A Cash Diet....Makes it Easy

[LuxLiving]

In reading back thru these posts it appears that we may have a disconnect.

We do operate on an all-cash basis at our house meaning we carry no revolving debt (I dunno, unless a mortgage is considered revolving?) Anyway, we don't make purchases of any kind ANY MORE that we don't have the money/CASH in the bank to pay for - either when the check, debit card transaction hit the bank or when the CC payment is due. We pay off monthly.

Like Joan, to me controlling the spending is more influenced by my own will power (these days) than the method of payment.

[jIM_Ohio]

Originally Posted by LuxLiving

In reading back thru these posts it appears that we may have a disconnect.

We do operate on an all-cash basis at our house meaning we carry no revolving debt (I dunno, unless a mortgage is considered revolving?) Anyway, we don't make purchases of any kind ANY MORE that we don't have the money/CASH in the bank to pay for - either when the check, debit card transaction hit the bank or when the CC payment is due. We pay off monthly.

Like Joan, to me controlling the spending is more influenced by my own will power (these days) than the method of payment.

The key word is CONTROL.

Self control.
Control of one's destiny (or in case of BIF, "density")

I can control discretionary spending better by purchasing things with cash.
Bills like electric are paid online.
Bills like mortgage are automatically withdrawn

I have control of all 3 above.

Others could use CC for benefits. I used to do that. Then I learned that Ford cars are not very reliable. No more Ford Visa, no more benefit. Does Honda have a credit card?

I can see how others have systems which work for them. We have a special checking account to pay bills online (the only money deposited is what we have budgeted for online bills). We have a different checking account for cash bills (the only money deposited is what we have budgeted for groceries, gas and hair).

We have another account for mortgage and IRA. Only money deposited is what we have budgeted for mortgage and IRA.

4 accounts total. That is how we maintain budget control. Other systems can also work just as well.

[disneysteve]

Originally Posted by LuxLiving

Like Joan, to me controlling the spending is more influenced by my own will power (these days) than the method of payment.

Same here. I've never quite understood why the method of payment has any bearing on whether or not someone makes a particular purchase. Either you can afford something or you can't. It doesn't matter if you are paying cash, check, debit card, credit card, money order, etc. The price is the same no matter what.

[Cash Control]

Hi All,

I have been away for awhile so this may be a little late. Agree that a one size fits all approach does not always fit all. Tailoring is necessary but I have found that providing people with a simple system improves the chance of them changing their habits. Some do tailor it, use cards etc. That is great as long as they still have Control. For most this method is a good starting point and many still use it.

Broken Arrow you are right. It is a spending problem and the big question is why? I think it is around habits. A lot of people just have bad habits, hence struggle when they don't need to. I believe in making it easy and helping people to change their habits and manage themselves. The right habits. The system is less important than the habits. But I have found that quite a few people need a simple system, simple rules, dished up with some support and help before they get the right habits.

Adios,

Cam
Cash Control