6 of 11

Write now Article Tools

Page 2 of 3

rentals if need be or online purchases for products that you can't buy anywhere else with cash. Also, once you get out of debt, having an "emergency" credit card in good standing that you don't carry around with you can help you rebuild your credit history without trapping you into a cycle of debt. Even this is questionable, as there are prepaid credit cards and debit cards that can be used for these things today.

A lot of people refuse to examine how they spend their money but examination of finances is key to getting back control. A cash only life can destroy financial ignorance. So, how to begin using cash instead of your credit card? We'll look at some simple steps that can put you on the road to financial security by using the cash only route. The first thing to do is to sit down and draw up a budget. First, get out your most recent pay stub and all bills and utilities you have to pay each month. Draw up an estimated budget amount for things like groceries, clothes, gas/transportation, entertainment, etc that you have to pay each month. There's lots of different budgeting software that can help you track these expenditures. Some budgeting software is free. Look for them on Sourceforge.net. Second, get a small notepad or a notebook and track all of your spending for one week. Start on a Sunday or Monday and for the next six days write down all of the things you buy for that week and how much it cost, no matter how small. The following week tally up what you spent on the previous week and take a good look at where your money is going. Are there things you spend money on that are really unnecessary? Do you buy a lot of snack/junk foods? Eat out too often? This second step is extremely important because it forces you to be honest with yourself and makes you really look at where your money is going. It's a real eye opener. Some may see this as tedious but nothing would make corporations happier than people feeling too lazy or intimidated to examine their own finances and being honest about what they can and can't afford. When you get into the habit of only spending cash, you can track your spending very easily; it helps you decide with razor-like clarity what's important to buy and what isn't. You realize very quckly that if you don't have the cash, you don't have the money - therefore you can't afford it and you keep moving. We're talking about your financial happiness. Not theirs.

Next, after writing out your budget for the month and doing your one week spending

• << previous page
• 1
• 2
• 3
• next page >>

Add your voice

Know something about Paying cash for everything: not a bad strategy?
We want to hear your view. Write now!