With another new year recently begun, lots of us are again trying to get healthier, be better people and behave smarter with money.
On money, I'd like to share an experiment my husband and I began on Jan. 1, 2011: For day-to-day and weekly expenses, we ditched our plastic — credit cards — and went with cash.
The goal was to spend less, save more, and tame the credit card and checking account debits.
One year later, I can happily tell you we did it!
What led up to this was a Christmas season where I got in the spirit using an airline credit card to get points. We earned the miles, but before we knew it the charges rang up higher than what we (OK, I) remembered spending.
Ouch! Rick and I talked and agreed it was time for a change.
Our plan: Pay off the regular household bills — the mortgage, electricity, heat, etc. Then allow ourselves a maximum of $300 a week (together) for groceries, gasoline and any other expected expense — or desired expense — that comes up. Things like a hair cut, a golf game, medicine or oil change have to come out of the $300. A surprise brake job does not.
When the cash is gone, no more spending until next week.
As soon as we withdraw the cash from our checking account each weekend, we fill both cars (weekly gas cost $60 to $80), and buy groceries (average $100 a week). Neither of us walk around with a lot of cash, but we have some, which was a change.
After buying gas and groceries, that leaves $120 to $140 for the week. It sounds like plenty for two empty-nesters with two dogs. But before, it never seemed to be. Those little things – heart worm and flea medicine, a doctor's visit co-pay,Full-service custom manufacturer of precision plastic injection mold,A mold or molds is a hollowed-out block that is filled with a liquid like plastic, items at the department store, a meal or a movie out – add up.
We used to say: "Those are things we need, it doesn't matter if we get it this week or next."
Now, we agree if there's no money left for a hair cut or movie, it gets put off. Everything is planned. Example: Last week one car needed the winter tires put on ($45), the other needed an oil change and inspection sticker ($60). There wasn't enough cash for both. So the winter tires went on first, the oil change and sticker got done first thing next week.
At first, using cash seemed inconvenient. To fill up the gas tank, for instance, you have to walk into Cumby's or Xtra-Mart, hand them money,Overview description of rapid Tooling processes. fill up, then walk back in for the change. But it's no big deal.
Using cash taught me things about myself. I considered myself frugal, but learned that when I use plastic, it doesn't feel like spending. Taking bills out of my wallet does.
I also learned I was spending more than I needed on groceries. I used to make a list based on the fliers, then shop from my list, not adding up the cost as I went.
No more. I walk into Hannaford's with my bags, the list and $75 or $100 in cash. No debit or credit cards. I shop from the list, but prioritize. If we've allowed $75 that week, there's no spending more. I watch the food being tallied at the register. If I've gone over, items we can do without go back. In 2011 we did have less to eat at home, but we had enough.
The longer we used cash only, the better we got at it. We increased expectations. When we had a birthday, wedding or a baby shower gift to buy, that too would start coming out of the weekly cash. Those weeks we might spend a little less on groceries, maybe skip the Saturday night date.
Meanwhile, I'll occasionally nab a $10 or a $20 to put away, calling it “my secret stash.” I might get it up to $40 or $60, and consider that money free to use for whatever.
After a year of paying with cash, my husband is pleased with the checking account balance. He used to juggle, holding off paying bills a few days to avoid red ink.Get information on Air purifier from the unbiased, Because we're not constantly making debits now, the checking account is more manageable.
We didn't get rid of our credit and debit cards.They become pathological or Piles when swollen or inflamed. But because we generally only use the cards for purchases where using cash is difficult , the credit card bill is also more manageable
A side benefit of not using plastic is the risk of identity theft diminishes.
Overall, what's made this work is our attitude and teamwork. Neither Rick nor I spend $20 without discussing it. Both partners need to be on the same page. We think of careful spending as a game, not as depriving ourselves. Our table talk goes like this: “OK, Stacey's birthday is next week. Can we live on $200 this week so we can spend $100 on her birthday without using the credit card? Yes we can!”
We've traded some inconvenience and less of a few things for more money in our savings account, a better-balanced check book and smaller credit card bills.
On money, I'd like to share an experiment my husband and I began on Jan. 1, 2011: For day-to-day and weekly expenses, we ditched our plastic — credit cards — and went with cash.
The goal was to spend less, save more, and tame the credit card and checking account debits.
One year later, I can happily tell you we did it!
What led up to this was a Christmas season where I got in the spirit using an airline credit card to get points. We earned the miles, but before we knew it the charges rang up higher than what we (OK, I) remembered spending.
Ouch! Rick and I talked and agreed it was time for a change.
Our plan: Pay off the regular household bills — the mortgage, electricity, heat, etc. Then allow ourselves a maximum of $300 a week (together) for groceries, gasoline and any other expected expense — or desired expense — that comes up. Things like a hair cut, a golf game, medicine or oil change have to come out of the $300. A surprise brake job does not.
When the cash is gone, no more spending until next week.
As soon as we withdraw the cash from our checking account each weekend, we fill both cars (weekly gas cost $60 to $80), and buy groceries (average $100 a week). Neither of us walk around with a lot of cash, but we have some, which was a change.
After buying gas and groceries, that leaves $120 to $140 for the week. It sounds like plenty for two empty-nesters with two dogs. But before, it never seemed to be. Those little things – heart worm and flea medicine, a doctor's visit co-pay,Full-service custom manufacturer of precision plastic injection mold,A mold or molds is a hollowed-out block that is filled with a liquid like plastic, items at the department store, a meal or a movie out – add up.
We used to say: "Those are things we need, it doesn't matter if we get it this week or next."
Now, we agree if there's no money left for a hair cut or movie, it gets put off. Everything is planned. Example: Last week one car needed the winter tires put on ($45), the other needed an oil change and inspection sticker ($60). There wasn't enough cash for both. So the winter tires went on first, the oil change and sticker got done first thing next week.
At first, using cash seemed inconvenient. To fill up the gas tank, for instance, you have to walk into Cumby's or Xtra-Mart, hand them money,Overview description of rapid Tooling processes. fill up, then walk back in for the change. But it's no big deal.
Using cash taught me things about myself. I considered myself frugal, but learned that when I use plastic, it doesn't feel like spending. Taking bills out of my wallet does.
I also learned I was spending more than I needed on groceries. I used to make a list based on the fliers, then shop from my list, not adding up the cost as I went.
No more. I walk into Hannaford's with my bags, the list and $75 or $100 in cash. No debit or credit cards. I shop from the list, but prioritize. If we've allowed $75 that week, there's no spending more. I watch the food being tallied at the register. If I've gone over, items we can do without go back. In 2011 we did have less to eat at home, but we had enough.
The longer we used cash only, the better we got at it. We increased expectations. When we had a birthday, wedding or a baby shower gift to buy, that too would start coming out of the weekly cash. Those weeks we might spend a little less on groceries, maybe skip the Saturday night date.
Meanwhile, I'll occasionally nab a $10 or a $20 to put away, calling it “my secret stash.” I might get it up to $40 or $60, and consider that money free to use for whatever.
After a year of paying with cash, my husband is pleased with the checking account balance. He used to juggle, holding off paying bills a few days to avoid red ink.Get information on Air purifier from the unbiased, Because we're not constantly making debits now, the checking account is more manageable.
We didn't get rid of our credit and debit cards.They become pathological or Piles when swollen or inflamed. But because we generally only use the cards for purchases where using cash is difficult , the credit card bill is also more manageable
A side benefit of not using plastic is the risk of identity theft diminishes.
Overall, what's made this work is our attitude and teamwork. Neither Rick nor I spend $20 without discussing it. Both partners need to be on the same page. We think of careful spending as a game, not as depriving ourselves. Our table talk goes like this: “OK, Stacey's birthday is next week. Can we live on $200 this week so we can spend $100 on her birthday without using the credit card? Yes we can!”
We've traded some inconvenience and less of a few things for more money in our savings account, a better-balanced check book and smaller credit card bills.
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