Description: | Personal Finance
Basics: Managing Cash OutflowsEdit
It is very easy to spend cash. Cash is anonymous, leaves little in the way of records in your personal finances, and is generally used for small purchases. This ease is what makes managing cash so crucial.
Small expenditures add up. Every time you buy a coffee, a doughnut, a DVD, a book, anything, it is very tempting to write it off as being "only 1 dollar" or "only 20 bucks, but I don't do this very often". If you were to only buy one coffee ever, then, yes, that 1 dollar would be a small drop in the ocean of your finances. But the fact is that "just 1 dollar" spent every day quickly becomes more than 200 dollars in a year, and if you are spending "just 1 dollar" on a coffee, a bagel, the subway (both ways) and the newspaper each day, then you are easily spending 1000 dollars a year on those items that "only" cost 1 dollar.
Obviously, no one wants to give up all the pleasures of life just to save a couple bucks. You can |