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So what is a Cash Only Challenge, and how do I start? A Cash Only Challenge is a self-driven commitment to transact using only cash and not a credit card for a set duration. We aren’t talking about the routine bills that you would probably otherwise write a check for or set up online such as mortgages, rent payments, utilities, credit card bills, and the like. We’re talking about the small stuff that you transact more routinely and in-person: coffee, haircuts, gift purchases from a physical store, happy hours, dinners, groceries, and, yes, even gas. This sounds like a bit of a bummer, doesn’t it? …Having to think about in advance what you’re going to spend. Precisely. The first thing you’ll want to do is create a budget for the week. Sit down and literally write out (or type) what you plan to spend on all of these items in the upcoming week. Be honest and don’t leave anything out. If you buy coffee each day, add that in. Once you have that number, take a trip to your nearest fee-free ATM and withdraw this exact amount. Error on the side of more vs less because there are no second trips to the ATM. When you run out, you run out. It’s a challenge after all! MOST IMPORTANTLY, as you go through your Cash Only week of spending, log how much you spent on what. If your tech-inclined and you like apps, there are many that help with this, but a paper and pencil works just fine. Groceries — $159.56 Gas — $24.02 Amazing Indian Food Takeout — $42.20 And so on… …and so on. You might find that at the end of the week, you hit the nail right on the head and spent exactly what you intended. Or if you’re like one of us, you’ll blow too much at happy hour and then realize you’re short on grocery money. True story. OR you might end up being so disciplined and unwilling to part with your physical cash that you now have a surprise $100 leftover. If that’s the case, throw that right into your savings! Well done, in advance! As it might take more than a week to accurately anticipate what you really spend, we recommend trying the Cash Only Challenge as a month-long experiment. And while there is some initial thinking and planning involved up-front, you might be surprised at how much it impacts (for the better) just how much you spend and where. PS. If you’re thinking, “Hey dummies, cash might be great and all, but COVID-19 has cut out using cash at many places,” well, yes, we get that. Things are indeed going to be a bit strange for a while. But transacting in cash WILL return. So if this doesn’t feel like an option for you right now, go ahead and put it on your calendar for July or August and let the savings mindset begin!
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