According to Infinity Group Australia and Graeme Holm, the hardest part about a budget is not creating a budget but sticking to a budget. It is especially hard to stick with the budget with a credit card. Therefore, Infinity Group Australia suggests staying away from credit cards and using cash as a way to stick to the budget. Another interesting thing is that it can even be challenging to stick with the budget for people who are using cash. However, people still only spend what they have when they use cash. They also do not find themselves under a lot of pressure because of the huge amount of debt they’ve accumulated.
When figuring out a budget, Infinity Group Australia suggests taking out money that is designated to the budget for the week or the period. This can give people a better idea on what they can afford. When people see a certain item they like, they are more likely to put off the purchase until they can afford it. They may even look at the item and decide that it is ultimately not worth it. They make better choices about the money they spend. They also save more money as a result.
When people use cash for their purchases, they think more closely about the money they spend. Infinity Group notices that paying with cash opens the eyes of a lot of people who are used to just using credit. Credit makes it very easy for people to live beyond their means. As they spend borrowed money, they put themselves deeper into debt which also increases the amount of their bills. People who use cash have a lot less stress because they do not have to worry about any huge bills. They can also rest assured that every item they buy with cash is theirs without owing anyone.