Finance Credit Check

Credit Card Etiquette: Prerequisite

Credit cards have become part of everyone's life. Since the launch of the first visa card in India in 1981, people are accustomed to a light touch and enjoy the unlimited benefits of conducting a cashless transaction. When used correctly, they can solve a number of financial issues that might otherwise seem difficult. Hence, a good knowledge of credit card etiquette is extremely helpful.

Some of the rules to be followed are outlined below:

Planning: you need to know about a fixed cash inflow and outflow. In a typically ideal situation, if the total income is 45,000 and the fixed costs (covering basic needs) are 25,000, you should plan other expenses so that it does not increase a predetermined fixed percentage of the remaining amount.

Miscellaneous expenses <= X% * (Fixed earnings – Fixed expenses)

Savings = Fixed Income – (Fixed Expense + Other Expenses)

Assessment: in many situations, we tend to increase the budget and spend without thinking about the consequences. Do not worry if you have this card, as it solves an urgent financial need. But you must be careful enough that you can pay back the amount that you used for a couple of months. Listing all expenses and grouping them according to priority levels helps.

Tools: A simple Excel worksheet can do wonders when planning your expenses. Keeping a daily expense table controls your spending habits. There are various online trackers and expense management managers that can help you manage money efficiently.

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 self-disciplined, you will not be seduced by countless exciting offers.

Using the tips above, you can live a well-planned life. This can save a person from penetrating into a deep financial whole, and these tips can save a person from falling into the bait of these cards. Improper use can lead to a financially unstable situation, because of which it is impossible to restore the situation. Having a well-planned financial budget and schedule for each month not only organizes your financial life, but also instills the habit of being well organized in all areas. These cards have become part of every person’s life, but they should be used carefully and diligently.

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