These days, money is split into two broad areas. The first is the more traditional method of tangible, physical money. The second is banking and other ‘digital’ areas; the regions where you don’t even see the money in question. Each has its own merits and benefits, but understanding these can facilitate saving money or spending wisely.
The one advantage to actual money is that it’s arguably easier to keep track of. Once you’re out of money, you’re out. Wallets don’t easily give out an overdraft, so you could use this to monitor your money better.
For instance, let’s say you want to spend £50 in a week. You could take a card and make various micro-transactions, or just take out £50 at the beginning and survive off of the actual money. With tangible cash, when it’s gone, it’s gone; whereas simply relying on the card requires more track-keeping, making for easier slip-ups.
At the other end of the spectrum is the money which you might never see. Not all the money exists in corporeal currency, so this is something that’s arguably only going to become more important. The main benefit for such money is that it allows for ease of use. It’s easier to carry a card than it is to carry all your money.
Likewise, this is easier for those important expenses, such as bills and loan repayments, that can’t be avoided. Automatic options, such as direct debit, ensure that even if you forget on the day, payments are still made (should you leave the money where it is).
Of course, it’s already been said that weak-willed spending can lead to this money becoming depleted, but savings accounts and other methods can help combat this. Nonetheless, understanding the right approaches to each, and how it helps you with your actual money, may improve your situation.
It’s always worth knowing what you can do in the case of emergencies, though – even if you plan, something like car repairs or emergency plumbers can necessitate extra cash. In these situations, a payday advance could tide you over until payday, as long as repayments can be made quickly so interest doesn’t mount up.