If you are trying to change your financial habits, one of the first things you are likely to to is to change the way you handle your credit card purchases. However, in some cases, using a credit card is the preferred method of payment. How do you limit your credit card charges in a way to change your habits? Redeeming Riches has three ideas, and I have one of my own:
- Delete your cookies: Redeeming Riches suggests that you delete your cookies and avoid saving credit card info on web sites. This way, you will think twice when you have to go through the hassle to put in all of your information in for each purchase.
- Use the $25 rule: Redeeming Riches points out that many times, we see something else that we want when we are making credit card purchases. Instead of springing for it, have a firm rule that you will not spend more than $25 than originally planned. If you see a $26 accessory, too bad. It violates the rule.
- Come up with three reasons to buy: Instead of just purchasing something, Redeeming Riches suggests that you list three reasons to buy the item using a credit card. He points out that “I don’t have the cash” doesn’t count. In fact, that should be the overriding reason to avoid buying the item with credit.
- Take it out of your checking account: This one’s mine. I like to deduct the money I spend on my credit card from my checking ledger. I write a check each month to cover what I spent on my credit card, and taking it out of my checking account lets me keep from spending more than I actually have.
Do you have any tricks to limiting what you spend on credit cards?
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