I know credit cards and not your debit card got you into debt, but your debit card CAN hinder you from getting out of debt. I’ve said it before and I’m going to say it again – CASH is a sure fire way to keep your budget in check. We’ve talked extensively about the envelope budget system, are you willing to give it a try?
So what exactly is the difference between using a cash instead of your debit card? It all comes from the same account after all right? Yes but the difference is the ease of spending it. Using your debit card to pay is similar in many ways to a credit card – it’s quick and painless. That is of course until you check your bank statement and see the $100′s worth of small charges that add up all too quickly. If you’ve pulled cash out and set to use cash only you’re predetermining just how much you’ll spend, when it’s gone it’s gone. It’s also much more painful to drop cash than it is to swipe your debit card.
Could you live with a frozen debit card for just a one week? Anyone willing to take on the challenge?
Natalie March 8, 2012 at 4:12 pm
We started the envelope system in January. My husband was sure he would feel like he was a teenager on an allowance, but he quickly realized it meant that we had money for the things we needed … and less stress. It has been awesome! I know the money is there for things coming up, for gas, for groceries… kids clothes etc. Relief washed over me after the first week! This is genius
I would freeze my debit card for a YEAR!
Nikita Kamdar via Facebook March 8, 2012 at 5:19 pm
hi i have a question, how would one know how much should one set as an amount for expenses of the month ie. how can i decide that i would spend only $300 in grocery every month? i mean how can i know were to stop? sorry for a silly question..
Shannon F March 8, 2012 at 7:00 pm
My only concern is possible damage to the card. Thoughts on this?
Gina March 9, 2012 at 5:03 am
I havent used my CC since 31 January – I have however been using my debit card cuz in my mind I was like “Its just like cash”! But you are so right….. its NOT like cash – I check my acct and I am like OMG where did all my money go…. all those little swipes add up – So I am taking this challenge – one week with no CC or debit card…. lets see how much I can save!
p.s. I also went on a Target diet – LOL – I didnt go in Target at all in the month of February! That was hard but I always spend extra $$ when I go in there!!!
MaryBeth March 9, 2012 at 5:14 am
I’ve been doing cash since September and it has totally changed how I grocery shop. I used to always buy stuff just because the deal was too good to pass up. Now, I can physically see how full my envelope is and if I really *need* it. I feel our grocery envelope weekly (that’s my pay schedule), but I know myself too well. If I filled it 1-2 times per month I know that I’d still feel like I had enough money to buy those deals I don’t really need!
On another note, yesterday I paid for a prescription refill with my debit card (I haven’t figured out how to do cash for medical since they are so infrequent) and it took me about a triple check to remember what my PIN was because I hadn’t used it in so long. That felt like a MAJOR success!
Jacqueline March 9, 2012 at 7:30 am
My husband has been wanting to do this for months, so I think we will take the challenge. The only thing that fluctuates in our budget is the cost of gas (which is draining us!) so I think everything else will be relatively easy.
Kerry Orvis Hill via Facebook March 9, 2012 at 12:42 pm
oooh I think i’ll try that with my husbands!
I have to give him an allowance each week or he goes deal crazy.
The Frugal Find via Facebook March 9, 2012 at 12:49 pm
haha too funny Kerry, love it!
skye March 9, 2012 at 10:32 pm
We love the envelope system and have been using it for about a year and a half. In fact I used my debit card to purchased a few planned expenses and my bank put a fraud alert on my card! Usually I only use it for gas.