9 Things To Pay For in Cash To Help You Stick To Your Budget

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For many, swiping a card is the easiest thing in the world — you could spend $50 or $500 and it feels pretty much the same. Whereas paying in cash definitely makes you stop and think before making a purchase.

“When you shop in person, you should always pay with cash,” said Melanie Musson, finance expert with Insurance Providers. “Paying with cash has been associated with spending less. There’s a psychological factor when you have to hand over cash that isn’t there when you swipe a card or tap a phone.”

Below are some things you should try to pay for in cash to help you stick to your budget.

Eating Out

Many people often experience that frequent dining at restaurants or ordering takeout takes up more cash than they would have anticipated. 

“Use of cash for a dining out budget gives one an actual feeling of physical cash spent and keeps them within a safer limit,” said Dayten Rynsburger, finance expert and CRO at Niche Capital.

Entertainment

According to Rynsburger, ticket purchases of a movie, concert or sporting event can eat up money in small amounts. Keeping the money for entertainment in cash envelopes for the month eliminates buying on impulse.

Buying on a Whim 

“Impulse buys — even at checkout lanes and sales events — tend to fly under the credit card radar,” Rynsburger said. Whereas cash helps restrain impulsive decisions that will only spend what is in your pocket.

Groceries 

Supermarkets are built to get you to spend as much as you can. Shopping with cash forces you to stay within a tight budget so you do not end up with miscellaneous items not on your list.

“Many people overlook just how much extra they spend on groceries when they don’t have a detailed plan or list and credit cards make it that much easier to overbuy,” said Andrea Woroch, a nationally recognized consumer finance and savings expert.

She suggested creating a meal plan, jotting down a shopping list and then paying with cash to reduce food waste and money waste. 

“You can still earn rewards on your grocery purchases by taking pictures of your grocery receipts using a free rewards app like Fetch — you will earn points toward gift cards to Target, Walmart and many other stores.”

Home Repairs or Renovations 

Whether you need to replace your air conditioning system or are looking to revamp your kitchen, Woroch said most service providers will add a credit card processing fee on to your total payment, so you’re better off paying with cash.

Gifts and Holidays

“When it comes to the purchase of gifts, particularly during the festive season, people are likely to overspend since it is tough to control the urge to spend more,” said Scott Waters, payment expert and founder of Process Payments Now. “With a card, it does not feel like one is actually spending cash, and the next thing, one has spent far more than intended.”

He said it’s also better to pay in cash as it makes you more realistic. 

“It is tangible as you can actually witness the money coming out of your hand, hence making you consider your purchases more critically.”

Interior Design, Home Decor and Minor Repair Work

Household item shops are well known for their tendency to get you to spend more than you should. 

“If you’re using a card, it is straightforward to get carried away with things you did not have on your shopping list, such as candles or extra pillows,” said Waters. “With cash, one is able to be very thoughtful about what is really needed for the home.”

Personal Care Services

Spas, salons and even barbershops can be costly at times. When paying by card, it’s often easier to add on some treatments or products. 

Waters said this is because when you pay in cash, you ensure that you do not spend more than you would have wished, and it also helps you discern whether or not you need the extra service.

Hobbies and Craft Supplies

“Hobby shops are meant to get you to buy things you don’t really need in your life,” said Waters. 

He suggested paying cash so that you do not end up buying items for your hobbies when you do not necessarily need them.

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