I posted THIS post about my amazing savings trip to Costco. A reader left this comment that I wanted to address:
*Note: Click HERE to see this summarized in a video.
Thanks for your comment and questions! Here is my opinion on it (and please remember this is only my opinion – everyone is entitled to their own!): Yes, it's worth it. This is the one and only credit card I use, so the perks are great. As for getting another one just for Costco, it depends on how much you shop there.
Here's why it works for me:
Here's how I do it:
- Each month I get a sturdy envelope, write the month across the top, and write my starting budget under that.
- Throughout the month I keep a running tally of everything I spend, written on the envelope, so I can keep track (like balancing a checkbook). I am sure to add money when I return something, and I always write the store name next to the amount so I can remember if I've already logged something or not.
- I keep all of my receipts (even seemingly insignificant ones!) in the envelope. I believe in returning things you don't need, so never throw away a receipt! Plus this holds you accountable for what you spend, and you have reference if you lose track of your spending.
- I also keep any extra cash I have (like the $86 I got from Costco – see THIS post) in the envelope. That $86 I'm holding onto in case I need extra money this month. If I don't end up needing it, I'll use it to put into savings or pay down debt.
- If my balance is low and I need more money I find things to return, or I simply go without.
- It keeps digital track of everything I spend.
- If you lose cash or if it gets stolen, it's gone forever. If you lose your credit card, you can get a new one. If it gets stolen, that money gets returned to you.
- It builds credit. As long as you pay it off each month it helps build your credit score and builds credit which is IMPERATIVE for big purchases like cars, houses, and loans. But it WILL hurt your credit if you leave a running balance!
- The perks. I get cash back for money I'm spending anyway. My husband really wants to get a Southwest card someday so we can get flight miles for the money he spends.
- In terms of having a Costco card, it's the store I frequent the most so it's worth the double perks.
- It's good in case of emergencies. If you have a medical emergency, family emergency, or otherwise, its nice to have a credit card just in case you don't have enough cash to cover something. You just never know. For my family my husband is self-employed. He could go a month or two without a full paycheck, so sometimes we have to leave a balance that we try to pay off asap. We really try not to do this, but we wouldn't be able to pay some bills without it!
- Do you agree?
- Do you like using credit cards?
- What are things you do to keep a good budget?