If you’ve never done it before, cash budgeting can seem cumbersome, confusing, and not worth the headache. However, studies have shown time and time again that you spend less when using cash than plastic – even if you’re using a debit card. I like to think of cash as a nice hedge around your budget. It’s a boundary that keeps you on target and from spending more than necessary. However, if you’ve never used an envelope system and feel like you’d have to turn your life upside down to switch to cash in every category of spending, I’d highly encourage you take the next 30 days to experiment (not with drugs or other unsavory practices, but by using cash).
For the next 30 days, use only cash for your grocery shopping. Yes, it might require an extra trip to the ATM or pulling the cash you’ve budgeted out from your check (Are we the only people still without direct deposit? Sometimes I feel like we live in the dark ages.). However, this simple strategy can save you more than any coupon or thrifty shopping tip ever could.
Using cash in the grocery store makes you cognitively pause with every purchase you place in your cart. You have to keep an approximate running total in your head or you’ll end up doing the conveyor belt dance of shame upon checkout. You can easily determine which purchases are necessary and which items have “jumped” into your cart unexpectedly. You might even discover that you need an item but could wait until next week’s trip to purchase it. When the cash is gone, it’s gone. It’s a built in protection system for your budget.
BONUS: No guilt gut when you walk to the car, feeling like you’ve overspent.
I can hear the “But What Ifs” through the internet already.
But what if I really do need something and it exceeds my cash allowance for the week?
If you have the money in your account and aren’t using a credit card, by all means, go ahead and use your debit card for that necessary purchase. I’m not trying to deprive you of deodorant or milk for your baby. The cash is simply a protective barrier meant to keep your feet and checking account from stumbling into harm’s way.
Once you’ve mastered the art of grocery shopping with cash, it’s a good idea to branch out into other spending categories. I suggest dining out, entertainment, and clothing as the next 3 to tackle.
Don’t forget that I have this Cute FREE Printable Cash Envelope System available for download (and an even more adorable FREE Printable Kids Budget Envelope System).
Do you cash budget? What tips can you share?
Gain inspiration to pay off debt! Check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free
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This is one of those “black hole” areas in my budget. I find myself buying the same hints week in and week out simply due to habit. And each week I find myself throwing tons of produce and other perishables away because of this. Meal planning was one way that I realized this habit was a problem. Looking to take it to the next level with using cash as an awareness tool of what and how much I’m buying. Thank you for sharing your tips, tricks, and successes with the rest of us!
You are so sweet Lady Nicole! I hope that the tips truly help. I know that everyone is on their own frugal journey and sometimes I feel like I’m repeating myself or that everyone knows something already. So I LOVE feedback like this to let me know I’m on the right track.