Save Money with Cash Only Budgeting

Most people find it difficult sticking to a budget. Despite our good intentions we tend to spend far beyond our means.
This can create real problems especially meeting up with our daily obligations. The same applies to business accounts, working and fixed capital expenditure.
There are many things to consider when switching to cash only transactions. This is not a problem in many cash driven economies like Africa.
When you use your credit card to pay for items you get a different feel from actual cash transactions. The cost of the transaction becomes a wake-up call or reality check when notes change hands. Using cash isn’t convenient but overspending on credit could cause serious problems.
person holding money
Determine where to Spend Cash
The first step in cash transactions is to determine the areas to spend the notes. Choose the best category by studying your spending habit and focusing on areas you overspend. By identifying the areas such as grocery shopping, online transactions or utility bills you get a clearer picture of the problem.
Change Payment Method
Once you have identified the problem areas stop using your checkbook or credit card. You can form the habit of carrying only cash when doing such transactions. By using cash you will notice a slight decrease in your expenditure.
Get Organized
A good way to keep tabs on your spending is to get organized. You can place different cash sums in envelops marked for specific tasks.
This would help organize your spending and provide and insight to expenditure. Once you organize the cash sums, write a receipt for them. This way you have proper accounting at the end of each month.
Get the Cash
You need strict discipline to withdraw a lump sum for specific tasks. You could withdraw money through a teller machine or visit the bank.
Once you have the cash arrange them into the correct denomination according to your budget. Write on each envelop the amount and purpose.
Try to Plan Ahead
Discipline is the key to successfully use this technique. Always plan your shopping and payment of utility bills. Before going shopping write a list of things you need and stick to the budget. You need to cut back on impulse buying or un-budgeted expenditure.
Adjust the Budget
Life is dynamic and our needs change accordingly. You can adjust your budget after several months to meet your present reality. Make sure you include groceries, utility bills, medical, transportation and rent. Try to refrain from using your credit cards for shortfalls. 


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