How big should your wallet be?

No I’m not asking you how much money you have stuffed in your wallet (or purse), I’m asking how big is it actually, as in size? Particularly, how many credit card spaces does it have? Yes, that’s where I’m going with this.

When you have more than one credit card, there is a serious question to consider. What circumstances would cause you to carry more than one with you? I can think of a few:

 

  • One has a higher credit limit than the other
  • One of them is nearly maxed out, so you need a second option
  • You always carry all of them with you, just in case
  • Your wallet holds quite a few, might as well pack it full

Do you know what all these excuses have in common? They are not very good. In fact, they are revealing that you do not have control of your credit card spending. There really isn’t a valid reason to carry more than one credit card with you, and here are some reasons for this that are good.

Credit card limits don’t matter

The size of your credit limit should not be a factor in the amount of your purchase. You should never be thinking, “I’ve got $x.xx left on my credit card, I can buy that much.” Even if you pay off your credit card balance every month, you shouldn’t use such an arbitrary amount in financial decision making. Furthermore, if you are out and about and your credit card can’t handle what you need, you really need to ponder how great the need actually is. The limit on a credit card should be a safety device, not a casual bumper to bounce off of repeatedly. In a future article we will discuss what a credit card is really for and when to use it. It’s coming soon, so don’t miss it.

There is no emergency that requires your highest limit card

There are allot of things that can come up while you are away from home every day. Your car could break down, you may have to go to the doctor or hospital, your kids may need money. But any “emergency” that arises that eclipses your credit limit should be rare indeed. Expenditures that large require time to think about, and next to nothing is so urgent that you can’t consider another purchase method. Rushing to finance things at 16%+ APR is arguably reckless, so don’t carry a wallet full of interest payments waiting to be made.

Carrying all your cards with you is a major temptation

Carrying your entire credit card arsenal is just asking for debt. Unless your financial discipline is sharpened to the edge of a katana, this is a temptation that can overcome the best of us. There really isn’t any reason to bring this kind of purchasing power with you. Pick a card with a limit that you are comfortable with and leave the rest at home. In fact, keep them there. Put them in a place that is not so easily accessible.

Lose your wallet, lose everything

Yep, putting all of your eggs in one wallet is not too bright. Of course, putting eggs in a wallet is not very logical…..but neither is keeping all of your credit cards, store cards, and bank cards in the same place. The inconvenience of calling your bank and one credit card company is preferable to the nightmare of calling everybody when everything you have is lost or stolen. Ask me how I know this….Besides, why would you consider this other than either too much or not enough organization? Minimize the risk by minimizing the load.

So how big is your wallet? Perhaps the key is to carry one that simply doesn’t have as much carrying capacity. Mine has room for two cards, a bit of cash, and my driver’s license. And along with my phone, that’s absolutely all I need.

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