Money management is a tricky business, in fact very tricky. You could find an illiterate farmer handling his money in accordance with the proportions of his liabilities, whereas you could find a high salaried doctor in debt because of his inefficiency in handling money matters. Strange, isn’t it?
But it’s true, for more than education, the one thing necessary to effectively manage your money is common sense. Unfortunately, this is the only sense which is not common amongst us, human beings!
So to those who have a good sense of money management, always opt for credit card payment because it has got a lot many advantages over debit cards.
First of all, for all sorts of transactions, be it essential commodities or luxury purchases you can buy these goods on credit without even touching your salary.
On the other hand, you can utilize your salary for investment purposes like Mutual Funds, or Systematic Investment Plans or have a Recurring deposit account or you could invest in shares and stocks.
But all this must be done with the amount of salary in your mind and the expenses you had incurred on credit. It must tally. Never try to bring your liabilities over your income.
But on the other hand, for people like me, the best mode of payment will always remain debit cards. Because you will be able to expend only the amount of money you have in your account.
Then you will have an idea of where to restrain your expenditure, where to save, etc. Constantly seeing your money in your account, you can plan accordingly your monthly expenses. Even to the point of having savings.
So, If you are good in money management, go for a credit card or else go for debit cards. It is always safe and reliable.