Top 15 Reasons to Use Cash

Top 15 Reasons to Use Cash

If you have ever considered taking a serious look at your finances, and searched the internet for tips on how to spend your money effectively, I imagine you have heard the advice that cash is better than credit or debit cards.  If you've ever wondered if there is scientific proof or if this is just a theory please read the short excerpt below and even click on the link if you would like further information on the topic. 



According to the American Psychological Association:
"There is fresh evidence that people spend less when paying cash than using credit, cash-equivalent scrip or gift certificates. They also spend less when they have to estimate expenses in detail.
These findings appear in the September issue of the Journal of Experimental Psychology: Applied, published by the American Psychological Association.
The conclusion that cash discourages spending, and credit or gift cards encourage it, arises from four studies that examined two factors in purchasing behavior:  when consumers part with their money (cash versus credit) and the form of payment (cash, cash-like scrip, gift certificate or credit card). The results build on growing evidence that, as the authors wrote, “The more transparent the payment outflow, the greater the aversion to spending, or higher the ‘pain of paying.’” Cash is viewed as the most transparent form of payment."

As I have mentioned before, I was very resistant to using cash because I was able to stay within my budget using my debit card, but it really did improve the way I chose to spend my money when we decided to try the cash/envelope system method.  As with anything you try that is new, you must walk before you can run.  The first month you will forget to bring your cash with you or you will go over your cash budget.  I promise with a few months of practice you will be much like a marathon runner on their way to their first race.  You will get the hang of it as long as you work towards your goal.  To become successful in anything you must set goals and make a conscious effort to achieve those goals. People will think you are crazy or tell you that you can't do it.  Don't listen!! Use their discouragement as fuel to succeed and prove them wrong.  If you don't follow what everyone else is doing you will feel the liberation of making your own choices, and the freedom of no remorse when looking at your bank account at the end of the month.

Good luck I wish you nothing but the best.  Please feel free to ask any questions you may have.  I have made many many mistakes along the way, but that is how you learn!