Saving Money with Each Debit Card Purchase?

Answer 1

Cash used to be the way to go when it came to making a purchase. Then came credit cards and the world started thinking plastic. When debit cards came along, the concept of making purchases was made simpler and more convenient than ever before. Each time you take out your debit card to pay for your items at a store or site, it may seem as though you can hear the money draining from your account. Fortunately, there are ways that you can make each debit card purchase actually work for you. Using these tactics you can stretch your dollar and get more for your budget.

Round and Save

Using your debit card is much like writing a check. As soon as the payment is processed, the money is removed from your account. This means you should be keeping a record of all of your debit transactions so you can keep track of what you are spending and balance your account at the end of the month. One fast way to save money with your debit card is by tricking yourself into thinking you have spent more than you really have. To do this, simply round up the total of every purchase you make when recording it in your ledger. For instance, if your purchase is $2.78, record it as $3. Do this for every purchase, and your pennies will certainly add up. At the end of each month transfer the surplus into a savings account or use it for a special purchase.

Automatic Bill Payments

Look into your monthly bills and determine if your method of payment is actually costing you money. Some companies offer discounts for setting up automatic bill payment with your debit card. Your account is linked directly to your card and the company drafts the card each month for the amount of your payment. This helps assure the company will get its money and not have to chase after you for payment. This convenience is worth enough to them that they will offer you a percentage off your bill.

Credit Card Transactions

Another way to save with your debit card is to not use it as a debit card. Some debit card services offer cash back programs if you use your card as a credit card. This is because the company collects a fee each time a credit card is used. This fee is paid by the company that subscribes to the credit card service. Using your debit card as a credit card doesn't have any impact on your credit, and the money will still be taken out of your account at the time of transaction. If you check your available balance it will still reflect the purchases in accurate time. The benefit, however, is that you will receive a percentage of your purchases back once a month. These few dollars here and there can quickly add up to a great difference for your budget.

Any opportunity you have to save money is an opportunity to enhance your quality of life. Saving a few cents here and there on debit card may not seem like much when it happens, but it can quickly build to significant savings.