The allure of cashback on all of your purchases is very tempting, unless you can’t keep track of all of your purchase and find yourself strapped for cash on paydays. One of the easiest and most old fashioned ways to get your spending in check is to always pay in cash. Credit cards, like casino chips, abstract away money and so it makes spending so much easier. A $5 cup of coffee isn’t that expensive if it’s just a swipe of the plastic. The cost hits a little closer to home if you have to pull out Mr. Lincoln and see his smirking little face leave your hands.
Another benefit, beside the immediate pain, is that you probably only carry so much cash on you. You won’t be able to spend $200 in one shot unless you actively plan to spend the $200 beforehand and get the cash. This separates the decision to spend and the decision to withdraw money and that extra step may curb your spending just a little bit.
Lastly, this won’t be some magic anti-spending bullet. You can always withdraw hundreds of dollars and leave it in your wallet, but at least you’ll have to actively make that decision.
Tags: Saving Money
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[...] Daily Money Hack says pay in cash! [...]
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