I'm a Dave Ramsey fan, but I have to admit I don't completely adhere to his plan. I've never had any credit card debt so I'm not really worried about using a credit card for purchases and not highly motivated to use cash. I like that I get rewarded with points when I use my card. The only debt I have ever had was for a car and I paid that off early because I was didn't like living with a payment. I'm not saying this to brag, I know I'm blessed that I've never had to deal with debt. My parents taught me about money from a young age and helped me with school and that is why I'm in the position I am.
That being said, I'm not amazing with money. I have a basic idea of what I can afford but I don't pay super close attention. I have often wondered over the years where all that money I made went and why I don't have more in savings.
Last February I decided to put myself on a cash "diet" of sorts. The only times I could use my card was for gas, groceries and necessities (like things to keep myself and my place clean). So if I wanted to eat out, see a movie, buy clothes or any other "extra" item, it had to be with cash. This really forced me to think before I purchased. By the end of the month, I had saved a lot of money by avoiding the small purchases that add up. It was an eye opening experience but when I didn't get to the bank to withdraw more cash or write down my purchases as I had planned I quickly went back to my normal spending.
I decided to go on a cash diet for January. New budget, new year, new plans.
Each Sunday, I get $25 in cash to spend.
Week 1: $3.69 left. Really wanted Chipotle on Friday for dinner but that gets pricey since I like Chips & Guac. I had enough to go for it, but decided to forgo and was able to eat out Saturday too.
Week 2: $10.40 left (woo-hoo!)
Week 3: $.88 left. I bought a pair of jeans using a gift card and spent an additional $10 on top of that so there wasn't much left over this week.
Week 4: $.51 left. Would have been a $4.51 but I saw someone who I felt needed a little boost. It was nice to have some cash on hand to help out.
Grand total: $15.48
Also exciting is that my budget was well into the green for the month! This motivates me just that much more to watch my spending since there's still a few areas I think I can trim a little. I'm going to stick to this for February as well to get myself really adjusted to spending less. I'm planning on using an old register to start recording cash purchases so that I can transition to using a card in March while still limiting my spending.
