Planning your summer vacation? Have you figured out yet where the money for your trip is coming from?
If you’re like most of us, you’re already starting to save money for this year’s family vacation. Maybe you’ve put away a little (or a lot) of this year’s tax refund, or you’re stuffing your change into a coffee can each week, or you’re even transferring money to your savings account every payday. Well, here’s an even better way to not only save for your vacation, but to ensure that the money is actually available to you when you’re ready to go on vacation. This year, instead of squirreling away your money in a coffee can, or co-mingling it into you savings account, why not set things up at work so that a certain percentage of your paycheck is automatically transferred to a prepaid debit card account?
Believe it or not, prepaid cards are actually fantastic tools to use when you’re trying to save money, especially if you have it set up so that money is automatically transferred to the card. Not only does the automatic transfer happen without any effort on your part, but it also happens before you get a chance to spend the money on something else.
Want to go on a vacation? Get a prepaid card and put away a certain amount each payday – when the time comes, you’ll have the money! Want to save for Christmas? Same thing – set it up so that the funds are automatically transferred to a Prepaid card account and, chances are, you won’t even notice that the money is gone. But trust me, you will be thrilled when the time comes around to spend that money!
Oh, and while you’re away on vacation? That prepaid card is far better than using your household debit card… you know, the one that’s tied to your bank account. Yep, that’s right. A prepaid card has ALL of the benefits of a credit or debit card, but not near as much of the risk that you take every time you swipe your bank issued debit card in an unfamiliar place…a place that’s dependent on tourism… a place that is a prime target for thieves.
But why not just use a credit card, you say? Well, the answer to that is actually pretty simple: INTEREST CHARGES. That’s right, interest charges. Chances are, if you use that credit card to take this year’s vacation, you’ll either not have the money saved up in the first place or you’ll overspend. Either way, you’ll have a nice fat bill waiting for you when you get home. (That pretty much ruins the trip for you.) But, if you save the money now, and use your prepaid debit card when you go away, you’re more likely to stick to your budget, and since you already have the money saved when you leave, there won’t be a nasty surprise waiting for you in the mailbox when you get home.