“It’s helped me have more control over what I spend each week or month. It’s too easy to tap and pay.” – Julie, South Manchester Credit Union member
As the old saying goes, “cash is king”, however, as times have moved on, with card and contactless payments becoming much more popular, it seems that cash is no longer king.
When it comes to budgeting, many people simply don’t use enough cash to be dropping pennies in tins anymore. Most of us have online banking to control the money we use on our debit cards and contactless payments. Let’s be honest though, when our spending is shown as numbers on a screen rather than cash in our pockets, it becomes a lot easier to spend.
You aren’t alone in thinking that, as Julie also noticed how easy spending had become when there was no physical cash transaction needed, even when making big purchases.
“It’s too easy to tap and pay. I am always shocked at how much I’ve spent in a week with tapping and paying”
To every great problem comes a great solution, which is exactly where Julie’s cash budgeting technique comes in.
“Leave your debit card at home and set yourself a cash budget each week”
Julie recommends making a budget at the beginning of each week, drawing out the cash, and committing to only using that cash budget for the week. Cash visualises what you are spending money on and can help put into perspective what are necessary purchases and what are luxury purchases.
As the weeks pass, you should be able to better tell what you can live on each week, which could increase how much you regularly save for a rainy day or for a future goal of yours.
“If I have any money left at the end of the week or month, that goes towards my budget for next month, which is then reducing your spending even more”
Using any money leftover for next week’s budget can also improve your savings, or, if you feel that you’re missing those luxury purchases, save the excess money each week to treat yourself.
We can surely all agree, when it comes to Julie’s weekly budgeting method, cash truly is king.
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