Some expats adopt cash-only spending to track expenses

Despite trying various budgeting strategies, including spending tracking apps and the popular 50/30/20 method, Sheikha M still found herself consistently losing track of her finances.

- Waad Barakat [e-mail]

Determined to make a change, she embraced the cash-only spending trend going around on social media. Here’s how it works: Individuals participating in the trend are cashing in all or a big part of their salaries to gain better control over their finances and understand their spending habits.

Sheikha started by withdrawing her entire salary and dividing it into different envelopes labeled for each essential category — groceries, utilities, entertainment and savings. “It was very weird at first as 1 hadn’t used cash in long time,” she said.

However, she quickly realised that seeing a significant portion of her salary in actual cash helped her see the value of each note. “It’s different from having it on my cards or digitally on my phone,” she said.