Thursday, September 11, 2008

If money is tight, get rid of your credit cards

This is interesting - How you spend affects how much you spend: Non-cash purchases found to be higher than cash buys:

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There is fresh evidence that people spend less when paying cash than using credit, cash-equivalent scrip or gift certificates. They also spend less when they have to estimate expenses in detail. These findings appear in the September issue of the Journal of Experimental Psychology: Applied, published by the American Psychological Association.
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Technorati tags: cash, credit

2 comments:

Lance said...

Good article. I think using cash is also a great way to minimize the potential for identity theft.

Crimson Wife said...

I find that the cash I carry has a tendency to get blown on little luxuries like lattes. It's like I've already mentally written off the money as spent because it's out of my bank account. Individually, the purchases are small but they add up quickly. The act of pulling out my debit or credit card makes me think twice about whether or not I actually want to make the purchase. So I keep a lid on my spending by carrying only a small amount of cash.