I was having a conversation a couple of weeks ago regarding to the importance of debit cards. The person I was conversing with was telling me debit cards are better than credit cards, because using a debit card means you’re using your money. While you that may be true, you’re also losing your money. I’ll explain why.
People are overspending with Debit cards
Debit card spend growth is above historic levels according to PYMNTS. People are more willing to spend using their debit card than they are credit cards, because they feel they don’t have to pay the money back since it’s there’s. As a result, they also don’t have to pay any interest on debit card purchases. The problem with that ideology is their money may begin to disappear a lot quicker by using a debit card than using a credit card.
When it comes to savings, avoiding overspending your money is key. What I noticed is when I carry my debit card on me, I’m more willing to use it. If I don’t have it on me, I’ll use a credit card or don’t spend at all. Leaving your debit card at home can save you a lot of money over an extended period of time.
Here’s how you save money by storing your debit card
Here’s a smart way you can save money by leaving your debit card locked away.
- Take out the amount of money you need for bills, food, gas, and other necessities for the month.
- After you pay off your bills and necessities, store your debit card away.
- Don’t bring your debit card out of your stored place until the next month when its time to pay your bills and other necessities.
If you do this consistently you will begin seeing some welcomed changes to your savings. You’ll be surprised by the amount you save by simply storing away your debit card each month. Storing away your debit card keeps you from impulse buying, which often contributes to overspending. When you’re out and about and can’t reach for your debit card in your wallet, you’ll spend less.
Be sure to check out my previous blog post on other fun ways to budget and save.
My book Strategies to Master Credit is currently available for purchase. (Here)
Darnell R. McKinnon