What Payment Type Can Help You Stick to A Budget?

What Payment Type Can Help You Stick to A Budget?

In this article, we’ll discuss the important topic of: “What Payment Type Can Help You Stick to A Budget?”


Are you amongst those who tend to go bankrupt towards the end of the month because they do not have a proper budget plan? Are you someone, who despite multiple attempts, finds it hard to stick to the budget? Well, a lot of people complain about the same. It is challenging to stick to a budget, and there can be just one explanation for that- improper management of funds. But if you are trying to make reforms, we must tell you that we are here to help. 

This article discusses how to stick to a budget by choosing the right kind of payment method.

What Payment Type Can Help You Stick to A Budget?

Most people complain about not being able to stick to a budget. The payment method plays a significant role in this case. Let us give an example- if you are on Instagram, scrolling through your feed, and seeing a very tempting watch, but it is out of your budget. 

The payment type mentions that you can get it on EMI (equated monthly installments) using your credit card. The installments may seem significantly less compared to the bulk one-time payment that you would have had to make. Therefore, you will cross your monthly budget by using a credit card every time you see such offers. 

Therefore, you must choose the right payment method that will have a check on your budget. 

Ways of Staying Within Budget

Two kinds of payments can help you stick to your budget.


You must be wondering, in this digital era, who carries cash for transactions. Believe us when we say this, cash transactions are the best payment type to keep you in check. They have a high success rate of keeping you within budget. And if you want to be harsher on yourself, you can try the envelope method. 

The envelope method says that you can withdraw cash and put it in separate envelopes on the day of your paycheck, allocating individual amounts for your bills and expenditure. You start spending from envelopes once you are done with the amount in envelopes that will be the limit for that month. 

It cannot be easy to continue this method forever. A combination of cash and envelop method can surely help. I recommend cash payments because they give you immediate feedback and give you a check on the balance left. 

They are also easy to track. However, the downside is that you will have to carry a lot of cash with you, which is also not the safest thing to do. Despite that, cash is proven to be the most successful method of sticking to the budget.               

Debit Cards

This is just a step up from cash. Unlike credit cards, you can only buy things with the amount that you have in your account. It is like paying the entire amount of the item upfront and not paying it at your convenience using a credit card. Debit cards are linked with your account, and you have a limit on the spent. 

There is also something called an overdraft fee. This is a charge imposed when you spend more than what is on your debit card. You need to be cautious about overdraft fees, as the debit card will be blocked until there are sufficient funds available in your account. 

You will have to monitor and note the debit card transactions continuously. If you wish to go harsh on yourself, you can keep a limited amount only in your checking account, and the rest amount can be kept aside for savings for your future investments or hobbies. 

That way, you can both be on a budget and fulfill a larger dream. 

Together with cash and debit cards, we can assure you that you will stay within the budget.

Which Payment Method Has the Highest Interest Rate?

Any loan which you are taking from the bank will impose some interest. There are two types of loans- credit card and payday loans, which will provide you instant cash against a high-interest rate. But which one is higher is the question? 

Payday loans impose a higher interest rate compared to credit cards. The loan process is, if you do not pay back the payday loan with the mentioned two-week period, your amount will be rolled over, and you will have to pay a compound interest rate. 

The longer you take to pay back the loan, the higher will be your interest rate. Therefore, we strongly recommend you stay away from payday loans as the chances of rolling-over are high, thus imposing a higher interest rate. 

Final Thoughts

It is a painstaking job to list down and track all your expenses. But if you wish to stay within a budget, there is no better way than this. When you physically hand over cash, you understand the deficit. That way, you can better manage your expenses along with better financial planning. We hope this article answered your questions on payment ways of staying within a budget. 


Here is a video talking about the different ways in which you can stay within a budget. 

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Discolsure: I am not a financial expert and it is highly recommended that you seek out a professional before making any financial decisions. Articles are informational and for educational purposes only.

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