Category Archives: Spending

Debit and Credit Card Security

Spending, , ,

“There’s a lot of talk going around about debit and credit card fraud. How can I safely use my cards without worrying about losing my money in one of these scams?”

Last week we compared some of the features of debit and credit cards. Both cards provide a convenient alternative to paper money, and remove the risk of shopping with cash. However, the fact that these cards provide electronic access points to your money can present an even bigger security challenge for card users.

Developments in technology can sometimes be both beneficial and detrimental.  Scam artists and thieves have the capability to use hi-tech methods to get information from your cards that can allow them to steal your money. Let’s look at three major ways that these scams can be carried out: Continue reading Debit and Credit Card Security →

Debit vs Credit Cards

Spending, , ,

“I’m scared of all the reports I hear of shoppers being robbed and I want to reduce the risk of buying things with cash. I’m trying to decide between getting a debit card and credit card, but I’m not sure which one would suit my needs better . What advice can you give me?”

Using cash to make purchases can bring major security risks, especially at this time of year. Using cheques instead can be one option, but many merchants won’t accept them. Increasingly, many consumers seeking the convenience and safety missing from ‘paper’ money, are switching to ‘plastic’ money in the form of debit and credit cards.

Whose money is it?

Although they both provide consumers with a convenient payment method, debit and credit cards have big differences. The most important distinction between the two is whose money is being used to carry out the transaction. Continue reading Debit vs Credit Cards →

Control Your Christmas Spending

Spending, , ,

“Last year I really overspent on Christmas gifts. In fact, I’m probably still paying for some of them now, as I have a large credit card balance that I’m trying to pay down. I really don’t want this to happen again this year, but I feel that once I hit the plazas, I’ll lose control. Please help me to curb my Christmas spending!”

With only about 18 shopping days left to Christmas day, the seasonal spending frenzy is about to get into high gear. Sometimes reasoning and control will fly out the door, as we get caught up in the hype fed to us by the retailers.

After all, this is the time of the year when many shop owners make more money than the rest of the year combined!

While we do want to support a vibrant economy, we can’t afford to lose sight of all our financial goals, or worse, incur massive debt. Here are some tips that will help you to control the urge to splurge this Christmas: Continue reading Control Your Christmas Spending →

Use Debit Cards With Care

Spending, , , ,

“I recently received a big surprise when I looked through my bank statements. I didn’t realize that I was paying so much for transaction fees when I used my debit card. Between getting cash from the ABM, paying for goods and using online banking I paid over J$400 in charges last month! Do you have any tips how I can use my debit card smarter?”

Debit cards are rapidly gaining popularity as a preferred medium to pay for goods and services. They are more widely accepted than cheques, and they remove the hassle of carrying large amounts of cash. However, when plastic replaces paper, this convenience can come at a big cost. Continue reading Use Debit Cards With Care →

Be Credit Card S.M.A.R.T.

Debt, Spending, , , ,

Last week we looked at how easy it was for consumers to accumulate credit card debt, and we provided some practical steps how to reduce this liability over time. While the words ‘credit card’ and ‘debt’ tend to run hand-in-hand, owning a credit card doesn’t have to be a negative thing.

A credit card is just a tool that can help you to manage your cash flow and bill payments. However, like any other tool, if it is handled incorrectly, it can hurt the user. To be successful with credit card usage, you have to learn how to be credit card S.M.A.R.T:

S- Start with your budget

Your credit card should always be used along with your budget guide, to ensure that you’re making purchases that you can really afford. Identify those expenses that can be paid with a credit card, and don’t charge more on your card than you would have paid if you were using cash. Continue reading Be Credit Card S.M.A.R.T. →

Enjoy the Summer Vacation on a Budget

Spending, , , ,

“I would love to do some traveling this summer with my two children, but I don’t have a lot of money to spend. I don’t want to disappoint them, as they are looking forward to something different this year. Any tips on how to spend less and still have fun on summer vacation?”

School is out and summer is here! For the children it’s the beginning of two months of freedom, but for the parents it can start a period of over-spending and loss of budgetary control.

While you want to ensure that your children enjoy their vacation, it’s important not to spend more than you can afford on summer fun. The best way to ensure that your holiday plans are affordable is to prepare for it many months in advance.

How do you factor summer spending into your regular budgets? Continue reading Enjoy the Summer Vacation on a Budget →

Shopping on Impulse

Spending, , , ,

“My husband and I have been trying to budget, as we realize that most months we can barely make ends meet. Last week, a large-screen TV from a popular furniture store was delivered to our home. My husband had mentioned nothing about this purchase prior to delivery.

“I am very upset that he broke our budget for a totally unnecessary item. I can’t understand why he did this, and I need some advice to make sure he doesn’t do it again.”

It’s difficult to try to live a frugal lifestyle nowadays. We’re constantly bombarded with advertisements encouraging us to buy with no deposit down, or enticing us with expensive rewards if we purchase from their store.

Unfortunately it seems that your husband may have given in to the understandable desire to see the World Cup Football matches in large and living colour! Continue reading Shopping on Impulse →

Spend Less, Save More

Spending, , ,

“I really want to start saving, but I am not even making enough to meet my basic expenses. I work and go to school most evenings, so I don’t have time to try and earn another income.

“I’m tired of living hand-to-mouth and worrying that I have no savings. Can you give me some ideas to find extra money to save?”

The difficulty in finding enough money to save can be explained in two simple equations:
Expenses > (greater than) Income, or Income < (less than) Expenses.

You’re either living beyond what your income can provide, or you’re not earning enough money to finance your lifestyle. Similarly, there are really only two ways to solve the problem: spend less, or earn more.

This week we’ll look at the first option. You have stated that time is not on your side, so trying to earn more might be difficult right now. Therefore, you have no choice but to curtail your expenses and be smarter with how you spend your money. Continue reading Spend Less, Save More →

Fighting the Urge to Splurge

Spending, ,

“I know I can save much more than I do right now, but I can’t seem to stop shopping. Most weekends I’ll go on the plazas just to look around, but by the end of the day I’ve spent thousand of dollars on things I really don’t need. How can I stop this unnecessary spending?”

Let’s face it: shopping is fun. It’s hard to match the adrenalin rush that comes when you see a SALE sign on the window of your favourite store, and it’s easy to become addicted to the emotional high that comes from buying something new.

However, if you admit that you’re wasting money on things you don’t need, then your shopping is out of control. One of the keys to achieving financial freedom is being able to have power over how and where you spend your money.

Every dollar spent on consumer items is a dollar taken away from building your wealth. Continue reading Fighting the Urge to Splurge →