Cash, Cash and More Cash

Today I received an interesting note from The Vanguard Group. The article is titled: “Do you spend more when you use credit cards?” And of course, the answer is YES!

Here are just a few things that are cited in the article that I found very interesting:

Visa says that it reviewed 100,000 restaurant transactions to see if diners who paid with credit cards spent more than those who paid in cash.The result? People who used credit cards spent an average of 30% more than cash-payers at restaurants.

When we pay with a credit card, the amount we spend feels less to us than when we use cash, according to Greg Davies, a researcher at Warwick University in Coventry, UK.
When we pay with cash, Davies writes, we feel the loss from our wallet and link it directly to the purchase. But when we pay with plastic, we feel the immediate benefit of the purchase without
experiencing the regret of handing over cash

I’ve been preaching the value of Cash to my family and friends for a while. Megan and I have seen HUGE benefits from going to cash, and now there are major institutions validating this statement. I cannot stress enough the value of using Cash to control your spending.

Cash is king. It is emotional, it is real, tangible, and difficult to part with. The best part about cash is that when you get your spending under control, your whole life begins to move into control as well. Debt minimization and all of the benefits that come with it!