Here’s my little Happy New Year gift to you. Each day in January, I’ll bring you a simple, concrete and easy to put in place tip to fuel your efforts to Save Money, Pay Off Debt, and Be Awesome this year. Looking for a quick plan? Well this might not to be the right place for you. Most things down well take time. But that doesn’t mean you can’t begin to implement systems in your life that will help you achieve your goals. I’ve said it many, many times before. Paying off debt isn’t complex. It’s just not easy. You have to punch the clock daily and do the hard work. Here’s another way to make that happen.
Day 4: CA$H Money, My Friends
Can I make a confession? I use my debit card way more than I should. It’s just so blame easy to pull it out to pay. From the gas pump to my numerous trips to ALDI, from Target to the mall and everywhere in between. I really like my debit card. It gives me the ease of a credit card without the interest rates or all of that spending money I don’t have nonsense.
But here’s the thing. I know, k-n-o-w, KNOW that I’m much more accountable to my budget when I use cash. When I use the debit card, I’m much more likely to place the items that sound good that we will use in my cart, whether they’re on my list or not. I don’t keep a good running total in my head and while I’m never grossly over budget, I don’t keep things reigned in as tightly as I know I should.
So what’s the big deal of going $5-15 over budget if you have the cash to cover it? Overspending with your debit card keeps you from other dreams and goals, Money Saving Lords and Ladies. Sure, you might be able to cover it. Sure, it’s not *that* big of a deal. Sure, we all go there now and then. However, if you multiply $10 a week overspent on groceries by 52 weeks, you get $520. I don’t know about you, but I have a few plans for what I would do with an extra $500.
I know it takes forethought. I know it feels like a hassle. But switching to a cash spending system will certainly help you kick debt in the teeth this year. A few thoughts if you’ve never been on cash system before.
- Ease Into the Process. Choose to go cash only in the grocery store first. After you’ve successfully implemented the system into your day-to-day life, expand to cash only for dining out or your clothing budget. Then add an entertainment envelope into the mix. Soon, you’ll be able to rock several envelopes.
- Use an Envelope System You Love. Seriously, I can’t emphasize how much this can make a difference. I know it seems incredibly girly and silly. But if you have envelopes you love, the process will be more fun and even inspirational. Here on Queen of Free, I have FREE (of course) printable cash envelopes for you to make. They’re cute and have unique quotes on the back of each, challenging you to spend well and save money. I also LOVE Thrifty Zippers. This tip makes a bigger difference than you might realize.
- It’s Not the End of the World. Underestimate? Really need deodorant but don’t have enough to cover it? It’s OK to use your debit card now and then. But you would also do well to evaluate your cart to see what you could remove to cover the cost.
Choose a category of spending to go cash only in today. Print an envelope and take a cash challenge for thirty days. If it doesn’t save you money, go back to your debit card.
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I’m so looking forward to sharing this month of challenge and inspiration with you. Together, we can show debt who’s boss and give it a swift kick in the teeth this January and throughout the year in 2014. Away we go!
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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So true, I recently had to start making myself use cash again, as it’s so easy to spend too much on groceries and stuff when you don’t use cash! Since going back to cash I’m doing great! I wrote about my Falling off the Bandwagon here http://pennypinchingprose.blogspot.com/2013/12/falling-off-bandwagon.html#.UsoC7PRDu_Q