Benefits of Cash back Credit Cards

Cash back Credit Cards

Many credit card companies are attracting potential customers with offers of hundreds and even thousands of dollars in cash return bonuses. Credit cards that offer rewards can be valuable to make purchases on credit, especially cash back credit cards that are becoming more popular. Even so, experts warn that credit cards with rewards are only rewarding if you have a strategic plan to manage the debt.

Before purchasing a credit card in the hope of getting a cash reward to consider a few aspects.

Annual fee of the credit card you are considering taking

Some credit cards reward their cardholders with a credit card without annual fee. Others don’t. In fact, some cards have annual fees between $500 and $ 1,000, even for adding additional headlines. Before having a credit card with cash back, check the fine print of the annual fee. Often it is not worth opening those high annual rate credit cards.

If there is an annual fee, you will have to weigh what estimate you will receive in cash return bonuses, against the dollar amount of the annual fee. If you think you will earn more in cash return bonuses than you can pay in the annual fee, the card could be a good business. If not, it is simply a waste of money. Also, there are a lot of cash back cards that do not offer an annual fee, so you should take a look at those cards before you consider having them.

What percentage of cash back is being offered

Each card has different parameters regarding the percentage of purchases that will pay in cash. For most purchases, you will receive between 1 and 2 percent cash back. However, many cards offer a higher percentage of cash back for certain categories, such as gas purchases, restaurants or purchases at department stores or specialized stores. It is always advisable to compare the cash return percentage categories of each card with the spending habits of your own family before choosing a cash back card. It is also important to keep in mind that most cards have return limits. When comparing cards, consider what the total cash limit for each company’s card is.

Interest rate of the card

This is another very important point to consider while choosing your credit card. While some cards have reasonable interest rates of 10 to 12 percent, others have astronomical rates of 25 percent or more. Again, it is important to read the fine print before accepting any credit card offerings so you can be sure of getting the best possible interest rate.

It is also important to make sure that the amount of interest you pay each month does not exceed the amount of your cash return bonuses.

If you have the habit of paying your credit card balances in full each month, a cash back credit card is a great offer and you will not have to worry about paying interest. However, if you have the habit of carrying card balances from one month to the next, you may want to think twice before requesting a cash back card to avoid paying more interest than you would have on other cards. If you can find a cash back bonus card that has a lower interest rate than your current credit card, it might be worth the change. As always, it is suggested that you settle your debts as soon as possible so that you have more freedom in the use of your money.

If you have evaluated the above parameters and decided that a credit card with cash back is the best for you, it is important to look for the best return plan. Here we will discuss two cash back bonus cards that could be useful to you.

The Citi Double Cash Back card

From Citi’s website: “The Citi Double Cash Card is a cash back card that rewards you with a money back twice with an unlimited 1 percent on purchases, plus 1 percent while paying for those purchases.

The Citi dual card also offers an annual percentage rate of 0 percent on balance transfers during the first 18 months (no cash back on balance transfers), no annual fee and occasional promotional offers when percentages increase bonus for cashback.

The Visa Signature Fidelity Rewards Card

The Fidelity Rewards Visa Signature card offers a 2 percent unlimited cash refund on all purchases. In addition, the reward points never expire. Other benefits of the Fidelity Rewards card include:

  • No charges in the annual fee
  • Concierge services
  • Zero liability for fraud
  • Exclusive travel and shopping offers

Both cards are classified among the main cash back bonus cash back credit cards currently on the market.

Conclusion:

Cash back rewards cards can be a great way to bring a little extra income into your home, provided you have followed the above parameters and made sure that the interest paid and the annual fees do not cancel your bonus rewards. Consider using a reimbursement card in cash for your monthly purchases as a step to move toward your financial independence process.

Family Budget – Tips to Manage Your Finances Effectively

Family Budget

For many people, keeping a budget and sticking to it is primarily a constraint. Somewhere, actually, putting yourself in a barrier is a constraint. A bit like children who have rules to respect, it is ultimately to be freer.

The idea of budgeting is to be able to pay bills, put money aside and have fun without regret. Have you ever discovered that your account balance was close to zero without really knowing where your money was? By dint of small pleasures, we often end up finishing the month in the red. This is why budgeting is needed. Here we will discuss the ways and methods of preparing a family budget. Making a family budget may seem difficult, but as soon as the decision is made and the action started, everything seems easier. First of all, you have to download an excel file to be able to establish your budget.

You must list all of your expenses and your income

This is one of the most important steps when dealing with a budget. You must list all of your expenses: fixed, variable, exceptional expenses and your income.

  • Incomes include wages, family allowances, alimony etc.
  •  Fixed expenses include children’s education, School Insurance, rent, internet, and phone bill, taxes etc. Variable expenses include gasoline, food, clothing, hobbies etc.
  • Exceptional expenses include the extracurricular activity of your child, repair your car etc.

Put an order in your expenses

Once you have done this you will see more clearly about your expenses. You will be able to analyze all your expenses and to try to cut short on these. If you are wondering how you can reduce this type of expense, you can change housing and opt for a smaller area. For example, you can pick up your child at noon and feed him or her to avoid paying the canteen. You can also change the phone plan and take a low-cost package.

Operate by a budget envelope

You will budget your variable expenses, and determine an amount to allocate to them. For convenience, you can withdraw the cash and put in different envelopes by marking the type of expenses. By averaging your purchases from previous months you can determine the amount that will be allocated for each envelope.

Calculate your family budget

To calculate your family budget, nothing simpler is enough to make this formula: REVENUES – CHARGES = AVAILABLE BALANCE. Once this calculation is done, your balance is either positive or negative. If it is negative despite the fact that you have reviewed your expenses, you must increase your income. You can round up your ends of the month and multiply the sources of income in order to balance the accounts. If your balance is positive, you have saved money. These savings can be allocated to your projects, be available in case of a hard blow, or unforeseen expenses.

Save at the beginning of the month

The amount you decide to save every month must be withdrawn from your main account at the beginning of the month before even paying all your other expenses. Many of us work the other way around, that is, we save at the end of the month once everything has been paid and there is not much left. Remember that savings are the basis of good budget management. The more efficiently you manage your budget the more money you put aside and the more you can anticipate the different expenses. As a result, you will manage your budget even better and put more savings aside, this is called a virtuous circle. To determine the amount to be saved, set your goals according to your life plans: holidays, investments, child education etc. However, it is advisable to have precautionary savings, which it will serve in case of hard cost, unforeseen events.

Set up automatic transfers

Managing family accounts can quickly become tedious and without a minimum of organization, it can quickly become complicated. The best way to automate the management of your accounts is to set up automatic transfers for fixed expenses such as rent for example. Automatic transfers to the joint account must be scheduled on the same date. This will prevent you from digging your overdraft or juggling your savings.

Centralize your accounts in one place

To centralize your accounts it is advisable that you use an application that can synchronize multiple accounts. With these applications, you can have a view of all of your accounts, regardless of the bank. You will be able to create budgets for each expense item and you will be able to see them all together. These apps send you regular notifications to warn you that a big transfer has been made or just to give you your account balance. The goal is to make it easier for you to avoid logging into each of your bank accounts.

Look often at your accounts

Looking into your accounts often allows you to anticipate your next expenses based on your account balance. Anticipation is one of the bases of good family budget management.

Do not delegate all financial management to your spouse

Between a couple, there is necessarily one of the two who will take over the management of the family budget, but you still have to keep an eye on it. You have to make a point on your 2 ways to manage your budget and take the best of each.

Keep a budget for leisure

Do not put your entire leisure budget on the attached account. You must have your own money that you can spend as you see fit. This will help you to avoid being accountable for your expenses, and that will avoid any frustration on both sides.

Conclusion:

Money does not make happiness, but it can sometimes give a big boost. You have to learn how to maximize each dollar raised by combining an income that is often highly variable with multiple consumer incentives. Establishing a budget is not as tedious as it seems and the result is always positive. This helps to achieve specific financial goals, target priorities, reduce stress, anticipate unexpected events and avoid the consequences of over-indebtedness.