Managing your finances can be difficult, but a few quality tips and tricks can go a long way. Each week we'll be featuring a new tip on anything from daily spending to retirement planning from a member of the Finance Collective. This week's tip comes from MoneyMiniBlog is about the benefits of using cash over card when it comes to making purchases:
Develop the habit to spend with cash than card
"To spend with cash is also an actionable way to get out of debt. According to the research on people's spending with credit cards, it was revealed that those who shop with credit card are impelled to spend more on luxury items because they feel they are paying with "play or fun money." In other words, people who shop with credit card spends more than required.
Evidently, finance advisors hold a strong stand on this. They strongly advise that people who are working on eliminating their debt should cultivate the habit of spending cash, to avoid being tempted to spend on irrelevant items.
Gail Cunningham also emphasized in one of his speeches that people who live on cash basis, practically saves up to 20% over their previous spending. This is because when you spend cash, it creates a certain level of awareness that makes you realized that whatever you are buying is being paid with you hard earned cash." -MoneyMiniBlog
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