When it comes to money management, all the savings tips are just part of the equation. However, it is equally important to control your own expenses. No matter how carefully you monitor your budget, you still need to eat, pay rent, etc. One of the strategies is the choice of a debit card, which allows you to protect yourself from the use of credit funds and the subsequent payment of interest.
A debit card can provide real-time cash flow tracking. Below are simple ways to increase your savings.
Choose a debit card that fits your lifestyle
Despite the fact that you do not have to pay interest on the use of credit cards, you should carefully study the existing offers. Each debit card has a service charge, a cash withdrawal limit, etc. The more favorable the conditions for the client, the more you will have to pay for the service.
Make sure that you choose a card that minimizes these costs and even allows you to receive additional income when making usual expenses. Many banks have long been offering rewards that customers can receive when they pay with a card or make purchases in certain stores.
Examine the offers of several banks to choose the card that offers the highest reward. So you can use your debit card to pay for food, cosmetics, skin care products, etc., and then receive bonuses.
Connect auto payment
This service can be especially beneficial if you have loans that you forget to pay. Having connected the auto payment, you will never forget to deposit the required amount and you can avoid delays, followed by the accrual of fines.
Auto payment is a great solution when you have a stable income stream and you know the amount you will receive. However, some people accept small amounts of payments from customers, which makes it difficult to use this feature. At some point, your account may simply not have the right amount. On the other hand, it accustoms to financial discipline, not allowing you to spend all the money that is on the card.
Use apps and programs to help you track expenses.
The best expense tracking tool is the one that works for you personally. For some people, this may be a regular note in a notebook, while for others, special applications and computer programs that automate personal financial accounting are more preferable.
There are many sophisticated expense tracking programs. Among them, you need to choose the one that is most convenient for you. Sometimes for this you have to test several different options. You can start with the simplest.
Always have to have cash
You should get in the habit of having cash regularly. According to many users, they spend less money by refusing to use plastic cards. When you pay in cash, you notice how the supply of notes in your wallet is rapidly melting. This makes you more closely control your own expenses.
Consider withdrawing a certain amount of cash every week and placing it in a separate section of your wallet.Allocate a small amount of this money that you can spend on spontaneous pleasures, such as a cup of coffee.
If you still have unused money, leave it for the next week. Thus, you can decide whether to save money and spend on one expensive thing or stretch for small pleasures for a month.
What amount to allocate for pleasure? It depends on a number of factors, including how many accounts you have. A simple rule is that such spending should account for no more than ten percent of your income. By the way, this money does not have to be cashed at an ATM, you can pay with a debit card and receive rewards. However, in this case, you will have to more carefully calculate your own expenses.