Effectively budgeting your finances can be a challenge for anyone. There are a variety of tools out there on the market today that claim they can help you create your budget and stay on task. Many of these tools can be expensive. Have you ever thought about using a prepaid card as a budget tool? The great news is, is that prepaid cards can be a very effective tool for budgeting your expenses.
To show you this, we have come up with 5 ways you can budget with a prepaid card.
- Track Your Spending: One great feature of prepaid cards is the ability to track your spending. Similar to any bank card, prepaid cards allow you to log into your online account and view your account history. Typically you can create your own reports and view your spending which is a great tool to use when you are creating a budget. In combination with the ability to track your spending you could also use the prepaid online bill pay which will track all the bills you pay for you.
- Effective Way To Limit Your Spending: With a prepaid card you load money onto the card and once the money is gone you can’t use the card anymore until you load more money to the card account. You could use this to your advantage and as a way to budget your money. You could limit the card to a certain dollar amount each month and once you spend that amount you are done using the card. You could even set up direct deposit and each pay day have a certain dollar amount deposited to the account.
- Avoid Paying Interest: Prepaid cards do not charge interest like a traditional credit card does. This is an advantage of using a prepaid card. A prepaid card is not a line a of credit so there is no need for you to be charged interest. Prepaid cards also are safe because you can’t get into debt by using one. This makes using a prepaid card a great alternative option instead of using a credit card.
- Use Instead of Checks: Instead of using a check and possibly over drafting your account you can use your prepaid card and avoid using checks all together. You can still pay bills online by entering your prepaid card number online in the same way you would use your credit or debit card to pay a bill. This is a better option to sending a check because you don’t have to worry about accidentally overspending your account before the check clears. Also, by using your prepaid card instead of a check, the money is automatically debited from your card account right away, this always allows you to know your account balance.
- Earn Rewards: There are more and more prepaid cards on the market that now offer rewards programs. If you use a card that offers cash back it can help you save money on your purchases by getting something back. There are two popular cards that offer a rewards program: AccountNow and Upside Visa. With prepaid cards becoming more and more popular it is very likely that more cards will be offer rewards.