Cash in King. Wherever you are, cash is always accepted and is easy to use. Another reason to love using cash is that it keeps you within budget. It’s impossible to overspend when you only have a certain of money amount with you. I’m sure many of you have heard of the “envelope system” which is a method of saving money in envelopes for your everyday use within certain spending categories. I used this system when I was paying off debt and still use it now to monitor my spending.
For my recent trip to Colorado and California, I used an envelope to save up cash for lift tickets, food, fun, and other travel essentials. About 6 weeks before I departed, I started putting $50-$100 each week inside an envelope so I would have enough set aside. I like using this method especially for travel, so I don’t have to come home and worry about paying off credit cards!
Using cash gives you permission to spend and keeps your spending under control. It gives you a plan, and I don’t know about you, but I feel better when I’m in control of the way my money is being spent- not just flying by the seat of my pants and hoping I’ll have enough to cover my purchases.
You can use the envelope system for as much or as little as you want. I’ve used this system for:
- Grocery store use
- Gas & oil changes for the car
- Travel – only for spending money. I’ll use a savings account to save for flights & accommodations
- Dog food & vet visits
- Fun activities or going out to dinner/drinks
- Needed household items
- Gifts for others
These little funds are easy to get set up and are a gradual way to save every week or month for things that you need or want to buy in the future. I feel that adding to these funds is an easy part of my cash flow because it doesn’t require giant amounts. A little bit here and there adds up and puts you in a position to spend without guilt.
I’ve heard from many people that they don’t carry cash and don’t like to. It’s a personal preference and I get that there is a convenience factor when using debit and credit cards. Carrying cash also comes with its risks. If you lose it or it gets stolen, it’s gone forever. Don’t get me wrong, there is more responsibility that goes along with using this method, but I still prefer it. It’s easy and effective!
For me, I feel way less pain when I use any kind of card, debit or credit. Cards make it way too easy to spend more on things I don’t need, or didn’t plan for. I’ve noticed that when cash is involved, I tend to spend much less! I feel the effect of money leaving as I pass over the physical bills.
Do you prefer to use cash or cards? Do you notice a difference in your habits when you use one vs the other? Comment below =)
“By failing to prepare, you are preparing to fail” – Benjamin Franklin
Thanks for Reading,