Having A Credit Card Saved Us
We received a whopping electricity bill
You receive an electricity bill of Rs 10,000.
In your bank account, you have Rs 20,000, and there are 15 days left in the month.
Now, you have to decide how to pay the bill.
Option 1: You can use the money in your bank account.
Option 2: You can pay with your credit card.
If you pay with your credit card, you keep more cash in your bank account. This might be helpful in case something unexpected comes up later in the month.
On the other hand, if you pay with your bank account, you’ll have less money available for the rest of the month.
Take a moment to think about it. What would you choose?
Personal Experience
Let me share my own story because stories are better with personal experiences.
In 2021, we had to pay a whopping electricity bill of INR 45,000. It was a big amount for us, but let’s not dive into the details.
Here’s what happened:
The bill was due in the last week of the month, and our bank account didn’t have much money. I was brainstorming ways to gather funds so that we wouldn’t have to pay late fee. Strangely, I didn’t think of using a credit card.
Then, out of the blue, my wife suggested using a credit card. However, I was hesitant because we were already on a tight budget and had another credit card bill due next month. I worried that paying 45k this month would add up with the upcoming bills.
Leveraging Billing Cycle
That’s when my wife asked about our billing cycle. It hit me — if we paid the bill the next day, it wouldn’t be included in the current billing cycle. I felt relieved. (Also, we were sure that our salaries would get credited. Don’t we take that part for granted?) It’s true what they say — having another perspective can make a big difference.
Long story short, we paid the bill the next day, and that’s when I realised the real value of having a credit card.
But a story has 2 sides
Let me share some situations I’ve been in because there are always two sides to every story.
When there are a few days left in the month and I need to pay bills, I usually use my credit card. The simple reason is that I want to keep the money in my bank for unexpected expense which requires cash to be paid.
But, there are times when I’m out shopping, and I spend more than I realize, ending up with not enough cash in the bank. This means it takes away from the savings I planned for the next month.
In the end, it’s all about how we use it.
There’s no right or wrong way, it depends on what works for us.
Did I forget mentioning reward points? Probably because I do not give much importance to them. But yeah, my wife does, so she covers it up for me. It’s all teamwork :)
About Me
I am Piyush Vaish. A Developer turned Designer and an Online Writer.
I am on a mission to build a brand without a niche.
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