Cash is one of the top tools that you can use to get your finances in order and win with money. We have 7 reasons to back that up! Then we’re going to give you 3 simple steps to use so you can give using cash a try!
1. It’s a great accountability partner.
Cash is a great accountability partner. Say you’ve got $50 to last the week. As the week goes by you spend $5, then $10, $7 etc. Every time you reach in your wallet or envelope you have a real, honest accountability partner letting you know exactly where you stand on your budget.
2. It gives you more control.
You will feel more control with cash because it’s physically in your hand. You have your money, not the bank or creditors. Your personal spending won’t affect your bank, bills and other stuff as much. Banks made $11 billion in 2019 in overdraft fees. The less you’re in your account making debits, the less you’ll be paying those!
3. You will spend less.
Studies have proven that your brain doesn’t process the pain of losing money as much with a card as it does with cash. Because of this, you automatically spend less with cash. Likewise, when you only have a $20 bill to get the eggs, bananas and bread in the grocery store you know you do the math and make it work. Same situation but with a card will have you less math-concerned and you’re more likely to go over.
4. It helps out small businesses & service workers.
Small businesses pay a fee when you use debit cards or credit cards. Worse yet, sometimes they pass that fee on to you. Bummer either way. Likewise, servers are more likely to get their tips that night if you pay in cash rather than with a card. How nice of you!
5. You’ll improve your relationship with money.
When you pay for things with cash, you have a greater attachment, emotionally, to them. It’s true! A study in the Journal of Consumer research proved it. Moreover, by learning to use cash, you’ll develop a good relationship with money and perhaps start losing some of the baggage and stress you’ve built up over the years. Having cash, though it may not be much, definitely feels different. It feels like you’re not broke, the green proof is in front of you. Remember how you were as a kid when you earned cold, hard cash? Same, just in adultland. Having cash around is the way to start feeling more abundance about money rather than scarcity.
6. You will buy things you can afford and therefore stop running up debt.
Listen, if you’re paying for things with cash you know whether you can afford it. And it turns out cash is 100% debt free. So, using cash will help you if that is a goal you have.
7. You don’t have to ask permission.
So often we look at our bank account before making a debit purchase to make sure we have enough in the account. And when we try to use credit, we have to have our credit run. It’s almost like asking permission to buy something. And it’s not a great feeling, and it can feel a little disheartening or even embarrassing.
So, how do you use cash?
1. Start simple.
Try just one budget category like spending money or restaurants. You don’t have to do all the things in cash at once. Get used to it by keeping it simple. Then move to using cash in more categories when you’re successful!
2. Make it a habit.
Every paycheck, do the same thing. Get out the same amount of cash, put it right in your envelope. This way, you’ll be more likely to succeed.
3. Give it enough time to work.
We want you to do it at least for two weeks, though we prefer one month. This is when you’ll notice you FEEL like you have more money. You’ll also notice you’re SPENDING less. If you don’t give it enough time, however, you won’t get those positive results.
Enter your information below and we’ll sign you up for our two week cash challenge that will deliver encouragement, tips and jokes right to your phone to keep you motivated to use cash for two entire weeks!