Next time you make a purchase, pull out a few greenbacks instead of plastic. The experts say the benefits are many.
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.
Chuck Bentley, CEO of Crown, a Christian financial ministry, says using 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 don’t need. Each dollar you physically spend leaves fewer in your wallet and that causes a pain that we need to occasionally experience.
He suggests that for at least two weeks, monitor what you spend and record all transactions. It may be a challenge, but go in with a positive mindset and the desire to reset and track your habits. You may find some holes that need to be plugged.
Pick one day a week where you spend no cash whatsoever. That means you’ll need to avoid stores! Pack your lunch. Bring your thermos of coffee. Stay home and avoid being in situations that tempt you to spend.
He also suggests hosting potluck. It’s a great way to have fellowship for much less than what a meal out might cost.