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Money Mastery Method 26- Spend Only What You Own

By Leo Quinn
Author: 
Own Your Own Paycheck

Money Masters only spend money they have earned.  They don't buy on credit, except for a house.

Here's a practical method that I use, from my friend Leo.  It's a way to get the discipline and freedom of a debit card, while avoiding the danger.

"Most people who use debit cards love them because they get the convenience of a credit card without a monthly bill...which can easily spiral out of control when using a credit card.

A MAJOR problem with debit cards is they do not, in most cases, provide the same protection as a credit card. If someone gets your debit card number and steals money from your account, you may have a difficult time getting it back. That can be frightening if you had $15,000 fraudulently charged to one of your accounts like a friend of mine recently did.

This problem is easy to solve.

Every time you use your credit card, log on to your bank/credit card website and make a payment equal to the amount you just charged. If you aren't set up to do that online, send a check in immediately to cover the amount charged to your credit card company.

If you are really disciplined you can simply deduct the amount just charged from your check register as if you did write a check. When the credit card bill comes you'll have enough set aside to pay the bill in full."

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Note from Christopher - I actually use his technique.  I know the exact amounts of the credit card bill coming, and transfer into an account those amounts every two weeks.  So when the bill comes, the money is set aside.  I use the credit card, but I'm really using money I have.  I never pay credit card interest.

Leo is the author of Own Your Own Paycheck.  He teaches you how to pay off all your debts, even your own mortgage, in ten years or less!  I use many of his money mastery methods for my own personal finances.  He is the expert when it comes to money, and especially getting out of debt for good.  He even set up a special offer for friends of Christopher Westra, at the link above.