“I never pay interest. Now I’m a single mom, and need to tighten my spending reins.” Feeling overwhelmed by credit card spending? How can I continue earning travel rewards while gaining financial control?

Hi Money Minder,

I need your help with some budgeting advice. So, here’s the deal: I’ve always used credit cards for everything, paying them off in full every month to rack up those sweet travel rewards. But now, as a single mom, I need to reign in my spending habits. I landed a new government job that pays $96k a year (around [insert USD conversion]) with great benefits and a pension plan. My mortgage eats up about $3300 a month, but thankfully I have no other debts.

Here’s the issue – I tend to splurge on groceries, eating out, and shopping without really keeping track. I can pay it off every month, but I know I need to start being more mindful about how I spend my money, especially as I reach the big 5-0. I don’t want to give up using my cards and missing out on those travel perks. Can you suggest how I can still use my cards but somehow keep my spending in check?

Looking forward to your expert advice!

Farewell,
Savvy Spender

Response from THE MONEY MINDER:

Hello There,

Congratulations on your new government job and the financial stability it provides! It’s great that you’ve been diligent about paying off your credit cards every month and taking advantage of travel rewards. However, with your new responsibilities as a single mom and turning 50 this year, it’s definitely a good time to reassess your budgeting habits.

One practical approach to take control of your spending is to create a detailed budget. Start by tracking all of your expenses for a few months to get a clear picture of where your money is going. Once you have this information, you can set specific limits for categories like groceries, dining out, and shopping based on your income and financial goals. Consider using budgeting apps or spreadsheets to help you stay organized and accountable.

Since you mentioned that you don’t want to stop using your credit cards for travel benefits, one strategy could be to set a monthly spending limit on each card. This will help you avoid overspending and ensure that you can still take advantage of the rewards without accumulating unnecessary debt. Additionally, consider setting up automatic alerts for when you reach a certain threshold on your cards to keep you in check.

Remember, it’s important to prioritize saving and building financial security, especially as you enter a new phase of life. By taking proactive steps to track your spending and set boundaries on your credit card usage, you can achieve greater financial peace of mind and work towards your long-term goals.

Best of luck on your financial journey, and if you ever need more guidance or support, don’t hesitate to reach out. Farewell from THE MONEY MINDER.