UAE: Some expats are adopting cash-only spending
Sheikha M was constantly losing track of her finances, even with the various budgeting methods she tried, from apps that track spending to the widely-discussed 50/30/20 budgeting method.
Frustrated, she hopped on the cash-only spending trend trending on social media. This is how it goes: Participants in the trend are cashing in all or most of their paychecks to take a little more power over their finances by controlling when and how they spend it.
Sheikha started by taking out her entire paycheck and putting them into envelopes — each envelope labeled for a necessary category: groceries, utilities, entertainment and savings. She said: "It was very strange at first because I hadn't used cash for a while.
But then she realised that greater proportion of her salary being handed over to her in cash, made her appreciate the value of every note. "It's not the same as having necessarily on my cards or having it a digital fashion on my phone," she said.
According to Sheikha, she initially found it hard to use this new way. There were times when something would happen in the middle of the day, and what I was carrying was not adequate," she said. Furthermore, she was amazed to discover that certain establishments solely accepted card payments, proving to be difficult since she was working — cash only.
Sheikha, however, managed to find a positive angle in all of this. By the end of the month, however, she found her envelopes still had money in them, a far cry from her old tendency to run out of funds before hitting the middle of the month. That competence in monitoring expenses gave her a sense of achievement. “I felt the difference,” she said.
Amir khattab is another expat testing the trend with. When a software engineer reluctantly converted his paycheck into cash, he discovered how the benefits of cash helped him limit impulse buys. Amir said, When I have cash in my hands I will think twice before I spend.
If Sheikha got into trouble because of unforeseen expenses and online shopping, so did he. However, in general, he found cash to be his best ally in reigning in the finances. Sara L., an elementary school teacher and mother of two, took a different route toward managing her family finances — using the cash system and encouraging her children to help.
In a household filled with demands and activities, she learned that teaching the kids about money management as early as possible would only help them in the long run. So, she set aside cash for family activities, groceries, and other basic needs; It was a physical way to demonstrate how a budget functions to her kids.
Sara elaborated: “We get together once a month to look ahead and budget. The collaborative approach helps her to keep her costs under check and encourages healthy conversations around financial priorities. “It has been a great lesson for them,” she added, saying her children are now more cognizant about money than ever before.
Experts took note that touching cash creates a link between currency and the brain making you more intentional when it comes to spending, Financial adviser Dr Anya Patel, said: 'Cashing out salaries may be the way to go for those most vulnerable to overspending. But she also warned not to reject digital payments entirely, because they can be convenient and secure.
The key part, according to Dr Patel, is to strike a balance. Goldstein also encouraged people to think hybrid: cash for discretionary spending, but digital for stuff that needs to get paid or for emergencies. This allows them to make the most out of both worlds, improving their financial literacy without making sacrifices in the comfort associated with purchasing digitally.
Comments