Bust Out the Dollar Bills
Cash diets are one of the best ways to learn the value of a dollar, but they aren’t always easy to maintain. In this day and age, we’re used to plastic, which means money comes in, money goes out, and we don’t really track where it goes. However, cash budgets reverse all that and give you an exact notion of where your finances go. With that, let’s dive into a few reasons it’s a good idea to shop with one!
1. The Value of a Dollar
It’s hard to understand the value of a dollar when you spend all of them at the mall. To truly get a handle on their importance, keep physical cash on hand. You’ll learn a better sense of financial planning and saving in the process.
2. You Save Money
Speaking of saving money, you have no idea how much you’ll keep on hand when you watch it deplete. No one wants to lose actual funds from their wallet, and seeing the slow decrease can help you put things into perspective.
3. Only Necessary Purchases
Do you really need a new sweater? Do you really need to spend $15 on a pumpkin spice latte with extra foam? We didn’t think so! There’s nothing wrong with living a little, but there is an issue with dumping cash on unnecessary items.
4. Money Management
The more you learn about finances, the more incentive you have to manage it correctly. Whether it’s stocks or a new savings account, you can speak with your bank about the best way to invest every dollar you save. It's also a good way to save for the future.
5. Emergency Funds
You never know when your bank will lock you out of your accounts. You also never know who might get into your savings. It’s always a smart idea to have a few bills on hand just in case something happens.
