Tip # 20 on Saving, Spending, and Savoring Money


Everyone has one budget item that is their Achilles heel.  Their personal “black hole”.  Where do you over-spend?

Let’s say it’s dining out.  Here’s a trick that will help you stop the craziness:

1. Decide what you should be spending, your monthly dining out budget.

2. Compare your current to desired spending amounts and taper down slowly for a couple of months if you are afraid to go “cold turkey”.

3. When you receive your paycheck, turn the amount of your dining out budget into cash.

4. Now instead of using a credit card when you dine out, use your cash allowance.

5.  27th of the month and the cash is gone?  Party over.

Studies show that people spend less when they are using cash versus credit cards.  As you see the dollars dwindling in your wallet, you’ll become more aware of your spending.  And you will be more likely to rein it in.

And yes, Virginia, restaurants do still take cash…

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