Are your finances organized? Are you living a secured, debt-free life? Do you have a clue where your money is going? The reality is most of us do not.
Today, it’s easy to be stressed about mountains of debt and unorganized finances. We have no clue if we are getting ahead in life as far as our financial security and savings are concerned. Getting control of your finances can be a tough job, and most people give up before they even start. But believe it or not, the solution is quite simple. Try living a cash-only life!
Keep reading to learn more about how a cashless life could benefit you.
What Is a Cash-Only Life?
As the name suggests, following a cash-only life means you stop using your debit and credit cards and only rely on cash. Yes, it can sound scary at first, but once you begin, you will start enjoying your freedom. It may sound impossible, especially in this age of digitization, but many sections of society are slowly moving towards a cash-only lifestyle to enjoy a stress-free life.
One of the easiest ways is the old cash envelope system. And no, you don’t have to keep cash in separate envelopes. You just need to figure out each household expense and categorize it. Total up the monthly expenses for each category, and you will know how much needs to be spent each month. You can maintain a spreadsheet or a notebook for this purpose. For annual expenses, you can keep a separate sheet and note them later. You can also break it into a weekly or fortnightly budget.
In order to track your expenses, simply write down the total amount, place and date on the envelope (if you prefer) or in your ledger. For expenses that you pay annually, like your house or car insurance, you can open a savings account. Save monthly, and you will have the right amount of money when the time comes to pay.
What about Large Purchases?
Suppose you need a new couch or a new laptop? How would you make such large purchases with cash? You could save for months, but the particular product you wanted may no longer be available on the market.
This is when the concept of layaway comes in handy. Many stores offer layaways, where you make a small initial payment on a purchase, and then every week after, you pay a little more until you settle the entire bill. The store will set aside the product for you, and once you make full payment, you can take your purchase home.
What Are Some Benefits of a Cash-Only Lifestyle?
- Reduced chances of identity theft
- Avoiding impulsive purchases
- Controlled spending & more savings
- Smart spending
- Tracking your expenses
- Enjoying a debt-free life
- Easier budgeting
- Bigger bank balance
Depending heavily on credit cards, debit cards, and online wallets may seem easy, but they don’t have to become a necessity. While these modes of payment come with their own advantages, they also increase the chances of identity theft, annual charges, fraudulent transactions, hidden charges, loss or theft of the card, and the risk of sharing personal information. A cash-only lifestyle is safer, will limit household expenses, and curb unnecessary impulsive spending.
At Briteside Solutions, we offer effective solutions for any financial hardship you face. To enlist our services, you can contact us by visiting our website or calling us at (888) 851-0646.