What you see when you open your wallet is probably very different now than it was just a few years ago.
As more and more people replace cash with various cards, it is becoming important to think about where you put different payment options.
Typically people will end up putting their most-used cards in the most convenient part of their wallets for easy access.
But if it is a credit card that ends up in this area you could find yourself stuck with a huge balance at the end of the month that is quickly followed by interest charges.
Most people rarely think about the layout of their wallets, but even putting a credit card next to a debit card could lead you to spend more because the temptation is there.
Putting credit cards into a separate part of your wallet or getting a card wallet for them, on the other hand, could make it easier to avoid using credit.
Just this simple act could lead to any number of potential benefits, including:
- Reducing your overall spending by making you more accountable,
- Highlighting how much money is in your transaction account,
- Reducing the chances of financial loss if your wallet is stolen,
- Making you more aware of how much you spend on everyday purchases; and
- Helping you develop a more efficient way of shopping that saves time and money.
Some banks even have online features that are optimised to help you save more when you use your debit card.
The Plus Account debit card from Citibank, on the other hand, has no transaction fees for in-store purchases or ATM use overseas, making it a cheaper option for travellers who would normally use a credit card.
While it may seem logical and convenient to keep all your cards in one place, separating them can be an easy way to change spending habits and get your finances under control.
But no matter how you choose to pay for things, being aware of the different options available and using them to your advantage will put you ahead every time.