Yesterday I wrote an article on prepaid debit cards, I wanted to highlight one of the best features of using a prepaid debit card, sticking to your budget!
I really like prepaid debit cards, because they’re “prepaid.” What that means is that you can auto-load your card each month with a set amount, and then you have to stick to that amount. There’s no cheating, because unlike a bank’s debit card, you can’t spend more than you actually have. The other benefit is you avoid ridiculous overdraft fees and you know exactly what your monthly fees will be.
Tips for Using A Prepaid Debit Card for Budgeting
In my budget I have categories and money for some categories has traditionally been put into my savings account. The problem is that this money often gets used for other things or it isn’t quickly available when I need it. This means that when the time comes to use the money for purchases in that category, it isn’t there and I end up blowing my budget.
With Christmas coming up, I am always looking for ways to stay in budget and a prepaid credit card that I could not only shop online with but also take with me so that when I see that perfect gift, I would have the means to purchase it.
Another budget category that I might use a prepaid card for is clothing purchases. I am definitely not a ‘clothes horse’ so my clothing purchases tend to be sporadic. If I put my clothing budget into my savings account, I either use it for something else or don’t have the funds immediately available when I see something that I really like.
Because we travel in our business, it is often inconvenient to use cash. I often have to make reservations at a hotel and without some kind of credit/debit card, it is almost impossible. I can put our budgeted amount onto our debit card and then make reservations with confidence. It’s also a true pain in the rear to have to prepay for gas. I have to estimate what it is going to cost to fill the tank, stand in line to pay the deposit and then stand in line again when I am done filling the tank. The prepaid card will make trips much easier.
You can also extend this to your family. For example, a prepaid debit card is perfect for a college student. Instead of giving them a credit card or cash for the entire semester, consider giving them a prepaid debit card that gets auto-loaded each month. That will force them to stay within their budget, and will also keep them from blowing through their money before the semester is over.
In short, prepaid cards are a tool that can be used to enhance your budget while forcing you to stay in a budget. You need to shop wisely for your card and be aware of any hidden charges and fees. As I have said before, I will never own another credit card so a prepaid card is very attractive to me.
Related posts:
- Thoughts on Budget Leakage and Paying Cash When I reviewed my budget yesterday, I was looking for...
- 5 Budget Busters Challenge I thought I would start a bit of a challenge...
- 5 Ways To Deal With Holiday Budget Stress No matter how much we love Christmas and the holiday...
- Budget Review for February It’s been awhile since I have done an actual budget...
- PrePaid Credit Cards I have to confess that not having a credit card...
I know I always catch myself transferring money into my checking account from my savings account so that I may use my debit card. And now with the online internet transfer, it makes it that much harder because it is so much more convenient! Maybe the prepaid debit card is the way to go for me.
My husband finds it impossible to use plastic of any kind, he can’t seem to (or doesn’t want to?) keep track of what he’s spent. It’s a lot simpler for him to use cash. Now for gasoline, he still uses plastic. We have to buy gasoline to get around, so it’s kind of like we spend what we spend. We do combine as many trips into town as we possibly can, and substitute other items instead of running to the store for one or two things.
good advise, but i still hard it so hard to stick to sometimes
nice info..
we can maintaining our budget to follow the post..
Personal Finance Buzz…
Your story was featured in Personal Finance Buzz! Please visit and promote your article….
There are many ways to stay on budget. The first and most important thing is to keep track of your income and expenditures, and make a reasonable budget plan. In my experience, it is not so easy for all of us to track our financial without any help.
I used to be a person that always stays out of budget. But later a helpful tool really drives me out of such situation. Well-designed software – Simple Home Money Management, is Revolutionary – simple, easy to use… So easy to use, create budgets so easily – I am hooked!
A review about the solution is comprehensive and clear, anyone who is interested in it can refers to Get Yourself Stay on Budget ?http://www.softry.com/reviews/business/196-get-yourself-stay-on-budget-.html?