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Weekly Cash
By Daphne | March 26, 2008
Look at the amount of cash that you have in your wallet. Are you spending the same amount each week or do you sometimes have some cash left over?
Try allotting yourself a certain amount of cash each week and when it’s gone, it’s gone. When you make purchases in cash you tend to think about what you are spending more than if you use a credit or debit card. At the end of a week, whatever you have left over, don’t leave it in your wallet, set it aside for times when you know you will need more cash such as a special dinner or if you want to save the “extra money” for a special treat.
Budgeting a certain amount of money to yourself each week is like having an allowance. If you had an allowance as a child you had a set amount of money that you received each week or every two weeks. It was your responsibility to use that money wisely. I never used all of my allowance and often saved some for things I wanted in the future.
I do the same thing now as an adult, I saved up extra money from my weekly allotment and used it for entertainment and also to pay for book club dues. It wouldn’t be possible to pay for a subscription to the symphony out of one week’s money but over the course of a couple of months the money adds up.
Seriously think about how much you use each week. If you keep coming up short then you need to give yourself a raise. Instead of $75 in cash per week, increase it to $100. Find the right amount for you.
For those who find this too much of a hassle, try taking out all of the dollar bills out of your wallet. Do not use them, do not give them away, just when you get them back in change set them aside. You will be surprised how much these add up over the course of a few weeks. Then take those and use them to pay down debt or help with your wealth creation plans.
Live on less than you make and zero in on what you really want to spend your money on. Want to go on a vacation? Save up your extra money over the course of a few months and see what you have. Interest rates have fallen for savings accounts, but 3% is better than 0 %. You won’t get rich this way, but you will be able to afford some small indulgences without going into debt.
Topics: March 2008 |