When I begin working with a client on their budget program, I find in 9 out of 10 cases that they are using their debit card (cash from their bank account) for their living expenses.
While I can't say what is right for your particular situation, I can say the advice I give my clients is to use a credit card for all living expenses. Living expenses are anything outside of your regular fixed monthly bills. Ex: gas, groceries, entertainment...
You can easily track your spending habits if you use a credit card.
Many credit card companies even categorize expenses for you.
You don't run the risk of over drafting your bank account.
Your credit goes up if you use the credit card and pay it.
You can get points for using a credit card. ***
You DO run the risk of over spending, but... the rule of thumb is always "If you can't pay off the credit card at the end of every month, you have a spending problem, not a budget problem."
As with everything when it comes to money management and budgeting... there are variables. Nothing is black and white. For example, if there is a fee for using a credit card - you may want to use cash.
*** Story time:
Years ago while working feverishly to manage my own budget and watch my spending, I used all the points from all the credit cards throughout the year to get free gift cards. I used those gift cards for all my Christmas shopping. Essentially... I paid zero interest on those credit cards and the company gave me free Christmas shopping money at the end of the year. SCORE!
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