Broke No More

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AT ONE POINT IN MY CAREER, about 50% of my income was pure cash I made from baby-sitting and barista gigs to supplement my job working for a late-night talk show. I used what’s referred to as the ‘envelope method’ to handle my finances: I put cash in envelopes marked for rent, savings, my fun fund and ‘money for Anna’, my roommate. The plan was effective – but not the smartest. (I’m thankful my apartment was never robbed!) Now that I’m no longer baby-sitting or slinging lattes, I get paid via direct deposit, which means the cash stash no longer makes sense for me. Budgeting is a deeply personal process – and, yeah, it’s sometimes painful. But it’s the first step towards taking control of your present and future. Pick the plan that suits you best, and start grabbing life by the Benjamins!

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The Cash Diet

Paying strictly with cash money (no plastic!) most of the time is ideal for anyone who is routinely surprised by the length of their credit-card statement, the echo in their empty bank account or how often they get dinged with overdraft fees. Of course, there will be some exceptions to the rule – like buying a plane ticket – but beyond that, do your best to use paper notes exclusively. Even one month of cash dieting can give you a more reliable understanding of your main money leaks.

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