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  • Why I Don’t Shop With Cash

    39 Comments
    Why I Don't Shop With Cash

    When you’re trying to avoid impulse purchases, I often recommend putting away your credit cards and paying for everything with cash.

    While I do believe this is the best way to prevent overspending for most people, it simply does not work for me, personally.

    When I have a bunch of cash in my wallet, I’m likely to spend it much easier than taking out my credit card to pay for something. For some reason, watching actual cash being spent doesn’t bother me as much as charging something to my credit card.

    I have been very disciplined with my credit card use for the last 4 years and actually try to use it for every purchase that I need to make (to get cash back). I pay off my bill in full every month so I never have to pay interest.

    The times that I do have cash on me, I find reasons to spend it.

    My Excuses:

    - Oh, only $2 for a coffee? That sounds fabulous!
    - $5 for 2 boxes of almonds from the boy outside the grocery store? Sure!
    - Elliott wants to ride the mechanical horse in the mall? That’s cute… here’s $1!

    I don’t know what it is about cash, but I just can’t seem to hold on to it very long – and that’s why I prefer to shop with credit.

    Before I had a credit card, I would go to the bank all the time to take out cash. That cash would be spend on who knows what, but I am certain it wasn’t on necessities!

    I am confident that I don’t spend more using credit than I would with cash only.

    Where I Use Credit vs Cash:

    Here’s what I often use my credit card for:
    - Groceries
    - Clothing
    - Haircuts
    - Gifts
    - Gasoline

    When I do use cash, it’s usually for these:
    - Entertainment
    - Tips
    - Craigslist or Kijiji Purchases

    I do strongly believe that using cash is the absolute best way to avoid overspending for MOST people. I am just not one of those people.

    Paying with credit only works for me, but it may not work for you.

    If you are constantly overspending on your credit card, consider switching to cash only for awhile to see how you do with that method of payment. You may find that you spend much less when you only have cash to spend (or, you may spend more, and determine that credit only is best for you).

    Do you prefer to shop with cash or credit?

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    Posted By: on June 18, 2012 Filed Under: Personal Finance 

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    39 Responses to »
    Why I Don’t Shop With Cash

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    1. Samantha Rosenthal says:
      October 18, 2012 at 11:02 PM

      If I have cash in my wallet I spend it, If I have debit or credit cards in my wallet I spend it. So I have tried the magic jars and this has worked wonders for me. All the cash goes into these jars and stays at home. When I need “NEED” to buy something I take the cash out go buy what I need and put the change back in the jar. If I don’t do this I find it hard not to stick to the budget.

      If you find it hard to do cash or debit/credit. I recommend the magic jars. It really does work.

      Reply
    2. Nancy says:
      June 26, 2012 at 12:31 AM

      i shop with credit card more as i collect points, it gives me a better tracking system to where all my money is going….but now i may consider switching to cash back as it seems like i’m not collecting points fast enuf….

      Reply
    3. Amy says:
      June 20, 2012 at 1:11 PM

      I agree, I just spend my cash in my wallet like its free money. I am regularly checking my bank account and credit card charges and i use that as my budget and to tell me how much money i have. If i have $200 cash in my wallet i dont consider it part of my budget for some reason.

      I do realize it can be easy to get carried away with credit purchases but if you pay it off every month and monitor what your spending its better than cash, PLUS you usually get rewards. I also pay with my credit card MORE than my debit because my debit card charges me after so many transactions. my credit card is always free.

      Reply
    4. Jennifer says:
      June 20, 2012 at 11:22 AM

      We are using cash more now than credit. We are trying to save more money.

      We take out a set amount each week and when it’s gone, we stop spending.

      Over the last few months, we have been able to save more and spend less. The first month was more difficult but now we have made it a good habit.

      We also sleep better at night knowing that our savings account is growing each month : )

      Reply
    5. Theresa says:
      June 20, 2012 at 11:05 AM

      I am exactly like you. I can easily stop at Tim Hortons 3x a day if I have cash on hand. Usually I only have my bank card. Worked well until Tim Hortons started accepting debit :)

      Reply
    6. Eve says:
      June 19, 2012 at 3:50 PM

      Debbie: My regular Shoppers store suggested I get a gift card that has no dollar amount written on it.. Each time I go to Shoppers I load the amount I think I will spend-$50 or $75 etc then do my shopping and check out with the card. I then keep it and refill next time.The thing about using a gift card is that you get points for buying it and points for using it!I suggest you download Cassie’s free book on using Shoppers. It is excellent.

      Reply
    7. Olivia says:
      June 19, 2012 at 3:37 PM

      Credit cards for everything except the odd purchase under $5.00 or where not excepted. Why not, I get various rewards converted to cash or products. We pay in full monthly, otherwise it defeats the purpose of rewards.
      At Shoppers, I now buy their only gift card that is re-loadable…..the student spending gift card. Part one of the card I use for purchases and the other part of the card is for reloading any amount I want.
      I wanted to avoid the waste in buying and cashing them in often.

      Reply
    8. teachermum says:
      June 19, 2012 at 3:05 PM

      Debbie, you can do either. If I’m thinking ahead and know I need to get a card I buy the card first (only ever regular points, never 20x), do my shopping, then pay. I usually just get $200 put on one (the maximum) and use it until I need another. You can get any amount you want. If I’m not thinking ahead I have also bought a gift card when shopping and paid separately for it, then had them ring my order through. I’ve almost got all the cashiers trained at my usual Shoppers!

      Reply
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