My Cash-Only Quest to Save Money Continues … But Is It Working?

A few weeks back, I pledged to use cash exclusively for ALL of my daily expenses — basically everything other than my fixed monthly bills. I knew going into the exercise that running off to the bank every time I needed lunch money could become a bit cumbersome, but the whole point was to test if watching cold hard cash drain out of my wallet would curb my spending.

While my results are mixed, I’ve realized something: credit and debit cards have spoiled me. I remember a childhood spent going to the bank with my mom to pick up cash for our errands, and you know what? I am really glad I don’t have to do that — other than the missed lollypops, of course.

It seemed almost every time I needed something, my wallet was empty. While it did curb some spending — e.g, I got creative with what was already in my cupboard instead of calling delivery or going out to eat — for the most part, it was just a hassle.

The month before I cut credit cards and use cash, I charged a total of $975.95 to my debit card. In the process I discovered I spent one-third, or $338.83, dining out. So this month I made a point to bring lunch whenever feasible, eat leftovers and get creative instead of calling for takeout.

The result: Less overall spending, but more in the “food” category. Here’s why: I went on a ski vacation!

Treating friends to a lunch and cocktails is almost exactly the difference between last month’s $338.83 and this month’s $468.36. But it was something I wanted to do, so I certainly can’t complain. Plus, the $330 from the change collection I’ve been working on all year covered all of my lift tickets and rentals.

Overall, though, I was still able to reduce my monthly cash flow by $157.20, for a total of $818.75.

All in all, I don’t think I was as disciplined as I could have been, but I did wind up saving overall. For my next trick, I’m going to really put the squeeze on my budget and see if I can bring down my total by another $150 — or more — next month.

Tags: cash only, Personal Finances, save money

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