Your guide to smarter money-spending through credit cards

Most of us have a love-hate relationship with money—we love the feeling of earning it but hate the stress of managing it the right way. That daily coffee habit, impulsive online shopping sprees, or those ‘treat yourself’ moments can add up quicker than you think and affect your spending habits. But what if there was a simple tool that could help you track your expenses and help in changing your mindset about money?

Enter the humble credit card.

Now, if you think credit cards are just another way to accumulate debt, think again. With responsible use, credit cards can assist in managing your finances and cultivating a healthier money mindset. Let’s discover how!

How to manage your money and mindset for spending
 

Managing your finances comes with decisions about where and how to spend money. The right credit card can help you transform your money-spending habits. Follow these steps to leverage a credit card as a powerful financial tool while spending under control.

Step 1 – Understanding your spending habits

The right credit card can serve as a way to uncover your money spending patterns. Here’s how you can use it to your advantage:

1. Track every penny

The first step to improving your finances is understanding where your money goes. Credit cards with expense-tracking features, like IDFC FIRST Bank Credit Cards, make it easy to analyse your money-spending patterns.

2. Categorise your expenses

Most credit cards tag your transactions to categories (dining, travel, groceries). These insights allow you to identify where you spend the most. Knowing your spending categories makes budgeting more effective.

Moreover, it can also help you choose your right credit card. A traveller might notice they spend significantly on flights and hotels, prompting them to explore credit cards that offer higher rewards on travel expenses. For a parent managing household expenses, huge grocery bills could lead to choosing a card offering cashback on shopping and essentials.

3. Identify where to save

When you analyse your spending, you can pinpoint areas to cut back. For instance, you may find through your card’s mobile app that you are spending too much on food delivery services. With this understanding, you might want to switch to meal prepping, saving costs and calories.

Step 2 – Maximising benefits

Now, let’s talk about the fun part—rewards! The right credit card can transform everyday money-spending into valuable benefits.

1. Reward programs

Earn points or miles with every purchase and redeem them to pay for your next purchase. Credit cards from IDFC FIRST Bank offer up to 10X reward points on every purchase, and they never expire. Plus, they can be redeemed online in a single click anytime, for example, when paying for a flight ticket or fancy dinner at a restaurant.

2. Exclusive cashback, discounts, and offers

Some cards have special deals and discounts from partner merchants, saving you money on things you already buy. This can make spending more cost-effective and enjoyable. For example, IDFC FIRST Bank Credit Cards extends exclusive offers and deals on various categories, including travel, shopping, and dining.

You can maximise these rewards with the right credit card and planned money-spending. For instance, you can save up to 6.5% of your fuel expenses every time you fill your tank with a fuel credit card like the FIRST Power and FIRST Power + Credit Cards. Likewise, a travel credit card like the FIRST Select Credit Card can provide a suite of travel benefits, including trip insurance, airport lounge access, exclusive hotel deals, and complimentary airport transfers in numerous countries. Plus, it features a very low fee for international transactions.

Step 3 – Instilling financial discipline

One common misconception about credit cards is that they lead to overspending. The truth? Credit cards don’t encourage overspending—habits do. Here’s how to maintain control over your spending:

1. Set spending limits

Decide on a monthly budget before you start swiping. This helps you avoid exceeding your means and accumulating unnecessary debt. For example, someone with a ₹40,000 monthly salary might allocate ₹8,000 to discretionary spending and use a credit card to track this limit. A small business owner managing operational costs could also benefit by setting category-specific limits using the credit card’s app.

2. Pay bills on time

Always pay your credit card bills in full and on time. Late payments can harm your credit score and lead to costly interest charges.

3. Utilise the grace period

Most credit cards offer an interest-free grace period. Use this to pay your balance in full before the due date and avoid accruing interest.

IDFC FIRST Bank Credit Cards offer up to 45 days to pay your bills and have lower interest rates starting at just 0.75% p.a., making staying disciplined on your money-spending even easier.

Step 4 – Achieving financial goals

A well-chosen credit card can be a valuable tool for achieving your financial goals:

1. Easy equated monthly instalment (EMI) conversions

Planning a big purchase? Convert it into manageable EMIs with attractive interest rates. This lets you spread the cost over time without overburdening your finances. For instance, purchasing a ₹50,000 refrigerator can become more manageable with a 12-month EMI option at a lower interest rate. With an IDFC FIRST Bank Credit Card, you can convert any transaction over ₹2,500 or your entire card bill into affordable EMIs right from the mobile banking app.

2. Budgeting tools

Credit card apps often feature user-friendly budgeting tools, helping you monitor expenses, set limits, and receive spending alerts. IDFC FIRST Bank Mobile Banking App is a prime example, empowering users to make informed financial decisions. A young professional saving for his higher education might use these tools to prioritise essential expenses while setting aside funds for tuition.

Mind your money with the right credit card
 

Just like finding the right pair of shoes, choosing the right credit card is crucial. Consider your lifestyle, money-spending habits, and financial goals.

1. If you're a frequent traveller – Look for cards that offer travel rewards, airport lounge access, and travel insurance.
2. If you're a foodie – Choose a card that offers high cashback on dining or entertainment.
3. If you're a budget-conscious shopper – Opt for a card with low interest rates, no annual fees, and cashback on everyday purchases.

Get the right credit card with IDFC FIRST Bank
 

Select the one that best fits your lifestyle and money-spending habits –

Ready for the final step?
 

A credit card can be more than just a piece of plastic. When used wisely, it can become a valuable tool for transforming your money-spending mindset, achieving your financial goals, and building a strong financial future. If you understand your habits and use your card responsibly, you can turn your money-spending into a positive force that works for you, not against you.

Take the first step today—apply for an IDFC FIRST Bank Credit Card and start turning your spending into savings!