Is cash really king? Well, consider this: when you make purchases with cash, it actually registers as pain in your brain. That’s actually a good thing and we can use it in our favor to control our spending. When people use credit cards instead of cash, they typically spend 12 -18% more.
Cash can be a great way to impose some discipline on yourself, because you think twice before parting with those Benjamins! 😉
Nervous about carrying around a lot of cash? No worries! You don’t need to give up your checks or debit cards. I only use cash for those budget categories that have a tendency to get out of control: food, entertainment, clothing, etc.
Another option is to transfer your spending money to a prepaid credit card or a separate account with a debit card. This way you won’t “accidentally” spend money that was earmarked for another purpose. Try using cash for one or two categories and see if you don’t start saving money immediately!