Yahoo Finance recently reported that paying with cash helps you save and gives you more joy. Avni Sha, a professor at the University of Toronto Scarborough, studied the effect of paying with cash and says it does indeed make us more frugal and adds positive emotion to transactions. Further, it potentially promotes repeat business.
Ethan Wolff-Mann at finance.yahoo.com reported that shopping with cash is one way to stick to your budget and limit impulse spending tendencies.
Cash forces you to consciously think about what you are buying. Rather than blindly using your credit card and deferring payment, cash forces you to make that decision at checkout. It enables you to say “No” when your children ask or beg for things that they do not need. Each dollar you physically spend leaves less in your wallet. And, that causes a pain that we need to occasionally experience.
For a minimum of two weeks, monitor what you spend and record all transactions. Does that mean you will be miserable for two weeks? NO! It may be a challenge, but go in with a positive mindset, with the desire to reset and track your habits. You may find some holes than need to be plugged.
Pick one day a week where you spend no cash whatsoever. How is that possible? Avoid stores! Pack your lunch. Bring your thermos of coffee. Stay home and avoid being in situations that tempt you to spend.
Host a potluck so you don’t have to provide the entire meal.
It’s a great way to have fellowship for much less than what a meal out might cost.-
Have a produce party where everyone brings something to eat that they have grown (or perhaps bought from a local farmer).
If you do eat out, use coupons. Choosing to meet friends for breakfast or lunch is typically less expensive.
