Awhile back, we stopped using our credit cards. We've saved tons of money and are even getting them paid off for the first time ever. But it struck me recently that I could still do better!
I realized how often I was swiping my debit card for a small purchase here, another one there. It's just too easy to swipe that card and not think twice! I have started to take out a pre-set amount of money at the beginning of the month and pay cash for everything.
It is WAY harder to part with 5 green dollar bills in your hand for a gourmet latte then it is to swipe your card. You think twice before spending a little extra at the dollar store when you're handing over that money! And I have to say, a quick run through McDonalds isn't quite worth the convenience when you're forking over a crisp $20.00 bill just so you can all have some grease! :)
I am not saying that a treat now and then isn't enjoyable, or that you should never shop. That would just be wrong. But since I've started paying cash for everything except bills, I've actually had money left at the end of the month in our bank account, something I previously would have thought impossible!
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So practical in the world of "just pull out the debit card"! I need to get a grip and put this into practice. Thank you for the practical advice.
This is a great advice. I'm going to try this.
I use a Target debit card. This saves me 5% on every purchase, plus I work there, so this saves me 15%. Cash is a money loss for me. I do try to not spend anything each day.
So true!
Good for you... Take if from someone who's been around the block, you will be glad you did down the road.
My family started doing this a while back. It has really made us far more conscience of what we spend.
More people need to do that
How about those times when you didn't know you were overdrawn and get socked big time for NSF and then next month your all haywire on account of it. Been using cash for over a year, I also think merchants like this also, because now they don't have to pay a fee to the bank and they are seeing this because my bank now is giving me points to use my card and I can get free gifts.
Kenneth, I totally agree!! Years ago, young, dumb and disorganized....many overdraft fees over $10 or less. You can dig a hole that's hard to get out of.
If you use your account for the same bills each month and take out cash for everything else, screwing your account up becomes nearly impossible. I like how you think!:)
Something not many know is that merchants you purchase from have to pay the banks a percentage of their sales when credit and debit cards are used. If the bank offers rewards on the card, the merchant has to pay a higher percentage still.
It's okay, but I live in a mountain town that doesn't have everything, for instance, no clothing store, and sometimes the things I want or need are not on sale locally, which means paying full retail price. So I shop online a lot. To do this, I use both Paypal and a debit card. Paypal does not charge me any fees to use their service, and it's safer than using my debit card online.
I use my debit card on really trusted sites such as Amazon. I don't spend more money this way. It's harder to make impulse purchases online because you're looking right at ratings and reviews by other customers, which you don't see at local stores.
Cash is great to get you thinking about how much money you're really spending, but I always found that before I got my Paypal and my debit card I was not getting the best deals because I'd spend until my cash ran out, then go home. Now I find I can get the best deals available for that item that week nationally, not just locally.
I have also found that if i carry larger bills like $20 or $50 bills i am more likely to think before i break these. I also throw all coins i get into the bottom of my purse. When my purse gets heavy i dump out loose change and stash it away,as loose change still,and it really adds up fast.
I've noticed that some stores ("Mom & Pop" type in small towns) offer incentives for using cash and checks. You can be entered into weekly/monthly drawing for some incentive, perhaps a % off coupon or a $amount off a purchase. These same small shops may also have a minimum charge amount for using your credit/debit card.
For instance, one particular local small town shop - pay cash/check and be entered into weekly drawing for $5 off next purchase. However, credit/debit purchases must be at least $15. I feel this is a great incentive; not only do I carry cash (or go back to checks for a paper trail!), but I also shop local and support the businesses in my small town and know the money goes back into the community rather than the big box stores.
Don't get me wrong, I still shop online and I shop at the big box stores, but use coupons, sales fliers, comparison shopping and frugal ideas on a regular basis.
I agree that using cash greatly cuts down on impulse buys, also.
I find that easy if I were outside often like most people. I stopped eating out and coffee buying too. I order my things online and ship to the door. The blessing is like you said having something at the end of the month. I basically shop for needs now and that has been a blessing.
Not to mention shopping the Dollartree.com and delivering to the store. I am glad you have money left over it's nice. I should have a lot more next month.
frugalshay.com is where I am sharing a few of my ideas. I hope that was ok to post.
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