Plastic...A Girl's Best Friend

Today's post is regarding one of my fondest topics when people ask me about financing/budgeting/wealth - PLASTIC!

In today's world, credit cards can get you into a whole pile of problems, but if you know how to use them right, you can find yourself in a bigger pile of wealth.

When helping friends budget and when budgeting for our personal finances and our business, the credit card holds the key to all things wonderful, if and ONLY IF you know how to use them.

Keys to Credit Card Success:

#1: Use your credit card to buy everything possible- Groceries, clothes, car maintenance, even your home bills (many bills allow you to pay by credit card on their website)

#2: As SOON as you use the credit card, write down the transaction like you would a regular debit card or checking transaction. Yes, this means that you have to keep a checking ledger...as in, every time you make a deposit at the bank, that's a positive entrance into your ledger. Every time you make a purchase (transaction), that is a negative entrance into your ledger. A ledger (for you budgeting newbies) is simply a list of all things going into and out of your checking account. Why write down your credit card transactions as soon as you use the card? It's not coming immediately out of your checking account BUT the bill is right around the corner and that amount will have to come out of your checking account then, so go ahead and prepare your account for that happening! If you go ahead and write the credit card transaction, you won't "miss" the money when the bill arrives- the amount had already been reduced!

#3: As SOON as the credit card statement arrives, pay the FULL AMOUNT. To the penny!! This shouldn't be a problem since the amount of the credit card transactions were already reduced from your personal checking ledger. When you pay the bill you can either A) leave all the small transactions listed and make sure they balance to the credit card bill or B) erase the amounts (and add back in) all of the credit card listings and then make a permanent reduction to your checking account for the amount of the credit card bill. Why pay the full amount? You will find yourself in a pile of debt if you don't. Credit card people don't mess! They WILL and they CAN penalize you for not paying...and don't even think about paying the "minimum amount" because you will still accrue penalties for the amount that you didn't pay. That minimum amount due is no option...ignore that line all together if you want to have financial success!

#4: My FAVORITE part...reward yourself!!! We use BB&T Signature Visa- TONS of perks- HIGHLY recommended. In our Visa Reward's we get 1/100 per dollar spent back in reward points. For example, if we spend $1000.00, we get $10.00 in rewards. Not much you think? Think again! Add up all of your bills/checking transactions/etc. for just one month. You'll be surprised. And, it's free money (even Donald Trump wouldn't complain about free money)! In our business, we spend on average 21k per month on fuel (we run trucks all across America), so this comes to $210.00 in points every single month! These points can be spent on a plethora of things. My personal favorite are the Cash Cards that you can use anywhere, Fuel Cards, or restaurant gift certificates...even Starbucks! I like to accumulate our personal points for about 3-6 months. When a holiday or birthday is around the corner, BOOM! I have a free present!

So, swipe that card my friends! But, be smart in doing so. In a few months, you'll become a budgeting genius!

Our newest "big" credit card purchase...with Papaw Mo stuck inside while blowing it up!

For a side note: my title "Plastic...A Girl's Best Friend"...use your credit card in a smart way, accumulate those points, and you can get some plastic/saline/silicone that will be your husband's best friend!

Enjoy your day...I know I am as I sit here sipping my *FREE* Starbucks (using my credit card points, of course!)

Erica