Hey girl, hey!
Have you ever experienced swiper's remorse? You know... it's that feeling you get when you know you have swiped your debit or credit card one too many times and now you are afraid to even check your account balance. Been there... done that... and it's no fun! So if you happen to be someone who regularly suffers from "Automatic Swipe Syndrome" and have trouble staying within your spending limit... then girlfriend, have I got a tip for you!
So I’m sure some of us have heard the phrase “Cash is King" (well in this case Queen, hunty)! According to Investopedia, the phrase actually comes from the belief that cash is more valuable than any other financial tool. Not only am I in total agreement with this belief, I highly recommended it.
If you follow the Girlfriend’s, Budget! way of money management, you’ll already know to have your bill money separated from your spending money in two different accounts. So in order not to blow through your spending money before your next payday, I suggest taking out a pre-determined amount of cash to help you make it through each week.
I happen to get paid monthly... so I have to be very selective on what I purchase with my spending money because I have to make it through an entire month before my next payday. Some of you only have to make it through two weeks (lucky ducks). Either way, carrying plastic makes it waaay too easy to overspend because it’s a simple swipe. Yet taking out $50, $100, $150 a week in cash (depending on what your budget allows) forces you to become a more conscience spender because the money is tangibly leaving your fingertips.
For example, let's say you happen to get paid bi-weekly and the spending money you have leftover after all bills are paid equals $200. To keep yourself from overspending, I'd suggest taking out $100 cash (from your spending account) at the beginning of each week for un-budgeted purchases.
However, once the money is gone for that week, it’s gone (sit your butt down)! Whether you make it through the entire week, or you only make it a couple days. Then you’ll start over the next week, taking out the same pre-determined amount as the week before. But guess what? I guarantee... if you barely made it through the previous week, that you’ll make better spending decisions the next time around.
It may not seem like a lot of money to spend, but if you really think about it, all your necessities should already be budgeted... even groceries for eating at home and gas for your car. Your spending money is really only to be used for things you want because the things you need have already been taken care of. Get my drift?
Personally, I take out $120 a week for spending on Sundays (because I know I can stay within this amount). This cash will cover any un-budgeted purchases such as dining out, spontaneous shopping, entertainment (like the movies or sporting events) etc. My $120 still allows me to have some flexibility in spending instead of budgeting every item down to the very last dime. I can comfortably buy what I want and still know that my bills are paid, money is stashed away in my savings account, and I still have money in my spending account to last me through the rest of the month... now that's a great feeling!
So Cash Queen... pick a day to take out your cash for the week, leave that plastic at home (Swiper, no swiping!), and challenge yourself to make it through the entire week on just the cash you have in your wallet. Trust me...you and your bank account wi