How To Rid Debt By Becoming a Cash Money Superstar

Recently I wrote The Ten Commandments of Working From Home where I proved my street credit based on 2 criteria:

  1. I used gangsta rap lyrics to convey my thoughts on working from home.
  2. I also live in East Austin (built in street cred)

Now that I’ve established my authority on all subjects urban, I’m going to show you how to become a Cash Money Superstar. I did a revolutionary thingcash-money.gif a few years back. Because of my entrepreneurial obsession I had accrued a lot of debt and was still not earning enough to stop the credit card cycle. I decided to take drastic measures.

I made the transformation from a typical American Consumer into a Cash Money Superstar. I actually switched everything I did to a cash transaction and to really get myself psyched about using cash only, I closed my checking account. Insane right? I cancelled my direct deposit and cut up all of my credit cards. I replaced them with one prepaid debit card, you know the ones you can get at the check cashing places. I basically left my quaint little credit union and joined the Ghetto Bank. I would take my paychecks into the Ghetto Bank, cash them and hand them a list of dollar amounts for money orders. These money orders were how I paid everything: utilities, credit cards, student loans, etc.

Something happens when you hold your earnings in your hand in the form of cash. There’s something about the cash that makes you realize how much it is worth. There is also a sense of control over the money that we all should feel, but usually don’t. When we hand a credit card to a person at a register they hand us back the card and nothing looks different. There is nothing in the transaction that signifies that you have less money in your account after the transaction. When you hand over a $20 bill and are handed back only a dollar and change you get a much clearer representation of what has happened (especially if that was the last $20 you had in your wallet).

So, if you are having trouble getting through the month without falling back on the credit cards, maybe you should consider taking some drastic measures. Maybe you don’t need to go as far as closing all your accounts (Full disclosure: I’ve since reopened mine) but you could trade your credit cards for one of those prepaid jobs. You also need to give yourself a weekly/monthly cash budget. Meaning that you go to the bank/ATM (or ghetto bank) and take out the ideal amount of money you want to budget for. Look at the cash, that’s it, that’s all the money you have to spend. If you blow it all in the first few days then you’re going to be in trouble.

Even if it isn’t the last of your money, pretend that it is. You will appreciate it much more. If it really isn’t enough money to get you through then maybe you should adjust the budget to make it work. Make it work for you and before you know it, you too will be a Cash Money Superstar.

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7 responses to “How To Rid Debt By Becoming a Cash Money Superstar

  1. “Something happens when you hold your earnings in your hand in the form of cash.”

    Amazing isn’t it?

    “There is nothing in the transaction that signifies that you have less money in your account after the transaction. When you hand over a $20 bill and are handed back only a dollar and change you get a much clearer representation of what has happened (especially if that was the last $20 you had in your wallet).”

    This is the same reason I don’t like the federal government doing tax withholding. That way people rarely realize how much they pay in taxes. If people had to sit down on tax day and write a check there would be a major revolution in the tax code.

  2. thetracksuitceo

    TotalTransformation: Excellent point, but if you’ve ever tried to forego the government withholding at your day job your HR dept. probably won’t even know what you’re talking about!

  3. Not a clue. That is why when you speak with independent contractors they have a very different view of the tax code than the average guy or gal who has someone else do the withholding.

    My wife and I decided recently to put the maximum exemptions on our W-4’s. We now put the funds in a money market so they make money for us until tax time when I write the check. That way were aren’t giving Uncle Sam an unpaid loan or paying way too early.

  4. rationalpsychic

    I’m interested in your site but am at work. So, I’m leaving a comment to remind myself to return when I have the time.

  5. thetracksuitceo

    RationalPsychic:
    Thanks for stopping by!

  6. I also think that we make as much money as we realy need – the great trick is to make sure we “need” enough, that we really feel that need

    we surround ourselves with the cushion of credit, and don’t feel

    when it’s down to cash, it’s a lot more, uh, primal in the gut let’s say – where the inner game comes from

    excellent reminder, thanks

  7. Pingback: Top Posts « WordPress.com

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