She Strengthens

Taking Control of My Finances: A Cash-Only Experiment

For the past two months, I’ve been on a mission to revolutionize my spending habits by ditching credit cards and switching to a cash-only system. The decision wasn’t taken lightly, but it’s been a game-changer for my financial well-being.

The Inspiration Behind the Change

It all started when I took a closer look at my student loans and realized the daunting task of paying them off. I knew I needed a drastic change to get back on track. After devouring countless Dave Ramsey-inspired YouTube videos and reading articles on personal finance, I decided to take the plunge and create a zero-based budget every two weeks, aligning it with my paycheck. The majority of my spending would now be in cash.

The Power of Visibility

The first step in my new cash-only system was to print out my checking account statements and highlight categories such as food, entertainment, and personal/household items. This exercise was eye-opening, to say the least. I was shocked by the frequency of my spending, particularly at Whole Foods and CVS. Seeing these habits staring back at me was a major wake-up call.

Budgeting Wisely

By creating a budget and tracking my expenses, I realized that I could afford more than I thought. For instance, I’ve been seeking treatment for adult acne, which involves regular doctor’s appointments and facials. These expenses were previously swiped on my credit card, but now I set aside cash for them upfront. It’s amazing how much more affordable things seem when you plan ahead.

My Bank Became My Ally

Every payday, I visit my bank to withdraw the cash I need for the next two weeks, including my savings goals. This interaction with real humans has personalized the process, making me feel more accountable. I’ve even switched to a credit card with no interest for a year and a lower interest rate than my previous card.

Setting Financial Priorities

The toughest part of my cash-only system has been saying “no” to social invitations. However, being honest with myself about my financial priorities has helped me set a realistic budget that doesn’t feel restrictive. I’ve learned to gently decline invitations and explain that I’m saving money.

Planning Ahead

To stick to my budget, I maintain a running list on my phone of things I need or want to buy. This forces me to plan ahead and ensures I don’t run out of cash. I can set a budget for the week that allows me to make necessary purchases.

Treating Myself

Saving up for fun things is a thrill! I’ve created a cash category for indulgences like new purses or trips to the record store. Paying cash for these expenses adds value to them, and saving up upfront has taught me self-discipline.

Learning from Mistakes

My previous approach to credit cards was reckless, but I’m now weaning myself off that mindset. I’ve realized that credit cards aren’t Monopoly money, and I’m taking control of my finances. This experiment has been a valuable lesson in self-discipline, and I’m excited to see where it takes me.

The Results

After two months, I’ve paid off one of my student loans, hit $1,000 in my savings account, and reduced my reliance on credit cards. My all-cash diet has been a success, and I’m eager to continue learning and improving my financial habits.