With the first long weekend of the summer upon us, I thought I would share a secret that will keep 17% more money in your wallet AND make it easier for you to keep looking slim and trim and keep that summer bikini beach body. Sound good?
This may sound too good to be true, but the secret is to put the debit and credit cards away and spend cash! Why? Psychological researchers have concluded that we are willing to spend 17% more when paying by credit card. We’re willing to pay $175 on food, while those using cash were only willing to spend $145 for the same party.
Not only are we willing to spend more using cards, but another study analyzed the food buying habits of a thousand households over 6 months. Those who paid by card had a larger proportion of impulsive and unhealthy items such as ice cream, candies cookies and potato chips. You know all the things we are told we shouldn’t be eating, to remain healthy. I am not trying to guilt anyone here for buying treats, but I know from personal experience that if we don’t have ice cream in the house, I make better eating choices.
Now let’s be reasonable, I am not suggesting that we totally get rid of our plastic. I am saying that we should use cash for those purchases where there is a risk of us emotionally overspending or making unhealthy choices. I still recommend using a credit or debit card when filling up my car with gas, but paying cash for groceries, clothing and entertainment can definitely help you make healthier choices and keep more money in your pocket.
In upcoming Financial Friday episodes, I will share more secrets on how to keep control of your money, or if you have any questions or concerns, you can reach out to me at 647-302-0151.