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I use my credit card for everyday expenses to aid in my cash flow. I make sure I don’t overspend, and here’s how I do it.

A lot of people struggle with cash flow, especially when it comes to having an irregular paycheck. I don’t get paid at the same time of the month the way that people working regular full-time jobs do, which can make cash flow an issue.

I don’t recommend using your credit card for everyday expenses if you struggle with debt. You need to make sure you have a budget, and you need to be sensible with your money. If you do have a good relationship with money, you can use credit, and here’s how.

Make sure you have a budget for your expenses

Before you start spending, you need to know how much you will have. I always know how much I’m going to get paid by most of my clients by the end of the month. So, I can budget with that in mind.

I tend to take the lowest I’ve been paid in the past as a budget. Anything extra can then go into savings. This is a great way to ensure I have a set expenditure each month, making life a little easier.

So, sit down and create your budget*. Any of your expenses that need to be paid out of your debit account will be taken care of immediately. These are things like your rent payments or your insurance premiums. Everything else can come off the credit card, but you need to know how much that will be each month. This ensures you only go up to a certain amount on your credit card.

Keep track of your credit card usage

It’s easy to just pull out your card and spend what you want. The problem with this is that you overspend quickly. The last thing you want is to make an unnecessary and unbudgeted payment.

You need to keep track of the amount* that you can spend on your cards each month. I like to split this up by the week, so I know how much can go on. It helps me limit the amount that I go out with friends and when I do go out, I limit what I spend.

You will need to be strict with yourself. If you are going to go over one week, you need to stay under the next.

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Pay off the credit card each statement

You need to pay off more than the minimum payment on your cards at all times. When you’re using your cards to help with your cash flow, you especially need to pay off everything. After all, the whole point is to spend the amount that you have available in your budget.

If you’re not paying off your card at each statement date, then you’re not using it to help with cash flow at all. You’re putting yourself in debt, and you need to change the way that you’re spending your money.

The benefit of paying the statement each month is that you don’t end up with interest charges. You will help your credit score, though, and you will also be able to benefit from any reward points that you have.

Have something for your emergency/unexpected expenses

You will still need to deal with unexpected and emergency expenses. These don’t go on the credit card to help with cash flow. You should have a way to pay for them elsewhere. This is usually through your sinking funds or emergency savings.

You can still put the cost on the credit card. However, you’re using a different fund to pay it off. If you don’t have the money, you’ll need to figure out your options as you will end up dealing with interest rates if you put things on the credit card and forget about them.

Watch out for FOMO

The fear of missing out (FOMO) is difficult to deal with. However, it’s something that you will need to get over. If you spend money on something because you’re scared of missing out on it, then you’ll end up spending way more than your budget. This puts you in debt, and you’re using your cards for all the wrong reasons.

Before you buy something extra you need to assess if you need it and if you have the money for it. For example, I would really like a Google Pixel smartwatch*. It’s something that I am saving up for. Each time I have extra money, I put some in that spending account to make sure I have it available when it comes to buying the item. Otherwise, I could end up spending way more money than I’d like.

MORE: 5 future expenses you need to save up for

Do you use credit cards to help with cash flow? Share your thoughts in the comments below.