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Cash Controlled Spending by Nikki Willhite If you want to spend less money each month, pay cash. It is that simple. I use to be very fond of using my credit card. I would charge as many things as I could on it, pay it off at the end of the month, and then every few months, my credit card company would deposit money in my bank account. However, I heard a few months back that if you only use cash, you spend approximately 40% less money. So I put it to the test. They were right. When you use cash, you spend less - on everything. I think there are several reasons for this. Even if you are careful with your spending, it is just harder to part with cash. It seems more "real." You take cash out of your wallet, and it is gone. You know you have lost money. However, if you take a credit card, or a debit card out to pay for an item, when you are done with the transaction, you put it back in your wallet. That is the difference. You don't feel like you have lost as much, because you know you can pull out the charge card or debit card and use it again. You don't have as much of a sense of loss. I still feel that everyone should have one good credit card. If you stop using credit cards altogether, eventually you lose your credit history. Life is too uncertain, and you never know when you may need it. I suppose if you have a very large emergency account it wouldn't be as much of of risk, but for most of us there is a possibility we might need to borrow money. I will continue to use my credit card- especially for internet purchases. However, I will forego the "rewards" in favor of using cash. One other note- some people don't like to use cash because it does carry a lot of germs. Just keep some handy wipes in your car, or don't touch your face until you can wash your hands. We use a lot of tricks to control our spending. This trick is not rocket science. Cash spending is a good way to keep your money in your wallet. About the Author: Nikki Willhite, mother of 3 and an interior design graduate, has been writing and publishing articles on the topic of frugal living for over a decade. Visit her at www.frugalhappyfamilies.com - where you will find hundreds of frugal living tips and articles. Frugal Happy Families- more than just money!

 

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