Category: 21 Days Cash Only

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21 Days Cash Only – Day 21

LAST DAY – SUCCESS!

Here’s a short pros and cons list I came up with about being cash only:

Pros:

  • Once you figure out the cash you’ll need you don’t have to wonder if you have enough money — you can only spend what you have
  • You spend less because you can really feel the money leaving your hand
  • You really have to think about they money you’re going to need
  • Easier to split a check at a restaurant with cash
  • Cash helps me determine what’s really a priority to buy

Cons:

  • It’s easy to blow through cash
  • It’s tough to adjust to only using cash after only using debit for so long
  • You can’t track your cash spending online like you can with a debit card
  • Not many people use cash anymore and people tend to think it’s a bit strange

Over the last 21 Days I only went to the bank/ATM 3 times — once every Friday.  I definitely need to work on my budgeting abilities though.  The first week I took out enough money, the second I think I took out too much and spent too much, and the third I didn’t take out enough (see yesterday’s post – 21 Days Cash Only – Day 20).  So more time using cash only is a must for me.  I really need to understand my spending habits and figure out what I really need every week.  I’m going to look into Dave Ramsey’s envelope system a bit more.  I thought I could figure out my own budget without using envelopes, but I’m pretty sure my debit card has dumbed down my ability to budget at all.  I’m also going to read as many articles I can about budgeting — if you have any tips or articles that have helped you, send them on to me!

Overall this challenge has definitely opened my eyes to budgeting and really helped me to realize that I need to work on my own personal budget a lot more.  I enjoy using cash only and will definitely continue.  As I mentioned previously, I read that it takes 3-4 months to really get a budget in order.  This has definitely helped me get closer to that and sooner or later I will have something solid that works for me.  It’s a bit of a learning process, but I’m up for the challenge.

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21 Days Cash Only – Day 20

Amanda’s Tip of the Day: When it comes to going out-of-town or budgeting for groceries, always bring more money with you than you think you need.  You’ll need it.

I went to Ojai for the weekend to celebrate Valentine’s Day and brought cash with me, but apparently it wasn’t enough — at all.  When I use my debit card I don’t think about how much money I’m spending, so when I thought about how much money I’d need for the weekend I thought that $50 would be just fine.  Haha I’m pretty sure my cash mind still lives in 2006 in PA where $50 would be fine. I feel like I’ve been in a debit card coma for the last 6 years.  I need to wake up and get with the reality that I live in LA and things cost more.

I did run out of cash, but thanks to Patrick I didn’t break my cash only rule over the last weekend of my 21 days.  Also thanks to Patrick we still went to a wine tasting and had pizza that I was supposed to treat him to (I owe him both now).  I didn’t get my fresh farmers market strawberries, but I did learn that you should never underestimate how much you’ll need — always overestimate.

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21 Days Cash Only – Day 18

Not only did I not use my debit card today, but I didn’t even use cash!! 

Go me! 3 more days sans debit card AND I’m going to be out of town. I always find it hardest to travel cash only. Something ALWAYS comes up.

Any tips to staying within your budget on the road?

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21 Days Cash Only – Day 17

Holy magnolia budgeting is really tough.  It’s not hard to only spend the money you have, that’s pretty easy.  For me it’s creating the actual budget.  It’s hard for me to figure out how much money I have post bills for everything I need.  I’ve tried using Dave Ramsey’s budgeting tools, Excel, Mint.com, at least 5 different personal finance apps including Bill Tracker and Debt Tracker, and iCal to keep track of the bills due.  I’ve resorted to keeping up with Excel monthly, but it’s not exactly what I want.  It’s a pretty good way to keep track of when my bills are due and when I’m paying them, but it’s hard to keep up with, especially since there’s no way to sync it with my accounts.  Every app I’ve tried seems to be lacking something.

Tracking my bills, debts, and extra spending are extremely important to getting the ball rolling with getting on top of my personal finances.  I was reading an article from CNN Money on tips for budgeting.  “10 Steps to Making a Financial Budget” — they’re good logical tips, but I keep reading the same type of budget tips.

Again I’m going to throw it to Dave Ramsey.  There’s an article on his site, “The Truth About Budgeting” that has a few really good tips I haven’t seen anywhere else and so I will share them with you.

“The Truth About Budgeting”
Myths and Truths About Budgeting

Myth: I don’t have time to work on a budget.
Truth: You don’t have time not to make a budget!

The dreaded “B” word. Budget. The only other word that starts with “B” that might generate a worse reaction in most people is the word bankruptcy.

Unfortunately, the word budget has gotten a bum rap – it is basically just a PLAN. When you budget, you’re spending on paper, on purpose, before the month begins. But many people view a budget as a straight jacket that keeps them constrained. Freedom and budget just don’t seem to go together.

However, when you see that a budget is just spending your money with intention, you’ll actually experience more freedom than before. Many people say they’ve found even more money when they created a realistic budget and stuck with it.

Here are some pointers:

  • Give it three to four months to start working. It won’t be perfect the first time you do it.
  • Spend every dime on paper before the month begins.
  • Over-fund your groceries category. Most people underfund that category.
  • Husbands (if applicable) need to loosen up and quit using the budget as a whipping tool on their wives.
  • If married, spouses need to do the budget together. The preacher said “… and you are ONE.”

When you are spending your money on purpose, you will be on your way to a Total Money Makeover. You will be on the road to changing your family tree forever!

Create a sample budget online in 60 seconds!

Alright, I’m giving it 4 months to start working.  It’s only been a month and I’m feeling a little overwhelmed that it’s not working.  I’ll give it a few more to really set in.

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21 Days Cash Only – Day 16

Happy Valentine’s Day!

Enjoy this article from Dave Ramsey’s webpage for the holiday as well as a free romantic LA spot brought to you by yours truly.

“Cheesy Pick-Up Lines for the Ultimate Dave Ramsey Fan”

What’s the easiest way to tell if a potential date shares your thoughts on money? Ask them. Speak in code.

For the past four years, we’ve taken it upon ourselves here at Dave’s office to provide you some clever, not-so-clever and definitely cheesy pick-up lines to help you filter out the non-Dave fans from the sea of potential mates. As research reveals, couples who agree on how to handle their money statistically have a higher probability of their marriage withstanding the test of time.

To commemorate the fifth year of this joyous tradition, let’s take a look back at the best of the best, courtesy of My Total Money Makeover:

Is your credit score bad? Because you look like a 10 to me!

I’ve already kicked Sallie Mae out. Want to take her place?

You’re so hot, you could melt my debt snowball.

The good news? I’m debt-free. The better news? I’m also date-free.

Why am I nervous about talking to you? Because you’re better than I deserve.

Good thing I just bought term life insurance … because I saw you and my heart stopped!

I just bought a bass boat with cash … and it’s a good thing, because you’re quite a catch!

Allow me to introduce myself: I am “borrower,” and you must be “lender.”

When I saw you, my jaw dropped like the value of a new car!

You’re finer than the print on my credit card statement.

If I had a dollar for every time I thought of you, I’d be in a higher tax bracket.

The ladies here would agree—I’ve taken the place of the paid-off mortgage as the status symbol of choice.

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Amanda’s LA Valentine’s Day (on a budget) Tip: 

Alright people, you deserve something cheap in LA to do for Valentine’s Day.  One of the cheapest romantic things you can do in LA is watch the sunset on the beach and one of my favorite places in LA to watch the sunset is a beach — a hill beach.  A little way past Malibu (almost Ventura) there is a beach at Point Mugu that’s on the side of a gigantic hill.  I’ve actually seen people “sand-boarding” down the hill, it’s pretty cool.  So if you’re looking for a romantic place to enjoy a bottle of wine and watch the sunset tonight, definitely check it out.  You can’t miss it if you just keep driving north on the PCH.  You’ll come around a rocky corner and it’ll just appear on your right.  You can see the beach in the middle of the pic below.

Point Mugu Beach
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21 Days Cash Only – Day 15

I like to do things cheaply — I think I get it from my dad… and grandfather.  I had an Apple iPhone 3G (yes the 3G, not the 3GS) for way too long because I was holding out for the 5 (I LOVE new technology).  Of course, I didn’t get the 5, but I’m just as happy with the 4S(iri).  Minus the fact that I’m convinced that Siri doesn’t work on weekends and when I need her most! I’m sure it’s a Los Angeles thing since there are way too many people in LA with iPhones connected to the same network, but every time I try to use Siri on the weekend she apologizes and can’t help me.  “I’m really sorry about this Amanda, but I can’t take any requests right now.  Please try again later.”  At least she’s nice about it!  Bah #firstworldproblems.

About 6 months before the iPhone 4S came out the left headphone on my original apple headphones just stopped working, but since I knew I’d be getting new headphones with my new phone I just waited it out.  I got a cheaper pair of headphones sans mic to run with so I was good to go.  Besides I could still use the broken 1/2 headphones to talk to people on the phone — no use in spending an extra $30!  I was so excited when I got my new phone to get my brand new headphones, but just in case something happened to them or I forgot them I kept my old 1/2 headphones.  Within the first week of having the new iPhone I lost my headphones… both pairs.  I lost the new one first when it fell out of my sweatshirt pocket somewhere on the sidewalk of Van Nuys Blvd. I lost the old pair when it fell out of my motorcycle jacket pocket… somewhere.

So all that waiting and I was back where I started, actually even worse off because this time I didn’t have any!  Even though I didn’t have any headphones at this point I didn’t see the point in spending $30 on a pair of headphones that COME WITH an iPhone.  After getting my new phone I looked into selling back my 3G.  I mean why hold onto something that’s just wasting space?  I found that Apple has a recycling program through PowerON that actually pays you with an Apple Gift Card for your old Apple device.  You tell them a little bit about the device, they give you a quote, you ship it to them (FOR FREE) and they send you a pretty Apple Gift Card in a nice thank you card.  I got $35 for my 3-year-old iPhone 3G (that they stopped selling a year ago) and guess what — it paid for my new headphones!

So there you have it.  Apple has a great recycling program and they actually pay you for your old stuff — in Apple money.  But hey, Apple money is exactly what I needed.

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21 Days Cash Only – Day 14

2/3 done — only one more week and I feel pretty good about it!  Although it’s definitely annoying to have to THINK about where my money’s going, it’s worth the frustration.  Hah on Saturday I had to consider the repercussions of buying a smoothie and then a hot dog — would I then have enough cash to get gas AND food?  The answer is yes, but it’s actually really frustrating to have to think about the money you’ll need for the week.  Since I know I don’t have self-control with anything I can’t take out too much cash for the week because I know I’ll spend it all.  Just like I can’t keep candy in my apartment – haha oy vey.