Tracing expenses with apps and the much-advertised 50/30/20 strategy are just a few of the budgeting approaches that Sheikha M. has tried. Unfortunately, nothing seems to help her keep her finances in check. She decided to take on the trending cash-only spending strategy gaining traction on social media after feeling completely out of control with her finances.
The reasoning behind this system is rather straightforward: withdraw your paycheck in cash, then split it into envelopes earmarked for groceries, entertainment, utilities, savings, etc. The hope is that people will better understand their spending patterns and be able to exercise financial control.
Adjustment wasn’t easy for Sheikha. “It felt very weird at first because I hadn’t used cash in a long time,” she said. Before too long, however, she started noticing positive changes. Actually handling cash made her more careful with spending. “Having a large chunk of my salary in cash made me pay attention to the value of each note. It’s unlike having it on my cards or digitally on my phone,” she said.
While the cash-only method helped her to control her spending, it was not without its challenges. “Sometimes, something would come up midday, and what I was carrying wasn’t enough,” Sheikha recounted. For her, sticking to her new method was difficult at times because she was shocked to learn that some places only accepted cards.
Even with those challenges, staying committed to spending with cash has made Sheikha more aware of her financial habits. Not only that, but she described feeling a greater sense of purpose toward her purchases because she is able to feel the ‘sting’ with every purchase that is made.
Sheikha’s experience may show that cash-only isn’t necessarily for everyone, but it does demonstrate that intention behind every purchase is needed for financial control. Embracing cash might be the solution those feeling stifled by digital budgeting methods are looking for.
