It’s so easy to whip out your credit card or debit card isn’t it ? I know I am guilty of using my debit card to pay for EVERYTHING. The truth is that we tend to spend up to 30% more when paying with a card. It doesn’t seem like it’s real money so we tend to buy things that we wouldn’t buy when paying with cash. In doing that we reduce the amount of money we have to pay down our debt. When using cash some people divide the money into separate categories (food, transportation etc…) and some people use envelopes. Use whatever works for you.
I am going to do a trial next week of only paying cash. I am going to go to the bank to take out the amount of money I have budgeted for the week and I will hide my debit card (from myself he he! ). I want to see what the impact is on our budget. I hope to even have a little left over at the end of the week. I will plan a little treat for the family with the money we have leftover (hopefully).
Wanna join me ??
I know this is a great tip, but I rarely carry a lot of cash on me (this is actually because I feel you spent it easier), my husband can blow a $20 in a day and I can’t understand that.
It’s funny I’m trying this now except Im doing it for the month I did my cc and paid it off one month and cash this month and see if there is a difference!! (for my spending that is) Good luck Karen!!
Let us know how you make out. I’m curious!
My Aunt went to credit counseling and this was one of the first things they had her do. In fact she went so far as to cut up her debit card! Every Saturday she would go to the bank and take out what she needed for the week. If she somehow ran out of cash and needced money it meant having to go into the bank at lunch hour and wait in line so she almost never did it and learned very quickly how to make her weekly money last. She has since paid off all her debt but never got another debit card!
That’s just the kind of motivation I need ! Thanks!
Count me in! I’ll give it a try. I use my debit card for everything, justifying that I get points from my bank. I’ll bet it will be a challenge. One other thing we try to do is put all change in a change jar and not spend any. It does add up quickly for our emergency fund.
Oohhh, good idea. I’m going to do that next week too. Let’s see how much change we have after a week
Thanks!
I will have to try this after the next paycheck. I have already spent the amount I have allotted for the time till next pay. I am really good about not using it and not spending. I paid for my gas with cash that was strange because I always use debit!
On another note I had a really rough day! I really wanted to get take out or go out to dinner and instead I made dinner even though I was really tired from my exhausting day!
Good for you Samantha. That’s what it’s all about. I guarantee that when you are debt FREE, you will have many more good days than exhausting ones. It will be worth it in the end!