Money Tips for Saving Cash
There is always a reason to use the credit card, or spend the extra savings that was put aside for a long-term goal. Sometimes, we trick ourselves into believing we can replace that money later.
When later arrives, we have to cancel our plans, or take out that credit card again. Rethink your debit card, and you may start saving money immediately. Debit cards have advantages that most people tend to ignore.
Where Did the Money Go?
When you use your debit card, you will have a hard record of your spending patterns, whether you have online or paper statements. If you haven’t signed up for online statements yet, I would advise doing so.
Not only can you see where your account stands, you can see if someone else is using it, even for minor transactions that many fail to notice. If you notify your bank right away, it is easier to stop the unauthorized charges.
No Need to Carry a Significant Amount of Cash.
You should always have some cash with you for small transactions, such as purchase of a postage stamp. Use your debit card for other expenses. When planning a trip, locate financial institutions near your planned destination that allow you to make withdrawals for free, and confirm there will be no separate charge from your bank.
If you belong to a credit union, the CO-OP symbol on your debit card opens a greater amount of financial institutions you can stop at to withdraw cash without incurring a fee. If someone around you is looking for someone with cash as an easy mark for robbery, you will not seem an obvious target if you are using a debit card.
When using your debit card at many grocery stores or WalMarts, you can get cash back with your purchase at no additional fee. Beware of many gasoline pumps, stores, and restaurants that add a small fee for offering the convenience to use your debit card.
No Interest Fees on Debit Cards
You will not have to worry about interest changing that bargain into something more expensive, when the debit card is used for payment. Some banks have an ‘add it up’ plan, where the difference between even dollars and odd amounts, i.e., even dollar amount is $14 and purchase is 13.52, is put by the bank into your savings account, when you pay by debit card. Check with your financial institution.
Using the debit card helps you with a budget. If you work hard to avoid spending money you don’t have, you will be happier at the end of the month. By knowing what is in your account, you will know what additional activities or expenses you can afford.
Emergency Credit Card
The debit card allows your credit cards to be saved for genuine emergencies. Life has a habit of getting in the way of our best intentions, and sometimes the credit card is a necessity. Try to avoid using it, to keep expenditures for interest to a minimum.
Discuss the benefits of overdraft protection with your bank. The debit card is linked to your credit card, and there is a fee to cover the overdraft, but it is less than the normal overdraft fee. Banks want to keep customers, and have many money tips available to keep you happy with your account at their bank.
Monthly Bank Fees Can Be Waived
Some banks, such as Bank of America, waive your monthly checking account fee if you use your debit card to make a certain number of transactions during the billing cycle. Set an appointment with your bank to find out what benefits they can offer to help save money.