Cash is King!

Your mindset and psychology when you spend on your bank card is totally different to that when you spend with your own cash. There have been studies done that show we are spending around 14% more on every purchase when we spend on bank cards as opposed to cash. It is simply a mindset thing!

I regularly encourage people to try this simple experiment so they can see the real difference in our behaviour based on our mindset.

Next time you do your grocery shopping, or on your next trip to Bunnings, don’t take any cards with you. Just take the amount of cash that you’ve budgeted for your shopping trip. What everyone finds is that when they walk into the shops with let’s say $200 cash to get all of the groceries, as opposed to $800 on their bank card, their mindset changes from the usual ‘what do I want’ to ‘what do I NEED’. You instantly become conscious of your spending for the first time in years! No more Magnums or Connoisseur ice-creams being thrown into the shopping trolley, it’s just the essentials that you know you need which are the priority.

This is the power of shopping with CASH!

By using cards, especially with Pay pass, money “evaporates” into thin air and by the end of the week you don’t know where it’s gone! I would suggest taking your Living Allowance out of the bank each week, write out your expenses for the week and budget within your living allowance. Then use cash to make all of your purchases. This stops the evaporation and gives you back a sense of control and peace that comes with truly managing your
own money.

Scott Parry

*Comparison rates are calculated on the basis of secured credit of $150,000 over a 25 year term. Please note this comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.