Many MoneyMinding members and advisors attribute their success, at least in part, to the money-management systems they learn to implement in the MoneyMinding program – including day to day spending and banking activities
When the banks all give different answers about consumer protections for credit or debit cards, you know it’s time to take matters into your own hands and put some systems together so you protect yourself.
Most people have just one bank account which they use for all their transactions. You can easily limit your exposure to theft or fraud by having a separate bank account for your debit card, and by having a low-limit credit card for day-to-day spending. The low-limit credit card and its corresponding bank account work well for on-line purchases as well.
A debit card account is handy because it simplifies your money tracking to have that account separate from one where automatic deposits and withdrawals take place. You will keep better track of your balance, and should a thief swap the PIN pads and gain access to your account, it’s only a portion of your money that is at risk, even though the bank usually guarantees against theft.
Higher-limit credit cards are excellent for major purchases and investments that benefit from the warranties and insurance provided with credit cards
Finally, you can give yourself first-class protection and control of your money by developing a specific strategy for using your cards (i.e. type of purchase or particular retailer such as gas or groceries) and using cash for everything else. Cash is tangible in a way that cards are not, and there’s nothing like a wad of bills in your pocket or purse to add to your wealthy mindset.
