Comments on: Cash Only Spending Experiment Analysis

By: The First Creditor

The First Creditor — Thu, 21 Aug 2008 03:05:03 +0000

As counterintuitive as it may seem, I feel I spend more when I have cash! I know that credit is too easy, and that often leads to more consumption, but I feel my habits are such that I am inclined to spend less with plastic. With a card, I have to worry about the debit coming out of my checking account, or seeing the expense again on a credit card bill. But with cash, wonderful, beautiful cash, I feel like I am under the radar and can spend without leaving a paper trail. Simple conveniences of cash such as not having to wait to sign at a restaurant, makes me spend more, or at least inhibits me less.

By: The Happy Rock

The Happy Rock — Fri, 18 Jul 2008 02:06:44 +0000

@Elena – I don’t have a second attempt planned, but I will let you know if I do get a second attempt going. Start small if you want. In the mean time, I would just start. Set a cash amount for lunches for the week and use only that for the week. If you run out, then find a new way to eat! Set small experiments that you know you can win, so that you can change your behavior.

By: Elena

Elena — Fri, 18 Jul 2008 00:38:06 +0000

yea, I’m trying to cut the plastic habit and go cash and I would love to buddy up with you on this. I know I overspend on stuff like eating out at work and coffees because the debit card is so convenient. I definitely underestimate this kind of spending. Occasionally I get disciplined enough to take the debit card out after I use it for basics like gas & groceries and spending on the nonessential stuff goes way down. My debit card is like a security blanket though, I feel naked without it.

By: The Happy Rock

The Happy Rock — Tue, 12 Feb 2008 14:25:25 +0000

@Livingalmostlarge – Sounds like those are some skewed results, maybe it would be worth trying and not being so afraid to spend cash. I know it was bad for me, but it sounds like your experience was worse. Let us know if there is an update.

By: Livingalmostlarge

Livingalmostlarge — Sun, 03 Feb 2008 07:24:03 +0000

Well truth is we spent 70-80% less using cash. I became the worse cheapskate. We only went cash for groceries and eating out, pretty much the only categories we spend on anyway. And??? Less than 1/3 spending, we rarely ate out (because I’m on a diet) and our groceries I forced us to eat from the pantry. It is just deferring costs because we’ll have to replenish the pantry.

By: ExperienceNewThings

ExperienceNewThings — Wed, 30 Jan 2008 17:55:35 +0000

WHAT?
You did all the work then quit right near the end. There has to be some other explanation. All you have to do is add up all your receipts and compare that to what you normally spend a month.

What was so hard about using cash to pay for things? Did a debit card count cause that sounds like it would be just as easy as credit. I rarely use my credit or debit card.

By: The Happy Rock

The Happy Rock — Sat, 19 Jan 2008 06:55:49 +0000

From what I have read plastic is still plastic. Swiping a card seems to increase consumption, although using debit will get you into a lot less trouble. Also I have the ING Electric Orange Checking account, so I don’t have a paper checkbook anymore.

Thanks for the comment, Sue. Good luck with the cash spending!

By: Will

Will — Thu, 17 Jan 2008 18:06:59 +0000

Cash spending does help you to feel like you are actually spending your hard earned money, however if you limit yourself solely it could actually cost you more. If you are a savy consumer buy online deals the amount you can save some items is huge. Online you are very limited in your payment methods and even if you don’t use a credit card you will have to use another “atm” type option that still will not feel like cash.

I would also argue that resposible credit card spending can have many more benefits than cash. I look at it as a “free loan” for a month, as I have never carried a balance. Throw in credit card rewards and you actually get paid to use someone elses money. In many cases the rewards may not be worth it for some people but I recieved well over $1000 last year in free gift cards.

Granted if you are solely looking to get out of debt and have a tendency to not have a high level of self control with your credit limits, I would never suggest getting another card. Just my 2 cents!

By: The Happy Rock’s “Cash Only Spending Experiment” Analysis—AllFinancialMatters

Wed, 16 Jan 2008 18:38:40 +0000

[...] was just over reading The Happy Rock’s analysis of his cash only spending experiment that he started back in July. He and his wife (or girlfriend, I’m not sure which) went the [...]

By: Sue

Sue — Tue, 15 Jan 2008 18:23:31 +0000

We tried cash only also. We got Commerce debit cards. Unfortunately they did not work well at the gas stations. Cash only can help get a handle on credit card spending. I would like to go back to cash only if possible. Rather than only cash you could use checks also.