Monday, November 27, 2017

The Power of Cash in a Frugal Life

Whether it is Icelandic Kronor or American Dollar Bills, cash is a powerful tool in the life lived on a frugal path.  Cash keeps you honest.  Cash keeps you on your toes.  Cash evokes a feeling when you hand it over more so then swiping a credit card or punching in numbers on a debit card.

On recent travels to Kentucky and then Iceland we paid in cash for our discretionary items.  And in both cases we came home with a surplus.  A voice in my head tells me we'd have gone over budget, just a tad, if we had paid with credit cards.  Now we pay those credit card balances in full each month, but spending at or under budget is key in our frugal life.  So we've lifted the travel with cash and applied it to everyday life.  Each week I head the bank.  I deposit payments received into my business checking, and from our joint checking I take out what I'll need for the week ahead: groceries (that's the big one); fun activities, and other miscellaneous items. For the first month in I cannot remember, we've spent less on groceries than we budgeted.  I credit that to knowing we have $x, do we want to spend it on take-out or just make a meal at home, and only putting items in the cart that will be eaten in the week ahead.

Cash -- it's a powerful tool. Anyone else with me on this aspect of a frugal life?

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