Cash or debit card?

[tripods68]

I too use Debit Card like water. It's been really hard to spend save extra when you have a Debit Card at your disposal at anytime.

Part of my New Year's Resolution is to switch back using cash more often partly to limit my spending and save only what I have. Whatever is left at the of the month goes toward our savings. After reviewing my expenses for the last 5 month, I noticed I had over 100 ledger ATM withdrawal like $3.50 Starbucks Grande Mocha, or $6.00 for lunch at Taco Bell =$500.00 a month splurge. By switching to cash, I will carry certain dollar amount limit $10.00. One of the way, i hope to accomplish this goal towards more saving is leave home without my Debit Card to work everyday. I noticed that I spend more on lunches and breakfast outing on days I go to work. This way, I spend only what I have on my pocket which is $10.00. I figured I could save extra $300 a month or $3600 a year if apply myself to this budget with the goal in mind for 2008.

[kristinecfp]

I use debit cards, but as a financial planner, I have mixed feelings about cash vs. debit cards...

On the one hand, if you use cash, you are (hopefully) more aware of your spending, and are less likely to overspend. With debit cards, it's easier to overspend because it doesn't "feel" like you're spending money (for some people - not true for everyone of course).

On the other hand, when you use cash it is harder to keep track of your spending. I can't tell you how many clients tell me they spend $500-1,000 in cash and have no idea where it goes. With a debit card, you at least have a paper trail of where the money went.

Every person is different so there's no one right answer. Use whichever method works best for you and your finances.

[marsel]

my credit cards!

[Caoineag]

I never use to use cash. Harder to track. Now that I have a handle on my expenses, part of my allowance is in cash. I hate the fact that its basically untrackable but it does allow me to spend a little less when I want to grab a snack or fast food meal because there is no $5 min. to make me feel guilty. I have always been a big fan of debit because mine has $0 liability and it automatically categorizes spending.

I have a friend who needs her money in cash so that she doesn't impulse spend til oblivion but I have never had that issue. In fact, for me, cash used to be easier to spend. Now it doesn't matter what I use.

[Landwatch]

Though I have a card still I prefer using cash. When it is hard cash I am more careful with what I am buying, however with card I get careless and lose it all in a clean swipe. So its hard cash that helps me spend less.