I’ve decided to start a new series entitled, “Credit Card Enlightenment” revealing a portion of what I spend on a monthly basis from my personal credit card and any enlightenment that is found through the analysis. This monthly series will be a good way to track expenses and keep things from getting out of control as peripheral income grows. In other words, tracking credit card expenses is one way to battle lifestyle inflation.
The use of credit cards is critical in the way I spend. I buy items with confidence knowing that I have 30 days interest free to pay it off. I also like how credit cards provide reward programs and buyer protection in case of product dissatisfaction and fraud. Finally, I do not like carrying much more than $80 in my wallet. Credit cards are easily replaced if my wallet is lost or stolen, whereas cash is usually gone forever.
Besides my mortgage, my credit card is my largest monthly expense. I own three cards: a corporate card for work, a corporate card for my online business, and a personal card. The discretional spending really comes from my personal credit card, hence this card is what I will focus on in this post. I try and put everything other than business expenses on my personal credit card because the credit card tracks all my expenses, provides free financing, and produces rewards points.