subject: Your Budget Is Not A Threat [print this page] Every week you must be on top of your budget, and finances will start to make more sense. Leave your plastic at home is the first step, so keeping track of all your little purchases that you make will be a lot easier with cash. Little purchases are fine, just make sure you know about each one beforehand.
Before you do anything else, leave your plastic at home. Put them in envelopes and don't worry about them for a week. Once a week, take your simplest bank card to your bank, and withdraw hard cash money. Then use this hard cash money on as much as you can. Watching that green go down on the counter hurts a lot worse than just sliding your card.
Add up the little things you did spend cash on when the first week is over. If you don't want to eliminate anything, don't. This isn't about saving, it's about budgeting. It's not about not spending money, it's about knowing what you spend. You can have as many small purchases you want each week.
Still not very much? Let's throw in a bunch of other charges. Using debit cards just about anywhere is a bad idea. They've got service charges galore most of the time. Using an ATM that isn't your bank can be up to two dollars each time you do it. The other bank takes part of it. Banks don't like you giving even one crusty old penny to their competition. It says so in the huge boiler-plate document that comes with your card.
If you have a Check Card, be careful. They are not credit cards, but they are supposed to act like they are. You can use them at any place a credit card would be used, and by-pass any debit card transaction fees. At least, that's what you think. But you do know that they don't always ask if it's credit or debit, right? Sometimes the machines only register the card as debit if you slide it. If they slide it, they might just assume it's a debit card, even with the credit card logo in the corner. They're busy and in a fast-paced mindset. The next thing you know, you're hit with a charge.
Not very much? How about some other charges? It's a bad idea to use a debit card just about anywhere. They're full of service charges a lot of the time. A different bank's ATM can charge up to two dollars every time. The other bank will help itself to some of that money, and your bank doesn't like it when you give even one rusty old penny to the competition. Why didn't you read the microscopic, boiler-plate contract that came with your card?
Check Cards are also a way they sneak up on you. Their little logos make it seem like it's a "credit card" transaction, but the money is just vanishing from your account. But you already knew that. Therefore, you also already know that once in a while these cards are transacted as debit cards. If you can swipe it, great. Bypass the service charge by choosing credit. Sometimes the clerk won't ask, and sometimes the transaction can only be done as debit. Make sure you know what's going on with your Check Card.
Keeping track of your budget can be hard in the beginning. Make sure you organize all your receipts, as well as keep strict records of all your transaction. Little things will add up quickly, but not quickly enough that you will have forgotten by next time. You might be shocked how little is left at the end of the month or week. Just be aware of everything you spend, big purchases and small.
by: George S Mimis.
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