My husband and I put almost all of our expenses on our Costco American Express card. Dinner, groceries, gas, travel—it all goes on the card. And then once a month, I use money from our joint checking account to pay the bill in full. Sometimes we’ve had an expensive month: We’ve been doing a lot of traveling lately, and we’re preparing for a cross-country move, so our credit card bills have been much higher than usual lately. When that happens, I figure out how much more money we need, and we each transfer that amount from our individual accounts to the joint one (we have a standard amount we put in the account each month that covers normal expenses, so the extra transfers only happen when we buy something big, like furniture or plane tickets).

This works for us because we don’t live paycheck-to-paycheck. I would never recommend making heavy use of credit if you’re coming up lean at the end of every month. But we do have enough that we could pay off last month’s credit card bill and pay for this month’s spending. So always being one month behind in paying for things, so to speak, isn’t something that worries me. Besides, when I calculate how much money we have, I always subtract the current credit card balance from whatever’s in savings. I’m very aware of the fact that at any given point in the month, our checking balance isn’t accurate until I account for what our credit card bill will be. READ MORE