Monday, May 24, 2010

I can't believe it


I wrote previously about how studies have shown that switching to cash actually decreases spending. For the past several months, we've been trying it in earnest in my house. I kid you not...I spend $2,000 less per month now!

I determined my budget and then added the amount of cash I was allowed to my grocery list each week. I completely stopped pulling out my credit card other than for gas. If I needed to make an online purchase, I pulled the cash out of my wallet so that I could send a check for the purchase to my credit card. Each month, I've given myself a smaller allowance, and I don't even notice a difference in lifestyle.

A friend asked what I could have been spending the money on and I told her...junk. We went shopping this weekend for new linens and I realized that a few months ago, I would have left the store with several hundred dollars worth of goodies, like new placemats or summer plates or new pillows. But since I only had the cash in my wallet to spend, I bypassed the goodies and only bought the linens. If you haven't tried this experiment yet, I highly suggest it.

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