Need or want to spend less? Many financial advisers (such as the famous Dave Ramsey program) propose that you should use cash for just about everything. But that can be difficult to implement, so here’s an alternative.
“…A new study by the Urban Institute and D2D Fund offers a middle ground that consumers might find more realistic: Use cash for anything under $20.”
Why focus only on small purchases? CNN has several good points, among these reasons:
- Impulse buys are often small.
- We’re more likely to ignore the small purchases.
- It’s risky to carry around wads of cash.
“…So while “cash only” sounds good in theory, “cash only for the small things” might be much more useful in practice. It offers the best of both worlds: more budgetary control, plus the benefits and protections plastic can provide. So back away from the scissors and put the credit card back in your wallet. Just make sure to dust off that ATM card, too.”
Read the article in full here: “One simple rule that can change bad credit card behavior.”