How to manage my money, cash vs debit card

Fusspot

Hi, I am getting myself a bit confused with my finances and am wondering how everyone else manages money.

I have always drawn out cash for the full week (after working out what I spend per week after direct debits go out), keep it in my drawer at home and take out what I need each day and put in my purse. I have always used my debit card for purchases over about £20 and online purchases but everything else I've paid cash. I've drawn out the money for that week and whatever is left over put it to one side for savings, then once its mounted up take it to the bank.

But then I got the hang of using my debit card and using contactless to pay for everything, even small purchases like a cup of coffee but it felt like I didn't know where my money was going so I went back to drawing out cash but now that feels like a bind after using contactless for most things.

The thing I am asking is, how do you keep on top of your spending when using debit card payments? I know I can look at my online bank statement to see whats come out but I find it hard to plan what to spend for the week like when I actually draw the cash out.

How do you manage it, I don't know which method to use now.

mumf

We have an old fashioned cash book.Every single expense is detailed- and I mean EVERYTHING.Food,rates,car insurance,subscription,you name it.That is set against income.

If we use a credit card,and we only ever use it online,the cash is set aside in our safe.If a debit card is used,the receipt is kept and the money deducted from our cash book from the relevant column.We NEVER use contactless.io

It takes a little work and self- discipline,but it works.

Ilona

I only use my debit card for withdrawing cash at the bank, never use it for purchases. They sent me a contactless so I took it into the bank and said I don't want it. They sent me a new card, non contactless.

I pay for a lot of things with cash, sometimes using a credit card for a big supermarket shop, and for petrol, and at odd times of the year for holidays.

My spending is dictated by whether I need something, or just want it. I don't plan for the week, I only check my bank balance when I get the statement in the post, or when I withdraw cash.

Ilona

Cappella

I also sent my contactless card back to the bank. All of those small, quick and easy payments add up very quickly. I draw cash out monthly, the day after my pension is paid into my account, sp,it it into three different purses (one weeks housekeeping, remainder of the months housekeeping and treats/personal allowance) I keep a household account book for monthly and weekly outgoings so that I can see at a glance where the money goes and how I could cut back if necessary.
I've done this for 44 years now (I have control issues:o) and it's fascinating looking back to see how prices, and our spending habits, have changed.
Don't forget Fusspot - contactless cards aren't just designed to make life simpler for you:) Shopkeepers benefit as well!

Nonnadiluca

I use a free app called Spending Tracker, ( the one with the brown wallet icon). I have separate "accounts" for shopping, other spends, holiday, Xmas etc. It's really easy to use, put your budget in as income and every time you spend, put it in as an expense, it's easier to use than explain, very straightforward. The great thing is that, because it's on my phone, which I always have with me, I put in what I've spent immediately, while still in the shop, so I don't forget by the time I get home. It's really helped me to keep track of my spending. Definitely worth a try, especially as it's free! Good luck.