That’s why I wanted to show you a similar savings idea, using an opposite technique. While the first example used cash, this technique involves your credit cards.
If you want to escape the cycle of credit card debt, sometimes you will need to use unorthodox methods to break your bad habits of carrying – and using – your credit cards.
How to Do It
Take your credit card(s) and put them into a box/envelope/financial chastity belt. When they’re out of your wallet, they’re out of your reach.
When you decide you need to use one of your cards for a legitimate reason, you go to the box, take it out and use it. Following that, you put it back. It’s really that simple.
Why it Works
This principle works because it adds an extra layer of thought and reflection to the purchase you are about to make. You can add another level to this by leaving yourself a note on the card saying ‘Do you really need this?” or “I thought you were saving money for that vacation.” You might feel like your own nagging mother, but a little self-guilt can help you change your habits and use your cards responsibly.
If you have two or three credit cards and MUST carry one, try this technique by only carrying one card and leaving the others at home.
As you get used to this layer of thought in the buying process, you can start carrying your cards again – using the lessons you learned in safe spending.