We use less and less cash every day. The card (and now the phone) has become our new wallet. You can barely find bills or coins on the street anymore simply because no one pays with them. We’re just one tap away from being able to pay everywhere, and to be honest, it’s much more convenient. But that convenience has a catch, it’s working against your savings. The famous “card swipe” makes you spend more without realizing it because you don’t actually see the money. Let’s explain, wait!
The invisible trick of paying
If you have $100 in your pocket, you know it. If you buy something, you see the change and you’re aware that you can only spend that amount. And when you finish spending it, it still hurts. But when you pay with a card, you don’t see it, nothing happens. There’s no “visible” loss or that small “ouch” that stops you because you’re not seeing what you’re paying.
And of course, now psychologists are studying why this happens, and they believe that the card cuts the emotional connection with money. According to Cornell University, paying digitally can make you spend up to 18% more, so if you’re saving, better to carry cash.
Think, for example, about a supermarket. A snack, a bag of chips, looks so good! And you keep filling your cart… When you get to the register, the total surprises you, right? But you just pay with your card and that’s it.
Would the same thing happen if you only had cash? Probably not. You’d measure product by product so you wouldn’t go over!
“It doesn’t hurt now, it’ll hurt later”
The big problem with credit isn’t just that it makes you spend more, but when you pay it. Because when you swipe the card, your brain doesn’t interpret it as an immediate loss. The “hit” comes later, when you open your banking app and see how your balance has dropped. Don’t you dare say “where did my money go?” because you know exactly where it went!
“Using a credit card for everyday purchases creates an illusion of liquidity. You think you can spend more… until the bill hits you in the face”.
That “I’ll pay it later” may seem harmless, but it becomes a loop, you spend, you defer, you pay (sometimes with interest…), and you start all over again.
So, when is it a good idea to use your card?
For big purchases, splitting payments, or taking advantage of points and promotions, it’s fine. But to pay for a coffee, a food delivery, or groceries? Better not. It’s better to pay with cash (or debit cards), to remember that your money has a limit and you can’t spend more than what you have.
A simple way to save
Everything is going up, food, gas, life in general. It’s important to regain control over what we spend, and that’s why paying in cash gives you back awareness of your own money.
Another trick we can give you: when you go shopping, bring a list and an estimated amount of money you can spend, that way it’s much easier to stay within that limit.
And no, it’s not about hating credit cards or hiding bills under the mattress like in the old days. Cards are our new allies, but they have their dark side, they make us spend without thinking, and many of us can’t afford to spend like crazy.
So next time you go shopping, try paying in cash. Feel that sting when you hand over the money, and you’ll definitely spend less. It’ll hurt, but you’ll thank us later!