A Powerful Wealth Manager Is Already In Your Pocket
Credit cards are essentially a way to borrow money. When used unwisely, they can easily empty out your finances. Amidst all the negative things that you hear about credit cards, you will be happy to know that credit cards can actually turn into your very own wealth manager and a smart one at that! Want to know about it?
Here is how you can go about making your credit card into a smart and money savvy manager
Curb expenditure with expense tracker
It is not easy to keep track of the expenses. However you can rest easy. Your card will do it for you. A quick look at the statements will let you in on the amount you have spent and also where it has been spent.
Many credit cards also provide summaries during the end of the year. This is very useful when you pay your tax.
Just saving the credit card statements will serve as useful records.
Invest money with easy loan approval
If you need to apply for a loan for personal or business purpose, it is important to have a good credit history. Banks speed up the process, if your CIBIL score and credit history are good. Although they cannot refuse a loan outright on account of a bad credit, the process would be delayed.
With prompt payments on the credit card, you ensure the bank that they can safely lend money without worrying about nonpayment.
Increase your money with benefits and perks
You can be assured of EMIs with zero percent interest only with credit cards. This makes all expensive shopping a great deal easier on your pocket. Make sure you verify about the zero percent interest with your bank, before you use the EMI option.
Other benefits include reward points, frequent flyer miles, discounts on purchases, cash back offers and more. Loyalty points also further increase the benefits, so you can actually save more while spending your hard earned money.
Protect your money
With fraudulent online transactions being a common occurrence at present, paying in cash may seem safer. But you can actually save your money from such fraudsters. If your credit card is stolen and used without your permission, you can stop the money transaction, as any transaction will be notified to you via SMS. You can cancel the transaction immediately.
Save expenses with credit card and spending integration
Start using your card as an important part of your expenses. To make this successful ,you should first pay off all your debts. This way you can begin afresh. You can also limit the expenses making it easier to pay the monthly dues every month.
Include the monthly expenses such as recurring bills, utility payments, grocery and gas expenses, regular purchases and big expenses, which you had planned on. When you include these in your credit card, you can track the expenses and control them. Further you can use the reward points and other perks that come with credit card spending.
Manage cash flow
Cash flow denotes the way money is used in your personal financial state. With proper management of cash flow, you can avoid overspending and more importantly have money even towards the month’s end. Since you pay all the bills with your credit card, and need not repay until the month’s end, you can easily manage the cash flow. This is particularly of great help, if you have an irregular income.
Just because you have a credit card, it does not imply that you can spend lavishly and above your means. When you spend smartly, so that it reflects favorably on your financial objectives and expenses that you have on a regular basis, you can manage to keep your finances under control and save more in the process. Only then is your wealth truly built.