I would call it a magic card. Swipe the card and enter the secret code or signature and if they match you can get the products or services that you want. Yes this magic only works base on how much power you have on your card.
How these bank and credit cards can eat your money? First of all you have no idea about the account balance or how much credit you have on your card. When ever you want something you will just swipe your card and get it. Until there are not enough credit on your card. Unless you check the balance daily which most of us do not do only time you will notice the balance is when you get the monthly statement. You do not have control over what you spend.
If you use notes and currency you have a clear idea about what you have and how much you are spending. You will think twice before you spend.
So do we have to go one step back and try to use notes and coins again. I do not think so. It is not that convenient. I know you do not want to miss the bonus point that credit cards gives you. Do you?
We have experimented couple of simple steps to effectively use bank card and credit cards effectively and wisely.
- Check credit card balance and Bank account balance daily note it down on a sticky note.
- Use a different bank account (dose not have a bank card but only have Internet banking access) for savings and transfer the amount you are planing to save.
- Use different accounts for different purposes. (Additional cards should not cost you extra)
- Choose credit cards that has less charges and more bonus points.
- Keep a card that does not have much credit on it. (Specially Friday and Saturday nights)
This is couple of simple things you can follow to save little bit extra money by stooping extra spending you do without a good reason. We will continue discussing these money saving hacks and tricks in more details ....
