You can love your life without a credit card

using cash (1)

Most Australian women overspend because of credit cards.
I know because I did.
It is so easy to loose track. You try to add up amounts in your head and attempt to stick to a budget. But then your bill arrives and you are devastated.
You feel like you are always looking back. You get paid and then all your money goes pays for food you have already eaten, petrol you have already used and presents you have already given.
You get caught in a cycle that is focused only on the past and you are continually disappointed.
I never had any credit card debt but I always over spent on my budget and used our surplus instead of saving. I planned what I was going to spend and at the end of each month I would go over all my expenses and credit card statements and add up my expenses. The spreadsheet worked well but the system was not supporting me. I felt so frustrated and incapable of sticking to my families budget. My head and my heart were in the right place but my hands and the system to support them was letting me down.
So I decided to try the 'old fashioned way' and started using cash. This has been the most powerful way for me to stick to my spending boundaries and take responsibilities for my spending choices.
I do still have a credit card which I only use for my direct debits and I have it set up as an autopay so I pay the full balance each month and never pay interest.
Using cash is the easiest way to see how much you have left to spend in any given week. I use my custom made purse with six zipped pockets to split the amounts across my groceries, clothes, eating out etc. A debit card wouldn't work for me. The simplest solutions are often the best and right now this one is working for me



Some of my colleagues and friends talk about budgeting and brag about how easy it is to go out with just your phone and your credit card. But what is the cost of that convenience? Have you added it up? Is it worth the thousands of dollar of interest you have paid, the savings you have missed out on or the stress of not feeling in control. Please be kind to yourself and say goodbye to your credit card.
For anyone with kids or has nieces, nephews or grandchildren, it is also a great way for sharing money management skills with your little loves because they can see the cash, the categories and the money decisions. Even my two and half year old asks "Mama do we have budget for this?"  Before when I was using my credit card it money was invisible and there for limitless. I always battled with how overwhelming and hard it was to say no to my kids wanting to buy thing, $5 here and $3 there all adds up! But now I open the pocket labelled "kids" and together we can choose how to spend that money each week.