How to Control Spending

[_Cathy_]

Instead of using envelop, open a separate bank account and transfer money there. More convenient and you can transfer the exact amount.

My credit card has an ADA (auto debit arrangement) for the full balance. I just deposit the amount near the due date. I like to see the cash because it helps me be more aware of my spending. I had a short episode of spending so much on online purchases because I did not feel the pinch with my card. So now every time I make an online purchase, I take the cash equivalent out of my wallet and place it on an envelope.

I agree. Waive din annual fee if nakakabayad ka diligently and yes, points are actually discounts in the form of rebates. However small, it is still savings imho. Tama din sabi dito na just make sure the cash for it is separated already para alam mo na may pambayad ka. hehe

I worked shortly at the credit card collections department when I was a fresh grad. I was so surprised to find out that many white collar workers are letting their cards revolve paying only the minimum due. It does not take a rocket scientist to know that it will take you more forever to pay this off assuming you pay religiously with no additional purchases. I think my friend computed it at 18 years ata. I forgot the amount at 3.5% interest.

You cannot spend money you don't have. People who can't control this cannot own a card.