It can be wise to put money by in case you need it for an emergency. This could be if you suddenly need to replace a white good, need new school uniform for your children, run out of money for food before pay day or have a bill that you were not expecting. Many people will have some money put aside to cover these sorts of things, perhaps in a savings account. However, a savings account may not be the best place to keep it because it can be tempting to spend it as it is easy to get hold of. It probably will not earn a lot of interest there either because interest rates are so low.
A pre-paid credit card is a good way to save the money and you will not be able to spend it if you leave the card somewhere where it cannot easily be accessed. Then if you need to buy something in an emergency, you will have the money on the card ready to spend. Most places will take payment on a credit card and you will be able to therefore use it to pay for something you need in an emergency. Continue reading