So you have your rewards credit cards. Lets not go on a spending spree :) Before you start using your credit cards you need to make a budget.

First write down your total income. Then make a list of all your bills: rent/mortgage, utilizes, car payment, phone, etc. Write down a dollar amount next to each bill. If the bill varies in amount each month write down the highest amount you remember paying for that bill. Now write down expenses like food, clothes, entertainment, and other miscellaneous expenses. Write down next to each expense a estimate of how much you send on each. Now put down ‘SAVINGS’. You need to save some money each month, even if its 10 dollars, write down a amount to save. Total the expenses and saving. Subtract that from your total income. If the outcome is negative you have a problem, start looking at places in your budget were you can reduce costs. But if the outcome is positive add the remaining amount to your saving.

Reward credit card time! Look at your budget and find all the bills and expenses that you can pay with your rewards credit cards. Remember the rewards percentage. For example some rewards credit cards give you 5% cash back for purchasing gas, so use that card for gas. Write the reward credit card name next to the bill or expense. Your budget is complete now stick too it and track your spending online.

But your not done yet. Fine tune your budget. Each month look your income, bills, and expenses and change your budget accordingly. Budgets are very important take good care of yours. One more point. Pay as many bills as possible online. Because checks get lost in the mail.

Sample Budget

Bill/Expenses	Cost	Credit Card
Mortgage	$2000	None
Car Payment	$400	None
Car Insurance	$100	None
Phone Bill	$50	Visa (2%)
Gas	$500	Mastercard (2%)
Groceries	$500	AMEX(5%)
Entertainment	$200	AMEX (1%)
Cable	$100	Visa (2%)
Total Spending:	$3850
SAVINGS:	$450
Total Income:	$4300