Pay as you go

When it comes to credit cards, I like to know I'm at least getting a little reward for my completely undisciplined spending. That's why I have two airline affinity cards I use to help me rack up the miles.

Funny thing about credit card companies - they expect you to pay them. I know, right?

Sometimes, as any freelancer will tell you, the bills get there before the checks do. The cash flow isn't always as prompt as you'd like it to be. It's not that it's not there, it's just not there right now.

A few months ago, I managed to run up one of my cards to a healthy sum. It fact, at that point in time, it was a healthier sum than I had coming in.

Eventually I paid it off, but I'm not a guy who likes to have debt. I'm not comfortable with it, never have been. I used to pay my phone and electric bills a year in advance just so I wouldn't have to think about them (I also used to spend my rent money at the track, but I don't do that anymore either - long story).

Now before you say it, don't say it. I know I could've invested that money instead of letting the phone and power company earn interest on it. But to me, my peace of mind and retaining the ability to breathe knowing those bills were paid was a good investment.

Anyway, as a result of having run up that card - little suckers just sneak up on you don't they? - I now do something I've never done. I pay as I go.

At the end of every day, I go on the credit card site and see how much I've charged. Then I transfer money from my checking account to cover the daily balance. With a keystroke, I'm current on the card.

It also helps because knowing how much is in my checking keeps a tighter rein on my spending since I know I'll have to cover it the next night. At least that's the theory.

But with 467,000 frequent flyer miles, I'm not sure how well it's working.