Healthy wallet means healthy financial situation

Healthy wallet means healthy financial situation

What you have in your wallet can likely tell you a lot about how healthy your financial situation is. Credit cards and cash are not likely the only things in your wallet. If you open up your wallet right now and take everything out and divide it into sections then you will probably start to see a pattern.

What you have in your wallet can likely tell you a lot about how healthy your financial situation is. Credit cards and cash are not likely the only things in your wallet. If you open up your wallet right now and take everything out and divide it into sections then you will probably start to see a pattern.

Checking Your Financial Situation

Cash is being used less often these days. With credit and debit cards it can be easy to go weeks without touching an actual cash note. People who do carry cash and try to make most of their purchases spend significantly less money overtime. The psychology behind this is simple. When you actually have to hand over cash notes then you will think more about a purchase than if you only have to swipe a credit card.

Debit cards are a compromise between carrying cash and a credit card. The money comes straight from your bank account and you do not run the risk of creating a credit bill that you cannot pay. Relying on debit cards totally can be risky because you will likely not check your account enough and could be charged overdraft fees if you draw out money you do not have. Or you could be left embarrassed at the check-out line if you are denied purchase for lack of funds.

Credit cards are useful but can be dangerous to a healthy financial situation. With high interest rates and high limits, some credit card users find that credit cards are more trouble than they are worth. Used correctly, credit cards can help you build credit and also provide many other benefits.

Gift vouchers are great as gifts and if you received one then use it; but they can be easy to forget. Reward cards from your favorite stores can be handy to get discounts or deals but do not rely on them. If you sign up for one of them, make sure that you do not run up a debt or forget to pay your bills. Reward cards often come with big sticker rewards but they can cause a lot of trouble too.

If you keep a lot of receipts in your wallet then you have the right idea but are not implementing it correctly. Save your receipts properly by filing them at home and you can also take a pic of them and save them online.

Insurance cards are vital. Making sure that you are covered for medical insurance is key to a healthy financial situation but make sure that you are properly covered. No point in paying out to the insurance companies and then end up still getting stuck with a big bill after a medical emergency.

Take a look in your wallet and see if it can tell you anything about your financial situation.

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