Do you find yourself overspending every time you go to the mall?
Or have a hard time figuring out where your money is going?
You’re not alone.
According toBloomberg, about 13% of U.S. consumers spent beyond their means over the past six months.
And if that wasn’t bad enough, theCovid-19 crisis has altered our impulse buying habits, too.
For starters, consider using the cash method to cut back on unnecessary expenses.
Moreover, about 42% admitted they rarely have cash at hand.
Sure, you could use debit cards, but you still risk spending more than you planned.
One way to address these issues is to pay cash more often.
By doing so, you’ll only spend what you have and avoid credit card fees.
Over time, this habit can make it easier to manage your finances and stop impulse buying.
Paying cash could also lead to unexpected savings.
Carry cash with you at flea markets, too, as it could give you more bargaining power.
Most importantly, switching to cash allows you to budget smarter.
And who knows a few months from now, you might finally be able totackle your credit card debt.
Should you switch to a cash-only budget?
These amounts have been working great for us these last few weeks so I think well stick with them!
As experts note, people who pay by cash or check feel more attached to the goods they buy.
With this approach, you have full control over your money.
However, no one says you should live only on cash.
That would be unrealistic, given that many stores and service providers don’t even take cash anymore.
Think about what you want to buy, estimate the costs, and set a maximum budget.
It’s a simple, effective way to keep yourself accountable and stick to your budget.
