Organizing Your Cash

by Mary Ann Romans | More from this Blogger

17 Aug 2007 04:41 AM

Paying with cash can be a very good strategy to help you reduce your spending and therefore live frugally. You can read all about how paying with cash can save you a lot of money by clicking here, The Case for Cash.

One problem with cash, though, is that it may not seem as easily organized as those automatic line item receipts or bills that you get with a credit card or a debit card. But in actuality, with a few techniques, you can keep track of your cash with ease. I sometimes find it much easier to monitor than a card.

I first started realizing the benefits of cash in this modern world because of a little thrift store near my old home. I had just had my first child, and after a few months, we made the decision that I would stay at home with him. My son and I took long walks through the neighborhood (he in his stroller, of course), and I came upon the store. It was fun browsing around and picking up a goodie or two before the long walk back home. At the time, the store only accepted cash, so I was forced to figure out a cash budget and have that available for my trips.

Soon, I was doing the same for walks to the grocery store. While they did take credit, I usually could only fit a small amount of groceries in the stroller, and I was already on a roll with using cash. Next to the grocery store was a discount store, where I could pick up household items, diapers and even discounted baby clothing. Again, I paid with cash. A few more blocks away was a produce store. So you see where this is going.

My solution, which is simple, but works, was too determine my budget for each store (you could do it by category) and set the cash aside. I used some colorful paperclips to separate out the bundles, one color for each store.

When it came time to make a store errand, I would simply grab whatever bundle applied. And if we were visiting more than one store, the paperclips kept the money separated nicely in my wallet. And, I could see at a glance how much of the budget was left for purchases.

Mary Ann Romans also writes for the Computing Blog here at Families.com where she shares everything from the latest news on technology to cool downloads and fun websites.

Related Articles:

Using Combinations to Save Money

How Much Does It Cost to Eat at Home?

The Case for Cash

Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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