By Tisha Kulak Tolar
Sure, the bank debit card is one of the most convenient things since the drive thru at the fast food joint, but it doesn't necessarily mean it is good for you. As more people are finding themselves deeper than ever in debt, it stands to reason that many of these people fell into the routine of whipping out the plastic for all purchases. Whether it be plastic credit or plastic debit, not using cash can make it very easy to forget what you are doing. Not using cash can make it very easy to forget that you do not have as much money as you wish you did.
While using a debit card essentially is just like paying for your items with cash, there is still a big difference between counting out actual bills at the cash register rather than simply turning over your card and silently praying the charge will clear. Counting cash can make a person much more budget conscious and accountable for what you spending. If you start using cash everyday, you are more likely to budget since you'll need to have the cash on hand to make any purchases - if you run out, you've blown the budget. For instance, if you buy lunch each day or tend to stop at the grocery store on the way home, you will need to know in advance how much cash you need to carry if you plan to follow your normal routine. You have to actually sit and think about money and how you spend it - much more so than you would if you just swiped your card. It seems inconvenient at first, but if you are trying to stick to a budget so you don't spend more than you intend, carrying cash is the way to go.
Using cash also has other advantages, too. If you have even overdrawn your checking account, you certainly know how much banks have jacked up there fees, sometimes as high as $50 per transaction. Using cash means you don't have transactions being debited against your account each day for purchases made that you may forget to mark in your check register. It may be a lot easier to balance your checkbook by only having to note one large ATM withdrawal or bank withdrawal per week, instead of several small ones at multiple retailers or ATM's that can go unnoticed if you aren't extremely disciplined at pulling out the check register each time you swipe the card.
Think about how often you use your debit card to make a purchase instead of using cash. Some people will say that having cash is dangerous because they will spend it, but if you really stop to think how often you pull out the debit card and swipe it through a reader - you might be surprised at how frequently you spend even with a card instead of cash in your pocket. However, using cash only in conjunction with your budget, whether new or long-established, can be a quick money lesson that helps you change your money-spending habits. You will be more likely to remain proactive with your personal money management.
Tisha Kulak Tolar is a writer for DebtFreeDestiny.com where she regularly writes about debt consolidation, debt settlement and saving money.
Source:www.isnare.com |
