Good Day Money Optimisers,
Let me ask you a question about movies. Now in the movies when people have a "meeting" to do business with silver brief cases, what is in those silver brief cases? Do they open them up to inspect a shiny visa card? And how about in the movies when those people bust into the hotel room and roll around in joy screaming "I'm rich, I'm rich" in a massive pile of...eftpos cards. If you are like any other human being those scenes where we substitute the folding stuff for plastic loose all their sting and impact. They just don't work, why is that?
Coach Pedro has the answer, it's because we have little psychological connection with plastic! I saw this work the other day in a live experiment. A volunteer stood before a group of people as all watched intently. First a bunch of cash was waved in front of her. Her eyes bulged up, heart rate quickened - she was held. Now when the exercise was repeated with a multi combo eftpos and credit card bundle, what do you think happened? That's right, nothing. No reaction - no emotional or psychological connection.
That is why it is so easy to just spend, spend, spend with plastic. You don't feel like your spending real money. So the most powerful thing you can do is to use ONLY cash for weekly spending. This is a CC principle remember, cash diet only! It's dead easy to know exactly how much you are spending by peeping in your wallet. It's also dead easy to stick to a pre planned amount.
I recently read an article called "The Real Culprit Behind Your Urge to Splurge" and surprise, surprise they laid the blame squarely on plastic. "Studies show that most people are much less likely to buy, or less willing to spend as much, when paying by cash as opposed to credit cards". We have seen it personally in so many cases, so leave the plastic out of the movies and out of your wallet.
Cash Diet - It's nutritious and it is the sure fire way to beef up your bank balance!
Until next time troopers,