Swiping, clicking, and keying do not in any way feel like spending money. You never feel like you give up
something when you pay by credit card! A flick of the pen (or stylus) and you are on your way. Easy
Try doing this for a month: use your credit card for the must have things that are already in your budget
like food, gas, and drugstore items. For anything that you want – clothes, shoes, lunch out, a glass of
wine or cup of coffee, pay with cash.
Here are the benefits:
- You can decide before-hand exactly how much you want to allot for “fun stuff,”
- There is no overspending – no cash, no spending,
- You can see at a glance how much you have left to spend,
- And using cash feels like giving something up because you are!
Spending cash leads to more thoughtful decisions about spending. It is less convenient because you
have to go to the bank, but therein is another benefit – it isn’t convenient!
Another benefit is that you see via your credit card statement, what your monthly variable costs are –
the must do items – so you can track that month-to-month to see if those areas are increasing or staying
about the same. This provides a really easy tracking system to differentiate between what you want and
what you need. Hopefully you are always paying off that credit card each month so you are always
Here’s a safety tip as a bonus – only use your ATM card in your bank’s ATM machine (you can use
another reputable bank’s ATM in a pinch but there may be fees associated with that) – never use it in a
free-standing machine, at a restaurant, or at a store. Why? If the bad guy gets your bank data, you could
end up with a mess in your checking account before your bank can remedy the problem. (Think about
your mortgage check bouncing among other things.) If the mess is on your credit card, you always have
the ability to dispute the charges and you haven’t lost a dime.
To your financial success!