gave up my credit card for a month — and learned a lot about my spending habits

Without her plastic in hand, one woman was forced to face the cold, hard reality of her spending habits.

The way some people can’t resist trying the latest workout crazetrendy fashions or exotic superfoods, I can’t find enough ways to challenge myself to be better at budgeting and trying new methods to save more money for the future.

I tried a spending ban last fall, and, like any crash dieter, quickly fell back into my old spending habits. When I came into 2018 with a fresh outlook on my finances and a credit card bill that put me in denial, it was time to take another, hopefully more permanent, stab at overhauling my spending. I tried to change things directly at the source of the problem and took up a “cash diet” — meaning no credit cards, electronic payments, Uber, Venmo, Starbucks apps, you name it — for a month.

Sounded easy enough at first, right? Just stop using my credit cards? After a conversation with NBC News financial editor Jean Chatzky, I wasn’t so sure.

“You get the psychology behind credit cards, and the reason they’re so easy […] the money goes so fast because it seems less real,” Chatzky says of electronic payments.

“The reason this is such a good exercise is because you have no idea how the money is flowing,” Chatzky says, after prompting several spending categories I hadn’t thought of on my own (including iTunes storage, recurring Amazon purchases, and movie ticketing apps, to name a few). I had no real idea of how pervasive electronic payment was in my financial life, and how little I knew about my own spending, despite monitoring it regularly.

Chatzky recommended going cold turkey, sticking fast to the no credit card rule, and staying on task for an entire month to get in a full billing cycle. I was allowed to keep using my credit cards for recurring bill payments, and I could write checks, but any daily expenses had to be made in cash.

My personal goals were to see if I could actually stay within my budget, and really learn where my money was going. If there’s anything I learned from talking with Jean, it’s that I think I know a lot more than I actually do.

Armed with these parameters and a visit to the ATM, I was as ready as I’d ever been to go credit card-free.


The night before my “diet”, I wrote out my budget for the week, breaking down my spending into the categories I’d really be using (more or less: groceries and everything else), and planning out my spending based on my social calendar and everyday needs. Since I wouldn’t be using leftover gift cards through coffee apps, I’d have to budget for coffee as a semi-new expense and build in a little cushion, just to play it safe. To help keep things organized, I implemented a very high-tech system — using envelopes to keep cash in different budgets.

I also knew my roommates and I would be heading to Costco later in the month — I plucked $20 straight from my “everything else” envelope and into a “Costco” labeled one to try and build myself a buffer — it’s never an inexpensive trip for me.

My first week without plastic was not without road bumps. I was in for a rude awakening at the grocery store. I usually consider myself pretty on top of my grocery spending — but only because I stay under my “budget” at three different stores, and regrettably, that math doesn’t always add up. I walked into Trader Joe’s, cash in hand, and I could feel my anxiety kick in. Could I upgrade to Cara Cara instead of navel oranges? Was it a better deal to buy a bar of chocolate or a bag of peanut butter cups? Was that kombucha really going to enrich my life experience, or should I spend the $3.50 elsewhere?

Between the two grocery stores where I usually shop, the greenmarket stand on the corner, and a midweek banana restock, I came 54 cents in under budget on groceries, but that was a little too close for comfort. I added “staying comfortably within my grocery budget” to my list of goals.

Additionally, I’d just started drinking after a month-long hiatus, and an unexpected social event on a weeknight had me caving in to a drink — inadvertently, at a spot that didn’t take cash. The waitress (bless her) fronted the money on her own credit card, I gave her the cash, and had my first unplanned deficit in the “other” budget.

I quickly realized the challenge of not being able to use money I don’t already have, and how that can impact my social life. I have a habit of thinking of my social spending and my essential-but-not-planned-for spending as different parts of my budget, but they definitely are not. If my weekly budget is $100 one week, it seems like I can definitely get a new bottle of nail polish, order an extra drink at happy hour and take a cab home, right? Except that I also have two doctors appointments that will have $10 copays, and need more toothpaste, and completely forgot my grandma’s birthday and I have to get her a card, and some more stamps, and since I’m in the drugstore anyway I’m also out of ibuprofen… That one budget can shrink a lot, regardless of how it works in my brain. I wanted to challenge myself to overcome this mental separation without making myself crazy or feel like I was missing out on a lot of fun. I’d be choosing “stuff” and activities more wisely, not neglecting experiences I really wanted.