Cash vs. Credit: Taking a New Look
While one popular study says that you spend less when you use cash instead of credit, I’ve always experienced the reverse myself.
Cash goes through my hands like water, and I end up with little to no idea of what I bought. But with credit, I can tell you to the penny where my money went. Using credit is also painful to me four times: when I spend the money, when I enter the expenditure in my spreadsheet, when I enter it in Quicken, and when I pay the bill at the end of the month.
(Debit is pretty much on the middle for me. I experience most of the credit benefits, but I then tend to mess up my accounts since I don’t make many debit card purchases.)
Recently though, my non-bill, non-business expenses have gotten a little out of hand. You know, the things that pop up on the spur of the moment like going out to eat or going to the movies.
So I got to thinking…what if I were to only use cash for those particular kinds of expenses, and I were to only get out enough money to pay for what I wanted to do. (No twenties from the ATM for me.)
In that case, I’d have to both plan ahead and really want to go out, because I hate going to the bank with a passion.
The only thing is, I hate going to the bank so much that I’m not sure I really want to give the idea a try. Maybe that means it’d be successful, though.
Have you ever tried something like that? What was your experience like?