I have 10 ways to save money using cash today. Which do you find more painful, handing dollar bills over the counter or swiping a piece of plastic? If you’re like most, you find it much more difficult to hand over your cash when you’re making a big purchase. Stop and think about that.
If you know that you have a spending problem but find it more painful to hand all those Washington’s to the cashier, wouldn’t it be a wise move on your part to use cash instead? You’d be surprised how much money you would be saving by using this strategy.
Take a look at these 10 ways to save money using cash. Don’t forget to go to the bottom of this post to see a FREE PRINTABLE CALENDAR, and grab some cardstock.
How to Save Money Using Cash
When it comes down to it, saving money is important. Most people these days don’t use cash because it’s not convenient. I’m here to tell you that cash can actually help you save money in the long run! Keep reading to discover my tips.
1. Stay On Budget
You probably realize that wandering aimlessly will never get you to the destination you’re hoping to end up.
The same thing can be said about your finances. Poor spending habits with no budget in mind is like trying to hit the retirement bullseye while blindfolded.
If you’re consistently and carelessly spending money at sit-down restaurants and getting a new cute pair of shoes every few months, you’re never going to get anywhere.
Why do we treat our finances this way? What are the financial goals that you hope to achieve when you’re older? A budget can set you on the right course.
Trying to break free of that old lifestyle isn’t going to be easy, but you need to start somewhere. And sooner, rather than later. Sit down and find out what all your expenses are, and make sure that you’re not spending cash on things outside your budget.
While we’re not telling you to completely stop spending money on fun and entertainment, you certainly need to set a limit on it.
2. Know What You Have to Spend
Having cash-on-hand is also great for helping you stick to a budget. Once that money is gone, there’s no spending after that.
This mentality is also great while you’re heading to the grocery store. Before you walk into the store, know what you have in your wallet.
Not only will this save you from embarrassment up at the register, but it will help you be more cautious with how many groceries you are putting into your cart. This method can be used on anything besides just the grocery store too.
3. Only Spend what You Have
Cash is also a better method instead of debit/credit cards because you can only spend what you have in your wallet. When the money’s gone, that’s it. Debit/credit cards don’t really keep you to a budget because they give you the feeling like you have the money to spend when in reality, you don’t.
4. Use the Cash Envelope System
Using the cash envelope system is a great way of helping you stick to your budget while using cash. You’ll need to sit down and figure out all your finances.
Next, you’ll want to take the amount of cash required for each expense and put it in the appropriate envelope marked for that expense. This includes house payments, utilities, car payment, food expenses and so on.
Keep in mind that surprises happen from time to time. You might be dealing with a blown tire or needing a new car battery.
For situations like this, it’s okay to take money from other envelopes to help with these situations and survive until the end of the month.
The envelope system might not be for everyone, and that’s okay. Just make sure you find a system that works for you and your budget, and stick with it.
5. Set Aside Cash Left Over Into Savings
Using the envelope system, or whatever other budget systems you come up with, set aside the cash that is left over at the end of the month and roll it over into a savings envelope or savings account.
Just because you have left over money at the end of the month doesn’t mean you should go out on a shopping spree.
6. Forced to Negotiate
Having cash with you at all times can work out for your benefit in other ways too. Consider buying a car for your teenager or heading to a garage sale with a small amount of cash.
Money talks. If you find a steal and don’t have the entire amount for the purchase, offer a negotiation. You’d be surprised how often this works out in your favor.
7. Save Money On Interest
Paying cash instead of using a credit card on major purchases can save you a bunch of money on interest.
You may think you are getting 20% off the sale price purchase in the beginning and you may justify using a credit card. The thing is you will pay more in interest than you will save with 20% off.
8. Consider Cash Purchases based on Hours Worked v.s Cost
When you’re holding your cash in one hand and a certain “future purchase” in the other, consider this.
Don’t look at the cost of that item. Think about the many hours it takes you to work to come up with that amount of money. Is that purchase still worth all those hard hours in the early morning? Chances are, you’ll find that it might not be.
9. The Inconvenience of Withdraws is Actually a Benefit
Having to go to the ATM to make a withdraw for cash might sound incredibly inconvenient. But it actually works for your good. You might have had a spending problem for a long time. You need it to be an inconvenience to help you from spending more money than you need to.
10. Save your Coins
Many people don’t think much about their chump change once that dollar has been broken down. Here are my two cents.
Save your coins. At the end of the month or the next time you have to take out a withdrawal at the bank, convert those coins into cash. I guarantee you’ll be surprised how much money you get back.
These are 10 ways that using a cash system can help you save money. Do you use a cash-only system to help with your finances? If so, tell us in what other ways you save using cash, and tell us about your success. May God bless this world, Linda
FREE PRINTABLE CALENDAR:
Here is the printable for you to print each and every month each year when you need one. You will print 12, one for each month, they are LETTER SIZE. You fill in the Month and the days for each month. Grab some cardstock if you have some: Food Storage Moms Calendar