For those of you who use credit cards wisely for such things as credit card points and rewards, you are likely still spending more money than you would if you went strictly cash. I use my American Express cards to generate rewards points, but I have noticed that I spend a good deal more money on day-to-day items using plastic versus using cash.
Why is this? I believe that having the small plastic card handy makes it too easy to spend money. It doesn’t feel like real money. Therefore, we run the card over and over on things. When using a strict cash system, we actually see the cash outflow every time we spend money.
If you use a credit card for most of your purchases, I encourage you to try this experiment and stop using it. Go strictly cash and see if you spend less money. Don’t you think it’s worth a shot? Your savings account will thank you!
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