The Seven Cash Myths
The day we started using cash is the same day we got a raise. Cash is way underused in our hyper-consumer society and it gets a bad rap. Let’s first debunk a few of the cash myths that are out there that are just plain garbage.
If I have cash, I will spend more
Answer: They banks want you to believe that, but according to science – it’s simply not true. Did you know the credit/banking industry spends more money researching YOU than any other industry on the planet? In fact, Carnegie Mellon University did a study that actually proved the PAIN RECEPTORS in the brain are activated when using cash. When you use plastic, those same pain receptors aren’t firing, therefore you aren’t feeling money. Don’t believe this is true, ask yourself this – What feels different: Paying at the gas pump with your credit/debit card or walking in and slappin’ down a Benjamin on Pump #7? Cash causes you to feel pain (No pain, no gain)
If I have cash, I will get robbed, mugged, beaten, attacked, and then jumped
Answer: (They don’t know you have cash in there). Why? BECAUSE NO ONE IS USING CASH ANYMORE! A thief has no idea you are using cash because they can’t see inside your purse. You could have $1 or $5,000 inside, however it still looks the same from the outside. I paid cash for my Piece of Crap and was walking around with $8k in cash and no one cared – because no one knew. If you truly believe this, take karate and carry mace. Judo works well too.
I will get a better deal using my credit card because of the sign up offer
Answer: You can also get a deal using cash. Whenever we are at a department store and we get to the cash register, we are offered a credit card to save 10%. My bill at Target was $31.57 and I could have saved a whopping $3.15! Whoo-Hoo, I am rich! However, I think Target also saw the study from Carnegie Mellon University and they know “I’ll be bock”. Cash also offers a discount because of the reverse effect of those same pain receptors. They cause excitement! We went to buy our living room furniture at one of those mega-furniture-stores you see on television. We actually had the NERVE to pull out $2,000 CASH MONEY and fan our face with it while asking for a better deal. We helped them knock off $300 from the total price using cash! Boom goes the dynamite!
Cash is for drug dealers and I don’t want people to think I am the next Pablo Escobar
Answer: You can still use cash and avoid selling drugs. This is ludacris and I hear it often. Seriously. Cash is not the gateway drug into the sale and trafficking of drugs. I didn’t even want to include this myth, but I have heard it way too often. Moving on…
If I have cash, I will lose it
Answer: Why? If you have cash, you won’t lose it because you will actually FEEL it in your wallet. Remember those pain receptors in the brain? Do you think they are going to let you lose that precious cash? No way! Just because something is of value, doesn’t mean you are going to lose it. How often do you lose your $20k car? Do you often misplace your $6k wedding ring? What about your $600 iPhone?
Cash is slowly being phased out and everything will soon be going to credit/debit cards, bitcoin, apple pay, and the next greatest technology to help you NOT feel money.
Answer: “Jerry, show me the money!” Cash isn’t going anywhere. I have heard this before and it is completely absurd. Let’s just think about how this is going to happen. Are we going to wake up one day and just tell everyone cash is no longer going to be accepted? What are we going to do with all the cash out there in society? Just consider it obsolete and move on? People will eventually get over their cash becoming worthless. Sure. Absolutely ridiculous.
Cash is too restrictive. If I only have so much cash in my wallet and the bill comes out to be more than I have, I would rather have my credit card on me.
Answer: That’s the point! However, you are looking at it from the wrong direction. Try this: I don’t have the money to pay the bill so I need my credit card (so I can slowly go into debt). This plan would be the oppositte of awesome. Use cash.
Podcast EP003: The 7 Cash Myths We Aoided to Save $27k
When we decided to start changing our lives with money, we stopped believing many of these myths and went to cash. It started out as a little experiment to see if we would notice an improvement with our finances using only cash. We never went back because the results were huge. We tell everyone the biggest raise we have ever received was the day we got on a budget and started using cash. We still use our one debit card at the gas pump because when it is 110 degrees in Arizona, and the wifey has to unbuckle two kids from their car seats to take inside to use cash – she comes home pissed off. Cash is king. Cash will give you a raise. Cash will help you win. Try it – what do you have to lose?
They Tried It!
Hey Peach! We are back from our Disney Days and it was fabulous! Loved the trip, the kids had an amazing time and we…
What to do and How to do it
On the 1st and the 15th of each month, we go to our little credit union and pull out the cash we need for those two weeks. We know how much cash we need to pull out because we did our budget BEFORE the month ever began. We take our cash home and stuff it into our envelopes. We go to the store and use the cash out of our envelopes. When the envelopes don’t have any more money in them, we are done spending. Genius!
We estimate we started saving about $500 per month when we went to cash! We started using cash back in February 2011, therefore we have saved around $27,000 using cash! Wow, that is crazy to see that number staring back at me on the screen. At this pace, we will have saved $60k in 10 years and $120k in 20 years. If you think saving $3.15 at the register by signing up for their credit card is a better option for you, by all means it is your choice. Choose wisely.
Be good to yourself, your friends, your love, and BE GOOD TO YOUR MONEY!