After a pricey holiday season, I felt the need to buckle down in 2017. So I decided to limit my spending to $60 a week for eight weeks, starting January 1. The $60 covers everything except fixed costs, meaning I'm having to commute, socialize, eat, and exercise on a tight budget … all while living in one of the most expensive cities in the world: New York. I'm over halfway done with my challenge, and while it hasn't been easy or a lot of fun, I haven't wavered yet, thanks to one simple strategy: I'm going cash-only. Trading in my plastic for paper has been incredibly effective, for a couple of reasons:

It adds another barrier between me and spending money It's easy to mindlessly swipe a credit card and forget you even bought something. Try handing over physical bills and watching your money disappear right in front of your eyes. Chances are, you'll start to think longer and harder before making purchases. On the cash diet, I've become a much more conscious spender, buying more of what I need and less of what I want in the moment. It helps to have a specific savings goal. My last week on the cash diet happens to align with a pre-planned trip to New Orleans for Mardi Gras. While the trip's big costs are out of the way — I bought my flight in October and I'll be staying with a friend — stretching $60 over the four days I'm there could be tricky. That's why I set up a "Mardi Gras fund." Every time I'm about to purchase something, I envision what that money could buy me in New Orleans. Those $5 lattes and $2 Vitamin Waters are much less tempting when I think about all the beignets that money could buy over the course of my trip.

I'm more in tune with exactly how much I'm spending In general, I'm pretty good with knowing about how much money I'm spending, as I keep track of my daily purchases in an Excel spreadsheet. But on the cash diet, I always know exactly how much I have remaining in my budget — I simply open my wallet and count my bills. It's also eye-opening to see how quickly my cash can disappear with what I always imagined were small, insignificant purchases. A few short cab rides and I've blown half my budget.