How to Go CASH ONLY?

[heydude]

Money Myths has proved me wrong talking about cash only.

I am having trouble trying to go cash only.

Many of my bills are autopay and the only things i really buy are groceries or some movies here and there (and sometimes online shopping).

What things do you use cash only for?

[ToomuchStuff]

Gas, groceries, what limited spending money I normally allow myself. My utility bills are all paid with a check.

[rosarugosa]

Parking at the train station, small dollar or two expenditures, e.g. cafeteria at work, and discretionary spending from my allowance - cash helps me limit myself because I hate to part with it.

[SteveinMN]

In our household budget, cash is categorized as "spending money" because that's primarily what it's used for. Groceries beyond $5 or so are paid by debit card, as is all fuel and even the periodic Target run. Because everything else has some sort of receipt, it's easier for us to keep track of it rather than seeing this large figure for "cash" that could represent groceries, home-improvement/maintenance items, or fuel.

[Kestrel]

Yep, "cash" is just "spending money". We charge a lot on the credit card, just for the points, and do pay in full each month, but of course Dave Ramsey disapproves of that. And he's right. But still ... we're 100% debt-free (not counting the CC, which, as I said, we always pay in full each month) and we're grown-ups and we can do what we want, and we do. CC charges are subtracted on our ledger immediately so it's "just like" using debit card. We use our debit card too, but not as much, and seldom write a check anymore. And if we use cash for something that should be accounted for, I just make a transfer in the ledger. Works for us. I could set up a separate cash ledger, but that would be too much trouble and I don't need that degree of accountability. .... Do whatever works -- and works well -- for you.

[Gregg]

I'm not a huge Dave Ramsey fan. One size doesn't fit all. We use our Amex card whenever possible. It is a requirement that the balance be paid monthly, and we do that. The points have resulted in all kinds of goodies, but most commonly airline tickets to bring one of our kids home or us to them. Since the float on money is only a month I consider anything purchased with that card as a cash expenditure.

All our utility bills are set up with our Visa debit card (most won't take Amex). That is simply cashless cash. Since we don't have any other debt I feel like we are basically living a cash only, pay as you go lifestyle. Running that cash through a vendor that adds value to it, like Amex, helps boost the return on that cash when the return on saved money is so low.

[Kestra]

I don't see any point in trying to go to all cash, just because some people say that's best. If you wanted to do your own experiment and track your spending in one month paying all cash and one month paying all with cards, that might be useful. If you were trying to cut down on non-bill spending and give yourself a specific amount of cash to spend every month on extras, that could make sense as well. That's the only way I see cash spending working. If one had the equivalent cash in their wallet that they have access to through a debit or credit card, I don't think they would be very tight with their cash. Maybe it's the way that cash is limited that makes some people spend less? It would be exactly the same if I had a limited credit card. If you don't limit your credit card or cash purchases in anyway, I don't see any difference. Thinking about each purchase and having no debt is what's important IMO.

[Tiam]

I don't see any point in trying to go to all cash, just because some people say that's best. If you wanted to do your own experiment and track your spending in one month paying all cash and one month paying all with cards, that might be useful. If you were trying to cut down on non-bill spending and give yourself a specific amount of cash to spend every month on extras, that could make sense as well. That's the only way I see cash spending working. If one had the equivalent cash in their wallet that they have access to through a debit or credit card, I don't think they would be very tight with their cash. Maybe it's the way that cash is limited that makes some people spend less? It would be exactly the same if I had a limited credit card. If you don't limit your credit card or cash purchases in anyway, I don't see any difference. Thinking about each purchase and having no debt is what's important IMO.


I think the idea of cash only is that it is a tool. It's a visual/psychological tool to control behavior. Many people find that their spending habits are out of control and are looking for some kind of aid or technique to help them curb their behavior. Like a smoker chewing on toothpicks, or a dieter limiting their serving size. For some people, seeing a dwindling amount of cash is a tool to develop restraint. Adding something to a credit card is a 'don't pay now, pay later' behavior that gets people in trouble. People who already have a built in sense of strict control don't need a tool or an aid. I find it actually is helpful to do the cash method for all but bill pays. But I don't usually do it. So, the issue there, is to develop the self control to actually use the tool.

[awakenedsoul]

I went cash only for a while. It was interesting. I did spend less. I found at the store that I would put things back when paying with cash. Now I pay by check, and I stick to my list. I don't have my bills automatically deducted, because I don't want them raising the rates and charging me without permission. (They tried to do this with my internet, and I called and got my old rate.) What works for me is these three mantraas: Buy used, Don't spend money, and Make it myself. Now that I'm saving heirloom seeds, that's saving me a lot of money with my gardening and farming. I don't have any debt. Cheap hobbies help a lot, too!

[Kestra]

I think the idea of cash only is that it is a tool. It's a visual/psychological tool to control behavior. Many people find that their spending habits are out of control and are looking for some kind of aid or technique to help them curb their behavior. Like a smoker chewing on toothpicks, or a dieter limiting their serving size. For some people, seeing a dwindling amount of cash is a tool to develop restraint. Adding something to a credit card is a 'don't pay now, pay later' behavior that gets people in trouble. People who already have a built in sense of strict control don't need a tool or an aid. I find it actually is helpful to do the cash method for all but bill pays. But I don't usually do it. So, the issue there, is to develop the self control to actually use the tool.

While I don't disagree with this in terms of the general population, I am unclear as to why the OP feels the need to go cash only. If memory serves the OP is already living a frugal lifestyle. Since, as he states, there are some difficulties going to cash only, there should be an equivalent reward for him for doing so. If his spending is already low, as I believe it is, I don't see the reason to "nickel and dime" himself. Spending money that you earn shouldn't be a source of guilt. For example, if he is already saving $1000/month, should he switch to cash only in order to save $1050/month? I know I don't want to spend my life depriving myself of small treat purchases occasionally.

I think if we knew more about the OP's motivation for this, we could give better responses.

[artist]

I use cash for groceries, gasoline, dinning out, entertainment, clothing, hair cuts, gifts etc... I use my checkbook for everything else. Only two bills on autopay. I wish they weren't. I use cash because cash saves me money. Not in that I spend less, but in that I get deals. Cash gas at the local station is 5 cents less a gallon than using a debit or cc. Local businesses prefer cash as well and often are willing to cut a deal. Even my local garage, car repair, will cut a deal for paying cash. So for me it's worth doing for the savings.

[Simplemind]

Even though I use a CC for virtually everything I consider it cash only because I pay it off every month. I use it for mileage points which is why I can afford the vacations I want. I also like that the bill shows exactly where I am spending my money.

[lhamo]

China is still a very cash-centered place. NYC was as well. I hate it. I am pretty sure I spend MORE when I rely on cash because I tend to carry around more money than I typically would. I do like listening to Dave Ramsey but I don't agree with the no credit card thing if you are a person/family unit that has never had trouble with managing credit cards.

lhamo

[Spartana]

I went cash only for a while. It was interesting. I did spend less. I found at the store that I would put things back when paying with cash. Now I pay by check, and I stick to my list. I don't have my bills automatically deducted, because I don't want them raising the rates and charging me without permission. (They tried to do this with my internet, and I called and got my old rate.) What works for me is these three mantraas: Buy used, Don't spend money, and Make it myself. Now that I'm saving heirloom seeds, that's saving me a lot of money with my gardening and farming. I don't have any debt. Cheap hobbies help a lot, too!

This has been my experience also when using all cash - which is what I usually do unless I'm travelling. I found that when using a CC, debit card, even a check it allowed me to have access to ALL my money in my bank account and nothing to stop me from spending more then I budgeted for then self-control. So when I made the decsion to go all cash, all the time, I would determine how much I wanted to spend each month, take that amount oit of the bank, and then just take a portion of that with me each day for spending money. Because I only had a certain amount of money on me at a given time and left the CC, debit card and checkbook at home, it was impossible for me to spend any more then I had on me - which was the amount I had determined I wanted to spend - no more. So while I use all cash almost all the time for everything, this may not work for others, but for me it allows me to keep with a budgeted amount at all times (and I do budget in "special" stuff too). Somer months I spend all my cash, other months I don't and just keep the left over amount in my wallet and add to it each week the amount I have budgeted for that week. For my few bills I still pay by check as that is most convient for me.

[heydude]

While I don't disagree with this in terms of the general population, I am unclear as to why the OP feels the need to go cash only. If memory serves the OP is already living a frugal lifestyle. Since, as he states, there are some difficulties going to cash only, there should be an equivalent reward for him for doing so. If his spending is already low, as I believe it is, I don't see the reason to "nickel and dime" himself. Spending money that you earn shouldn't be a source of guilt. For example, if he is already saving $1000/month, should he switch to cash only in order to save $1050/month? I know I don't want to spend my life depriving myself of small treat purchases occasionally.



I think if we knew more about the OP's motivation for this, we could give better responses.



omg Kestra, you are so nice

[try2bfrugal]

I put everything on rewards cards and then use the rewards for the odds and ends I need to buy off Amazon. I try to track every expense in spreadsheets so I think for me personally I come out ahead with the card, but I think this is one of those areas where there is no one size fits all solution for everyone.