Studies: To Spend Less, Pay In Cash

[NNN0LHI]

http://www.officialwire.com/main.php?action=posted_news&rid=74235&catid=22

The more transparent the payment outflow, the greater the aversion to spending or higher the 'pain of paying'
Published on September 09, 2008

by OfficialWire.com

(EUNewsNet.com and OfficialWire)

NEW YORK, NY

<snip>Four studies that examined two factors in purchasing behavior: when consumers part with their money -- cash versus credit, and the form of payment -- cash, cash-like scrip, gift certificate or credit card.

"The more transparent the payment outflow, the greater the aversion to spending or higher the 'pain of paying,'" the researchers said in a statement. snip

"The studies suggest that less transparent payment forms tend to be treated like play money and are hence more easily spent," the researchers said. "Treating non-legal tender as play money leads to overspending that authorities can warn consumers about."

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This is true. When I go shopping I bring only as much cash as I plan on spending. Then I keep an approximate running count of what I spend in my head. I don't bring a calculator with me or nothing. I don't find myself picking up stuff I don't really need and then wondering why I bought it later. Sometimes I do go over what I have have with me and had intended to spend and have to finish paying the last few bucks with a credit card. But not very often.

Want to know another trick to actually save money? Get one of those 96 Fluid Ounce Welch's grape juice bottles and put all your dimes, nickels and quarters you will accumulate by using cash into it. All of it. Don't spend any of your change. After about 6 months you will have about $400.00 saved up in that juice bottle. Its quite an accomplishment and it doesn't take long.

Don

[grasswire]

1. I read about a man who simply put away...

...every five dollar bill that he received in change. Just put it away in envelope. He amassed a couple of thousand bucks in a year with little pain.

My mother used to tell me that if I saved a nickel out of every dollar I would have a big nest egg by middle age. I didn't do it. :-(

[Ocracoker16]

2. This is common sense