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No. of Recommendations: 6
Cash is the cure!

I went to the store yesterday to buy some clothes. I brought only what I intended to spend (per my YNAB budget) in cash -

I have to say that having a set amount of cash in my pocket did get me to limit my spending. If I had a credit card (and no budget) I would have purchased based on how much I liked the item and if it was a "good deal" - The cash forced me to make choices - as a result I prioritized my purchases based on "need" and budget - as a result i bought things i am sure i would wear and wound up buying only 1 shirt among the 3 that i picked out..

at the checkout the girl asked "credit?" as if it was a foregone conclusion.. "nope.. cash!"

I set up cash accounts in my resister for YNAB for groceries, clothes, and household - they will represent the physical envelopes of cash - as i withdraw money from the bank and put it in the envelope, i will record that as a 'transfer' in my register - as i spend the money i will record the expense per the budget category - i will maintain a "spending money" category in my budget for non-itemized expenditures ("fun money")

I will still use credit as needed (automated bills, online, etc) but intend on going with cash here on out..

Was thinking about it and I really dont like having $1,000 or so being owed to the credit card company - even if i pay it in full.. I think it reinforces the credit mentality

However, I agree with PSU 100% - cash is not a quick fix and it all comes back to your beliefs about money - but i think the cash seems to reinforce the good beliefs - ie, if you dont have the money to pay for it dont buy it! - i guess time will tell..

PS - Thinking back to last year i had a big impulse buy where i spend $2k on a new wardrobe - if i had forced myself to leave the store, go to a bank, withdraw $2,000 - and pay that to the cashier i sincerely doubt i would have gone through with it.. rather i was thinking about what a "good deal" i was getting and thinking about the points i was racking up on my card!
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