While having cash on hand may not always make sense in an increasingly digital world, learning to live in a cash based economy can be a great way to practice control and restraint. It is the best way to imagine how far a dollar (or sometimes a quarter!) can really be stretched.
Pick a System
Create a budget and spending system. Living on cash only means that you need to monitor what has to be paid every month, week and day down to the penny.
As you categorize and track your budget you would perhaps have one space for rent, 4 spaces for grocery shopping (1 time per week), but 30 spaces for daily expenditures. Some people use envelopes to separate and control their cash, but you can adopt any system that allows for organizing your money. This can also prevent overspending.
Size Up Your Cash
If you have a large bill ($50/$100+), then you are more likely to save it then spend it. Smaller bills are easier to spend, and splurge. It’s the same mentality as going to the Dollar Store for one item and spending $100. Those small bills add up when you’re spending. But they add up just as fast when you’re saving. Swap out your singles for $5s, $10s and $20s and watch how much less you spend on random things you don’t need.
Speaking of the smaller based currency, using cash means a lot of change! If you store this change, it will pile up quickly. Another great opportunity to save!
This is just a start, but if cash based is the way for you, there are other resources to follow and communities that live this way. Happy cashing! 💸