Have you heard Dave Ramsey ever say people tend to spend more when they use a credit card as opposed to cash? Well I think Dave is a cotton headed ninny muggins (whatever that means). Declaring that people suddenly become irresponsible when using plastic as a medium for payment is no more ridiculous than Al Gore claiming he invented the internet. Sure some people probably spend more with plastic, but I ain’t one of those ‘people’.
I’m a total cash nazi. I just don’t like the stuff. I consider myself a pretty disciplined dude, but when it comes to dollar bills, I am anything but. It’s as if they are sitting in my wallet, taunting me, whispering from my right butt-cheek “spend me.” When I get my hands on some $1’s and $5’s, I almost always spend it on unnecessarily stupid things like Pregnant Barbies…
When I put expenses on my credit card, I’m forced to watch my spending accumulate over the 30 day billing cycle. As the balance grows, I become more and more frugal. Paying between $1,000 to $1,500 each due date, totally motivates me to minimize my spending. Seeing the damage in it’s entirety, as opposed to incrementally, influences wise spending choices. When I spend cash, it’s as if it never existed. There’s no pain involved.
If you’ve sworn off credit cards for life, more power to ya. We each have to do what works best for us according to our strengths and weaknesses. For this Ninja, cash is my kryptonite.
Is it yours? Do you prefer using cash or a card? How much cash is in your wallet right now? (I have $7…time to go buy another Barbie!!!!)