Living with cash only?

alyth

I'd welcome some opinions on this. I'm trying to save for a big trip to China, but as I temp my income is a bit erratic, and I've just taken on a job 3 days a week in order for me to study my TEFL course and the pay is the same as if I worked 5 days a week - this is just as background.

I have an ISA which two weeks ago had £500 in it but now has £300, and as an agency hasn't paid me for 7 days wages I will need to dip into it - I'm thinking of withdrawing the money from the ISA, taking out my wages when I get paid each week and only using cash rather than an switch card, my theory being that if I count out the hard cash before taking the money to go and buy something, and I am extremely frugal, then I will save more money. I find it terribly easy just to transfer over money from the ISA to the bank account, whereas i would find it really annoying spending part of what I call pandafund if I could see the cash actually building up. I know myself it would break my heart to have to take cash out of the pandafund, whereas it's so easy just to switch shopping or whatever. I'd be interested to know whether anyone else works purely on a cash basis, and whether it encourages you to spend or save?

chun831

I only ever allow myself £50 a week spending money and draw this out in 2 goes a month. £100 on the 1st and again around about 14th and 15th. Anything I want for me such as beer, clothes, luxury food and things for me alone have to come out of this pot. Other stuff such as petrol, staple food such as bread and milk can come of the credit card to be cleared on payment day.
Have done this for a year or so and works really well. Of course there will be purists who say that money in your wallet doesn't earn interest but works for me!

chun831

Oh yes nearly forgot, if you keep moving money in and out of the ISA you will eventually get to the £3000 annual limit and then cannot pay any more in regardless of the balance. Sorry if this is too obvious but an ISA I suggest is money to put away and forget, a current account can be used for lots of transactions in and out

alyth

I'm actually going to cancel the ISA tomorrow and take the cash - my bank changed their phone banking system and it was the last straw, and to be honest the measly amount of interest I received last year was pitiful anyway! Thanks for your advice, I appreciate it.

changkra

I allow myself approx £30 a month which covers lunches for my son at UNI, petrol and the odd thing you need from Tesco, i usually have a tenner left over which goes into my saving jar along with all lose change. If you can stick to using only money and no cheques or debit cards etc you have the potential savings as being relatively high. I budget monthly and i save out of that too and that is excluding my money jar. Its hard until you get into it but once you do you wont want to spend anything lol

Katyag

My parents work on cash only, always have and always will. They have no debit cards, no cheque books they dont even have a card for a cash point. They still have old bank books and have to go into the bank / building soc to get any cash.

Today they bought a new car (outright) and my mum was complaining that the building soc was packed and she was in there for ages, took me a long time to bite my tongue and say well if they had moved with the times and used a debit card or cheque they would never have had that problem!

tanith

I have a brother-in-law who insists on weekly pay and on a Friday runs to the building society and draws his wages out in cash and then proceeds to traipse around the town paying his , rent and bills and then goes food shopping... I guess he keeps any leftovers under the matress... he is crazy... :rotfl: