It’s our family’s policy to use cash whenever possible. Why? Mainly because using cash causes us to spend less. When we make a budget, we stick to it. That can sometimes be hard if you use a debit card or credit card instead of cold, hard cash. A plastic card is impersonal. You swipe it and magically get to take something home (as long as there is money in your account), even if you didn’t budget it. But that $50 bill in your pocket…that puppy is personal. It’s attached to your hand. You SEE it. It causes you to really think over what you’re about to buy…realizing that once it leaves your hand, it’s GONE. “Hmmm, do we REALLY need Kleenex this month?” This is one of the biggest reasons to use cash this year.
It’s a proven fact that most people spend less when they have cash instead of a card. On average, folks spend about about 15% more when using a card. While that may not seem like much to you, if you make $50,000 a year, that’s about $7,500 – now THAT seems like a lot, huh? Kinda makes that debit card look a little less attractive. Get thee behind me, Satan! *Cough* Excuse me.
I would like to encourage you to try using a cash budget for a few months to see if you can spend less. It might not work for everyone – in fact, I have a few friends who have the “Money Burns a Hole In My Pocket” Syndrome. BUT, if you set a budget and stick to it, a few times of being out of money for groceries by the 15th of each month might teach you a little bit of self-restraint…which is an excellent character trait to develop.
Obviously, this method works best when you have a budget. And if you don’t use a budget, I highly recommend you start – it will change your life and set you free from debt.
Note – the first two or three months you use cash, it’s not likely to go well. It’s something new to you – and like everything new, it takes a little bit of work to get the bugs and “I gotta have it!” out of your system. Don’t give up …keep trying. You can do this!
Also, we don’t use cash for gas – we budget that out and use the debit card. It’s a little hard to walk into the store and pay for gas when you have little ones in the car.
HERE ARE 14 REASONS YOU MIGHT CONSIDER USING CASH– TAKE THE PLUNGE AND THE CASH CHALLENGE!
Take control of your money and improve your life.
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