One of the biggest changes I made to my life in the past few months was changing to a cash system. We use envelopes to store our cash and we shop with cash only. Whatever amount of money a week I have budgeted in, I get out and use it to make all my budgeted purchases.
If you have cash you can never spend more then you have. This helps with impulse buys and it also helps you to get better deals on things. With cash there are no processing fee and other type things that drive the price up on the item. When you have cash people are willing to give you a percentage off or something like that because they wont have to pay for those fees and such.
This also helps you to do your homework. It is pretty embarrassing to be in line at a store and have you items ring up to be more then you have. Then you have to ask the cashier to take am item out of your cart and take it off. You then repeat that over and over until you get to the amount you have. This causes the cashier to get frustrated, you to get frustrated, and the people in line to get frustrated. If you had done your homework and added as you shopped then you wouldn’t be in that position. So to avoid thing like this you plan and you make sure you are sticking to your money.
Sounds like a lot of work right?? Well, it isn’t as much work as it sounds like. You are just more careful with cash. You think things through more. You are aware of your money and where it is going and how you are living. You think more about everything, your budgeted amount, if the money would be better off in another category, or if you really want to spend the money. So it helps you to save by not spending frivolously!