How do I manage my money better?

Question

Now, I don't think that I am a huge spender, and we do very well with our budget. However, I think we could be doing better.

Here is the problem; Recently my debit card was frozen due to someone using it for fraud, we switched to cash and I realized how much more money we saved when doing so. However, I'm afraid to leave all credit cards at home in case of an emergency (i.e. car breaks down on the highway etc).

However, having that card there also gives me an excuse for being able to spend more money, like "Well, I can spend the cash and if I REALLY need to I can use the card" and end up spending more money than I needed to.

How do I fix this problem?

Answer 1

why don't you get a 500 dollar card, because if something happen you can always say here is a down payment while i get my other cards. i don't think anyone would mind that considering all the problems with card frued these days.

cheers

Answer 2

Keep a diary of all expenses. Every penny that you spend write it down, then evaluate after a couple of weeks, the WANTS vs. the NEEDS. This will allow you to see exactly where your money is going. Start a payroll deduction into an automatic savings acct or Christmas club. Even $10 a week adds up to $520 a year and over 10 yrs. $5200 plus interest! Instant savings. Hold on to the credit card for exactly that - emergencies only. Do not us it - if you do not have the cash - do not be tempted to use the credit card. And if you don't trust yourself, who can.

Answer 3

The first thing you should do is save a portion of each paycheck before spending any money (save some for retirement and some in an emergency fund).  Next, learn to distinguish needs from wants.  You NEED to fix your car if it breaks down on the highway; you WANT a new pair of shoes.  Don't give into wants; instead, budget for things you enjoy buying (clothes, shoes, electronics, eating out, etc.).  Allow yourself some "fun" spending, but don't go over your budget.  Just pretend the credit card isn't there at all.  If you're honest about why you're carrying it (in case of EMERGENCY), then it shouldn't be too hard to not use it for anything else.

Good luck!

Answer 4

Instead of relying on a credit card for an emergency, open an emergency fund. Have at least $500-$1000 in it but ideally 3-6 months of expenses. Write a budget and follow it. Allow some spending money so you know exactly when you need to stop and discipline yourself to do it. If you really want to you can. Try putting spending money in one envelope so when it is gone you are visually reminded it is gone. You are in control of your spending even if it is hard to admit to it at times.

Emergency funds should be accessible for an emergency. That is why they are there. Change the account so that you can transfer the money so you can get to it if you need it. If you do budget then you should make sure to follow the budget or change the budget to to manage your money better. If you follow a budget why are you having problems with spending? Why did you have to ask the question? Managing money is all about the attitude you put toward doing so. If you adjust your behavior your spending and saving will be affected.

Answer 5

Sign up for AAA, or check with your insurance to see if you have some sort of tow service for car problems.

Then you have no excuse to carry them with you.

You can also do what we do. We carry the extra cash that we would need for an emergency, along with the spending cash, and leave the cards at home.