# I decided to use cash now for all purchases to save more money **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [September 18, 2016, 1:50am UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229 "2016-09-18T01:50:05Z")\ **Posts on this page:** 20\ **Page:** 5
**Author:** ![jtur88](https://avatars.discourse-cdn.com/v4/letter/j/e9c0ed/32.png) [@jtur88](https://boards.straightdope.com/u/jtur88)\ **Post date:** [September 20, 2016, 11:23am UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/81 "2016-09-20T11:23:54Z")
> [@SpoilerVirgin](#): > > I. > > Hey, now my comment sounds stupid because you edited out your watch comment! OTOH, I have zero coffee makers since I don’t drink coffee. Sorry about that, Yes I did edit wristwatches to coffeemakers, when noticed that the post just above mine referenced impulsive coffeemaker purchases. I hope the readers will understand. ---
**Author:** ![Bill\_Door](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@Bill\_Door](https://boards.straightdope.com/u/Bill_Door)\ **Post date:** [September 20, 2016, 7:39pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/82 "2016-09-20T19:39:38Z")
> [@BlackKnight](#): > > It really doesn’t. I have a debit card, but I typically use it only for online purchases. Nearly all of my day-to-day purchases are done with cash. I don’t have any problem keeping track of my spending. Maybe you need a credit card in order to keep track of your spending, but not everybody needs that particular crutch. I didn’t say it couldn’t be done, I said it makes it easy. In a matter of minutes I can tell you to the penny how much I spent on medical care last year, how much I spent on gasoline and groceries and where I spent it, the date and cost of every restaurant meal and entertainment purchase, and the same goes for every other purchase. You might be able to track down in a little notebook that you bought a $5.75 sandwich nine months ago while in a different state, but I’d bet you can’t, and if you can it’s by putting a lot more effort into keeping track than I have to. ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [September 20, 2016, 9:07pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/83 "2016-09-20T21:07:46Z")
> [@jtur88](#): > > Apparently, then, this thread is about the self-discipline to control your own spending, rather than the benefits of using cash vs a credit card. I’m not sure there is any advantage of using one payment method over another, in and of itself. So yes, I think the OP and the discussion is about self-discipline, which the OP seems to think is reinforced by spending only cash. ---
**Author:** ![Caldazar](https://avatars.discourse-cdn.com/v4/letter/c/8e8cbc/32.png) [@Caldazar](https://boards.straightdope.com/u/Caldazar)\ **Post date:** [September 20, 2016, 10:37pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/84 "2016-09-20T22:37:24Z")
> [@Amateur\_Barbarian](#): > > I’m not sure there is any advantage of using one payment method over another, in and of itself. So yes, I think the OP and the discussion is about self-discipline, which the OP seems to think is reinforced by spending only cash. More generally, it’s rooted in the psychology of money and how people perceive cash versus how they perceive credit cards or other cash-equivalents. There have been a number of studies conducted (the Dun & Bradstreet study referenced by **Voyager** , Chattterjee and Rose’s “Do Payment Mechanisms Change the Way Consumers Perceive Products?” is another) that seem to indicate that, at least in some cases, cash and cash-equivalents are not actually equivalent from an emotional perspective. If, psychologically, you are wired to view cash and cash-equivalents as truly equivalent from an emotional perspective, then paying with cash vs. credit card is not a relevant consideration, and other factors predominate (convenience, utility, time-value-of-money, etc…). But if you are psychologically wired to view cash and cash-equivalents differently, then you can exploit the added emotional impact of parting with cash to try to curtail spending. And the data does seem to suggest that a decent percentage of the population is wired in the latter fashion. ---
**Author:** ![SpoilerVirgin](https://avatars.discourse-cdn.com/v4/letter/s/4491bb/32.png) [@SpoilerVirgin](https://boards.straightdope.com/u/SpoilerVirgin)\ **Post date:** [September 20, 2016, 11:09pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/85 "2016-09-20T23:09:43Z")
> [@Caldazar](#): > > But if you are psychologically wired to view cash and cash-equivalents differently, then you can exploit the added emotional impact of parting with cash to try to curtail spending. And the data does seem to suggest that a decent percentage of the population is wired in the latter fashion. But some are wired the other way. \*\*Bill Door \*\*gives a good example of how for some people, using credit cards that automatically track your spending may be psychologically beneficial. The key is understanding which type of person you are and using that to help control your spending. Or you can just be a completely self-disciplined Doper who only buys exactly what he or she needs, pays off his or her credit card bill in full every month, and never has to worry about money at all. ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [September 21, 2016, 2:20pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/86 "2016-09-21T14:20:00Z")
> [@Ambivalid](#): > > 59 cents a meal. Frugal. All that savings can go towards the future heart surgery payments due to eating cheap lunch meat and meatballs. You indeed are winning! You might want to swing through the produce section next time you have $12 in your pocket. ---
**Author:** ![Amateur\_Barbarian](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@Amateur\_Barbarian](https://boards.straightdope.com/u/Amateur_Barbarian)\ **Post date:** [September 21, 2016, 2:56pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/87 "2016-09-21T14:56:53Z")
> [@wguy123](#): > > All that savings can go towards the future heart surgery payments due to eating cheap lunch meat and meatballs. You indeed are winning! This is funny. I just read a Groucho Marx anecdote about a fellow vaudevillian who ate the cheapest lunch-cart food he could find (under 25 cents, when a sit down dinner was $1), and survived by following every meal with two swigs of sodium bicarbonate. Groucho heard of his death a few years later… from kidneystones caused by taking too much sodium bicarbonate. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [September 22, 2016, 8:07pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/88 "2016-09-22T20:07:20Z")
> [@SpoilerVirgin](#): > > But some are wired the other way. \*\*Bill Door \*\*gives a good example of how for some people, using credit cards that automatically track your spending may be psychologically beneficial. The key is understanding which type of person you are and using that to help control your spending. They are not contradictory. There were plenty of people who spent too much before credit cards, after all. The discipline to track cash spending probably involves the discipline for not doing much unnecessary spending. > [@](#): > > Or you can just be a completely self-disciplined Doper who only buys exactly what he or she needs, pays off his or her credit card bill in full every month, and never has to worry about money at all. That’s me, and my wife. We’ve never had a budget per se since neither of us likes to spend money on useless crap. We also save before we spend. Earlier this year I did an analysis of our spending, using Quicken, to see if I could afford to retire on the amount we had put down on our plan, which was much less than my salary. Turns out that this was exactly what we were spending - the rest went to taxes and savings. ---
**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\ **Post date:** [September 22, 2016, 10:53pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/89 "2016-09-22T22:53:37Z")
> [@SpoilerVirgin](#): > > In talking to people about their finances, I’ve found that they fall into two categories: > > - People who see cash as real money, and credit cards as essentially play money. > > \ > > - People who see credit cards as real money, and cash as essentially play money. I think you missed a group. People that see all their money (whether it’s in the bank or in their pocket as their money, and nobody else’s money) as their money. > [@cg16](#): > > It’s easier to buy what I need when I am using a smaller funding source It’s all the same funding source…your total liquid assets. Whether you put it on a credit card, debit card, or from your pocket. I think you’ve come up with a system that helps you not overspend and that’s great, but don’t fool yourself regarding _funding sources_, etc. ---
**Author:** ![cg16](https://avatars.discourse-cdn.com/v4/letter/c/a698b9/32.png) [@cg16](https://boards.straightdope.com/u/cg16)\ **Post date:** [September 22, 2016, 11:08pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/90 "2016-09-22T23:08:16Z")
> [@Omar\_Little](#): > > I think you missed a group. People that see all their money (whether it’s in the bank or in their pocket as their money, and nobody else’s money) as their money. > > It’s all the same funding source…your total liquid assets. Whether you put it on a credit card, debit card, or from your pocket. > > I think you’ve come up with a system that helps you not overspend and that’s great, but don’t fool yourself regarding _funding sources_, etc. So far so good, having run out of cash yet 7 days before the next check. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [September 23, 2016, 7:53pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/91 "2016-09-23T19:53:38Z")
> [@Omar\_Little](#): > > It’s all the same funding source…your total liquid assets. Whether you put it on a credit card, debit card, or from your pocket. > > I think you’ve come up with a system that helps you not overspend and that’s great, but don’t fool yourself regarding _funding sources_, etc. That is homo economicus speaking. If you can convince yourself that your funding source is smaller than it really is, you will save. (Those who convince themselves that it is bigger get into trouble.) People put money into mental buckets. There have been lots of research on this. For instance, a painter say who earns $100 from work will not spend it as fast as if he had earned $100 from painting a house for a friend. In India once they got people to put their pay into several envelopes earmarked for different things. The savings rate increased, even though no one took and locked up the savings envelope. It is good to make our economic irrationality work for us some days. ---
**Author:** ![Randolph](https://avatars.discourse-cdn.com/v4/letter/r/e5b9ba/32.png) [@Randolph](https://boards.straightdope.com/u/Randolph)\ **Post date:** [September 23, 2016, 9:42pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/92 "2016-09-23T21:42:29Z")
I always tip in cash. Let’s start talking about tipping too! and Tylercanoe. ---
**Author:** ![cg16](https://avatars.discourse-cdn.com/v4/letter/c/a698b9/32.png) [@cg16](https://boards.straightdope.com/u/cg16)\ **Post date:** [September 24, 2016, 12:15am UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/93 "2016-09-24T00:15:23Z")
> [@Randolph](#): > > I always tip in cash. Let’s start talking about tipping too! and Tylercanoe. Why don’t you tip on your card? ---
**Author:** ![Randolph](https://avatars.discourse-cdn.com/v4/letter/r/e5b9ba/32.png) [@Randolph](https://boards.straightdope.com/u/Randolph)\ **Post date:** [September 24, 2016, 12:36am UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/94 "2016-09-24T00:36:52Z")
Waitstaff prefer cash. Immediately spendable, management and the credit card companies can’t take a bite, IRS only takes a bite if you hold it up for them to sniff. ---
**Author:** ![actualliberalnotoneofthose](https://avatars.discourse-cdn.com/v4/letter/a/e79b87/32.png) [@actualliberalnotoneofthose](https://boards.straightdope.com/u/actualliberalnotoneofthose)\ **Post date:** [September 24, 2016, 2:02am UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/95 "2016-09-24T02:02:35Z")
Cash always runs out faster for me. I rarely use it. ---
**Author:** ![actualliberalnotoneofthose](https://avatars.discourse-cdn.com/v4/letter/a/e79b87/32.png) [@actualliberalnotoneofthose](https://boards.straightdope.com/u/actualliberalnotoneofthose)\ **Post date:** [September 24, 2016, 2:04am UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/96 "2016-09-24T02:04:34Z")
> [@Randolph](#): > > Waitstaff prefer cash. Immediately spendable, management and the credit card companies can’t take a bite, IRS only takes a bite if you hold it up for them to sniff. At every restaurant I’ve worked at (though it’s been awhile) servers were cashed out at the end of a shift, and in many cases they were required to tip out a bite from their cash as well. ---
**Author:** ![Peremensoe](https://avatars.discourse-cdn.com/v4/letter/p/ce7236/32.png) [@Peremensoe](https://boards.straightdope.com/u/Peremensoe)\ **Post date:** [September 24, 2016, 2:05pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/97 "2016-09-24T14:05:30Z")
Well, at least with cash tips the staff unambiguously see when they’re being screwed. ---
**Author:** ![Rushgeekgirl](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rushgeekgirl/32/3715_2.png) [@Rushgeekgirl](https://boards.straightdope.com/u/Rushgeekgirl)\ **Post date:** [September 24, 2016, 11:17pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/98 "2016-09-24T23:17:21Z")
I do the same thing. Are you poor? I am quite poor and it matters to me if I overspend a ten or twenty here and there. I used to use my debit card for groceries and I always went over a bit. You do think, “ah well it’s just twenty and I have several hundred in the bank!” if you use the debit card, but if you only have 100 in cash and know you cannot go over you will think twice before buying something frivolous. Also if I have the debit card when I’m out I’m far more likely to stop for fast food. If I’ve spent all my cash at the store I go straight home. If it works to keep your spending in check, I don’t see a problem in the world with it. ---
**Author:** ![cg16](https://avatars.discourse-cdn.com/v4/letter/c/a698b9/32.png) [@cg16](https://boards.straightdope.com/u/cg16)\ **Post date:** [September 24, 2016, 11:36pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/99 "2016-09-24T23:36:10Z")
> [@Rushgeekgirl](#): > > I do the same thing. Are you poor? I am quite poor and it matters to me if I overspend a ten or twenty here and there. I used to use my debit card for groceries and I always went over a bit. You do think, “ah well it’s just twenty and I have several hundred in the bank!” if you use the debit card, but if you only have 100 in cash and know you cannot go over you will think twice before buying something frivolous. Also if I have the debit card when I’m out I’m far more likely to stop for fast food. If I’ve spent all my cash at the store I go straight home. If it works to keep your spending in check, I don’t see a problem in the world with it. No I am not poor because I don’t qualify for food stamps just want to have a massive savings account for unexpected situations ---
**Author:** ![CairoCarol](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cairocarol/32/3825_2.png) [@CairoCarol](https://boards.straightdope.com/u/CairoCarol)\ **Post date:** [September 24, 2016, 11:59pm UTC](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229/100 "2016-09-24T23:59:07Z")
> [@cg16](#): > > well that’s why **I had to stop dating because I want to be able to pay for unexpected situations like you just mentioned**. So when something does happen I can laugh and pay for it. (Bolding mine.) It made sense to me, sort of, until this. [Previous page](https://boards.straightdope.com/t/i-decided-to-use-cash-now-for-all-purchases-to-save-more-money/766229.md?page=4)