My Credit Card is My Friend
Maybe a month or so ago, I mentioned in passing that C and I got the CostCo American Express card. We had gotten by without one for over 10 years, so it wasn’t necessarily a need, but I knew I wanted to purchase the laptop and that we would be getting him glasses. We could have afforded either without putting it on a card, as long as we moved money from savings, and since they were big purchases, that is normally what we would have done.
But, we got the card. And can I tell you how happy I am that we did. The addition of Small Person (SP) to our lives has necessitated more CostCo trips than I was ever imagining. For the most part, the items we are getting will eventually be absorbed into our normal shopping schedule and budget, but when you have no school appropriate snacks, you need to go get them.
To go along with that, we both seem to have “mommy brain” in that we realize 5 minutes after we leave CostCo that there is something we forgot to get. Or we go there for something specific and while we’re there realize there is something else we need. As a result, we have been to CostCo maybe six times in the last two weeks, where our goal had been once every two weeks.
This is what my life has felt like in the last two weeks, but in a good way
We can afford everything we have been spending, but since it is out of our normal pattern, I would have had to move money around from savings to keep the checking account solvent. Instead, we get to use the CostCo card, which I pay off 2 times each month, and I am able to just work the added expense into the budget much more naturally.
For the most part, SP is not adding to our budget very much. She doesn’t actually eat a whole lot, and she’s not super picky, so we’ve been able to adapt our normal dinners to her, but there are those one time, or first time, expenses that we’re not used to. And for those, I am so glad we got the CostCo American Express. Because otherwise, I have very little doubt that I would have accidentally overdrawn the checking account at least once in the last two weeks. And that’s one headache I just don’t need.
Plus you get the 1% cash back if you have the card that we have.
We already had the executive membership, so were getting money back from CostCo directly, but yes, we do have some sort of cash back reward on this card, and I've taken to using it for all groceries.
I use credit cards as a cash flow device. It is a great way to document purchases and makes it easier for returns too. he best part is the rewards in frequent flier miles.
I now use the credit cards for almost every purchase, and it does make cash flow so much easier. I don't know if we have miles on the CostCo American Express, but I do use the travel rewards on my Citi card (it's how I paid for my flight to FinCon last year, and possibly will this year, too.)
We have the Costco card too, though we don't use it much anymore. We still love Costco, just moved on to a different card. I think credit cards are great if you use them well. It makes budgeting so much easier, it's got automatic extended warranties and insurance, and the rewards can be nice too. We use Fidelity's Amex which gets us 2% cash back on everything.