Lending Club Blog

A Cure For Your Budgeting Woes: Try An All-Cash Diet

If you’ve tried many different budget methods and can’t seem to find one that works for you, you might want to try something drastic: going on an all-cash diet.

The idea of using cash is so old-fashioned that it might be just what you need to get yourself out of your financial funk. Using cash has its downsides: no interest on the money, having to go to the bank or ATM to get it out, and the liability of carrying a large sum around are a few that come to mind. For those downsides, there is one major upside: when you live on an all-cash diet, you can’t spend more than you have.

There are some aspects of our financial lives that require money in forms other than cash. A few examples include paying your mortgage, booking a hotel, or taking the proceeds from a person-to-person loan on Lending Club. Even these items can fit into your all-cash exercise. If you are taking your entire paycheck out in cash, then you will probably have to deposit some of it back into your account to cover checks that you write for your mortgage, etc. It may seem like a futile exercise to take money out, only to put it back in later, but this will give you a good sense of how much each of your expenses is really costing you. Seeing a huge portion of your paycheck getting deposited to cover your mortgage may lead you to rethink the type of house you’re living in. Using cash, if only for a short while, can really help you to see where you’re living beyond your means, and where you’re not.

There are many cash-based budgeting methods, but the most well known is the envelope method. Here’s an overview. The same reasons that it’s better to give a kid a piggy bank than a savings account apply here as well. Sometimes holding money in your hand can help you appreciate its value more and get you to make smarter spending decisions.

Once you get better at money management and tracking where your cash goes, you can slowly migrate back into the cashless society. Meanwhile, the lessons learned from your all-cash diet can easily be applied to your regular finances.

Wednesday, March 26th, 2008 at 6:20 am

Comments (2)

  1. Biggest value of cash is disrupting paper trails that lead to
    identity theft. With 10,000,000 cases of identity theft each year,
    in the U.S. alone, this is important.

    March 26th, 2008 at 11:33 pm

  2. […] All cash budgeting […]

    August 8th, 2009 at 11:51 pm


Types of Loans 101

Growing Your Business By Using Capital

9 Reasons to Open an IRA

6 Reasons to Get a Personal Loan

See more
Lending Club Awards
  • Archives z

Recent Posts

Patrick Dunne: A Message to Investors

I wanted to take a moment to introduce myself… Read More »
September 29, 2016

Line of Credit vs. Loan

Lines of credit (LOCs) and small business term loans… Read More »
September 28, 2016

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016

Meet Patrick Dunne — Lending Club’s Chief Capital Officer

Patrick Dunne, Chief Capital Officer,… Read More »
September 8, 2016

Growing Your Business By Using Capital

Smart small business owners don’t wait to consider borrowing… Read More »
August 19, 2016

9 Reasons to Open an IRA

Retirement: a word that often comes with many connotations.… Read More »
August 5, 2016

6 Reasons to Get a Personal Loan

While it would be great if we all had enough… Read More »
July 29, 2016

Lending Club and the Marketplace Model

Some of our investors have observed the funding environment… Read More »
July 28, 2016

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w