Tips like these helped us pay off $127K in debt. You can read our story in Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After.

Welcome to 31 Debt Free Missions! This year on Queen of Free, during each day in January, we will provide 31 concrete debt free missions or challenges for you to take on to #SlayDebt and take charge of your finances this year. Each mission will take you less than an hour (some will only require 15 minutes). Whereas, 31 Ways to Kick Debt in the Teeth (which I’m reworking this year and reposting in January, too) focused on some of the philosophical changes you need to make in order to be successful with money, 31 Debt Free Missions are action steps to put into place after you have your thinking straight. Even better, during the month of January, we’re revisiting each of these challenges in order to sharpen our money saving and debt slaying skills.

Are you ready? Your mission is as follows:

Day #27: Start a Cash System

Cash is King! Cash is the best way to save money! You can get better deals when you spend cash! You’ve heard it all before. Those crazy debt free people start beating you over the head with their stories of how your life will improve 100% if you only just dolla, dolla bills, yo. And let’s be honest. It annoys the tar out of you. You’re using your debit card and you’ve quit using credit. Isn’t that enough? Maybe yes, and maybe no. Today I want you to begin to start using the cash system (or at least contemplate it). And if you’ve never gone cash, I want you to dip your toes into the water. It does make a difference.

I will fully disclaim that I use a mix of cash and my debit card (GASP!) but I always stay on budget when I use cash and I don’t always when I swipe Mr. Mastercard Debit.

Start with Groceries

Here’s the good news. You don’t have to go 100% plastic-less immediately. I always suggest that debt slayers begin with a first phase of moving to a cash system in the grocery store only. After you begin to master using cash there, you can choose to branch out (I suggest dining out next, followed by entertainment, and then the clothing budget). Things are always easier when broken down into bite-sized pieces. So begin with buying your groceries with cash. You can do this easily by either swinging by the ATM and getting cash (use your bank so you don’t have to eat fees) or you can buy a small item on your list and get cash back at the register before you begin.

I can hear you already. But what if? What if I don’t have enough money to buy my deodorant?! Well by all means if you can’t stay within your cash budget and still need something essential, you can use your debit card. Spending cash will help you scrutinize more effectively exactly what you’re buying. My cardinal rule at the grocery store is always to put back 3-5 items before I check out. Each week, it saves me $5-10 without clipping a single coupon. Score.

Find a Pretty System

Maybe it says something about the state of my soul, but it’s easier for me to embrace spending cash if I have a system I LOVE. This is why I created FREE Printable Envelopes in the categories I use the most (there’s also a 3 envelope set for kids). I also adore Thrifty Zippers. I have a wallet that I have carried for YEARS now. It was a bit of an upfront investment but I still love it and it’s cute and it’s so darn durable.

Go Figurative

So maybe you’re still not with me. Maybe you’re still a little “meh” about spending cash. One thing you can do instead is to draw line items within your budget (I use Quicken to do this) and “forecast” what you will be spending. Then, as you reconcile each purchase, you can deduct that amount from whatever category of spending you have. I honestly think this is more work than simply using cash but you could go this route.

Or like in Start 5 Savings Accounts Today, you could set up “envelopes” as savings accounts and only use each individual account for a specific purpose. Again, this is probably more complicated in the long run. But since paying off debt, we do have separate accounts for things like vacation, car repairs, gifts, and Christmas.

Do you have to go to a complete cash system to be able to pay off debt? No. Listen, I’m sure you can pay off debt and just use your debit card. However, I do feel strongly that you’ll achieve your goals more quickly and stay on track if you only use cash in the store.

Did you see the previous Debt Free Missions? Knock them all out this month!

For more money saving tips on the cash system, check out: The Best Ways to Navigate the Cash Envelope System.

My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free on Kindle.

This post contains an affiliate link. That means when you get a great deal or maybe even something for free, you also help our family pay off our mortgage early. And for that, we royally thank you!

31 Debt Free Missions: Start a Cash System

Day #27: Start a Cash System

Start with Groceries

Find a Pretty System

Go Figurative

For more money saving tips on the cash system, check out: The Best Ways to Navigate the Cash Envelope System.

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Day #27: Start a Cash System

Start with Groceries

Find a Pretty System

Go Figurative

For more money saving tips on the cash system, check out: The Best Ways to Navigate the Cash Envelope System.

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Testimonials

Don’t Miss Out on E-mail Updates