During the holidays [and Easter is approaching fast] people tend to overspend buying that last gift or two they suddenly think of whilst shopping. I've been reading it somewhere that arming yourself with cash and a list of what you need to shop can help you avoid this, since with a credit card you can always make accommodations for that extra 'little' purchase. Sounds to me like a good way to save a little. What do you guys think? Does it help to shop only in cash?
Sure thing, paying in cash is a great money saver! I just recently started using my card for payments when shopping (used only cash before) and all my friends tell me to be careful and always check my credit. I'm guessing that you tend to pay extra since you don't physically see how much of the money you spent. With cash you can always check how much you have left or want to spend so you tend to buy less.
I can definitely see how paying in cash can save money because you are only using actual money that you have available, so you're not going into debt or racking up interest charges. Plus if you have a little left over, you can deposit it into a savings account for your long term good. When I have a credit card, I tend to add on impulse purchases that I wouldn't if I was working with a limited amount of cash, so it's a good idea to bring a set amount of money when shopping.
It works for some people, sure. It doesn't really for me, though, because I rarely have cash on me. And when I do carry cash, I carry more than what I would need anyway, because I rarely pull it out of the bank. It wouldn't limit me any.
This idea may help some people but not myself. I very rarely ever have any cash on me and even if I did and didn't have enough, is resort to one of my debit and/or credit cards. To me, saving money is when you can't access money in which I opened an online savings account for.
I do not see any difference. Money is money. There is no difference between using a credit card, or cash. if people cannot control there impulse to buy something then they are going to be in trouble regardless. Carrying cash is not going to help with that at all. They will just go to the ATM, and get more cash.
I tend to be pretty cheap to begin with, so I don't know if it makes that much a difference for me. I definitely can see how someone could be a lot more "out of sight, out of mind," with a debit or credit card, though. At least paying in cash forces you see something physically leaving from your wallet. I think if you are a budget conscious person in general, though, you won't have this problem. Paying more often with cash might be a good saving strategy for over-spenders, though.
Yes, paying with a limited cash and leaving your card at home will help you save a little. By doing it, you feel like you are limited so you are obliged to budget your money as you do not want to mess up your shopping and end up horrible, buying unnecessary things and leaving the ones that are important. You also tend to have a better command of yourself.
Paying in cash is a must when trying to save money these days. The only key is to not take an over abundance of cash with you on your shopping trip. Mostly, when I know that I am not going to be buying a lot, I make sure to take only $20 with me. If I go with $100 cash, I will always find something else that I need and will end up spending more than I initially wanted to. Some times I'll even stop for lunch, just because I know I have the funds to do so and I am out anyway. If I don't have the money on me, it is nearly impossible to do that.
I try to only carry small amounts of cash. But once that cash runs out, I find myself making more trips to the ATM to check out more money. Or using my bank card when it's not convenient to make a trip to the ATM. So yeah, only carrying cash is a good idea in theory. But if you're a spendthrift, you're going to find a way to plow through the money regardless. Best to make a plan and stick with it, regardless if you pay in cash or charge.
When either me or my husband is going to do our weekly shopping then we will bring the exact amount of cash needed and the list of items we needed. We avoid bringing the card with us means we only have the cash as a source of payment. It may not help some people but it is a big help for us. There were times that we carried the card together with some cash and we always get in trouble by using the card to pay the extra bill.
I think that it does help if you shop only in cash, because when you run out of cash and you don't have a credit card or debit card, then you have to stop buying things. As simple as that, so you won't get into debt because you used your credit card to buy something that's out of your budget. After all, aside from what the item originally costs, you have to pay interest too whenever you use a credit card, so that's added expense as well.
Depends on the person. Some people are perfectly fine limiting their spending even when armed with their credit card. However, if you tend to be an over spender, working with cash (and leaving those cards at home) provides a good hard cap for your spending. It also helps you psychologically reconcile with yourself exactly what your budget is.
