Where is the cash?
When your cash seems like it just disappears, it's time to take action
I imagine you can empathise with this kind of situation. You leave the house in the morning, stop at the cash machine to take out £20 and head out into the day. Later that evening you pop into the corner shop on the way home to pick up some bread, milk and, if you’re as classy as me, a frozen pizza for dinner. As you stand in the queue you fiddle in your pocket for some loose change only to discover you’ve only got about £1.50 there – you could’ve sworn you still had a fiver somewhere but it just doesn’t seem to be there.
It’s remarkable how that happens with such alarming frequency. When it does we find ourselves casting our minds back and trying to work out where the money must have gone during the day, often to find we don’t have a clue.
My accounts sprung a leak!
The reality is of course that our cash doesn’t leak out of some mysterious hole in our pocket rather it finds its way out during the day as we pick up a paper, buy lunch, buy a coke, jump on the bus, top-up the mobile, pop into the pub for a pint or two with friends, get tempted by a packet of salt and vinegar at the bar…I could go on.
It’s not just with the readies in our pockets that the ‘missing money’ phenomenon is apparent. At the end of the month, when we think our bank balance should be looking pretty healthy the arrival of the statement can show it to be looking rather bare. It’s so easy to pick things up using our debit cards, whether in shops or on the internet, that the result can leave us pinching the pennies to make sure there’s enough for the rent.
Plugging the hole
So what can we do to make sure we make best use of our money and stay in control of our cash? If your answer is ‘keep buying that lottery ticket and praying hard!’ or ‘apply for another credit card’ then may I suggest you revise your plans a little! The brutal fact of the matter is that we have to start paying a little more attention to our spending and not rely on blind luck and borrowing.
Here are two challenges to have a go at in getting a grip on your finances.
Live on cash and leave the card at home.
If your daily spending limit is £15 then take £15 with you and then that’s all you can spend! At the very least, leave the card in your wallet and use only in emergencies.
Keep a record of spending.
You can now do this on your mobile using a handy tool called the Moneybasics Spendometer, which can be downloaded free from www.moneybasics.co.uk, a quick and hassle free way to know exactly where the cash has gone!
Written by Chris Tapp.
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