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Anonymous
I have been thinking a lot about living a meaningful life with less, and the more I read about credit cards and the minimum spending required for cashback and miles and etc, the more I have a headache.
I think I spend only about $500 a month for all my expenses and groceries. Bills for the home are split across all family members contributing.
Should I just not have a credit card then? Interested to hear from you!
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HC Tang
03 Jul 2019
Financial Enthusiast, Budgeting at The Society
To us, getting a credit card (cc) is for:
1) Cash back
2) Miles point for travel ticket redemption
If you don't travel much and find to plan / track the spending to hit min spending to get either (1) or (2) above a hassle, then probably not. These days the cask back were very little, and min spending has been steadily increasing from $600 to $800 and above. So not much gain there for cash back.
For me, to get most of the cc is to get all the benefits, discount , 1 for 1 deals whenever available, some savings here and there (for those who don't mind the hassle of handling the number of credit cards / bills)
If your intention is to live a meaningful life with less, then why not consider just use 1 card and tie all spending to it only. Simply set GIRO to auto pay the cc bill monthly and forget about it. Forget about all the other benefits as they might not worth more than a simplistic / minimal lifestyle that could gives more peaceful and focus life.
Cheers for minimal life (easy with least maintenace and more focus)! :)
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Dont spend for the sake of getting rebate or rewards / miles, but only if there are clear benefits i...
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I agree with you re: the minimum spend component, and find that too many people are chasing to hit the minimum spend in other to get perks like miles etc.
Ultimately, it boils down to an issue of self control.
For me, after doing a few months of trying to hit a 2k monthly expenditure, I just found that it was really not worth the hassle. And when I looked at my average monthly expenses (even inclusive of groceries for family), I was only hitting $500-600 a month.
That said, I still use a credit card (ONE) for the following reasons:
I still can hit the $500 minimum spend tier without having to intentionally purchase more
I like to have the benefit of seeing all my CC expenses in one place.
I like to use Fave and Grab for food to accumulate points (I would have spent the same in cash anyway), and these transactions can be charged to credit cards