Cashing Out Credit Cards – 52 Week Money Savings Challenge
We’re back for week 11 in the 52 Week Money Savings Challenge which means this week’s deposit is $11, bring the total balance of deposits to $66. Last week, we chatted about Keeping the Change or rounding our purchases up mentally and depositing that extra into the savings account. This week, we’re going to chat about cashing out credit cards.
I know credit cards get a bad rap, and for good reason, as one has to be very careful with them. It’s super easy to just start adding charges to a card and forget to pay it off or get so overwhelmed with the debit amount that you just don’t want to deal with it. We’ve been there before. However, I do believe you can use credit cards for good, if careful in doing so. If you watch your spending and make sure not to waver from the things you plan on using the credit card for (example: using one for all your gasoline expenses), you can add a nice little sum in rewards that can be used to either pay on the credit card itself or cash out and put that into your savings.
Some things to keep in mind on credit cards:
- Check for fees – make sure there are no annual fees for just having the card
- Check the APR amount – As long as you’re paying it off each month, this shouldn’t be a big deal but it’s still something to be aware of
- Check reward options – If the card doesn’t offer rewards that are beneficial to you, don’t bother using the card
- Plan the use – Plan out what you’re using the card for. Will it be for groceries, gas, both, or something entirely different? Don’t waver on your plan
- Pay it off right away – Don’t wait for the due date, pay on it as soon as you’re able
- Cut it up – If it’s just too much of a temptation, cut it up before it becomes a problem
Do you use credit cards in a special way? They’re aren’t for everyone, but I’d love to hear how you use them.
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I’m so glad to have you on this journey with me. I’m looking forward to each week and I hope these posts and the emails are not only helpful to you, but encouraging as well.
- If you are new and just now joining, subscribe to the weekly email and download your own copy of the 52 Week Money Savings Challenge printable. All current subscribers are entered into an Amazon drawing held at the end of the month.
- If you want to catch up on the reading of each week, go to our 52 Week Money Savings Challenge page and check out each week listed, as you’re able. Don’t worry about catching up on savings amounts unless you’re able to, just start with the current week and add extra if/as you’re able.
- Want to open an online bank account to help keep things separated? I personally use Capital One 360 and have for years. It takes a few days for transfers to complete if you’re using a local bank
Before we wrap up this week, I want to hear from you! 1) What are you most excited about in participating in this challenge? 2) What are your concerns or frustrations about setting money aside?
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