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I know, I know, we’re all told credit cards are the last thing to have if you’re considering a frugal lifestyle. Many personal finance bloggers think credit cards are budget busters. But… Are credit cards really anti-frugal?

Frugality and healthy credit card use share a common foundation, self-discipline. So, yes, owning a credit card doesn’t automatically turn you into a wasteful impulsive consumer. It’s the lack of control that turns you into one.

Self-discipline is Key

Do you really need to buy it? Frugal people are honest with themselves whenever they ask themselves this crucial question. No buts and ifs and reasons to justify an unnecessary purchase. Each item should be bought because it’s truly needed.

To live frugally with credit cards, you should already have a degree of control over your financial life. Otherwise, you’re chasing debt. Credit cards won’t lure you into spending sprees and can rather be used for maximizing money if you have a healthy financial mindset.

Using Plastic to Save Money

The first thing that comes to mind when I think of saving with credit cards is perks. More perks and rewards and freebies. Getting stuff for free is common among frugal consumers, thus making it possible for frugality and credit card use to coexist.

Credit cards marketed at savers can be tricky though. You may have to spend a minimum amount per month to earn rewards. And if you do meet the minimum requirements, perks are redeemable at quite a few stores only.

Read the fine print before you sign up and especially look for figures that designate the following: minimum amount to spend in order to qualify for rewards and maximum earnings cap. Ideally you have to choose a credit card with no minimum spending requirement and no rewards cap to maximize credit card savings.

Also, don’t let a credit card dictate your budget. Just because you need to spend over $2000 to earn perks doesn’t mean you have to.

What’s Your Strategy?

There are reasons people stick to credit cards with minimum spending requirements such as low rates and no fees. Your goal now is to meet that requirement without ruining your monthly budget. There are creative ways people follow and you can learn from their examples. For one, people pay with plastic for everyday and big ticket items like weddings and other occasional purchases that you would normally pay for.

Another strategy is to match the card to a spending category. If there’s a big chance you’ll spend more on groceries why not sign up for an account that lets you redeem rewards in cash or grocery items. Cash backs are especially useful if you’re trying to save money.

What A Credit Card Is Not

It’s not going to replace your emergency fund. Period. It’s not what you pay with when you’re short on funds. It’s credit and you need to pay what you owe each single month, in full. It’s important to first understand what a credit card is not (and your relationship with money) if you want to use one while living frugally.