The purpose of starting this thread is to share with you what I
think are the most effective ways to manage your spending with
plastic.
a) Understand what credit card companies' intention
Their main intention is to make you feel richer than what you
really are.
b) Use plastic when you can only benefit from it
e.g. special discount and rewards point. However that should never
be the only reason for you to spend money
c) Beware of overseas expenditure
Credit card company make loads of money through forex conversion.
If you need to go for a holiday, try not to use you credit card
whenever is possible.
d) Settle you outstanding balance even before they are due
Cash is king, the more cash you have the richer you feel. So the
rule of thumb is, try to pay off whatever you have spent with
credit card, so that you know what is your nett cashflow for the
month. This is extremely important if you choke up big ticket
items.
e) Credit card are hassle and they cost money
There is no need to carry so many carry card of the same purpose.
e.g. why do you need to have 3 VISA when they all serve the same
purpose? For me, get yourself, 1 master, 1 VISA and 1 Amex is more
than enough. What is more important is still CASH.