Dealing with cash only..

marmiterulesok

oopsadaisydoddle wrote: »

I've just started this last week withdrawing cash and using that only. It really was an eye opener. It also lasted really well although to be fair, that didn't include anything unusual e.g. haircuts - don't know whether to count those in my household budget or my 'spends'.

I have a seperate budget for haircuts.

twentyninetimes

I did the cash-only plan for about six months. I didn't even have a debit card, just a cash card. It was recommended by Christians Against Poverty and it was such a good move.
I didn't take out money in advance. I just took out money as I needed it e.g. if I was going to the supermarket I just took out £20 at the cash machine on the way in. It really helped me stop spending because I had a chance to think about purchases. I couldn't just wander into HMV and buy a load of DVDs without thinking because I'd have to go to a cash machine first.
I have a debit card now, but I'm thinking of going back to cash-only for a few months as I feel like I'm spending more at the moment.

Good luck with doing it

thehappybutterfly

I was a fiend for using my debit card and one of the reasons we got into so much trouble with bank charges etc. Nowadays, we have a joint account and we more or less clear it out leaving enough for the DDs and about £100 for online purchases. The money goes into various jars for car costs (insurance, MOT, maintenance, Roadside Assistance), household insurance, TV Licence and emergency fund. The rest goes into a jar and money is taken out of there for day to day spend. I never use my debit card in shops - never.

Then at the end of the month, any money left over goes into a savings jar for treats/days out etc.. Over the last 9 months, we've saved up a lot of money in these jars (some of the insurances etc aren't due for another 2/3 months) and we're not really happy with having so much cash lying around but when I tried to open a basic savings account with the Co-Op, we were declined so cash in jars it is.

thehappybutterfly

flutterbyuk25 wrote: »

After all my DD's are accounted for, I earmark £50 each for food and petrol per month, then allow myself £40 per week for my spends. I withdraw this money from cashpoint and once it's gone, it's gone! It works cos I'm now much less likely to break a tenner to buy something for £1.99 say, than I would have been to whack it on the debit card.

I need to work on the 5 week month thing though as get caught out by this!

HTH

Ha! Before my days of cash only, if I had to buy, say, milk, and didn't have cash on me, I was reluctant to use my debit card for such a small amount so would go and buy some more stuff to take up to an acceptable level, like £10! No wonder I was skint!!

Issuma

I do a similar thing we both get paid monthly but each week I do the same things.

1. Friday withdraw £30 cash: petrol, my travel to work & OH money for the following week.
2. Pay for weekly shop with debit card but do a list first and approx work out what this will cost before I go (no nasty surprises at the checkout)
3. Monday morning withdraw £10 cash for the remainder of the week but what works for me is we have a cash machine at work that only dispenses £5 notes so my challenge is only to break into one of the £5 and save the other one !!! Some weeks it works and others it doesn't but I fight like mad not to have to break into the second fiver I know it sounds silly but it really makes me stop and think before I spend my money !!!!!!!

timetochange116

I've tried budgeting, but the debit card is always on me and I tend to be forever dipping into 'next weeks' fund. I really need to try this cash only thing, seeing as so many of you find cash left over for savings. Hopefully will be able to put any spare change towards my debts.

Must do this from payday!

Issuma

Timetochange116 it's just about 're-training' yourself, I always have my debit card in my purse but I don't see that as money I only see the actual cash in my purse as what I've got and this has to last until the next Friday when the cycle starts again.

I think the main reason people might find this hard is because you need to be very disciplined, it's very regimented and I can imagine that people could get bored with it very quickly but when you have a very limited amount of spare cash every month we all need to find something that works for us, what works for me won't suit someone else but it's worth giving it a try and see how you get on

marmiterulesok

timetochange116 wrote: »

I've tried budgeting, but the debit card is always on me and I tend to be forever dipping into 'next weeks' fund. I really need to try this cash only thing, seeing as so many of you find cash left over for savings. Hopefully will be able to put any spare change towards my debts.

Must do this from payday!

Can you not leave your debit card at home then?I know that it can feel strange not to have your card on you 'just in case',but try it for a few days a week and see how you feel.The world will not grind to a halt.Just have your money for the week in your purse.

Try to stick to a shopping list with no deviations.It gets easier with practice.:)Ask yourself if it's a need or a want.

If you're worried about being in a jam/emergency with little money on you,squirrel away £10/20 in your purse to be used in an emergency only.

You have to find what works for you.It's not easy at first but don't give up!

Heffi1

My friend used to have an emergency £20 note hidden in her purse, it was only ever used for dire emergencies, and as soon as she had used it she replaced it, it meant for her there was always a safety net of £20 to fall back on, she said that in the 6 months or so of doing it, she had only used it once, she always found other ways of paying for what she needed and worked out that previously she would buy for the sake of buying, especially if she was out with friends, so she also started doing her shopping alone.

I am going to try this method for a while and see if it works for me too.