recreatingreality.com

Interesting! When we use our credit cards in restaurants to pay for our dinners, we generally spend 20% more than when we pay with cash.

While I don’t have the exact numbers for each type or purchase we make during the course of a day, week or month, according to one of the faces from the Wall Street Journal, when we dine on credit we actually spend one-fifth more than we do when we pay with real dollars.

I would suggest that the percentage may be even larger when shopping in the grocery market, especially when your children are with you. Let’s say you go grocery shopping on a Friday evening after work or on Saturday after cleaning your house. You are tired. Your resistance is down. And, your children, especially on a Saturday, have a mental list of all the new cereals and snack bars, thanks to the Saturday morning cartoons. If you have $100 in your purse or wallet, you know exactly how much you can spend. If you pay with your credit card, it is easy to add “just one more thing.” After all, you are only a few dollars over budget.

Think of shopping in retail stores, even WalMart… or especially WalMart. You approach the clothing department. You need a blue blouse. When you approach the rack, you notice that instead of the regular price, blouses are on sale for $12.00. What a bargain! You purchase the blue blouse, but what about that green one? It would match those dark green pants you have. Chances are if you are paying with cash, you will purchase only the blue blouse. If you are making your purchase with a credit card, chances are you will buy both. Don’t believe it? Think. Have the courage to face your truth.

I would suggest that if you doubt your ability to cut spending by 20%, do the test. For seven days, make your purchases with your credit cards. Keep your receipts… all of them! For the next seven days use cash only! Keep your receipts and compare.