Cash back and credit cards. Worth it?

Fore me, yes. I am putting everything on my Cashback AMEX, getting 1% cashback.

If you’re prone to overspending, it’s probably not for you.

Me, I am thinking long and hard about (before) any discretionary purchase, with the exception of food. On which I am not splurging wildly either.

I’m quite similar - though I am doing it with a credit card. I am paying off my credit card bills just before the 25th each month - at the end of my “fiscal” month, if you will.

Since I am putting (virtually) everything on my credit card, I see the monthly credit card bill as regular “feedback” on my expenses:

  • Do I still have enough money on my current account to pay off my credit card bill? Good.
  • Do I have money left afterwards? Great, I was frugal (or lucky). I transfer the remainder to savings.
  • Do I have wait for the next salary payment on the 25th, to be able to pay it off? Oops, I overspent!
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