cash only

Cambodia is a cash based society - what that means to me is the only way to pay for things is by cash. At the local grocery or market, don't bother asking for a debit machine - cash only. Shopping at the motorbike shop, there is no financing - cash only. Eating at a restaurant, even with large groups - cash only.

There are a number of financial advisors in the States that recommend Americans go back to using cash to pay for things. I totally understand why they say that now. When using cash, you question whether or not to pay for something even if you have the money. Why? Because using your cash results in an unscheduled trip to the ATM, which is an investment of time that may or may not be worthwhile. I find myself weighing the cost of purchases more. Also, I find I comply more closely with my set budget. I may have a few hundred dollars in cash, but I know I have to pay rent and groceries from that money and I physically set that money aside for those bills. What's left is what's left. No room for impulse buys. The money I planned to save for that month stays safely in the bank. I also then have a clearer idea of how much I spend on what, it took more effort to track my debit card expenses because I wasn't paying as much attention to what I spent. I am not one to use credit cards for everyday expenses, nor have I accumulated any debt in my adult life (with the exception of home ownership). I didn't have a spending problem, but I do find spending cash a more cognizant way to handle my budget.

Don't think that just because I am forced to pay in cash that we aren't eating out from time-to-time, or that I don't indulge in some of the perks on living in Asia (tailored clothes, handmade shoes, and relaxing massages on every block). I do participate in these things, but it doesn't break the bank. I either have the money, or I don't. When we move back to the States I would like to continue this cash only trend, it really is good budgeting practice.