A Cash Diet....Makes it Easy

[LuxLiving]

Re: A Cash Diet....Makes it Easy

I didn't think you were being critical - just wanted to clarify that sometimes for the psychological and budget constraint reasons, there is reason to track and it's okay! There may be more people w/low paying jobs than you realize who are actively interested in saving.

We have a cash diet of sorts but it appears to be different than OPs. CASH is what is limited here because from us it escaped WAY too easily. We are more leary of spending w/CC, checks, and debit cards than with cash. So, for us, we budget and stay on it by knowing the budget and give ourselves a VERY limited amount of cash to play with. It works for us.

I go ONCE a month to the joint bank account for spending money/allowances. The Hubster gets a bit more than me - $20 A WEEK - his covers cigarettes & haircuts & any other small incidental he'd like and mine is for the occasional lunch out, candy or whatever I can stretch it too - you'd be surprised how far I can stretch $10 A MONTH!! Everything else is budgeted to it's respective categories (investments & spending) and doled out accordingly by either debit card, check, automatic bill-pay or the occasional CC usage to gather the float.

Everyone has to do what works for them. And, it varies from person to person, and from season to season. There was a time when CCs were a problem for us. That season has passed and so our habits/disciplines have changed.

[Ima saver]

Re: A Cash Diet....Makes it Easy

I have used the cash method all my life, I put my cash in the envelopes . We each get a set allowance each week in cash. I do not have a debit card nor have I ever used an ATM machine. The money in the checking account is for paying bills not spending. We do charge sometimes, but only what we can pay off each month. My husband does most of the charging. It is for materials at home depot that are paid off out of our business checking. We earn cash back for this.

[Joan.of.the.Arch]

Re: A Cash Diet....Makes it Easy

I agree that this is not a one-size-fits-all principle.

Sincerely, I do not believe that how much money I spend is much influenced by the vehicle by which I spend it. I'm just not impulsive in my purchases. I do not spend more when carrying a credit card than when carrying cash. And as has been pointed out many times, I get a rebate on credit card spending, plus I get organized records of that spending. I wish I could find ways to put more of my bills on credit card. There are still some that can't be paid that way.

There are certain things I use cash for, but they are few.

[LuxLiving]

Re: A Cash Diet....Makes it Easy

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]

Re: A Cash Diet....Makes it Easy

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]

Re: A Cash Diet....Makes it Easy

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