I previously discussed the fact that I do not use credit cards. For day to day purchases, I’ve limited myself to three payment options. I use cash, checks, and debit cards. For paying monthly and annual bills, I use online bill pay.
I use cash at the gas station, grocery store, barber shop, dry cleaners, etc. In brief, in any situation where my total is less than $200, I will use cash. I like to actually “feel” the money leave my hand. This process allows me to decide if I really, really want an item, and I have to deal with the immediate consequences of my purchasing decisions.

I use checks to pay for child care, my tithe, house repairs, etc. In brief, in any situation where my total is MORE than $200 dollars, I will use a check. If I am going to spend more than $200 dollars for an “unplanned” expense, I will always discuss the purchase with my wife. We NEVER make major purchases without having a family discussion. Why? Because, it is OUR money, not my money and / or her money.

I use my debit card to pay for online purchases, quick-pay gas stations, and to reserve hotels. In brief, in any situation where a credit card would normally be used, I use a debit card. I only shop at 3 or 4 reputable online business, and my debit card is connected to a secondary checking account that has a limited amount of money. I recognize that the liability limits in place for debit cards are not the same as those in place for credit cards. But, VISA does have a policy of limiting liability. I do not use my debit card very often, and when I do, I closely track my account’s transactions.

I use online bill pay to pay monthly (and annually) reoccurring bills. In brief, I pay my electricity, cable, phone, cell phone, and insurance bills with online bill pay. I have a budget, and I pay my bills at the first of the month.

There you go. That’s how I roll. Debt-free, cash-only, easy-as-pie!

One last thing: I keep all lose change in a box on the kitchen counter, roll it up at the end of the month, and deposit it in my daughter’s Educational Savings Account.

Resource: Simple, Effective, Powerful Budgeting System

My wife is a thief. I am down 20 more dollars, to a total of 140 dollars, and I never even left the house today. Why? Because, my wife is a thief. She took the money and ran. Police!

No, really, our day-care provider is celebrating her birthday tomorrow, and my wife took 20 bucks to buy her a birthday cake. She provides such good care for our kids, so it is totally worth it. Check out the new chart below. If you are new to the site, welcome, and you can check out the original “Cash-Only” post.

I have some “Cash-Only Experiment” news to report. I am down to 160 dollars, after starting with 260 dollars 4 days ago. I am averaging 25.00 dollars a day in expenses. This money goes towards gas, groceries, and incidentals. I am somewhat stunned by the amount of money going out, but I know that I have not purchased anything extravagant or crazy. It just takes a certain amount of money to live. After I finish this experiment, I will have a better grasp of just where all of my money goes, and I can hopefully adjust my spending habits so that I can save some money.
I bought 12 dollars worth of gas, and my wife took the other 20 for lunch and supper for the kids today.At this rate, I will be out of cash by the 14th of March. Wow…

Well, I know that I have always believed that I spend less money when I have cash on-hand than I would when I used a credit OR debit card. So, I am going to put my “money” where my mouth is, literally. We have already paid our monthly bills, so I do not need to use my debit card or my check-book this month. I am going to see just how far I can stretch my cash on-hand. I currently have 260 dollars in my wallet (see super-dorky-nerd-chart below.) I will update daily on just how much I spend, and we can see how far I can STRETCH my 260 dollars. My wife will get some of it, and I will get the rest. I’ll have the breakdown tomorrow, after we have our budget talk tonight. (You and your spouse have a monthly budget talk, right? Good.) Without further ado, here’s the most awesome chart you will ever see, featuring actual pictures of the actual aforementioned cash money. Holla… Dork!

Edit: Wow, less than 2 hours after this post, my wife and I were asked out to supper by some friends. We very seldom eat out, and it was just for fast food, but I have already used 20 dollars of my 260 dollars, leaving me with 240 dollars for the rest of the month. OUCH! (Oh yeah, the 20 dollars was for me, my wife, and our 2 kids.)

Edit 2: What a weekend! First we go out to supper for the first time in ages, and then we end up working at our daughter’s gymnastics competition. We had to work the concession stand, and I think that I ate MORE than the stand made. We are down another 48 dollars, with a balance of 192. Hmmm…at this rate, we will have absolutely no money left by say…NEXT WEEKEND! Time to put the brakes on and really, really pinch pennies this week. Can you say “brown-bag”?

If you are here from the Carnival of Personal Finance, welcome! I will be hosting the Carnival of Debt Reduction next week, so stop back by. Also, check the links at the top right of the page to check out my podcast and the all new NCN Network!