I’ve tried {and failed} to use a ‘cash only’ system of budgeting more times than I care to remember, however I’m going to give it another go.
As part of my 80 Day ‘Write Your Own Life’ project I’m putting the debit and Amex cards in a drawer and using cash for everything.
My main reason for wanting to do this is very simple; I think paying with cash makes you think more about what you’re buying and when it’s gone, it’s gone.
What about you, do you use a cash only system successfully?
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{photo credit: Rogue Soul}
{ 12 comments… read them below or add one }
I currently use one credit card that I pay every two weeks when I get paid. I have a budget and I stick to it. I do not use cash because I like the cash back on my Discover Card and utilize it for gifts. I have taken the Dave Ramsey course and his method is cash only…there are several reasons why I don’t do this, but I do think it is true that you spend less when you only have this much in your hand to spend, period.
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I totally agree that paying cash makes you think more about buying something. I have my cash in my purse and that is it. When it’s gone, it is gone. I just don’t use my plastic for anything… that’s how I stick to it..
.-= apieceofwood´s last blog ..Debt payments / being a tart =-.
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I have fallen off the budget wagon after doing so well this winter. Grrrrr! I will use my debit card and forget to record how much I spent or won’t reconcile my checkbook and not now how much I have. I’m going to try the cash system. Take care!
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I have gone the other way, I try and use my Tesco credit card for everything. 1) I get points 2) I like the ability to have their system track my spending for me 3) It’s quite hard to deal with cash all the time.
Of course I can’t do that all the time, so I make a mental note of small cash expenses (e.g. car parking) and jot them down when I get home.
Having said that I completely understand your rationale. I think we can be all too free and easy with the plastic, so anything that helps remind us that it is real money we are spending is a good thing!
.-= Tony´s last blog ..How to Destroy your Limiting Beliefs. And a Big Challenge! =-.
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This may sound counter-intuitive, but I firmly believe I spend more when I have cash in my pockets. First off . . . here in France, most places have a minimum purchase on card, so I’m less likely to buy a pastry or go out for coffee or what not. The thing about cash is–if I have 20 euros, I think, “Ok, that’s worth something.” But once I buy a cup of coffee and have fives, tens and maybe a smattering of 1 euro coins, they seem to evaporate into thin air.
If I use my card, I can tally up all the purchases at the end of the month. . .and I do.
.-= Simple in France´s last blog ..Saying “NO” to Fitting in. And weekly post picks. =-.
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Very bold move. I think I could do a cash only basis for everything except for Petrol, because it is just very convenient to pay for it via debit card. But you are right, it does make you consider if your money is worth being spent on an item. Look forward to the updates!
.-= Money Funk´s last blog ..The New High-Tech $100 Bill Edition =-.
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best of luck. I find cash kind of different to most, as I have these jobs that pay me a lot in cash – and I can’t bank it as its not officially a job or earnings, so I end up with loads of cash about the place, so its no different. I just keep track of what I spend on our calender and that seems to do the trick. not that I am great at staying with in budget, but at least I am aware of where I am over spending!!
.-= mo´s last blog ..Esme drawings =-.
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I am iwth SImple in France on this. Card transactions are big and important and less easy to do. Cash in the purse is just itching to escape.
Debit cards all the way for me, plus it mens that Abbey indly keep a list of all my transactions for me.
Lizzie
.-= Lizzie´s last blog ..Lots doing but no headaches =-.
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Move to Portugal Reply:
April 26th, 2010 at 10:45 pm
It’s interesting how we all view things differently.
I can totally understand using a cashback credit card or a rewards cc; my husband does for all petrol etc (amex for cashback and clubcard for points)
For me, spending on a card is far too easy and I do it without thinking, spending actual cash makes me think first, the opposite to Lizzie and SIF; we’ll see how my trial goes
Thank you for all your views
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I wanted to return to cash, but I have personally found it very difficult. It certainly needs a lot of organisation and perserverance. I would like to try again sometime….
.-= Non Consumer Girl´s last blog ..Decluttering my daughter’s bedroom – one year later……revised strategy. =-.
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We were using cash for a while, in order to save on bank fees; then we changed the fee structure on our bank account so that now we pay a set fee per month with unlimited transactions. So although we have saved a few dollars per month in bank fees, unfortunately we now use our bank cards all the time because it’s easier. We really should go back to using cash–it makes it easier to stick to the budget.
.-= Laura @ Getting There´s last blog ..One stitch at a time, taken patiently. =-.
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Hi Laura and thank you for dropping by
We’re quite lucky in that we don’t get charged bank fees on our checking account and can do as many transactions as we need to!
Yes, I’m hoping that I will stick to my budget a lot better.
.-= Laura´s last blog ..Guest Post: The Compact, Buy Nothing New =-.
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Hi Non Consumer. I’ve tried so many times before that I’ve lost count, but it is something I really want to master
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