A Nitty Gritty Cash Challenge Update

I am going to be succinctly honest.  There are many things I feel compelled to write, but none of them are minutely related to frugality.  Thus, the continual weeble wobble of direction continues.  So, I decided that it may be a good time to update on my 90 Day Goodbye Plastic, Hello Cash Challenge (which theoretically is over now).

We started off fantastic.  Part of our success was due to using cash.  The other significant part of our success was related to scrutinizing our expenses and income every time I paid bills.  Over the past five months, we have never dipped into the money from each paycheck that goes directly into savings.   Folks, that has never happened before.  Ever.

What did we do with all of our savings?  We bought a stove and paid off our car 3 years early.  That alone is a success my friends. 

I still stand behind the cash lessons I learned early on.  Hands down, cash forces you to recognize that you may be spending more than you realize.  I was most surprised by this in the area of groceries.  I have always kept detailed records of my grocery spending.  However, visually seeing the cash dwindle put a whole new spin in the grocery store.  Yes.  There were times I had to put something back on the shelf.

Surprisingly, the cash system made me feel less suffocated.  There were some weeks I worked really hard.  Before, I never felt I reaped the rewards.  Now, when I see the left over money in my wallet, I do not feel guilty for treating our family to pizza.  I know it is okay because I have physical evidence that the money is in our budget.

Now, enough of the accolades.  The raw, nitty, gritty is that we are currently not doing as well with our cash system.  We have been using our credit card again.  In fact the past 2 statements have not been pretty.  Do not worry.  We pay them in full, but that is the wrong mentality to obtain.  We can do so much better (our paid off car is evidence).  The good news is that we can always get back on track. 

In the end, it is always about perseverance, not perfection.

FREE Fribble, Freezer Eating, and Cash Success

Today is “one of those days” where I am trying to keep my head above water.  It is not a “bad” one of those days.  It is just filled with lots of life.   I purposely avoided all aspects of blogging yesterday.  My brother and his family are in town.  I have not seen them in a few years, so priority keeping is in order.

In order to keep my focus where the focus needs to be, I offer you 3 quick tidbits.

1. Tomorrow (Saturday January 21st),  Friendly’s is offering FREE Fribbles from 1-5.  We are expecting snow and ice and I can think of nothing more entertaining than driving to obtain my FREE Fribble.  A family of 6 easily costs $20 or more for an ice cream outing.  So yea.  Ice, snow and FREE Fribbles sounds fantastic.

2. I was unable to fit a “real” grocery trip in this week.  I have no plan.  I know you are all entertained with that notion.  The plan for the next few days is to eat out of the freezer and pantry.  I may empty the deep freezer if it stays cold enough to keep my freezer items cold while I defrost 3 years worth of freezer ice.  Am I the only one that finds the freezer an organizing nemesis?

3. We have successfully completed 2 weeks on the cash challenge.  We have saved $500. Yes.  $500 in two weeks.  That is impressive is it not?  I am not ready to adorn the party hats until we have several months with significant savings.  My goal is to eliminate our car payment.  It is not substantial, but it needs to go. 

Are you working towards paying down a debt?  Why not celebrate with a FREE Fribble?

3 Cash Lessons Learned

I have finished week 1 of my 90 Day Goodbye Plastic, Hello Cash Challenge.  I already want to quit.  Just kidding.   I don’t.  I just threw that in there because I knew you would love watching the unraveling of a public crash and burn. 

Instead, I am feeling energized and optimistic. 

I suspect I will not share a weekly update of my progress, but there have already been a few things I have learned that I wanted to share with you.  There are a number of you on the fence about this so authentic sharing is imperative.

Lesson #1: 

When it is physically laid in front of me, there is less money to spend than I thought.  How is this energizing?  I don’t know.  Somehow it is.  I recognize that this may be the reason that the credit card bill is always paid, but our savings goals are not always met.  Just a thought. 

Lesson #2: 

You can exist on less than you think.  Even food.  I have used a budget and cash for groceries for awhile.  However, it feels different this time.  For the first time, I calculated my bill through Aldi.  It forced me to put things back on the shelf.  Even a few things on my list.  A salad is a salad without croutons. Really.  It is.  The most amazing part?  Once home I didn’t wish I had bought any of the extras. Oh happy day for staying in my $100 budget for the week.  Without the calculations, I would not be dancing.

Lesson #3:

Communication.  A cash budget forces you to think, plan and communicate.  My husband and I are fabulous friends with an over abundant quantity of communication.  Yet, we often avoid discussing money.  We don’t always see eye to eye.  This cash challenge has forced us to share healthy discussions on our finances.  We may even develop a financial plan. (Neither of us are planners). 

7 days of the 90 Day Goodbye Plastic, Hello Cash Challenge are completed.  So far, no one has starved died or denied themselves into non-existence.  I am curious. If you are on the fence, are you ready to try it?

 

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I am linking to Frugal Friday

90 Day Challenge: Good Bye Plastic

I have never been so enthusiastically hesitant to share with you.  My reluctant enthusiasm is regarding a challenge I have created for myself.  My first financial focus for 2012 is to discontinue using plastic.  Debit cards and credit cards.  Just typing it makes me nervous.  You may be surprised a “frugal blogger” is timidly cautious about ditching the plastic.  You may be aghast.  You may relate.  Let me explain.

My greatest hesitation in changing is due to engrained habits.  I have been using credit cards “responsibly” for at least 16 years. 

• I have never been late on a credit card bill. 
• I have never not paid in full. 
• I have accumulated thousands of dollars in cash back rewards over that many years.

So why now?

Early last summer I shared my avoidance of detailed budgets.  I don’t know if it was conversations, circumstances or conviction, but I started to feel nudged to change.  This fall I did make a change.  I took the one detailed area of our budget (groceries) and switched to cash only.  I quickly fell in love with the cash system.  We began using cash for some of our other spending.  It worked.  I liked it.

Over the holidays, I slid backwards into using credit.  I didn’t overspend, I just forgot the cash plan.  After reading Crystal’s new book, she convinced me to try it. For 90 days.  That is it.  If it doesn’t work, then I can switch back.

So here I am.  I am ready to begin the 90 Day Good Bye Plastic, Hello Cash challenge.  Of course, I have already devised 2 exemptions. 

1. I can still use plastic for paying at the pump.  At least for month one.  (Remember, improving a focus requires small steps).

2. I can still purchase something online.  However, I will need to physically take the money from my wallet to take and deposit. 

Many of you have been using all cash for years.  Most likely, you are curious how one would feel so apprehensive.  It will be a huge switch that requires commitment, intentionality, and focus.  My hope after 90 days is to have a new engrained habit.  Of course, only if it actually saves us money.

What do you think? Do you want to join the 90 Day Good Bye Plastic, Hello Cash Challenge?

*Did you sign up to win a copy of the Money Saving Mom’s Budget yet?  If not, check it out here.

Linking to Frugal Friday