Tips to manage your finances without a bank account

Tips to manage your finances without a bank account

Most people think that a bank account is a "must" to master your personal finances. Although it will help you organize your finances, you actually don't need to have a bank account to achieve it. Take a look!

No one can deny that having a bank account can help you manage your finances. You can deposit your paycheck in it, open a debit and credit card and easily pay your bills.

However, it isn't a "must"! There actually are many options to receive money and pay your bills if you are willing to live financially "off the grid." Take a look at these tips!

There are many ways you can manage to receive money if you don´t have a bank account. The main three options are cash a check, direct deposit on a prepaid debit card or PayPal.

  1. Cash your checks: If you get paid with a check, you have plenty of options that can help you cash it. You can either use a retail store or businesses like supermarkets (it may involve a fee); endorse the check so that a friend can cash it; or ask a bank if you can cash it there.
  2. Deposit onto a prepaid debit card: You can make a direct deposit of your paycheck onto a prepaid debit card. This way, you can easily access your funds and make purchases with it. Bear in mind that daily and monthly deposits have limits! Check which is your limit with your card provider.
  3. Money via PayPal: Create an account at PayPal.com with your email address and put your money in your account. Once you are all set, you can get a PayPal debit card, which works like a prepaid debit card.

Although it may seem easier to pay your bills with a bank account, you have plenty of alternatives!

  1. Pay with a debit card: You only need to enter the payee information and schedule the payment. Once the payment is sent, you will receive an email notification. The good news is that there usually aren't fees involved in this transaction.
  2. Pay at a check-cashing chain: You can pay a utility with associated check-cashing businesses. For instance, you may be able to pay your electric bill with cash. You just need to check beforehand!
  3. Money orders: You can get money orders from grocery stores, banks and check-cashing places. They work like checks, you just need to send it with your contact information to the payee, who will then cash it. In this case, you will be charged a fee!
  4. PayPal: You can also use this platform to send money to people, as long as they also have a PayPal account. You just need to enter their email or cell phone number and add the amount you want to send.

In order to learn the best ways to manage your money, you should follow these tips that will help you organize your finances:

  1. Receipts: As you won't be counting with a monthly statement from a bank account, you will need to track your expenses. So, the best way to do it is to always keep the receipts.
  2. Check your balances: Being financially organized may imply the creation of a spreadsheet where you can write down your balances on a daily basis. Prepaid debit cards also give you access to your balances, so it may help you keep track of your financial activity.
  3. Savings: Having a bank's savings account will not only help you save, but also earn interest. However, if you aren't interested in opening a bank's savings account, there are a few options you should consider: Buying a US Savings Bond and cash it after a year or open a second debit card to use it as your savings account.

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