Managing Finances With Debit Cards: Budgeting and Expense Tracking

Have you ever set a budget and attempted to keep to it, only to find that you couldn't control your spending? It's not just you. Instead, you can rely on the appropriate resources to maintain financial discipline. 

You most likely carry one of these devices in your wallet at the moment. You read it correctly; your debit card serves many more purposes besides cash withdrawals. A debit card can be an effective tool for managing your money. 

Avoid Spending Above Your Limits

One of the most important aspects of budgeting is avoiding going into debt. Because of this, debit cards are convenient, as their use is limited only by the balance in the associated bank account when making purchases or playing at your favorite online casino. 

Paying in casinos has become more convenient thanks to debit cards. You can find a list of reputable online casinos that accept debit cards at www.gamblingsites.com/banking/debit-cards/. Click on the link to learn some tips for debit casinos at gambling sites.

Debit cards also come in handy when you have difficulty controlling your spending because of impulse buys. All you have to do is to try depositing a smaller amount of cash into that account each week. This effective method will help you not spend much money. Although this may not sound appealing, you need not worry about going overboard financially.

You Can Keep Tabs on Transactions Automatically

You should keep track of your spending. Having a clear picture of your financial situation will help you better manage your spending. Keeping tabs on your expenditures may show if you're spending more money than you realize on things like eating out and clothes shopping.

Some individuals use a mobile app, while others prefer spreadsheets or pen and paper to record their financial dealings. Manually keeping tabs on all of your financial dealings can be a pain. 

A debit card is handy because it keeps track of your spending. A monthly account statement is available online, listing your transactions in great detail. Spending may be easily tracked without the need for a manual tally.

They Can Be Used With Most Standard Budgeting Techniques

Successful budgeting strategies typically require you to set money aside at the outset and then guide you in allocating the balance. Debit cards are convenient since you may load a certain amount onto each card. Here's how to apply them to two widely used budgeting strategies.

The 50/30/20 Budget

This type states that 50% of earnings should be spent on "necessities" (such as shelter and food) while 30% should be spent on "wants" (such as entertainment), and 20% should be saved. If you want this method to work, you must set up an automatic transfer service so that payments go into the appropriate accounts as soon as you get paid. 

This will require you to have two debit cards for necessities and wants, and this way, it will be easy to track all your expenditure. Also, you won't be able to spend more than what you have allocated on a debit card. 

Envelope System

While the 50/30/20 budget breaks down spending into broad categories, the envelope system targets individual purchases. In this method, you'll have to set aside money for various expenses, like food, transport, leisure, etc. 

Having a separate debit card for each type of purchase is impractical; this would mean you would have a dozen cards. However, a hybrid method is also an option. Your rent and expenses, for instance, can be paid directly from your checking account rather than requiring a credit card. 

Debit cards are preferable for spending on discretionary items like watching movies. You can control your expenditure by allocating a fixed amount to each area.

There Is No Need to Carry Actual Cash

The practice of withdrawing a set amount of money weekly or monthly as an "allowance" is widespread among many individuals. The envelope budgeting technique may require you to withdraw funds for multiple expenditure categories in a single transaction.

This could be an issue. Let's say, for example, it is payday, and you have just stuffed your envelopes with daily spending money for the month. You decide to put $500 in one envelope for food and drink, $300 in another for transportation, and $300 for eating out and entertainment. Carrying around so much money is absurd. You can lose a sizable sum of cash if stolen or lost.

However, debit cards can provide the same job as envelopes of cash systems minus the hassle. The added convenience of using your debit card at any ATM makes having one handy for emergencies. Not having cash will also prevent impulse buying as the only money you will have is in the debit card, which is already budgeted for.

Conclusion

Debit cards serve many functions; in this case, they can assist you in budgeting and tracking your expenses. You don't have to complicate your life by stressing about overspending. All you need is a debit card(s). This is a sure way of ensuring you stick to your budget, as it only allows you to spend what you have allocated to your debit card.