Cash Diet

For me, looking at my bank balance is equivalent to looking at the scale. I avoid it if I can, but eventually I have to check too see how much harm I have done.

Someecards

Between the various bills, rent, and student loans, my disposable income is pretty limited. Add saving for a wedding on top of that, and its almost non-existent. Sure, B and I could pull the money we need out of savings, but since we have so much time we are planning on setting aside a fixed amount every month into a joint savings account and saving up that way.

That means that I have to be extra disciplined with my spending, which shouldn't be too hard since only six short months ago I was a poor grad student. When I was in grad school I put myself on a strictly cash budget. Basically, I would take out the cash I was "allowed" and that was all I could spend. Most of the time I wouldn't even carry my credit cards, so I wasn't temped to to spend more.

Shoestrings

I am no financial guru, but the cash budget worked really well for me. Many personal finance professionals suggest relying on cash instead of credit cards because you spend less when you use cash because you can physically see the money leave you hands. I will say, it does make me think twice about making some purchases.

Along with going on a cash budget, I am also going to stay away from online shopping. For some reason $50 doesn't seem that much for a shirt when I am shopping online, but if I were in the store, I would probably put the shirt back on the rack after looking at the price tag.

Source

And since online shopping is off limits, I don't want to be tempted by those daily emails from my favorite stores touting their current sales, specials, and new collections. Just yesterday got an email from Zara advertising their sale. I spent 30 minutes loading up my basket with all these sale items. Next thing I know, I have over $100 worth of stuff in my basket (see, online shopping is dangerous)! Ugh, those emails get me every time! "40% off regular priced items for a limited time" or "additional 25% off already reduced items." I am sending all those emails to the trash or unsubscribing all together because I don't need the temptation.

So, starting July 1st, NO credit cards. I get a cash allowance every week and that's what I can spend (rent, bills, groceries, and gas are all set into my budget and considered necessities, not disposable). If I buy something online or use my credit card, I have to set aside the cash equivalent for the next week or month. But I will not allow myself to go to my favorite online stores nor will I be tempted by their daily emails.

I hope everyone has a good weekend and maybe try going cash-only!!

UPDATE: I totally broke all of these rules today when I got an email from Ann Taylor LOFT saying that they were having a 50% off everything in stores this afternoon. I went online and browsed, then dropped by at lunch time and did some shopping. But the good news is I spent less than $100 and got some good staples. Oh yeah, and its not July 1st yet. :)