Yes. You read that title the right way. It says “30 Day No Cash Challenge.”
That may seem a bit backwards from what I would normally discuss, but it is what I am really getting ready to do.
I talk a lot about how much better it is to use cash because you can never overspend. I read a lot of comments (which I absolutely love) about how some of you always use your credit card so that you can get the cash back or other rewards. Everyone shares that they committed to paying it off in full every month. That means you are using them in the right way.
However, the question I have is this: Is it really worth it?
And from worth, what I a really wonder is do people overspend when they have credit? I am not talking about running out and going on a shopping spree. I mean the things you normally buy like groceries, clothing, dining out.
When I use cash to shop, I know for sure I can’t overspend because when the cash is gone, I am done spending. I really make sure I watch what I spend in the store for that reason. I have to stick to my budget because it is absolutely impossible for me to exceed my spending. It absolutely can not happen.
That makes me wonder about using a credit card along with our budget.
How does that work for the average person?
Do they watch what they buy at the store and then know in their head how much
they are spending on groceries every month?
What happens if they spend too much?
How does that affect the bottom line?
And, if they do overspend, is the cash back they get enough to offset the overspending?
What happens if they overspend and the budget doesn’t allow for it, where does the extra money come from in the budget?
Keep in mind that these are my own personal questions and I am not putting anyone down nor questioning what you do, just really want to know.
This honestly is what led me to decide to try something I thought I’d not do again. I actually went out and applied for a credit card. I had a ginormous limit in about 15 seconds (crazy).
For the next 4 weeks, I am going to change the way that I shop. My husband is actually joining me in this challenge so that we, as a couple, can see how it works for us.
Starting Monday, September 7th, we are putting away our cash envelopes. Instead, we will be placing a credit card into our wallets. We will use that in lieu of cash for the entire month. We will do all of our regular shopping and cash purchases by putting them onto our card.
JOIN THE CHALLENGE
I am ready to be challenged and proven wrong – are you? If so, then join me this month! It doesn’t matter if you use cash or credit. It matters if you shop.
Cash only shoppers: I challenge you to put away your cash and use credit (remember you MUST pay it off in October). See if you end up overspending or find that you get great rewards from your purchases. You may want to get an app to set up a virtual wallet to watch what you are spending money on — just in case you feel you need more control.
Credit card shoppers: Of course, your challenge is going to be NOT using your card this month. Try to go with a cash only budget and see if you find you spend less. Make sure you do it the RIGHT way by tracking what you spend! So if you have not tried that before, you will need to read up on our Cash Envelope system.
I will be posting my photos and updates using the #ppmchallenge hashtag and invite you to join me! You can find this on Instagram and Twitter as I share updates of our journey through photos. Each week, I will check in to let you know how it is going for us.
The great thing about doing this is that I will learn a bit more about how to maybe build up some rewards, but also gain an understanding of more than one way to shop and set up a budget. I know that what works for one person, may not work for anyone else. I’m OK with that. I am open to even being proven wrong (if that what happens).
All I am trying to do is to help us all learn that just because we do something one way, it does not mean it is the only way and perhaps, we need to be more open to new ideas.