Life can be stressful when we have to deal with day-to-day expenses, high interest rates, and even loads of debt. But there are many ways gain control over your spending and improve your financial strength. A debit card – more than just a spending tool – is one easy solution to managing financial challenges.
Yes, your debit card is not just a tool for daily spending. When it comes to spending, debit cards are actually better than credit cards since you will only spend money that you have.
Here are some tips that can help you develop good spending habits with your debit card:
Keep Track of Your Spending
Monitoring your spending is one of the most effective ways to build strong financial discipline. Use your mobile or online banking to regularly keep track of your account balance at your convenience. You may also use any other financial app designed to help you develop healthy money habits with your debit card. Most banking apps also have an analytics feature that allow users categorize each transaction. When you are able to determine how your money is spent, you will be better able to redirect it.
Shun the Urge to Overspending
As noted earlier, you can only spend what you have when it comes to debit cards. While this goes some way to limiting unnecessary expenses, you may still overspend if care is not taken.
To avoid the urge to overspend and build healthy money habits with you debit card, you may want to consider signing up for text or email alerts for every debit card purchase you make. This way, you will easily look at your debit card like cash in hand and be mindful of how you spend.
Also try to avoid impulse purchases. If possible, impose a 24- to- 48- hour rule on your debit card before committing to a purchase. Consider imposing a no-spend day on yourself; this is a great way to look the other way when you are tempted to overspend.
Link Your Savings and Checking Accounts
Linking your savings and checking accounts is another great way to build good money habits. If you have made plans to save a specific amount, linking both accounts will make it easy to schedule automatic transfers from your checking to saving account. This can reduce the urge to spend money you have budgeted to satisfy other interests.
Your debit card can be a useful and powerful financial tool if you use it wisely. It can help you manage your spending and check your spending habits. Remember that the less money you spend on non-essentials, the more you’d have to plan for bigger and more important financial goals.