These days, it’s all too easy to swipe our credit cards and lose sight of how we spend our hard-earned money. Although it’s convenient, it’s also easy to overspend. If you’re looking to watch your budget, try going back to using cash.
It may be old fashioned, but when we’re forced to keep track of actual dollar bills, we become more aware of our expenses and where we are overspending. The act of simply watching money leave your wallet makes you consider each purchase more carefully.
Try the cash challenge! Say your weekly budget for general expenses is $200. Start the week with that amount in an envelope. Spend as you typically would on groceries or movies, etc. Once that envelope is empty, you’re done spending for the week. And don’t cheat — if you buy something online, deduct that amount of cash from your envelope too.
Using only cash for a spell may make you more aware of how difficult it is to actually stick to your set budget. It’s not easy! Sometimes enforcing some self-discipline is what it takes to meet our goals.
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