Want more money? Put cash in your pocket.
How much money do you withdraw from the bank at a time? How much money do you like to carry in your wallet? Do you use cash - or is credit card, debit card or cheques you preferred payment method?
Studies have consistently shown that when you use plastic (even if you pay off your credit cards monthly) you will spend on average of 35% more per month. The reason why is quite simple: We all have spending comfort zones, or are comfortable spending on certain items. For example, many people are comfortable spending up to $20. That means that if you see something for $19.99 you can buy it and not really think too long about the purchase. Likewise, many people are comfortable spending money on items like groceries, meaning that if they are in the grocery store they will just buy what they need and pay the price.
However, what happens when you get comfortable is you also get complacent. This means that you can spend money without being aware of how much and what you're buying. For years, I have been recommending using cash as a way to become more aware of spending habits to assist in planning and developing strategies that work. Many others have also recommended using cash and allocating categories of expenses maybe in an envelope system or something similar.
Well, I had an epiphany today when I was discussing this topic with a client who mentioned they took out $20 the other day and 'poof' it was gone. It occured to me that there was a disconnect between the amount of cash that was withdrawn from the bank and the amount of her income and expenses. However, there was likely a very key relationship between the amount of cash withdrawn and her beliefs about spending and money in general.
When you use cash, there are so many benefits; a key one being the ability to touch and feel the cash and to interact with it. A single $20 bill doesn't adequately reflect the wealth of my client. Yet, a single $20 bill that was spent on a couple small transactions could easily send a message, that there wasn't enough money, that it was 'burning a hole in her pocket', that somehow she wasn't responsible, and many other un-empowering beliefs.
If you fee like cash in burning a hole in your pocket, the answer is to withdraw more - lot's more. If you are used to taking $20 at a time, try $100. If you normally take $100, take $500, etc. If you are worried about losing it ask yourself, why? What would be the consequences of losing that amount of money? How long would it take you to earn it back?
Give yourself the gift of appreciating and interacting with your money. Feel the power of cash. Allocate your change for specific purposes, and enjoy all the abundance cash provides.
Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.
Studies have consistently shown that when you use plastic (even if you pay off your credit cards monthly) you will spend on average of 35% more per month. The reason why is quite simple: We all have spending comfort zones, or are comfortable spending on certain items. For example, many people are comfortable spending up to $20. That means that if you see something for $19.99 you can buy it and not really think too long about the purchase. Likewise, many people are comfortable spending money on items like groceries, meaning that if they are in the grocery store they will just buy what they need and pay the price.
However, what happens when you get comfortable is you also get complacent. This means that you can spend money without being aware of how much and what you're buying. For years, I have been recommending using cash as a way to become more aware of spending habits to assist in planning and developing strategies that work. Many others have also recommended using cash and allocating categories of expenses maybe in an envelope system or something similar.
Well, I had an epiphany today when I was discussing this topic with a client who mentioned they took out $20 the other day and 'poof' it was gone. It occured to me that there was a disconnect between the amount of cash that was withdrawn from the bank and the amount of her income and expenses. However, there was likely a very key relationship between the amount of cash withdrawn and her beliefs about spending and money in general.
When you use cash, there are so many benefits; a key one being the ability to touch and feel the cash and to interact with it. A single $20 bill doesn't adequately reflect the wealth of my client. Yet, a single $20 bill that was spent on a couple small transactions could easily send a message, that there wasn't enough money, that it was 'burning a hole in her pocket', that somehow she wasn't responsible, and many other un-empowering beliefs.
If you fee like cash in burning a hole in your pocket, the answer is to withdraw more - lot's more. If you are used to taking $20 at a time, try $100. If you normally take $100, take $500, etc. If you are worried about losing it ask yourself, why? What would be the consequences of losing that amount of money? How long would it take you to earn it back?
Give yourself the gift of appreciating and interacting with your money. Feel the power of cash. Allocate your change for specific purposes, and enjoy all the abundance cash provides.
Copyright© 2006 Tracy Piercy. Written Permission is required for reproduction. Thank you.
posted by Tracy Piercy at 9:58 PM
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