Cash is king for the budget-minded |
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Cards create poor spending habits
I have been doing this for several months and it really helps me
keep my spending under control. It seems like when I use credit
cards or debit cards, it does not really register in my head that
I am spending that money, especially the numerous little purchases.
But seeing a wad of cash dwindle away does.
It is far too easy to develop poor spending habits when it comes to cards. You tell yourself that you will repay it, but when it comes time to repay it, you would rather use part of that money on something new you want, or some emergency has come up, and now you have to postpone the payment. Before you know it, all those put-offs and emergencies have lead to massive credit card debt.
-- Tim C.
Nickel-and-diming kills
Cash dieting will keep you from buying junk you don't need. Instead of just throwing things into my shopping basket and saying a little prayer before I swipe my card, I have to think about how much cash I have in my pocket.
If we know we have $300 extra in our account and use the debit cards, we'll mentally spend that money two or three times and end up in trouble. But if we have to actually hand over the cash, which is much more painful, we'll end up with surplus money. It isn't the car payment that gets you -- it's nickel-and-diming yourself to death that kills a budget.
-- Wendy E.
False security with cards
Starting last month I decided to revert back to using cash. I find
that I spend less when I see the money leaving my hands. The credit
card is too easy, you almost feel like you have an unlimited amount
of funds ... that is until you get the bill at the end of the month.
I always found myself asking, "How could I have spent that
much?" Now I see what is going out, and if I don't have enough,
I don't buy it.
-- Indy C.
Ditch debit, save $1,000
Three months ago, I put away the debit card. Within a month, I had saved close to $1,000. I manage my money as though it was 1980. It is the best thing I have done for my budget!
-- Tracy McI.
Money relationships
People always look at me with a look of bemusement when I tell them
my husband and I go to the bank once every two weeks and cash a
check for daily living expenses. How could I be so far behind the
times? Well, years ago, when ATMs were in their infancy, I used
the ATM. I discovered I was busting my living expenses budget by
100 (percent) -200 percent every two weeks. My solution: Go back
to cash. It has worked well for my husband and me for over 20 years.
Don't quit if the seven days are too challenging.
Money like all other relationships requires constant negotiation.
But if times get tough or a new house or college expenses require
the belt to be tightened, you'll be prepared to follow your dreams.
-- Carol T.
Figure out 'per day' spending
We did the same thing but then took it a step further. In order to make sure we had money throughout the week, we paid bills and bought groceries. What was left until the next pay period we took cash out of the bank and divided up between the days left until payday. This allowed us to know exactly how much "per day" we had to spend. If we wanted to go out to eat, or buy something extra, we had the cash to do it. If we went over on one day, we had to borrow from the next day's accounts. It has really worked well for us and we no longer run out of money 3-4 days before payday anymore!
-- Sherri
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