financesforeveryday.com

7/24/08
I know you have heard it before – stop using the credit cards.  I recently read a study that was conducted at grocery stores.  The result – those paying by credit cards spent an average of 30% more than those paying by cash.  Think about it – if all you have in your pocket is $50 bucks then all you can spend is $50.  If you have that credit card what prevents you from spending $75 or $80?  Even if you are using a debit card or writing a check you still are open to overspending.  It needs to be cash.

Many believe that it is impossible in today’s society to not have a credit card.  There are people out there doing it.  If you plan in advance you can even travel, including renting a car without a credit card.  You can keep a debit card for online purchases or traveling.  If you must keep a credit card because it makes you feel safe then do not carry it with you.  In fact, lock it up in your safety deposit box at the bank.  Make it very difficult to get at.

Stop using those credit cards and you have no choice but to live on what you make.  You will adjust your spending and your habits.  Many find that they seem to have more money than they ever did before, both in their pocket and in the bank.