Friday, February 4, 2011

Curb Spending By Using Cash

I talked about how cash is still a superior form of payment in my last post. Now is the opportunity for me to put my money where my mouth is. It's the beginning of the month, and I haven't used any of my discretionary fund yet. This morning, I will go to the ATM and take out $80 in cash (out of my $100 budget) to spend for the rest of the month. What about the rest of the budget? Well, because I have to swipe my Chase debit card a total of 5 times a month to avoid a checking maintenance fee, I left that $20 out for that purpose. Besides that, all of my "fun budget," including food (non-grocery), clothing, and going out money will be spent in cash.

So what do I hope to achieve? I'm not purposely trying to piss off the people standing in line behind me, for sure. It's really to test the theory that using cash can help you to relate more closely to your money. By spending (almost) only cash this month, I'm hoping I'll be more aware of how much $$ is physically disappearing from my wallet. It might hurt more, but hey, I call that tough love!

Have you ever used this method to curb spending? Did it help? If you've never tried this cash only spending method, I encourage you to join me. It'll be more fun with more people =D


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