Debt Advice: Why Use Cash Instead of Card

It’s a simple idea, but the impact could be extremely meaningful for you in your everyday life. If you think about it carefully, the psychology is simple too. You go into a store you pick out a few items then swipe a card. You think nothing of it until you get your credit card bill a few weeks later. Then you struggle to understand where this huge and intimidating figure came from. It happens to everyone from time to time. The action is so effortless and simple. You’re probably not buying huge TVs and wondering where the charges are coming from, but if you make small purchases here and there, they can quickly add up to a shocking lump sum.

How Does Paying with Cash Help you?

Now picture a new scenario, one that’s card free. You receive your paycheck and deposit it into your account. Now you take out a few hundred dollars, you’re probably starting to feel a little anxious, even though you haven’t spent anything yet.

Whenever you go to fast food places or buy luxury items you can physically see bill after bill disappearing. This has been psychologically proven to make you more conscious of your spending. The added bonus is that you don’t have to rely on your credit card for this process either. Pretty soon you start to see how much junk food really costs on a monthly basis.

After a while of using this method, you’ll start to see the amount that remains in your account at the end of each month gradually increase. It’s only natural to want to save what you’ve earned. Using credit card just makes the whole experience seem unreal or trivial. You simply lose sight of how much you’re spending because there is no physical evidence immediately in front of you.

As an added bonus, you can also use a few different methods for saving. Everyone’s heard of the coin jar method. You can’t really do anything with all your spare change that you accumulate, so you can just toss that in the coin jar and see what you have at the end of the month or even the year to make it more exciting. Another popular method people use with cash is to choose a certain bill and decide to save every bill of that amount. Let’s say you decide to save all five dollar bills. Every five dollar bill that you get in your transactions will go into your savings. You’d be surprised at the results.

Using cash is just a unique and simple alternative to using credit cards.

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