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Credit cards are excellent tools, assuming that you are responsible in how they are used. Providers who offer cash back bonuses on qualified purchases can save you a lot of money each month! The money you save can easily go into the vacation fund, pad your savings a bit, or even feed that household contingency fund that you just started.
The strategy calls for knowing what types of purchases will result in some sort of cash back bonus. Some providers cover a lot of day to day purchase, like groceries and gasoline. Many will also reward bonuses on purchasing like clothing or school supplies. When that is the case, use the card every time you fill up, go to the supermarket, or need new school clothing for the kids. Even if each of the bonuses is no more than one or two percent of each transaction, the bonuses will add up over time.
Keep in mind that it is important to avoid interests charges on the card. All charges made to earn cash back bonuses should be settled during the same billing period. Try getting into the habit of logging in to your credit card account every payday and remitting a payment equal to the current balance. This will allow you to still enjoy the cash back bonuses while also getting to use the card for free.