Budgeting in a Cashless Society
Recently, I passed Century Center and saw their screen advertising, “We are now cashless.” It was shocking and actually quite alarming. Most people have been operating cashless for years, using debit or credit cards, but refusing cash, which used to be said was “king,” is a very sad development.
There are some positives of a cashless society. One is that you are not as concerned about being robbed. Even if a credit card is stolen, once it is reported, the company renders the card worthless, and any charges the thief may have made are canceled. Deposits from work can be made automatically into your bank account—no more trips to the bank or having to worry about insufficient funds.
However, there are downsides to not using cash, which can affect our ability to budget well.
Cash, even though it has no intrinsic value, is something that we can hold and see. Cash makes money “real,” while credit makes it “theoretical.” Cash is countable and can help you think hard about your real needs vs. momentary desires when holding it in your hand. One is not as careful with plastic as cash, as the cards do not make you “feel” the dollars slipping out of your hands, although that is exactly what is happening. When you pay with a card, you don’t skip a purchase because you don’t want to “break” the $20 bill. You don’t refrain from using a credit card because you don’t have the funds to pay. Sometimes, you don’t even look at the cost of the item. You tend to charge the purchase and deal with the price later.
This makes it hard to keep to or even create a budget. Budgeting is a mindful process. One needs to know what income is being generated, how much one wants to save/invest, use for paying bills, set aside for charity, entertainment, emergency fund, etc. A budget demonstrates in broad terms where one’s money is going. While a budget can be malleable, it should not be a guessing game. One must think about what one’s goal is, which bills take priority, etc. While this can work in a cashless society, it seems much harder for people to manage, as they don’t consider interest charges or fees nor feel the “cost” of their purchases.
A budget can be used as a snapshot of your financial life. It shows if your present lifestyle is maintainable. For example, if one brings in $100 and spends $101, one is not even living paycheck to paycheck; rather, one is living in debt and on the road to bankruptcy. One must make a choice: reduce expenditures or increase income. Without that reality check, one doesn’t really know one’s financial “health.”
“Mental health” budgeting is as important as monetary health and budgeting. Considering hours in our days as our limited temporal capital to spend, it’s important to consider what we need to maintain our well-being. How many hours should be set aside for work, exercise, free time, spiritual life, family life, “me-time,” etc.?
People often procrastinate, which results in a feeling of wasted time. However, if we actively budget our time, like our finances, I think people will be happier knowing that everything is used in the best way possible.
If you would like help creating your own financial or health budget, let’s set up a time. I am looking forward to working with you.
Baruch Hashem, we have reached (and exceeded) our goal for the Passover fundraiser. I want to thank everyone again for answering our call and responding in such a timely and generous manner. As I wrote in my last article, like the children who answered the call for donations for building the Mishkan, our community has shown that same eagerness. It has fulfilled the dictum of z’rizim makdimon b’mitzvot - eager people are careful to fulfill the mitzvah right away.” May we continue to go from success to success!
Rabbi Fred Nebel
Jewish Family Services Director
574-233-1164 x1806
RabbiNebel@TheJewishFed.org