each month.
The true key to being successful with your finances is to use the methods that work for your situation and your personality. I used to have issues with my credit cards (as I’ve been in credit card debt twice and had to dig myself out both times), and it caused me to literally put them away. I decided to only carry one credit card in my wallet, and it was for emergencies only. That was the only way I was going to learn not to spend money that I didn’t have. Over time I’ve gotten a lot better, which has allowed me to take advantage of using my credit card now. Being able to work through your financial issues is crucial to being able to progress into better financial situations.
One of the big reasons why I decided to do all of my primary banking, including checking/savings accounts, credit cards, and brokerage, at one big bank is because it makes it easier for me to handle my finances. I can see all of my major account balances, account histories, and spending trends all in one place at one login. I do just about all my banking online and have for years as well. I just love the convenience and global availability that comes with online banking, and I do just about any transaction that I can online. What those subtle changes have allowed me to do is organize my finances in a way that makes the most sense to me and makes it the easiest for me to manage on a daily basis. That control and familiarity provides me a greater chance of success in the long run.
While there are many opinions on how to improve your financial situation, the underlying principle should always be to do whatever makes the most sense to you. Don’t worry too much about following a specific budget routine that you want to try out, focus more on incorporating the key points of the routine into your own formula in a way that makes your financial life easier. In my opinion, money is one area where ease of use is important since it’s something that you have to keep on top of constantly. The easier you make it on yourself, the better you will perform when it comes to managing your money. The more that you complicate things, the greater chance you have at spending more time with administrative overhead instead of finding more ways to improve your situation.
