Budgeting

Swapping Kroger For Aldi Foods: How They Compare

September 17, 2018 By Amanda Stewart Leave a Comment

Aldi is continuing to pop up in new locations around the United States and it has many people wondering about Aldi foods and how much they stand to save by shopping there. I’ve personally made the switch from Kroger-owned Harris Teeter to Aldi in recent months and am loving the savings. Is swapping out your grocer for Aldi the right move for you?

How Much Should You Be Spending on Groceries?

Many people look to their grocery bill when they need to start trimming their budget. It is one of the easiest expenses to control, especially if you are willing to shop around. You can collect the local flyers and compare sales prices across the board or look prices up online to determine where you can get the best deals.

However, there are some items that cost pretty much the same everywhere you go. So, how much should you be spending on groceries each month?

USDA Monthly Grocery Budget Guidelines

Each year the United States Department of Agriculture releases information about the cost of produce and other food items. According to the USDA, the figures below outline the average cost to feed yourself or your family.

Family Size	Thrifty Food Plan	Low-Cost Plan	Moderate-Cost Plan	Liberal Plan
1 (Low)	$197	$248	$359	$442
1 (High)	$207	$287	$306	$391
2 (Low)	$384	$491	$609	$763
2 (High)	$384	$491	$609	$763
3 (Low)	$465	$600	$731	$911
3 (High)	$547	$721	$903	$1098
4 (Low)	$546	$703	$854	$1061
4 (High)	$693	$928	$1166	$1398
5 (Low)	$621	$797	$972	$1204
5 (High)	$817	$1107	$1390	$1660
6 (Low)	$751	$979	$1190	$1463
6 (High)	$964	$1302	$1644	$1955
7 (Low)	$851	$1112	$1368	$1666
7 (High)	$1053	$1419	$1797	$2132
8 (Low)	$991	$1298	$1608	$1946
8 (High)	$1176	$1591	$2004	$2378
9 (Low)	$1141	$1481	$1830	$2218
9 (High)	$1274	$1714	$2156	$2563
10 (Low)	$1289	$1665	$2051	$2491
10 (High)	$1508	$2023	$2538	$3022
11 (Low)	$1436	$1849	$2273	$2765
11 (High)	$1451	$1945	$2426	$2894

Kroger vs. Aldi Foods

Some individuals have completely swapped out their traditional grocer for Aldi. This has helped them better control their grocery budgets and, in the long-run, it helps them save money. How do Aldi foods compare to, say, Kroger?

Pros and Cons of Aldi

One of the biggest pros of shopping at Aldi is the prices. Because of the way the store is set up, you’re able to increase your savings.

There are some cons to getting those savings, however. If you are a “brand snob,” you won’t always be able to find name brand items at Aldi. Even if you do, they may not be there the next week. Some products are rotated within the store’s inventory. The store may not always have what you’re looking for either, especially if it is a unique food product.

Another thing to note is Aldi’s produce does not keep that long in the fridge and sometimes doesn’t seem to be that fresh. You may want to continue picking up items like lettuce or fresh greens elsewhere.

Also, keep in mind, Aldi does require you to insert a quarter into the shopping cart to use one. You’ll also need to purchase bags or bring your own. In some cases, the store may have extra boxes they are willing to give you to store your food for the ride home as well.

Pros and Cons of Kroger

Kroger-owned grocery stores are a bit more expensive than Aldi on most things. Unless you’re able to cash in on a specific sale or stack coupons, you can get almost everything cheaper at Aldi.

Personally, Kroger offers up a better shopping experience. Lines at Aldi can be a bit long and it is difficult to find someone to help you if you need it. That isn’t the case at Kroger. You’ll also be able to find everything you need in one store shopping at Kroger. Whereas, as mentioned above, Aldi may not have some specialty items.

Non-food items are cheaper at Aldi than Kroger but, in most cases, you’ll be able to get these items cheaper at a store that isn’t only selling groceries. More often than not, you’ll get a better deal on items like toilet paper, paper towels, cleaning supplies, and other non-food items at Walmart or Costco.

Are the Savings Worth It?

For many people, shopping at Aldi has been able to save them up to 50% on their grocery bill each month. When you consider those savings, swapping out Kroger (or your current grocer) for Aldi foods seems like a no-brainer.

Many people may try to argue that Kroger-owned stores offer up rewards and better promotions than Aldi. Keep in mind, most rewards programs are designed to get you to spend more money. You’ll pay a higher original price to get your $5 off or your gas rewards.

Aldi prides itself on not having to do those types of deals because their prices are always low. One Reddit user even mentioned the local Aldi store manager sending associates to local grocers to ensure they have the lowest price on staples like milk and eggs.

While there has been some negative feedback on some produce at Aldi, you can always shop there for most of your food and hit Kroger for specific items. Switching to Aldi for the bulk of your shopping stands to save you $100+ a month.

Readers, what do you think about Aldi foods and prices? Have you shopped there?

Can You Get Cheap Coffins at Costco?

September 14, 2018 By Tamila McDonald Leave a Comment

If you need to plan a funeral, one of your biggest single expenses will be the casket. On average, a metal casket costs $2,400. However, if you opt for high-end materials, such as bronze, copper, or mahogany, the price can skyrocket, reaching up to $10,000.

While Costco is known for offering a wide variety of good at affordable prices. Many customers don’t realize the full scope of what the company provides. The store’s website is vast, so it’s unrealistic to explore everything that is available until there is a need.

However, since Costco tends to have reasonable prices. Many turn to the retailer when they need to save. And, if you need to prepare a funeral service. You may find yourself wondering, “Are there Costco caskets?”

Does Costco Sell Caskets?

In short, yes, there is such a thing as Costco caskets. The store’s selection is fairly minimal. They usually only comprise of a few options. However, they do have the potential to meet the needs of most people. There are a few colors and styles from which to choose.

Are Costco Caskets Affordable?

In comparison to the $2,400 average for a metal casket. The ones available through Costco are affordable. You can find a metal casket on Costco’s website for under $1,000, though some options are closer to $1350.

Costco also has a solid wood casket on their website. The price is around $1,800.

All of the prices for Costco caskets include shipping and handling. The only additional charge would potentially be sales tax.

How Do You Order a Casket from Costco?

One of the easiest options is to complete your purchase online. However, the order completion process is a little different from a standard one.

First, Costco requests that you contact the casket manufacturer before making a purchase. This allows you to confirm the availability of your selection in advance. Then set up a delivery option. To make this process easier, Costco has the number listed on their website.

Once you confirm availability, there are other steps that vary from a traditional order experience. For example, when you enter the shipping information, you need to use the first and last name of the deceased. Additionally, you place the mortuary or funeral homes name in the “company name” area. Also include their address in the “address” section, and their phone number in the “phone number section.”

The billing address information needs to match the person who is making the purchase.

How Long Does It Take to Arrive?

If you order a Costco casket before 10:00 am Pacific Time, it will arrive by 5:00 pm in your time zone after three business days. Business days are Monday through Friday, excluding any holidays.

For example, if you order a casket before 10:00 am Pacific Time on Tuesday, it will arrive by 5:00 pm local time on Friday. If you place the same order after 10:00 am on Tuesday, the casket won’t arrive until Monday.

Additionally, someone must be present to accept the delivery when it arrives. Typically, if you are using a funeral home, an employee will be able to handle the incoming delivery. However, if you are sending the casket to another location, you may need to set someone up to be available when the delivery arrives.

Can Anyone Buy a Costco Casket?

Sadly, no, not everyone can buy a casket from Costco.

First and foremost, the purchaser’s address and shipping address must be in one of the 38 states where Costco is allowed to sell caskets or in the District of Columbia (Washington D.C.). Here is a full list of the eligible states:

Alabama
Arizona
California
Colorado
Connecticut
District of Columbia
Florida
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Massachusetts
Michigan
Minnesota
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oregon
Pennsylvania
Rhode Island
South Dakota
Tennessee
Texas
Utah
Washington
West Virginia
Wisconsin
Wyoming

This means both your bill-to and ship-to addresses must be in one of those areas. However, they don’t have to be in the same one. For example, your bill-to address could be in Washington while your ship-to address could be in Texas.

Additionally, to purchase a Costco casket, you must be a Costco member.

Can a Funeral Home Refuse to Let You Use a Costco Casket?

In short, no. Funeral homes must adhere to rules outlined by the Federal Trade Commission (FTC), including that they must accept any casket a family buys, including those from outside sources. Additionally, they cannot charge you a fee solely for not purchasing a casket from the funeral home.

However, it is wise to inform the funeral home of your purchase within one business day, especially if they will be receiving the delivery. This ensures someone will be available and that they no to anticipate its arrival.

Can You Return a Costco Casket?

Costco will only accept casket returns if the item was damaged during shipping. If that occurs, you have to contact Costco customer service to make arrangements, as caskets cannot be returned at warehouse stores.

However, if there is no damage, you cannot return the casket to Costco.

Is Ordering a Casket for Preplanning Allowed?

No, the manufacturer cannot support preplanning orders. They cannot hold a shipment until a future date, so they will only accept orders that can ship to a funeral home, mortuary, or other approved location immediately.

Should You Buy a Costco Casket?

Ultimately, choosing a casket is a very personal experience. Only you can decide if what they have available is right for you, your dearly departed, and your family.

Before you decide, explore what Costco has to offer. Read the casket specifications to make sure the size and weight limits meet your needs, and even read reviews left by other buyers.

You should also feel free to comparison shop. While Costco caskets are affordable, there are a variety of options out there, including many online.

For example, you can also buy caskets from Amazon, and many of their offerings are reasonably affordable.

As with any online shopping experience, make sure to read the descriptions thoroughly, especially since returning a casket usually isn’t a possibility unless there is shipping-related damage. If, after reviewing the information, you believe you found a suitable option, then don’t hesitate to move forward with your purchase.

Have you ever purchased a casket from Costco? Tell us about your experience in the comments below.

Looking for more great money-saving articles? Give these a try:

4 Things Young People Waste Money on and How to Spend Less on Them

September 5, 2018 By Susan Paige Leave a Comment

Not a teenager anymore, not an adult yet. Young people only take their first steps on a career ladder and often hear a lot of “money-making” advice from their mature counterparts. Being highly interested in how to make more money, they often neglect the other part of financial literacy.

That’s not merely a claim, even young people consider themselves wasteful: 85% of millennials would like to improve their “money-saving” skills. For comparison: 81% of Gen Xers and 70% of Baby Boomers refer to themselves the same way.

Can we change this situation? Yes, if millennials revise some items of expenditure that have little-to-no real value for their personal growth and a genuinely happy life. Let’s kick off and name 4 useless ways to spend money on for a young person.

1. Parties and Alcohol

27.36% spend the most money on alcohol and drinking. Other 26.50% can’t hold back from excessive entertainment. According to Strutt & Parker, each millennial from the UK spends £3,016 per year to go out weekly. And that’s only if a person hangs out 1 night instead of the whole weekend.

We merged alcohol and parties not by accident. If people went to parties being entirely sober, they would obviously spend much less. Alcohol is the key to an uncontrollable spending of money due to its specific impact on the human mind: you become less attentive but more sloppy and unplanned. Moreover, large doses of alcohol cause temporary memory loss, according to NIH publication. It’s not an uncommon case when people just leave their money somewhere they can’t remember.

SavingAdvice: Don’t take a credit card to the party. Admit it: as parties are often associated with alcohol (or even drugs), you won’t likely be able to control your expenses. To avoid waking up and be surprised by your morning cash balance, always carry with you only a limited amount of cold hard cash enough for clubbing.

2. Coffee and Cigarettes

A price of a cup of coffee comprises $6.24 in Copenhagen, $4.60 in Shanghai, $3.2 in New York, $1.50 in Sao Paulo, and only $0.62 in Lagos. It’s not that much, but what if you drink 60 cups of coffee per month? Even the cheapest coffee from Lagos will cost you $37.2. An average monthly salary in Lagos is around $550, so 7% of your income is gone to the wallet of your favorite coffee shop owner.

Cigarettes are similar but stealing even more money from your pocket. For example, a pack of Marlboro in New York costs $14. Considering the destructive impact of cigarettes on health, the total waste caused by smoking eventually exceeds the price of a pack.

SavingAdvice: You heard a million times that the best way to save money is to quit smoking. These people are right, but that’s not that easy. If you want to reduce useless expenses but continue smoking, we recommend you to roll your own cigarettes. A 30 g pouch of tobacco costs between $10 and $15. 30 g = 60 cigarettes. Also, you need to buy rolling papers or tubes. A pack of 100 tubes costs no more than $3. Thus, you still smoke cigarettes of good quality (or even better) but spend threefold less money.

3. Online Gambling

Talking about the UK again, an average millennial spends £416 on lotteries annually. More than 30% of people aged 18-24 gamble at least once per month. Also, about a half of surveyed millennials prefer online gambling over land-based venues, which they find depressing. But don’t they trade bad for worse?

On the first sight, online gambling has a very low entry barrier — the minimum possible deposit in the casinos is no more than 5-10 dollars, so it seems to be hard to lose a big sum. on the spot. And even if you lose, some casinos offer you cashback bonuses that aim at returning few percents of your stake and giving you a “second chance” to win. They make you feel like saving money, but those lucrative bonuses and low deposit limits are traps: cashback is very small, so you need to add your own cash to recoup. When you use that “second chance”, you lose again in most cases.

Thus, the main threat of online gambling is its higher accessibility than brick-and-mortar casinos: you don’t need anything but your smartphone to play. This explains why online gambling is so popular among young people who consider their phone to be an extension of their hand.

SavingAdvice: The only way to spend less money on gambling is not to gamble at all. However, if you can’t quit gambling right away, try to hand over your earnings to people you trust (your partner, parents, closest friends) and get away from gambling for a couple of months. Leave only those money you need on mandatory spendings like food, utility bills, and transportation.

4. Status Symbols

Millennials are less likely to buy their own houses, but more likely to buy expensive branded goods. When a purchase of an own house is still out of reach, a young person needs something else to feed their self-esteem. A new iPhone, a pair of trendy sneakers from Balenciaga, or a handbag from Chanel are those status symbols millennials show off on social networks to demonstrate their success in life.

Talking of social media, their popularity is a major reason why young people fall for status symbols. Instagram, which is so popular among millennials (64% of US. adults aged 18-24 use Instagram, according to these statistics), was recognized as the most harmful network for the mental health. It’s hard to stay non-wasteful while tons of people are bragging about their expensive acquirements, influencers recommending goods without even buying them, and brand accounts persistently pushing you towards the next purchase.

SavingAdvice: People show only their best moments on social media and completely overlook their setbacks. If you want to stop wasting money on trends and fads, get out of this game and ignore this delusive fear-of-missing-out. Every time you are going to buy a new item, ask yourself: “Why do I need this thing?” If your brain starts drawing pictures of how you will take a photo of this and post on Instagram then you don’t need it at all.

Avoiding parties, coffee breaks, status things, and other useless expenses, you may find yourself way richer. Some young people joke: “What else spend money on if not on parties?” Well, self-development, travelling, new experiences, and hobbies are worth every penny, cause these things bring you real happiness.

4 Ways To Keep Up With Techno-Trends On A Budget

September 5, 2018 By Susan Paige Leave a Comment

When we think technology, we usually also think of the big price tag that can be attached to it. While many electronics are certainly bank-breakers, even more, are becoming increasingly reasonably priced as technology shifts from a luxury into a commodity. Take a look at these great tips below which can help you save some major cash on your next electronics purchase!

Bigger Isn’t Better

It’s an age-old colloquialism, but there’s some real truth to it here. You may think that having the biggest and flashiest computer, television or phone is the best option for you. However, the newest electronics usually don’t have a huge edge over their older models or cheaper competition. Know what it is that you need in any electronics you’re looking at. Do you use your laptop for anything other than browsing the internet and sending emails? You probably won’t need to drop money on a computer with an intense graphics card, then. Apply this principle to anything you want to buy and you’ll find yourself saving tons of money in no time.

Moreover, if you wait a little longer, the hot new items will soon become old enough to be put up for sale, too. With how fast technology evolves these days, that fancy new phone that your friend spent hundreds of dollars on is probably going to be up for grabs at a price slash in just a few months.

Know The Value Of Your Electronics

When we see words like “inexpensive”, we may think that it means the product we’re looking at is inherently worth less than things that cost more. This is certainly not always the truth. Let’s take a look at good old-fashioned headphones. Many of the luxury brands boast pairs that can cost you $800 or more, promising an amazing audio experience. But you don’t need that kind of money for some good ear pieces. You can check cheap in-ear headphones on Headphonesaddict to see just what kind of quality you can get for a fraction of the cost luxury brands bring to the table. Always check the specs of everything you buy and where applicable, make sure to look at user reviews too. You’ll likely be pleasantly surprised by the quality there.

Look For The Best Deals

There are plenty of places out there that are chock-full of information dedicated to helping you find the best deals on electronics. This includes flash sales, auction sites, and manufacturer rebates. There are always going to be people out there trying to get rid of old electronics for this or that reason, too. Because of the fast rate at which technology updates, many companies will even try to clear out older stock to make room for the new hot ticket items. As mentioned above, the new models aren’t always going to be a better deal than the older ones, so stick around and wait until those start to go on sale.

Holiday sales are another thing to look out for. Black Friday and Cyber Monday are some of the best chances you’ll ever have for picking up high quality electronics at budget costs, so make sure you keep your eyes peeled around this time of year.

Pick Your Splurges

Sometimes, you may just really want that expensive new gadget, and you may not want to wait until it goes on sale. A good way to make sure that you balance what you want with a reasonable budget is to only splurge on a select few items. You don’t need the latest, greatest invention for every single piece of technology in your house. However, if you see something that really catches your eye, consider setting aside some money for it. Remember to keep an eye out for deals, too; even new items sometimes go on sale.

Keep these in mind the next time you head out to do some electronics shopping and prepare to be pleasantly surprised by the amount you end up saving.

How a Polygamous Relationship Can Impact Your Finances

August 28, 2018 By Tamila McDonald 9 Comments

Finances can be complex in any relationship. Even when they just involve two adults. However, when you add a third, fourth, or even more partners to the mix, things can quickly become even harder to manage.

The presence or lack or primary partners – a relationship that is given priority over the others – can play a factor. Additionally, if there are any children. Whether the partners live together or separately also impact the financial side of the relationships.

If you are wondering about the financial ramifications of having multiple partners. Here is an overview of the kinds of relationships that exist. Also, here are some of the complexities that come along with them.

Bigamy vs. Polygamy vs. Polyamory

Many people confuse the terms “polygamy,” “bigamy,” and “polyamory,” using them interchangeably. However, while a polygamous relationship is polyamorous and may involve bigamy. A polyamorous relationship is not necessarily polygamous or have anything to do with bigamy.

Bigamy involves attempting to legally marry more than one person. In the US, bigamy is illegal. A person can only be legally married to one other person. Bigamy is a form of polygamy.

Polygamy is also illegal in the US. Polygamy can occur when a person enters into a relationship that is treated as a marriage. This occurs while they have a marriage-like relationship with someone else. A polygamous relationship could involve two people who are legally married. As well as a third or more people who they treat as spouses, even if they have not attempted to marry them legally. This means polygamy may or may not also involve bigamy.

In general, polygamy was made illegal because of common law marriage statutes in various states. In a common law marriage, a relationship can have legal rights and protections similar to an actual marriage. Even if they pair never obtained a marriage license or got legally married. If more than two people live as married, then they could all be deemed part of a common law marriage. This type of marriage is not legal.

Polyamory is different. It is simply a form of nonmonogamy. This may not involve any marriages, either legal, common law, or otherwise.

While romantic relationships may exist between more than two people in polyamory. Each relationship is not necessarily treated as a marriage. For example, a woman may be legally married to one partner while having another partner who is treated like a boyfriend or girlfriend. Alternatively, a woman may not be married at all. She may choose to maintain romantic relationships with more than one partner.

Polyamory is not illegal as long as the relationships don’t transition into a polygamous or bigamous state.

The Financial Implications of a Polyamorous Relationship

Handling finances while being part of a polyamorous relationship can be complex, but also highly varied. One of the biggest factors in how things are handled tends to be cohabitation and whether any two people are married or living as such.

Cohabitation can mean that certain costs need to be split. For example, sharing a portion of the rent or mortgage payment responsibility may be necessary. Similarly, utilities, cable, and internet costs might be managed collectively.

However, even if two members are married or living as married, they may choose to maintain separate bank accounts to manage their income. Comingling finances is not a requirement of marriage, and a separation may make things easier to manage between primary partners and any additional relationships they maintain.

Often, if a couple is married and polyamorous, and choose to comingle their finances, then it’s wise to budget for expenditures on other partners. This can help set limits on how much each person can spend on their other relationships, ensuring enough money is available to handle joint obligations.

Cohabitating Couples

Alternatively, a cohabitating primary couple may choose to maintain a joint bank account for shared financial responsibilities and separate accounts for their spending. This can function similarly to the budgeting approach for entirely comingled finances, but may provide for some additional privacy.

In some cases, members of polyamorous relationships may choose not to cohabitate, even if they maintain a primary relationship. In these scenarios, each individual may be solely financially responsible for their homes, bills, and finances. This means joint budgeting isn’t necessary, and each person can spend what they like based on their needs and preferences.

There is also nothing to say that every member of a larger polyamorous relationship couldn’t cohabitate together. However, this can make it hard to maintain a legal separation between polyamory and polygamy, particularly in states where common law marriage exists.

Often, this means that strict financial boundaries may need to be in place. For example, sharing a bank account between more than two members of the relationships, or having multiple two-person accounts with different partners, could blur the legal lines. Additionally, estate planning can be complex if you wish to leave something to non-primary partners.

Understand State Laws

Ideally, anyone in or considering a polyamorous relationship should review their state’s laws regarding common law marriage and polygamy. That way everyone can understand what actions may cross into the polygamous arena, allowing all members to avoid any legal penalties for the relationships.

It may also be wise to consult with a lawyer for estate planning or large joint financial purchases, such as a house, as they may be able to provide guidance to ensure no legal boundaries are incidentally crossed.

The Financial Implications of a Polygamous Relationship

A polygamous relationship can come with all of the financial challenges of a polyamorous relationship and then some. First, since polygamy is illegal, there are potential legal costs that can occur in regards to the relationship’s existence. For example, lawyer and court fees may be expenses that must be managed.

Additionally, in polygamy, more than one relationship is treated like a marriage. This could mean multiple partners all cohabitating and sharing the responsibilities of managing the household, or that some parties are full members of multiple households.

Setting multiple budgets may be necessary to manage a polygamous relationship. This is regardless of how many people earn an income. If there is more than one physical home. Anyone who is part of multiple households may have to divide their income. Everyone must pull their weight, which can complicate the financial aspects of the relationships.

If everyone cohabitates, a single budget may be sufficient. However, spending limits on non-household expenses is necessary to keep everyone financially on track.

The Complexity of Estate Planning

Estate planning will also be complex if everyone cohabitates in a home at least one party owns. Especially, since more than one relationship is treated as a marriage. This is one of the reasons polygamy is illegal, as the legal complexities are hard to navigate. However, with an estate plan, certain issues are resolved. But, if one party chooses to fight against the plan at the time of one family member’s death, it may not be easy to reach a resolution.

Ultimately, polygamous and polyamorous relationships do come with financial impacts. By openly communicating and planning, it is possible to come up with viable solutions. These are solutions that work for a person’s lifestyle. However, if the relationship is legally polygamous; there are numerous hurdles along the way. It’s wise to avoid crossing into that territory.

Do you have something to add to the information above? Share your thoughts in the comments below.

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The All-Cash Diet – Are You Up to the Challenge?

August 21, 2018 By Tamila McDonald Leave a Comment

As of June 2018, Americans owed an astounding $1.039 trillion in revolving debt. Additionally, the average American owes about $6,400 in credit card debt alone.

Rising debt loads can be hard to combat. Often, it takes a significant amount of time to pay down these financial obligations. However, you can speed up the process with dedication and diligence.

In some cases, an all-cash diet can make eliminating debt easier. At a minimum, it prevents you from adding to your total, allowing you to chip away at your debt more effectively. You can also amp up the process by setting a strict spending limit.

If you think an all-cash diet is a challenge you can handle, here’s what you need to know.

What is an All-Cash Diet?

An all-cash diet involves using only physical currency to handle your daily expenses. For example, you would only use cash to pay for gasoline for your car, groceries, and similar expenditures.

Fixed expenses, like debt payments, housing costs, and utility bills, don’t have to be paid in cash. Instead, you can handle those electronically, such as through direct debits or with a debit card. However, you want to avoid using credit to pay these costs. Otherwise, you might not be able to lower your total debt load, which is often the primary goal of using an all-cash diet.

How Do You Start an All-Cash Diet?

The first step you need to take is to create a budget. Outline all of your fixed expenses and determine how much income you have left over. Your remaining money is the maximum you can spend on fluctuating day-to-day costs, such as food and fuel.

Next, you withdraw your remaining income as cash. Ideally, you want to divide the money up into spending categories, ensuring you allot enough to each area to cover your needs. You can designate an envelope to hold the funds for an individual category, making it easier to track.

For instance, you may have an envelope for groceries and another one for gasoline. As you divide the money, make sure you are realistic about what you need to spend to maintain a reasonable lifestyle.

Alternatively, you can divide the cash according to the number of weeks you have between paychecks. For example, if you get paid biweekly, then you would have two envelopes and would likely split your money in half, making each one equal in value.

Regardless of the approach you use, there is one additional step worth taking. Certain expenses, like oil changes, come up regularly, but not always on a set schedule. That can make covering these with your weekly or monthly allotments feel challenging.

Instead of using money out of your main spending envelopes, consider creating another one to set aside for these costs. Then, take a small amount out of each paycheck and set it aside in that envelope. How much you need in this category depends on your unique needs.

However, by considering all of the costs you encounter throughout the year, you can come up with an approximate annual total. Then, divide that amount by the number of weeks in a year or the number of paychecks you receive. Now you’ll know what you need to set aside.

Using the All-Cash Diet

Once you have your money in hand, use cash to cover every purchase you make. By doing so, you are functioning on an all-cash diet.

While the premise is simple, that doesn’t mean things can’t get tricky. For example, if you run out of cash for the week, in a category, or before your next paycheck, then you can’t buy anything else until it is time to replenish that envelope. Instead, you may have to get creative about managing your needs, ensuring you don’t rely on credit to cover the shortfall.

Ideally, since running out of money is a possibility, it will make you more aware of your spending decisions. Paying with cash makes shopping seem more tangible, as you can watch your money leave your hands and see that you have less available to make it until the envelope is refilled.

If you want additional value out of the process, whenever you spend money, but the receipt back in the envelope. This will let you review your spending at the end of the week or month, helping you to spot issues that may be hurting you financially.

Often, people using an all-cash diet are less likely to make impulse purchases. This can be incredibly beneficial for individuals who tend to overspend when using plastic.

What About Left Over Money?

In some cases, you’ll discover that there is still money in the envelope when it is time to replenish your funds. When this happens, you have a few choices.

If you don’t have an emergency fund, you can save the extra cash in a savings account. This helps you create a financial buffer against unexpected events, like a large medical bill or car repair.

For those who already have an emergency fund, then the spare money can help you pay down your debt. Send the excess to your highest interest debt as an extra payment, allowing you to lower your total and reduce interest charges.

You can also use the remaining money for irregular expenses, like birthday gifts. If that is your goal, open a savings account to store these funds. Then, when it’s time to make those purchases, pull out the money you need.

How Long Do I Need to Be on an All-Cash Diet?

How long you stay on an all-cash diet is up to you. Usually, you need to consider your goals and choose a duration that helps you achieve them.

However, if you aren’t sure whether an all-cash diet is right for you, consider starting off with one month. This will give you a realistic picture of what living on cash is like, allowing you to assess the process thoroughly.

At the end of the month, review how you did. If you were able to complete the time with little hardship, then remaining on an all-cash diet may work for you.

If you ran out of money or had other difficulties, then review your budget again and go over your shopping receipts. Did you properly allocate your cash? Did you make any unnecessary or impulse purchases? Is a lifestyle adjustment necessary to be successful?

By taking a hard look at your habits, you may find areas where you could save, making sticking with an all-cash diet easier to manage. However, it isn’t uncommon to have to make sacrifices, especially if you were using credit to support a lifestyle you can’t actually afford.

After reassessing, consider staying on the all-cash diet for another month. Then, take a look at how you did this time to see if you made progress.

Even if you don’t choose to stay on an all-cash diet, it’s still a valuable experience. You’ll have a better understanding of your spending habits and should have a more functional budget, making it easier to keep your finances under control.

Have you tried an all-cash diet? Tell us about your experience in the comments below.

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