Credit Cards as Part of Your Frugal Lifestyle

When many of us think of frugal living, credit cards do not immediately come to mind. This is because credit cards are, in many minds, connected with free spending ways and debt. However, this doesn't have to be the case. It is possible to live a frugal lifestyle and still make use of credit cards.

Free Stuff: Foundation of Frugality

Frugal living involves spending some time looking for the best deals -- and there's no better deal than free. This is why Canadian credit cards can be so helpful. After all, a good rewards card can provide you with the opportunity to enjoy free stuff, keeping with a frugal lifestyle.

You can use your credit card on a number of purchases in order to gain rewards points. Instead of using your checking account for bill pay, you can pay your bills with a credit card. Rather than swiping your debit card at the grocery store, use your credit card. You will gain rewards, simply for spending money that you would have spent anyway. Gas, clothing, back to school, and any number of other every day items can be purchased with your credit card.

Indeed, you can even use your credit card for bigger events, such as when you go on vacation, or when you plan a wedding. The key is using your rewards credit card to buy things that you would normally buy. You reap the rewards, getting free stuff. Your reward points can be used for free travel, and even for free merchandise. It makes sense to get what you can for your hard-earned dollar, and your credit card can help you with this frugal living goal.

Cash Back and Frugal Living

Many of those living a frugal lifestyle would rather use cash back credit cards, rather than dealing with the hassles that come with reward points programs. Free airfare might be nice, but cash back is something you can take to the bank. Getting cash back is the ultimate in frugal living. You spend as you normally would, and you basically get paid to do it.

However, in order for this to work, and for you to be employing the principles of frugal living to your credit card use, you will need to make sure that you aren't carrying a balance. A credit card super user knows that all the cash back rewards in the world are useless if you are offsetting it by paying interest. As you incorporate credit cards into your frugal lifestyle, you need make sure that you are sticking with your budget, and paying off your credit card each month.

Track your spending so that you don't exceed your income. Using a credit card can be heady stuff. While they can help with your goals related to frugal living, you still need to be careful with your spending, and how you use credit cards. Smart credit card use can enhance your frugality; careless credit card spending will overturn your efforts and land you in debt.

This post was included in the Festival of Frugality at Parenting Family Money, the Carnival of Financial Planning at Green Panda Treehouse, and the Carnival of Wealth at Personal Dividends.