A cash only budget is one that is practiced by many every day. The question to ask though is it really feasible to use this method of budgeting. As the economy slides, more and more downhill, people are becoming more budget aware especially on ways to cut costs here and there. When you are looking at a cash only budget here are a few pros.


1. If you are considering a cash budget, it will really help you to become much more aware of where you are actually spending your money on a daily basis. You may find yourself paying much less for certain things, because you don’t have that piece of magic plastic (credit card) to tempt youself with.

2. It actually will force you to take a closer look at the money that is leaving your hands. If you have just so much set aside for each bill; then you will be less likely to overspend. You will also begin to rethink your overall spending habits. Such as avoiding name brand items, when you know you can get basically the same item (without the name brand) for much less money.

3. Another great advantage of a cash only budget is that you will avoid all those credit card fees and interest charges; which can add up over time. Lets face it, you may be a person that uses a credit card to pay your bills, but also when things are tight; tend to overspend. Perhaps you are even tempted to make late payments which will add on late charges and additional daily interest. And then there is the “Big Sin” when you just plain go over your spending limit or go over the allowed cash benefits for the month. When you have cash versus the credit cards you really don’t have to worry about this because quite simply; when the cash is gone it’s gone. This will also help you not to indulge in things that you really don’t need; as often as you would with a credit card.

4. You will also find yourself not eating out as often as you would with a credit card. When you do dine out you find yourself looking at the cheaper menus in an effort to save money.

5. When you are done paying your bills at the beginning of the month you will actually be able to see your savings. This is a great bonus.