People often think they spend more money when they have cash in their hand.
Studies have proven theres a psychological component to using cash that doesnt exist when youre swiping a card.
Theres a tactile experience of using cash, Lowry said.
Tina Russell/The Penny Hoarder
You probably arent that in tune with your finances if youre going digital.
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We asked Lowry to tell us how its done.
Whats a Cash Diet?
But a cash diet for your day-to-day expenses can be like hitting the personal finance reset button.
Put it in your wallet, and go about your week spending in cash, Lowry suggests.
Did you know?
She recommends doing it for an entire month.
Online shopping isnt forbidden on a cash diet as long as you account for that spending.
Take dog food, which costs less when Lowry buys it online.
Not Ready for a Monthlong Cash Diet?
But dont just spend cash and then forget about it.
Instead, keep a log ofeverythingyou spend cash on for those two weeks.
Lowry calls it the tracking every penny method of budgeting.
The true goal is to understand where your money is going, she said.
Even when shes not on a cash diet, she sits down every Sunday to check on her spending.
Lowry warns that a cash diet is not a sustainable budgeting style.
A good budget, she said, doesnt feel cumbersome, or like a chore.
Every cash diet will be different.
Your life is constantly changing, Lowry said.
The way you interact with your money needs to be evaluated when your life changes.
Lisa Rowan is a senior writer at The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
