Is an all-cash diet a great idea for your financial health? An all-cash diet is all about cash. As part of this lifestyle change, you put down your cards and other digital wallet tools and rely solely on cash for all of your financial transactions. Remember, when it comes to meeting your long-term financial goals, it's all about planning, and an all-cash diet is a great place to begin.
Here are just some of the benefits you can expect to experience by implementing an all-cash diet.
Less Unnecessary Spending
This financial diet helps you control your spending because you can only spend the cash you have. Instead of swiping your card for impulse buys and other unnecessary purchases, you'll only be able to work with the cash you have on hand.
Better Budgeting Planning
With an all-cash diet, you have a better opportunity to follow a fixed budget. When you use cards, you're more likely to be all over the place when it comes to your budget and spending. The better you budget, the easier it will be for you to meet your financial plans in the future.
Easier to Save Money
By far, one of the greatest advantages that an all-cash diet affords is an easier way to save money. Credits cards and debit cards are helpful, but they come with interest, withdrawal penalties, and other fees. As a result, you end up spending more money. With an all-cash diet, you avoid these fees and save more money for your financial goals.
Getting Started Tips
Fortunately, starting the journey on an all-cash diet is not an impossible task. In fact, it's quite easy. To get started, make sure that you have a budget in place. You can't possibly determine how much money you will need to keep on hand each week or month, and for what expenses, without a budget. Next, give yourself a pep talk on commitment. Sticking to an all-cash diet does take some discipline, so you need to be clear about your goals and committed to achieving then.
Lastly, consider taking most of the temptation out of your wallet. If you have several credit and debit cards, only keep one in your wallet and keep the rest of them at home. You can even put a sticky note on the card that reads "for emergency only" to avoid the temptation of using the card when you're out.
There are a number of benefits you can expect from a transition to an all-cash diet. For more tips about getting started or help with your other financial planning goals, speak with a professional who can help you.