As a result of the Money Course I went on at the weekend, I am going to give living with cash a try. Usually I use my debit card, and very rarely have over £10 in my purse and I find that while I never go over budget, there are very few months where I have anything extra left over to save or to give. I want to have more at the end of the month to put aside for holiday treats, for gifts and other lovely things, so this seems like a great way of doing it. Intentional spending, and when its gone, it is gone.
1. Take monthly housekeeping budget and minus anything I already pay for online, such as milk and the veg box. Divide by 4.3 and then round to a decent '10' number. Down is usually better.
2. Take this amount out in cash on the same day every week.
3. Do not return to said cashpoint until the same day next week.
4. Spend cash only.
My cash has to cover food, sundries, mums and toddlers subs, gifts and anything 'personal' eg a coffee out etc.
And so how is it going?
I took out my first lot of cash this morning. I thought that Tuesdays or Wednesdays would be best as that is when I go food shopping and there is a cash point at the supermarket. I went to the post office and posted my sister's birthday parcel. Should have gone yesterday and I would have saved a third of the price. Will know for next time.
So far, so good. It feels very weird having cash in my wallet. I want to protect it!! Tomorrow is food shop day, so I have been writing my list today. Its going to be a quiet week foodwise, so I am thinking that I will stock up on freezer and cupboard bits so that things aren't so tight on 5 week months.
Thursday I am planning on spending £1 on mums and toddlers subs. Friday-Monday, not really expecting to spend anything. We'll see how it goes.
I think that the biggest change for me in having cash on me is that I now think even more carefully about what I spend. I can see right in front of me how much I have left, rather than hoping that I have enough in the bank to cover the debit card. I can see how it may pose a problem in terms of yes, I might go out for coffee in weeks 1 &3 but can only afford half a coffee each week, but then I guess my fun will have to be had towards the end of the month when I have some money left over rather than at the beginning and then having to go without at the end.
Its going to be an interesting journey. Does anyone want to join me?