One of the biggest concerns when it comes to credit cards is the fact that credit card convenience coupled with an available credit limit can make it easy for some consumers to overspend. This is how credit card debt happens. One of the best things you can do to avoid credit card debt is to stick to a personal budget. But can a budget really override the convenience of impulse purchases? And can credit cards themselves actually help with personal budgeting? They sure can! Let’s take a look at how.

Ways Credit Cards Can Help You Create a Budget

Budgeting involves two steps: creating your budget and sticking to it. In order to create your budget you have to first evaluate your current spending habits. If you already use credit cards frequently, they can help you do that.

The most important thing you can do is keep all of your receipts. Not only are they itemized lists of everything you’re purchasing, but they can tell you how much you’re spending on each credit card account (the last few digits of the card number are probably on the receipt).

Gather up all of the receipts you can find from the previous month or so, and compare them to your credit card statement from the same recent period. You’ll have an itemized list from receipts, but doing this also might help you identify purchases you no longer have a receipt for — seeing a retailer on your statement might remind you what you purchased there, and at least you’ll have the total charge amount.

Once you can see where the charges are going, you’ll have a better idea of where you can cut back to save money while creating your budget.

Using Credit Cards to Help You Stick to Your Budget

Having a budget is great. But now you have to stick to it if you really want to experience savings. Shopping lists that keep you focused in stores can help. And sure, you could carry cash around in envelopes as some people do so you can’t spend more than you allotted for something. But if you aren’t ready to give up that credit card convenience, you don’t have to. Your credit cards can help you stick to a personal budget too.

For example, you can use certain credit cards for certain types of purchases (like using your Citibank BP credit card solely for petrol purchases). When you need to make those purchases, leave your other cards at home so you won’t be tempted to use them.

If you spend a lot of money regularly, and many of those purchases can be put on a credit card and then just paid off that same month, you might be able to get relatively fee-free financing by saving on interest (even better if the card has no annual fee). In that case, choosing a cash back credit card could even give you a little extra money towards paying down that balance — something cash can’t do. Just remember that if you’re paying more for the privilege than you’re getting back, it’s not helping your budget.

Personal budgeting can feel complicated, but it’s really just about evaluating your habits and making better decisions. If you have enough self-control not to go on buying binges, credit cards can play a role in helping you build and maintain those personal budgets. If you aren’t confident that you do, then it’s equally okay to use cash.