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The 30 Day Cash Only Diet
This is the diet to beat all diets! After 30 days, you will have learnt how to use cash only, to throw away those plastic cards (or at least store them somewhere safe and you will be saving money as well.
As we move more and more towards a cashless society, personal debt is on the increase and individuals are losing control of their finances and their life. It's too easy to just hand over that little piece of plastic, so small and light you hardly know you're carrying it, and walk away with the goods.
Only later on do you realise that you actually spent money and will eventually have to pay hard-earned cash to cover the bill.
Even if you don't use a credit card, debit cards can also bring you undone. Yes, debit cards deduct the amount from your bank account immediately and there are no extended payments or interest charges, but it is still a little plastic card that you simply hand over to be swiped.
Research has shown that when you shop with a little, lightweight, convenient, plastic card, you over-spend by about 30 percent more than if you carry and pay by cash!
I firmly believe that it's a mind game - paying by card (credit or debit) just doesn't seem like paying at all. You don't have to think about whether you have enough cash to make the purchase. You just hand over the card and bingo! the goods are yours. With buying this easy, it's an all too common circumstance to find not enough cash at the end of the month.
Another reason to switch to a cash only budget is to keep it. The world has been talking about cashless societies for two decades or more, and until recently, perhaps the last four years, it was something that was impossible, a pipe dream of those who want to control our spending.
Well time seems to have sped up. The Reserve Bank of Australia has plans to make Australia the world's first functionally cashless society by the end of 2025 - just 21 months away, with physical cash being gone from circulation by the end of the decade.
This does not bode well for those who struggle with budgeting; who find it hard to resist impulse buys; who live from pay to pay.
The solution?
Go cash only!
Try giving up plastic all together. It sounds difficult, but it can be done. I know, I do it. And I am actually saving money on transaction fees as well controlling my spending. Force yourself to actually walk into a bank (or go to an ATM or do a cash withdrawal at the supermarket) and withdraw the cash you will need to get through the week. Then leave the plastic at home in a safe place.
I prefer to go into the bank with my list of exact denominations I need so I have the exact money for whatever I need to pay that week. When we had children in school I'd get the exact money for sport fees and music lessons, for the occasional tuckshop etc. Knowing to the cent what your expenses are and only having that cash on hand controls over-spending and those impulse spends.
These days it's hard to find a bank branch, let alone one that actually does cash transactions. That's OK. I still withdraw the cash I need for the week and use my budget purses to keep the money separated (no over-spending on groceries only to find there's no money for diesel).
Give it a try, the benefits are many and the peace of mind knowing you can't go over budget is wonderful.
My challenge to you during April is to shop only with cash - for petrol, milk, lunches, groceries, bills - for 30 days and see what a difference it makes to your life. It will take some getting used to, but you can do it. And if you are worried about emergencies 'hide' $50 in the zipper compartment of your handbag or wallet and forget about it. But don't spend it - it's emergency money only.
Good luck for the next 30 days of your cash only diet - join me in the forum and let me know how you go or ask your questions or share your tips for a successful cash only diet!
As we move more and more towards a cashless society, personal debt is on the increase and individuals are losing control of their finances and their life. It's too easy to just hand over that little piece of plastic, so small and light you hardly know you're carrying it, and walk away with the goods.
Only later on do you realise that you actually spent money and will eventually have to pay hard-earned cash to cover the bill.
Even if you don't use a credit card, debit cards can also bring you undone. Yes, debit cards deduct the amount from your bank account immediately and there are no extended payments or interest charges, but it is still a little plastic card that you simply hand over to be swiped.
Research has shown that when you shop with a little, lightweight, convenient, plastic card, you over-spend by about 30 percent more than if you carry and pay by cash!
I firmly believe that it's a mind game - paying by card (credit or debit) just doesn't seem like paying at all. You don't have to think about whether you have enough cash to make the purchase. You just hand over the card and bingo! the goods are yours. With buying this easy, it's an all too common circumstance to find not enough cash at the end of the month.
Another reason to switch to a cash only budget is to keep it. The world has been talking about cashless societies for two decades or more, and until recently, perhaps the last four years, it was something that was impossible, a pipe dream of those who want to control our spending.
Well time seems to have sped up. The Reserve Bank of Australia has plans to make Australia the world's first functionally cashless society by the end of 2025 - just 21 months away, with physical cash being gone from circulation by the end of the decade.
This does not bode well for those who struggle with budgeting; who find it hard to resist impulse buys; who live from pay to pay.
The solution?
Go cash only!
Try giving up plastic all together. It sounds difficult, but it can be done. I know, I do it. And I am actually saving money on transaction fees as well controlling my spending. Force yourself to actually walk into a bank (or go to an ATM or do a cash withdrawal at the supermarket) and withdraw the cash you will need to get through the week. Then leave the plastic at home in a safe place.
I prefer to go into the bank with my list of exact denominations I need so I have the exact money for whatever I need to pay that week. When we had children in school I'd get the exact money for sport fees and music lessons, for the occasional tuckshop etc. Knowing to the cent what your expenses are and only having that cash on hand controls over-spending and those impulse spends.
These days it's hard to find a bank branch, let alone one that actually does cash transactions. That's OK. I still withdraw the cash I need for the week and use my budget purses to keep the money separated (no over-spending on groceries only to find there's no money for diesel).
Give it a try, the benefits are many and the peace of mind knowing you can't go over budget is wonderful.
My challenge to you during April is to shop only with cash - for petrol, milk, lunches, groceries, bills - for 30 days and see what a difference it makes to your life. It will take some getting used to, but you can do it. And if you are worried about emergencies 'hide' $50 in the zipper compartment of your handbag or wallet and forget about it. But don't spend it - it's emergency money only.
Good luck for the next 30 days of your cash only diet - join me in the forum and let me know how you go or ask your questions or share your tips for a successful cash only diet!
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