Uma maneira simples de gastar menos

Are you looking to change how much you spend in 2018? It may be simpler than you think.

Use cash.

That's it, just pay for purchases with cash.

Why?

People tend to assign more value to items they purchase with cold hard cash and find it more difficult to part with according to a study conducted by University of Toronto professor Avni Shah in the Journal of Consumer Research.

In her research she found that the behavior of those who pay for items with cash differ greatly from those who pay with credit card. Cash users tend to think more consciously of the transaction and find parting with the physical currency more painful.

Credit card users tend to be more passive and impulsive in their purchases. She suggests that the reality of parting with physical money causes people to think more about what they are buying and if they actually want to make the purchase.

You don't have to log on to an app to feel your wallet becoming lighter.

The Challenge

Financial institutions and companies know that utilizing cash make people less inclined to spend so they are always looking for ways to make it easier for you to spend your money. Credit card companies are making the checkout process easier and faster and your phone is even being optimized for making instant payments.

By making transactions faster and easier you are more inclined to buy since you are so far removed from actually handing someone cash.

It's all psychological.

But I Don't Want To Carry Tons of Cash!

In Shah's research she found that the reality of spending is not unique to cash payments but for debt card purchases and checks as well. Each of those payment methods require an instant payment transfer and immediately affect your finances, very similar to cash.

So make a habit out of using a payment method that makes an immediate impact rather than kicking the debt around for months on a credit card. While cash works best theoretically, it's not always reasonable for every person.

if you hate carrying cash then try a pre-paid card that you can add money to and use as a debit card. This way you won't earn interest and will be forced to stay within your own financial limitations.

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