When I went to the bank to take a fist full of dollars to the bank in exchange for a savings bond I was chatting with the teller who was looking at me askance since I had so many singles. I told her that I took them out of my wallet whenever I got some, because they didn’t fit in my wallet well. Her response was “ I always though about doing that but I always use my debit card so I never have any cash.”

Hmmmm… I wonder how many people are in the same boat if they use their debit cards more than using cash for everyday purchases. It may make me seem like a Luddite, but by using cash for daily purchases I am able to keep track of what I am spending. I know my limits and when I use a credit card or debit card sometimes I can lose track of purchases.

Back to the bank teller, I told her that by using cash and putting my dollars away that it was basically like free money and an easy way to save.

Saving is one thing but what is the purpose of saving money? Is the goal to reallocate for another purpose or saving money to actually put aside for short term or long term goals? Saving money on a haircut in order to afford that extra coffee isn’t allowing you to get ahead. Though I have never proscribed to the put the money aside that you have saved by using a coupon or by buying on sale theory, it could work for someone. Coupons and sale items makes your money go farther yet spending less on some items and pocketing the extra cash for unnecessary items can lead to unhealthy habits.

Remember when you got money as a kid and would think about what you wanted to purchase for a while before spending? Especially if you knew that you were paying for the purchase? Revert to your old ways as a kid thinking about every purchase before you make it.

My mother accuses me of being very tight fisted with my money as a kid. I did save and thought carefully about purchases before I made them. I had no credit card to use and no safety net so I learned to make good choices. I didn’t always make good choices but the ones I did make after some side steps were definitely good ones.

Spending like a drunken sailor on the other hand is what many people do when the credit card comes out. The sailor part is optional but have you ever been out with friends who set up a bar tab and then spend more than they thought since they were charging everything and not paying for their drinks as they were served? Many people spend way more than they think when they are not paying with cash.  A “couple” of drinks that would cost under $25 with tip generally ends up being more like $50 or so because the tabholder will keep buying and maybe buy a round for friends and lose track of what was spent.

It may seem easy to keep a tab open when you are drinking at a bar, but paying cash also helps you keep track of what is in your wallet. When you have to keep opening your wallet and see the cash dwindling then you are more likely to drink and spend less.

Don’t beat yourself up over money mistakes. One small money mistake will not break you if you have been making good financial decisions the rest of the year. Keep up the good work.

If you are afraid that you will spend too much over the holiday season, then stick to paying with cash or use a credit card and put the cash equivalent aside in an envelope to deposit when the bill comes. This way you have some protection and safety – rather than carrying around wads of cash.

Also, when shopping for Christmas gifts, be flexible. Generally, most recipients will be happy to receive whatever you give them. You don’t have to go broke to give people gifts.

Did you survive Cyber Monday and Black Friday? If you were like many who avoided the madness, it’s time to check out aggregate sites and just type in the name of online stores you frequent. Want coupons? Sign up with a store and you will get more than you probably wanted. Free shipping is generally offered with a minimum purchase but there are many discounts to be had without much effort.

If you remember the old telephone commercial – “phone first before you go.” That adage has been replaced by “search first.” Most stores with an online presence will let you know if an item is in stock so you don’t have to go traipsing around blindly. If the store doesn’t have what you are looking for, you can call to make sure. Stores still call from location to location to see if items are available. Some places may let you put an item on hold without a credit card.

Our consumer culture has made “shop ’til you drop” an acceptable past time.

Spending money on a credit card or being enticed by the lure of sales or discounts with the use of a store card made it difficult for people to save money but buying was acceptable. Going shopping is a hobby for some people and shopping can be fun. But spending money on things that you can’t afford – knowing that the expenditures will be a problem, make a difference to your overall financial picture.

Buying more than the essentials is not a problem if all the other areas of your financial life are taken care of – housing, food, utilities, savings and investments. Money is a tool, but overspending and maxing out credit cards, just because there are such great bargains to be had, isn’t very wise.