Each time you count your cash out, it pinches a little more than plastic.

Why You Should Try Only Buying in Cash

Why You Should Try Only Buying in Cash

Nowadays, it seems like there’s a new app, software, or strategy launched every day to help you save. And they are becoming more and more complex. Some of these strategies might be effective, but they usually require downloads, financial commitment, or disclosing information like your bank account number to some anonymous source.

There’s a better way to save your money, and a much simpler way to become totally in control of your finances. Spoiler alert: it’s the old-fashioned way. Although this may come as a shock to some tech-savvy millennials my age, I haven’t been able to find a single app out there that beats the original, old-school budgeting strategy: ditch the credit cards and exclusively use cash.

When I say exclusively, I mean it. You withdraw cash and use it for all of your expenses, then withdraw more when you run out.

I started doing this about three months ago, and on average, I’ve been spending about $300 less per month without actively changing any of my habits.Click To Tweet

The two main reasons people don’t like using cash are that first, it can be mentally stressful to decide what amount to withdraw from your savings; and second, that it also can be hypothetically risky to walk around with your cash and run the risk of you dropping it or it getting stolen. The latter of those issues is (in my opinion) a nonissue: don’t run around with cash in your hands, and odds are you won’t lose it. But the mental hurdle of having to come up with a budget and stare that number in the face is definitely daunting. I didn’t want to do that, either, so I tried a slightly different strategy: instead of writing down all my expenses and forming a number from what I should be spending, I decided to just withdraw $200 at a time. No connection to an assigned budget whatsoever.

It was crazy effective. I quickly realized that I didn’t necessarily need a concrete budget because using cash already made me want to spend less.Click To Tweet

I was much more conscious about my purchases, so the $200 lasted me about four days longer than I originally thought it would.

To millennials who have grown up with plastic in their wallets: I get it. It seems counterintuitive to use cash at all when you have a card handy and some budgeting app to monitor the card. But when you’re about to make a big purchase on something you might not necessarily need, what’s more likely to make you reconsider this decision – swiping your card or handing over the cash that you’ve withdrawn for the week? For me, it’s the latter. And even more so, it’s the small purchases that will have an even greater impact. You might not even think twice about getting the large popcorn at the movie theater for an extra four bucks if you use a card, but you might consider getting the medium when you’re thinking about how to best use the $20 in your pocket. Those little decisions add up very quickly.

For example, when I have a credit card, I almost always buy a larger-size coffee than if I have cash.

That dollar or two makes a difference to me when I’m handing over bills, but it doesn’t feel like a big deal if I swipe.Click To Tweet

And then, if I get the smaller coffee five days in a row with cash, I’m essentially saving enough money to get two “free” coffees at the end of the week that I wouldn’t have had if I used my card.

Withdrawing cash can be scary. It forces you to stare your money head-on, while using a credit card can be more comforting. But that’s exactly why I’m only using cash from now on. I’ve already saved just under $1,000, and I’m positive that I can save even more in the future!

For more from author Caroline Burke, click here