Benefits Of Tracking Expenses By Using A Credit Card

Is using a credit card the right choice for you? We have covered the drawbacks in a past blog post about using a credit card for common purchases. Do not disregard those warnings. But, have you explored the benefits of tracking expenses by using a credit card for your everyday purchases?

Analysis Of All Expenses – Benefits Of Tracking Expenses On A Credit Card

There is no easier way to get a comprehensive analysis of your expenses than to charge your purchases to a credit card. With the touch of a button you can see what you are spending toward many categories of expenses. You can also choose any time period to look at. This includes 30, 60 and 90 days, as well as a year at a time. My American Express will allow me to look at ANY time period I choose.

Find Any Expense With A Simple Search – Benefits Of Tracking Expenses

When I charge every purchase to my credit card, I can find any expense easily. I use this feature for checking multiple expenses each month. These include:

To make sure refunds have been processed. When you purchase and then return an item in the same month, the expense doesn’t even “hit” your pocketbook.
To check tips I added to restaurant receipts.
To add up certain expenses I report to the IRS or my small business. These include travel, auto expenses and subscriptions

All Of The Perks

Not every credit card has perks. However, I highly recommend finding the one that does. I choose to use a credit card that gives me miles for flying, but if flying isn’t your jam, there is another one out there for you. You can choose from travel, shopping, gasoline or cashback.

Keep In Mind…

The benefits of tracking expenses by using credit cards are only beneficial if you keep the following in mind:

Pay your card off entirely each month to avoid interest fees
If you credit card inspires you to purchase more than you can afford, you should avoid them
If using a credit card makes you weary or fills you with worry, forget about it!

Always spend in a manner that feels comfortable to you and supports your financial goals!