Sharing Daily Discoveries About Personal Finance And Business Topics

Credit Card Discipline

financial planning

I was talking to a person who mentioned that he couldn’t buy a product until he got paid later in the week. The item was semi needed and wasn’t much at all. So my first response was why not use the credit card? He was saying that he purposely made his credit card to have a low credit limit of like $500. This way, he found that it forces him to control his spending. Sure enough like in this case, he couldn’t buy it as he maxed out his monthly credit.

For someone like myself that just seems way too low since I am so accustomed to paying off the full balance and using it whenever I can for points. In some ways I don’t see how if you can discipline yourself from say not using money from a savings fund that is designated for say the mortgage that you can’t discipline yourself from not spending more than you have when it comes to the credit cards.
Makes me wonder like in these cases where if you have like graphical chart in front of you each day of how much bonuses you lose for not using the card as oppose to plain cash that it will encourage you enough to become disciplined and using it to get free rewards. If in the end it’s about saving money then throwing away free money should be something you aim to stop as well.

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