Cash is King

How much money did you spend on food last month?

How much money did you spend on transport last month?

How much was spent on eating out last month?

How much money did you spend on clothes?

Where did all that money go? The first step to making money is knowing where you spend it.

Once you know where your money is going, you can budget and control it.

Using credit cards or debit cards is easy BUT they also make spending money very easy. It is so convenient and with one swipe everything is done and paid for.

Challenge: Go on a cash diet for two weeks for your everyday expenses.

You get rid of your credit card, determine how much money to withdraw for two weeks, and buy the things only with the cash you need. The theory behind using only cash is that you are less likely to make impulse purchases. You will only buy more of what you need and less of what you want as you have a limited amount of cash set aside in your wallet.

In addition to becoming a more conscious spender, you have to physically hand over your hard-earned money and watch it disappear.

This will force you to know exactly how much money you are spending. You will have to think longer and harder about big purchases.