Cut Back on Spending by Paying Cash for Your Daily Expenses
Its easy to spend more than your allotted budget if you shop exclusively with debit or credit cards. After all, when you aren’t physically parting from your cash while making a purchase, it becomes harder to keep track of how much money you’ve spent since your last paycheck. To more easily keep track of your expenses so you can cut back on your overall spending, consider putting away your plastic cards and paying cash for your day-to-day purchases.
When using this method to save money, do keep in mind that simply paying in cash may not be enough to cause a reduction in your overall spending. To help keep frivolous spending from overtaking your finances, it may also be worth setting yourself a firm spending limit. When deciding on a spending limit, estimate how much money you’ll need for groceries, gas, entertainment, and other daily expenses. While your spending limit may need some adjustments during the first few pay cycles, a rough calculation should be enough to give you a decent idea for what your spending limit should be.
After deciding on a spending limit, withdraw only that amount from your bank account and then use that money to cover your daily expenses throughout the pay cycle. Though it may be tempting to occasionally pull out a debit or credit card while shopping, especially at the end of your pay cycle when cash may be running low, you must stick to the plan and put those cards away if you’re serious about cutting back on your overall spending.
That’s all there is to it. Each time you notice the cash in your wallet starts to visibly dwindle, remind yourself that its time to rein in your more frivolous spending so your remaining cash will last until your next pay cycle begins. If any money remains in your wallet at the end of a cycle, you can use it to pay down existing debt, move it into an emergency fund for later, or spend it on yourself as a reward for sticking to your budget. The choice is yours.