‘I like shopping too much’: I have trouble saving due to impulsive buying habits. How can I stick to a budget using a pre-paid card?

Hi Money Minder,

So, I’ve got my money all planned out in my head, but here’s the thing – I love shopping a little too much.

Thankfully, I don’t have any debts other than my car payment, and my credit score is solid. But, I struggle to save because I tend to splurge impulsively. I do pay off my credit card with every paycheck, but I never seem to have much left over.

Using cash isn’t really my thing.

I have a set amount in mind that I want to budget for my spending each paycheck. I thought about getting one of those reloadable cards and putting my spending money on it, leaving my regular credit card at home. Then, I would reload it with my spending amount each time I get paid.

I haven’t done much research on this, especially in terms of any associated fees. I just know they’re out there.

Do you think this is a good plan, or do they charge a hefty fee every time I reload it?

Has anyone tried this approach with success?

Farewell from Busy Shopper,

Response from THE MONEY MINDER:
Hello There,

It’s great to hear that you have your finances in order in terms of no debt besides your car payment and having a good credit score. However, it’s understandable that impulsive shopping can get in the way of saving money. Your idea of using a rechargeable card for your spending money is a practical solution to curb impulsive buying habits. Before proceeding, it’s crucial to research different rechargeable cards to find one with minimal fees or consider checking with your bank to see if they offer a similar service with lower costs.

By loading a specific amount onto the rechargeable card each paycheck, you set a clear limit on your spending and avoid the temptation of using your regular credit card for unnecessary purchases. This method can help you stick to your intended budget and track your expenses more effectively.

In terms of success, many individuals have found this approach beneficial in controlling their spending and staying within their budget. It’s essential to stay disciplined and not reload the card until the next paycheck to avoid overspending. Additionally, reviewing your expenses regularly can help identify any areas where you may be overspending and adjust your budget accordingly.

Remember, it’s all about finding a strategy that works best for you and helps you achieve your financial goals. All the best from THE MONEY MINDER as you embark on this journey to better manage your spending habits.