Cash or card?
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kram
Posts: 136 Forumite
What is better for creating a budget mind-set now I’m on a dmp?
Cash or card?
Drawing out a set amount of cash each week to pay for things like shopping and fuel and when it’s gone it’s gone or use your debit card always being mindful to check your balance regularly?
Using cash would surely help you to get into a budget mind-set?
Having to count the cash out to pay for things seeing the whites of someone’s eyes makes you think carefully about what you spend your money on.
Debit cards on the other hand can at times be very impersonal you don’t have to even speak to anyone while you do your shopping etc.
Using a debit card can also give you the temptation to buy that extra thing that you don’t really need and can put you back to square 1?
Now What?
Cash or card?
Drawing out a set amount of cash each week to pay for things like shopping and fuel and when it’s gone it’s gone or use your debit card always being mindful to check your balance regularly?
Using cash would surely help you to get into a budget mind-set?
Having to count the cash out to pay for things seeing the whites of someone’s eyes makes you think carefully about what you spend your money on.
Debit cards on the other hand can at times be very impersonal you don’t have to even speak to anyone while you do your shopping etc.
Using a debit card can also give you the temptation to buy that extra thing that you don’t really need and can put you back to square 1?
Now What?
0
Comments
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I always tend to spend more if my debt card is in my pocket, I suspect I am not alone in this either !!
I think it's best kept in your wallet, at home, and just draw cash when you need it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Personally, I think it's down to the individual.
I prefer to use my debit card for 2 main reasons:
1. Security
2. It means I have to be mindful at all times
Cash for me wouldn't work, because I'd spend it! But with my debit card, every time I buy something, I know I need to enter it into Wally (which I use to keep track) - which makes me mindful of what I buy.
I know other, though, who only use cash so that they can keep on track. Like I said, I think it's done to personal preference.
I also have one friend who went bankrupt when she was 22 (about 4 years ago). She uses one of the free pre-paid cards. Her bill money is left in her account, she gives half of the grocery money and emergency fund money to her partner for his bank account, and 50% of the rest goes onto her pre-paid card (like I said, though, she will only use one of the free ones). That leaves 50% of her residual money in her bank, which she uses to pay for larger things, like conferences (we work at a Uni) that are necessary, but not too frequent.
Doubt I've been much use here, but I love that you've asked - it's made me think about the reasons why I prefer my debit card - thanks
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In a world of contactless its so much more convenient to pay and see where your money goes. £30 ATM CASH WITHDRAWAL 23:37 doesn't tell me anything!Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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In a world of contactless its so much more convenient to pay and see where your money goes. £30 ATM CASH WITHDRAWAL 23:37 doesn't tell me anything!
That's why I use Wally - my friends laugh at me so much, but as soon as I use my card, even for a few quid, I track it and scan the receipt in!0 -
Plus - I could have £25 of this left in my wallet when i wake up the next day!Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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I used to draw out money every week whilst I was on a DMP and leave my debit card at home or give to someone for the week where I couldn't access it.
I found it helped me budget, stopped me buying expensive coffees every day and lunches etc and I had to make sure I had enough cash to last me the week.
It was hard at first but it didn't take me long to get in to doing it and I'd often have enough money left over at end of each week for a little treat like a magazine or coffee.Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free
Mortgage free since 20140 -
Thanks to all for sharing how you use cash or cards?
You have given me several ideas to help me going forward on my new journey.
K0 -
I use my card mostly due to rewards. I don't earn spending cash with cards I do. Rewards go towards Christmas presents each year.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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Hi. I only use cash now. When I have the debit card to hand over I don't really see it as real money I'm spending. I've found having a set amount and knowing that's all I have for x days makes me think more before I spend0
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