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Does Your Savings Need a Boost? Try the All-Cash Diet


Budgets are a great tool if you stick to them, but the temptation to spend money can be difficult to resist. If your finances have you stressed or you find yourself coming up short each month on your savings goals, an all-cash diet may be something you want to consider.

The name is a little misleading because switching to an all-cash diet doesn’t mean you have to cut up all of your credit cards and start paying for everything with cash. It is simply a tool that can help you stick to your budget.

How to Set Up an All-Cash Diet

Once you have created a budget and have calculated how much is left over after all bills are paid — and you have contributed to your savings account — you will have an amount available for entertainment and personal expenses. That amount becomes your all-cash diet.

Withdraw your all-cash diet amount at the beginning of each month, and use this cash to buy items not included in your regular budget. Once you are out of cash for the month, you will have to wait for the next month before you can spend anymore. Depending on your all-cash diet amount, you may want to withdraw weekly amounts so you’re not always carrying around large amounts of cash.

Track Your Spending

An all-cash diet can also help you track your spending. Keep notes of what you’re spending cash on each week to help evaluate whether there are any changes you can make to your spending habits that will allow you to put more in savings.

Keep Your Credit Cards

Switching to an all-cash diet does not mean you should get rid of your credit cards. You never know what expenses might come up that will be outside your budget. It’s best to keep at least one credit card open for emergencies.

When you’re trying to get your finances on track, Malvern Bank recommends using every tool in your arsenal, an all-cash diet may not solve your saving problems entirely, but it could give you more information on changes you can make that can have a lasting impact.

More Information

To learn more ways to manage your finances, contact Malvern Bank at 712-624-8686 or

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