Credit Card Etiquette: Prerequisite of Being Financially Fit

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Credit cards are now part of everyone's life. Since the launch of the first visa card in India in 1981, people are getting used to the facility all of a sudden and are enjoying the unlimited benefits of the cashless transaction. Used judiciously, they can solve a number of financial problems that might otherwise seem difficult. A good knowledge of the credit card label is therefore extremely useful.

Some of the labels to follow are described below:

Planning: You need to be aware of your correspondent's fixed inflows and outflows. In a generally ideal situation, if total earnings are 45,000 and fixed expenses (which cover basic needs) of 25,000, you must plan miscellaneous expenses so as not to increase a predefined fixed percentage of the remaining amount.

Miscellaneous expenses <= X% * (Fixed gains – Fixed costs)

Savings = fixed earnings – (fixed costs + miscellaneous expenses)

Estimate: In many situations, we tend to increase the budget and spend without thinking about the consequences. It does not matter if you have this card because it solves the immediate financial needs. But you have to be careful enough to pay back the amount you used in a few months. Making a list of all expenses and grouping them by priority level can help.

Tools: A simple Excel sheet can do wonders in planning your expenses. Maintaining a daily expense sheet controls your spending habits. There are various monitoring and expense management online that can help you manage your money effectively.

Self-discipline: This is the most important factor to consider. This is necessary to control your desires and therefore the list of expenses. If you are disciplined, you will not be easily seduced by countless interesting offers.

With the tips above, one should be able to live a well-planned financial life. They can avoid finding themselves in a complex financial situation and these tips can prevent a person from falling into the trap of these cards. Inappropriate use can lead to a financially unstable situation that can not be recovered. Having a well-planned budget and financial calendar for each month not only organizes your financial life, but also instills the habit of being well organized in all areas. These cards are now part of everyone's life, but they must be used with care and diligence.


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