707: What Happened When We Started Using Cash Only by Jason Price with PT Money on Saving Money
This is optimal. Finance daily episode seven oh seven what happened when we started using cash only by Jason price with P T money dot com. And I am Dan your host here on FDA. And this is where I read to you from some of the best personal finance blogs on the planet. Today's post comes from contributor on P T money. But before we get to that I want to give a big thank you to design crowd for their support design crowd is a website that helps entrepreneurs startups and small businesses all kinds like accountants dentists, photographers marketers and consultants outsource or crowdsource custom logo web and business card designed from designers all around the world for a special one hundred dollar VIP offer for our listeners checkout design crowd dot com slash finance to learn more and save up to a hundred dollars. When you start your next project. That's D. E sl Jian CRO WD dot com forward slash finance or simply enter the discount code finance when posting a project on. Zayn crowd for now. Let's get right to today's post as we optimize your life. What happened when we started using cash only by Jason price with PT money dot com. Do you pay with cash debit credit or a combination of the three some people use credit cards to pay for all of their expenses earn rewards and then pay off the balance each month. Others use cash or debit and follow the viewpoint of Dave Ramsey credit card rewards aren't worth playing with fire that can lead to overspending and possibly debt. Also, it's proven you spend forty percent more with credit cards versus paying with cash. My wife, and I used credit cards as our primary form of spending for years a few months ago, we decided to make a switch to go all in with Dave Ramsey cash envelope. Budgeting and honestly haven't been happier with things since we paid off our credit card balances and started using debit for bills and regular expenses and cash for everything else. Sure. It took some work to make the transition some behavior change and giving up earning miles and rewards, however, making the switch has provided some benefits that we never would have expected. Here's a look at five of them one. We stopped spending. Ahead while we've always used a budget and tracked spending diligently we found ourselves spending ahead more times than we knew was probably healthy to do. We would choose to spend ahead in the areas of entertainment or dining out for we would spend a head on the kids when we felt like they needed something for school or for some other activity, the convenience of the credit card made it easy to spend a head a little bit and figure out how to pay for it later or just balance it out at the beginning of the next month doing so put us in catch up mode overall. We're not talking about a lot of dead, and we still had constraints not to spend a head to an unmanageable amount. However doing so is never good practice and can add up. If you're not careful it also started to cause stress in our relationship. And we knew that was a symptom of what could become a larger financial problem since making the change to cash and debit, our choice to overspend has simply disappeared why we believe it's because we're now forced to solve problems or to simply wait until the money is available to we problem solve. More paying by cash and debit has forced us to become better at problem solving. As mentioned a moment ago, we wouldn't solve our shortage problem, we just spend. Now, we have to problem solve we have to seriously evaluate assessing of our expenses force ourselves into saying, no, Allott and spend only what we have available in our account or cash envelopes. We can't use credit cards to bail ourselves out. Even if it's a small amount. Our only source if the gap is truly a need, and it's large enough is to use armor gency savings account. That's obviously something will always do our best to avoid unless it's absolutely necessary. Three we experienced less financial tension while we never argued about money, or why someone had spent money on something. We did experience tension when reviewing our budget and finding shortages this led to stressful discussions from time to time. However now that we pay with cash and debit, we haven't felt this type of tension in over six months. Why I think we're more thoughtful about are planning. It's. Simply more difficult to use cash versus the convenience of a credit card. If we don't have it. We can't spend it easy as that four. We've stopped micromanaging our finances. Actually, I was the one who has stopped micromanaging our finances. We used to use money management software and have since transitioned to cash on Velox and a spreadsheet to track our regular expenses. That was a big shift for me. I used software to track everything to the penny. I found myself tracking and reviewing spending daily, and sometimes it would take a lot of my time to review the receipts. Enter them into our software review budget, balances, etc. Our finances have been greatly simplified with the cash envelopes, there really isn't any tracking to do other than thinking about how much we're going to spend per week. The checking account is super easy to manage because there aren't many transactions just the bills or stuff. We know we have to pay for with debit online purchases at cetera and five we conveniently have cash on hand, I used to swear. The convenience of a credit card. I would purchase everything using my credit card track the expense. And then assign it to a budget category. I always knew I needed to carry a little cash just in case I needed it. But I never did. And it was always a pain when the kids were at the park and wanted a cash only treat or when we needed money for valet and didn't have it. I always reason to credit card was absolutely the most convenient and safest way to pay. I no longer believe that there is a great convenience about having cash that makes it handy to pay for little things, and you never have to make an emergency run to the ATM and a debit card can easily cover electronic purchases in your budget. Final thoughts. You already know that to pay with cash or debit is nothing new Dave Ramsey's been preaching about the benefits for years. Now, I can agree in confidence that it works and does make a difference. It certainly offers more benefits than just staying out of debt. You just listened to the post titled what happened when we started using cash only by Jason price with PT money dot com. And thank you again to design crowd for their support design crowd has over six hundred fifty thousand designers from Sydney to San Francisco ready to help you with awesome, creative ideas. Get the perfect custom design every time. It's simple. Just post a brief describing the design you need. Then design crowd will invite its designers to submit and within hours, you'll receive your first design over the course of three to ten days. A typical project will receive sixty to a hundred or more designs from designers all around the world. And then you pick the best design and approve payment. If you're not happy, no worries because design crowd has a money back guarantee. So try it out you can crowd source just about any creative project on design crowd and for a special one hundred dollar VIP offer for our listeners checkout design crowd dot com slash. Finance financed. Learn more and save up to a hundred dollars. When you start your next project. That's designed crowd D E S. I G N CRO WD dot com forward slash finance or simply enter the discount code finance when posting a project on design crowd. And that's going to do it for today. Thank you so much for being here and being subscriber tomorrow, I will be back with a post from a new blog to the show. So I'll see you there where your optimal life awaits.