Cash instead of cards

Paying in shops and cafes, use cash instead of credit or debit card.


BANK CARDS are much easier to use in many situations. You can make purchases without coming out; if the card suddenly is stolen, it can be blocked and restored. In addition, the cards are beautiful, they can be made with an individual design. But experience shows that paying with cards, we spend more money than with cash.

WHEN WE DON’T SEE MONEY, it’s much easier to give them, and to keep them is more difficult. To find out how much we have cash, it’s enough to open the wallet, with the card we have to check SMS-notifications or Internet banking. The physical presence of the money in your wallet makes the process of their disappearance much more visible. It works in the case of small daily purchases.

FIRSTLY, not seeing the outflow of money physically, it’s very simple to spend 30-50 dollars on unnecessary things, or things that can be bought at a lower price. In such a situation, look after the pennies and the pounds will look after themselves. This is the problem of the most spenders – not large purchases, but small and unnecessary ones.

SECONDLY, don’t take more money than you may need during the day: you woun’t be seduced to run to a shop after work – you just woun’t have money on it. Or you’ll have to go to the nearest ATM – and on the way to think again, if you really need wat you’re going to buy.

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writer, finance expert

“Just based on research. There are several studies that have been done that show when people spend with cash that they emotionally register the pain, and they spend considerably less. It depends on the item and their spending patterns as to how much they spend less. Twelve to 18% is the average. A McDonald’s focus group, as an example, when they decided to take credit cards years ago, they did focus group studies on card users versus cash users. At that time, the difference was 42%. A person using cash purchased 42% less in a fast-food impulse setting than with a credit card. In a vending machine, it’s 178% more that you spend with plastic. That’s a percentage, and it’s a small amount because it’s a Coke and a candy bar, right? It’s not a lot of money. On other things that are more expensive, the percentage drops down, but generally, people spend more. The pain centers of the brain are activated based on MRI studies when you use cash. They are not activated when you use plastic. You feel pain when you spend with cash, so you have a tendency to spend less. That’s pretty scientific. That was published in Carnegie Mellon magazine, study by MIT.”