Personal Budget Tips

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Hi this is Alfred on behalf of Expert Village. Alright which should you use cash, credit or debit? One of the easiest way to keep track of your spending is to have a checking account. That way when you pay with purchases by cheques or ATM or debit card you already have a record of this then you only need to track a few expenses that you paid for in cash.

What are the benefits of having a checking account you might ask. It’s safe - it is much safer to write a cheque than to carry cash. If for example you lose your cheque book you can ask your bank to cancel your cheques so no one else can spend your money. It's convenient, checking accounts are also convenient for paying bills. Paying by cheque is much easier and cheaper than buying a money order and you will have proof that you have paid your bills.

In addition to writing cheques for making purchases you can use an ATM or debit card at any bank machine, grocery store or drugstore to make a purchase. Some banks also offer online banking which will allow you to check how much money you have in your account and pay bills online.

Credit cards can be a great tool when used properly. Monthly statements make it pretty easy to track your expenses. It's a bad idea to get a credit card or a loan without having a budget savings account if you like the concept of a credit card without the interest, then a debit card is a very good option. And when it comes to cash it is hard to spend what you don't have, as we talked about in the envelope system. So you do tend to save more money. The downside to using cash is it takes a lot more discipline to keep track of your cash purchases.