Pre-Paid Debit Cards Are Not Your Friend (Part 2)

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You have read how it is a waste of time and money to have your payroll automatically just to turn around and pay someone to have access to your own money. This card that is supposed to help you has now become a nightmare. I can help with information that you can that can have you make a more informed decision when it comes to your finances. Do not be fooled by the commercials that are racially profiling the type of people who will need to use their card, in one they show Black people who look like they can’t even walk near a bank let alone get a checking account. Next, they prey on the ones who think their credit history will not allow them to get a checking account. I would never give advice that I myself have not done. People are good for saying, “try this, try that,” and then when you do and it does not work out, they are the first ones to say, “That was on you, I didn’t say you had to do it.” All I am doing is just giving information about things I have done that has worked for ME. Only you know your situation and if something I write here can help you then that is great or someone you know. We are all in this together and we all need a little help every now and then, it is your decision not mine to make I just want to pass on information of things that have worked for me … Let’s get started.

First, you want a way to pay for items over the internet. There are two ways to do it and one way is free and will not cost the fees you would receive when using a pre-paid card. Get a pre-paid credit card that you do not have to have your payroll deposited to the account to get the card. The Rush Card and Western Union are two companies that are ok to use. With Western Union they have made it easy for you to send money to family when you use their card so take a look and see if works for you. You will have to pay a fee to activate the card once you get it in the mail most will charge $19.95 and then various fees when you use it. Now just hold onto it and pay for everything with cash do not use it unless you have a bill that needs to be paid that day if not just hold on to it, like any regular credit card only use it for emergencies. What you will find is that you will have more cash on hand than before. When I blogged on Staples Speakeasy I titled one of my blogs “Out with the New, In With the Old.” We need to slow down and take it back to a time when we did everything ourselves and not rely on the computer for everything. Remember the old people that did not trust banks and everyone thought they was crazy, them crazy people always had money. You never knew where they had it but they had it, you can call and say you had a bill to be paid or that someone needed a dress for whatever, they would say “well I’ll see what I have but I don’t know.” The next day their slipping it into your hands on the sly saying “don’t tell nobody I gave you that”. They were on to something and when I started doing it myself I found that I had more money to work with. I messed up my checking account when I lost my home, I was in a deep depression from that and my father had just died so I didn’t care about my finances.  I was gave the bank almost $500.00 dollars in fees each month before I paid a bill I did this for almost 3mos. They were happy to take my money I just did not care. I got it together and since then I have been able to move into a great place and buy a better used vehicle without a co-signer I will tell you about those situations in another article.

Before you cash your check, sit down and really write out your bills. I can help you if you want; send me a message. I designed a calendar along with a manual that will help see what is happening day in and day out to make it much easier to see where your money is going. Go to a bank or a credit union I use a credit union and open a savings account. You will not have to pay the type of money you would when opening a checking account. With my account I only have to keep a balance of $5.00 each month and I conduct the same type of business as anyone with a checking account, I can use all of the bank services. Now you have access to people who can answer your questions about car loans and home loans. What this also does is it establishes you as a customer. A customer who with their advice on how their services work may be able to get a car loan from them because they can see how you use your account. They know what type of money you have consistently coming in each month. That is what you want to do that $5.00 fee others may charge more each bank is different is nothing compared to the fees you would have to pay to keep a checking account open. There are different fees to maintain a checking account, the more money you have the less fees you have to pay. Look at it like this, once you have given that initial amount you do not have to give it again it stays on the account until you it is closed. With pre-paid cards you are paying that bank fees every time you use it every month. Here is the math, just for one transaction each month you have to pay $10.00 to pay a bill that’s $10.00 × 12 = $120.00 a year. Just for one transaction, you have on the account now if you have 5 transaction like the one that means you have just given the bank $600.00 total for the year every little bit adds up. If you are using a pre paid card to conduct business like a checking account you will have to pay a set up fee for automatic bill paying and then a transaction for each one, you need that money in your wallet.

You’ve cashed your check now, next to pay your bills buy money orders for the bills you mail for as little as forty-six cents at a Wal-Mart which is one the few places that offer them for that low of a price. Your bank may sell them for a reasonable price since you have an account with them. The credit union I use will let me get a Certified Check free once a day, you cannot ask for better service since all I have to do is keep a balance $5.00. Stamps are about $5.00 or $6.00 a book I think, I buy a lot and sitll can’t remember because I make sure that I have them. Now you can start saving money a little bit at a time I opened an account for my son when I opened mine please teach your kids financial responsibility. That they do not end up sleeping on your couch drinking your orange juice asking you for money for cigarettes. What I started doing was I would put an amount I thought I didn’t need minus my bills. Then I would wait as long as possible before I went back to the bank to get some of the money. This has enabled me to put away money slowly and it has made me wait longer and longer to get it. I would wait till the fridge was empty and the cars gas tank was almost bone dry before I would make a withdrawal. This is not to say I have money saved, what it means is that I can now get through the month and not have to beg for money until I get paid again. I am telling you you can do it because I did it. Like I said I have written a manual about what I have done to make it better for me, it is not about getting rich it is about living better on what you have. Trust me it takes time it really does but once you get started you will be like wow I am doing it …

(Part 1) | Part 2



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