Dave Ramsey: The Only 5 Things You Need in Your Wallet
You may surprise yourself at how much clutter you can carry in your wallet, even if it doesn’t look thick or large. But you don’t really need most of the stuff you cart around everyday — this is a limiting habit many people don’t realize can impact their financial well-being.
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Money expert Dave Ramsey recommends taking control of your life and your money by simplifying what you keep in your wallet. A post on his website Ramsey Solutions reveals the five things (just five) that you should be carrying with you.
Cash
Some people don’t like to carry cash in their wallet, but the post on Ramsey Solutions advises otherwise.
“It can get you a bargain — try flashing cash as you negotiate for your next car. It can keep you accountable — as your cash dwindles, so does your grocery budget (and we all like to eat). And it can keep you from buying that awesome grill on impulse — because if you can’t pay cash, you can’t afford it,” said the article.
Driver’s License
As a state-issued ID, your driver’s license is an essential for your wallet. Besides the fact you need it to drive, it also comes in handy for cashing a check, buying over-the-counter medicines and confirming your identity for anything that requires it. Hence, it should always be found in your wallet.
Debit Card
Your debit card is useful for many transactions, and it can also have the same fraud protections as credit cards as long as you run the transactions as credit. But it can also make you overspend — more than you would if it was cash you were dealing in.
“Instead of making swiping a habit, restrict your debit card to budget categories you normally wouldn’t pay cash for. Because using dollars and cents for everything else can drastically improve the way you spend and save your money,” the Ramsey Solutions article said.
Insurance Cards
You can experience a medical emergency at times you would least expect it, and that’s why your insurance card comes in handy. It’s proof of your coverage so you’re certain to receive proper care without worrying about expense. It’s also useful if you need to file a claim.
According to Ramsey Solutions, “While most of us keep our vehicle insurance cards in the car (which is fine) it’s smart to keep your prescription drug and medical cards in an easy-to-get-to place in your wallet. Hopefully you won’t need them, but at least you’ll finally know where they are if and when you do.”
Membership Cards
Wallets are easy to fill with junk loyalty cards that you plan to use but never do. Instead of those, you should carry a few membership cards that are actually useful like Costco, AARP or your gym membership. They can serve as a supplemental means of identification if you need to confirm your identity, and allow you to take advantage of special discounts or rewards programs that may be available at different retailers.
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This article originally appeared on GOBankingRates.com: Dave Ramsey: The Only 5 Things You Need in Your Wallet
