Cash is King {Day 14 of 21 Days of Hope + Help for Your Money}

This is Day 14 of 21 Days of Hope + Help for Your Money, a series providing you encouragement and tips to start the year off on a note of hope. Catch up on previous posts here. For future posts, come back daily or subscribe to have them emailed directly to you.

“Dogs have no money. Isn’t that amazing? They’re broke their entire lives. But they get through. You know why dogs have no money? No Pockets.” — Jerry Seinfeld

Have you ever gone to the grocery store determined to spend under a certain amount — let’s say $100 as an example — but you end up spending more? Quite a bit more?

What would happen if you went into the store with exactly $100? How much would you spend then? Not a penny over $100. And would you shop any differently to make sure you stayed within your limit? Absolutely.

One of the best ways to rein in your spending is to use cash. I know, I know…hardly anyone uses cash anymore. It’s just so much more convenient to swipe, tap, or wave. You know what else is convenient with those payment methods? Overspending, mindless spending, and impulsive spending.

Studies have shown that when you use cash, you spend less because you “feel” the pain of the purchase. You recognize that you are parting ways with your money, whereas when you swipe a card or pay with your phone, the purchase doesn’t feel real. The sense that you spent money is dulled. This is true even when the money is coming from your bank account.

While non-cash payment methods do have their place, using cash for those categories in which you typically overspend (groceries, entertainment, dining out, etc.) will help keep your spending in check.

Action Step

Use Cash Today

Pull out some of that green stuff and use it. Instead of swiping your cards today, use cash. Swing by an ATM if you have to. See if you spend any differently today.