Often financial planners and debt management consultants will suggest using cash for a period of time to help manage your money. Often when you use credit cards and debit cards you don’t really see where your money goes. We just automatically hand over the card, sign, and take home our purchases. When you set the cards aside, and you start to hand over each dollar in cash, you’ll be able to ask yourself whether this is money well spent.
Have you ever heard the expression “knowing is half the battle”? Well in the case of money management – it really is! Once you realize how much money you are spending on snacks, lunches, and dinners at restaurants, you may decide it’s not worth it. It may be time to get a good cookbook from the library and learn how to cook at home.
Or maybe you already eat at home, but you have a different vice – CDs, concerts, going to the movies, always having the latest iPod, laptops and Blackberries, online shopping – whatever it is, when you pay in cash, you really see where your money goes and you can make a more informed decision about whether you want to spend your hard earned dollars that way.
Debt management companies suggest that you pay for all of your purchases with cash, even online. How is that possible? Well, the next time you’re shopping online, check to see if the online store offers the option of paying for your purchase directly through your bank account through eBillme, or shop their Debt Free Shopping Section.
Becoming aware of where your money is spent is only the first step to a successful money management strategy. Write down where all the money goes and you can use this as the basis for a budget. Then you can set some financial goals, reduce your debt, and plan for your retirement. It may seem like a lot to get in order, but take the first step today and see where it leads you!
