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Switched to a cash envelope system six months back
I was tired of checking my bank balance and seeing less money than I thought, so I started pulling out cash for groceries and eating out each week. Turns out I save about $40 a week just because I can see the money leaving my hand. Has anyone else noticed spending less when they use cash instead of cards?
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simonlee14d ago
Oh man, this is SO true for me. Seeing the actual cash leave my wallet hurt WAY more than tapping a card. I started doing this for my fun money and I honestly spend like half of what I used to.
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blairm7714d ago
I heard on a podcast from a behavioral economist that the physical act of handing over cash activates the pain centers in your brain way more than swiping plastic. They said it's because we evolved to feel the loss of physical resources, but a card just feels like points or numbers. For me, the envelope trick worked but I actually started using a separate wallet just for cash spending. I keep like 60 bucks in there for the week and only that wallet comes with me to the store. It's weird how much less junk food I buy now.
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scott.alex14d ago
Simonlee nailed it, the feeling of cash leaving your hand is totally different. I read somewhere that the brain actually processes spending cash as a loss, while swiping a card just feels like a transaction, so you spend more with plastic. It's made a huge difference for me too, especially with takeout food, I used to just tap and forget but now I feel it.
I tried that trick Simonlee mentioned, putting my fun money in an envelope for the month, and I actually budgeted it out better than I ever did with an app. Now I don't even carry my debit card for groceries, just the envelope, and I end up buying less junk. My wallet is way more organized now and I'm not second guessing my balance every Friday.
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