How to manage cash
Cash is a tricky thing, it is often said to be better than plastic because you can physically see the total you have reducing. It is also something you have to protect. If you lose it you can't just call the cash company and ask them to hold your accounts, issue you new cash, and replace any that was taken fraudulently. There is simply no protection plan in place for cash. In addition to that, many times you spend your cash, and have no idea where or how. With a card you get a printed statement every month, detailing which retailers, etc. you purchased from. So what can you do to better manage your cash? Try the following suggestions:
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Create your own protections plan:
Know what you are going to buy so that you only take certain amounts of money out of safe places at a time. Thus, if your purse or wallet were to get stolen, or if you were to lose the cash, your loss would be minimized. This means if you are going to the grocery store, plan ahead and have a fair guess as to what you will spend, and only take that much with you. If you are going out for a night, plan your activities and only take what will be needed. Extra cash kept on hand means extra cash lost if you run into a problem.
Keep cash in safe places. While many people no longer carry cash, that does not mean that thieves, robbers, children, neighbors, etc. are not going to look for it, or notice it. So, if you are going to deal in cash, and if you plan to keep large sums of it in your home, do not leave it where it can be seen easily, rather invest in a small safe, or keep it in a locked drawer, etc.
Make your own monthly statement:
Keep an accounting, track spending. Cash can be slippery, in that you spend it here and there and before you know it, it is gone. To avoid this and know how your hard earned money was spent, keep a small expandable file in your bag, briefcase, car, etc. to file away receipts, or/and keep a small spiral bound notepad and pen handy so that whenever you spend cash you can note it and refer back to it. Thus, when you look in your wallet on Wednesday and see that the $60 you put in it on Monday is gone, you can flip open your notebook and see you spend $5 on gum, $12 on treats at the movies, $4 on coffee, $2 to park, $4.50 at a toll road, etc.
By writing down your expenditures you will be able to not only see where your cash is going, but see where you could spend less, and manage your money better. It will also be a useful tool when you try to create a budget, you will be able to say, "I spend this much a week on groceries, gas, fun, etc" and base your budget breakdown off of your current tendencies.
