The Challenge of Digital Currency

We live in a digital age.  Numbers are constantly changing in our accounts.  Up, down.  Fifty-three cents credit, ten dollars out, a thousand dollars gone in the blink of an eye.

Think back to when you were younger.  Remember that collection of coins you used to have in your piggy bank?  How did you spend your money?  What kind of considerations did you have to go through to manage your money?  Were you a saver or did you blow your money straight away?  Either way, those coins and notes meant a lot to you and you knew they were in a finite supply.

It is so incredibly easy to simply tap your card, swipe it in a machine, or use your phones or computers to move large sums of money around in an instant.  The problem with this is that we become disassociated with the value of money.  Think about buying a $1200 laptop.  Which is easier- handing over a card or handing over cash?

Here’s 3 money saving tips that will make your dollars go further!

#1  Pay in cash.

Yes, I realise that cards allow you to get points, interest free terms for 30 days, maybe special shopping credits.  Don’t be deluded into thinking that these are a gratuity.  Banks know you spend more when you use your card and the massive interest rates on credit cards outweigh any benefits.

#2  Put aside an allocated weekly amount at the start of each week.

Having the weekly budget in cash ensures that you don’t put on hold your savings goals.  Put it in a safe place away from kleptomaniacs.

#3  Keep an weekly ledger.

A weekly ledger is a recording of all the ins and outs of your financial transactions.  Write down each and everything you spend.  Some might be big items like vehicle registrations, insurance items etcetera that should be factored into your annual budget.  The weekly spends like a $5 coffee, take away pizza, groceries and so on should be recorded on your ledger.  If you do need to pay for a bill or move money online, make sure you record it on your ledger and take the money out of your weekly cash.

Remember- the reason you are saving money is for the purposes of investing in your financial future.  A dollar invested can have a massive compounding effect.

Posted on June 22, 2015 in Budgeting Mindset, Smart Money Blogs

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About the Author

I LOVE budgeting! Why you ask? Having a clearly defined budget enables my family of six to live an empowered life. I work as part time teacher, I’m an investor, novice longboarder, man of faith and run Budget Brilliance with a view towards seeing people’s lives changed financially.

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