Why we went cash?
Going cash wasn’t a decision I took lightly. I thought that we handled our money fairly well. And since I was the person who handled most of the money – I didn’t want to admit defeat. But there are many reasons why we went cash – some reasons why you should consider going cash too!
At the beginning of the year I set a lofty saving goal. A goal I would no longer be meeting, unless I really stopped spending. So I tried a number of things, our budget was good. And I didn’t over spend by a ton each week but I did over spend. As the saying goes – small leaks sink big ships. I was keen to stop the leaks and try to reach my saving goal.
Working with cash means that I have no safety guard. If I am doing the groceries and it goes over then I have two options – I can borrow money from my ‘incidentals’ or I can put back some items. That’s it. I only put one week’s money in at a time, so I cannot borrow from the following week.
The cash also forces me to examine every cent I spend. Do I really need that? Because if I spend that $8 on a BBQ chicken for dinner, (because I’m too lazy to cook) then later in the week I will not have that $8 when I do the groceries.
Cash also helps me understand my budget categories better. Things that may have been blurred before have become very clear. Take away as a family on a Friday night is an entertainment expense. However a quick donut alone for a treat at work on a Wednesday is NOT an entertainment expense and I really should be paying for that out of my allowance. As painful as that is for me.
Knowing what is an ‘incidental’ expense and what should be in another category means that I can easily work out if my budget needs to be altered. Or if it is my spending. It makes my budget flow a lot easier knowing that there is enough money. As long as I spend it in the right categories.
Cash has forced me to identify my spending in a way I haven’t had to before. I now have an understanding of my ‘leaks.’ I also know where every cent is going. But best of all I am saving more than ever. The extra spending no longer can happen – if I want something I understand it is at the expense of something else. If you are thinking about changing to cash, if any of these points sound like you. I urge you to give it a go. It’s not easy and it takes a little getting use to. But when I see the extra money I am saving weekly – I am happy to go through the hassle of getting cash out every Wednesday morning.