Plastic Attack - Eftpos and Spending....Back to Cash Thanks.
One thing that made me think, and made me want to start Cash Control was the following question. “Why does NZ have the worst savings record in the OECD?”. Why do we spend $1.13 for every $1.00 we earn. These are not statistics to be proud of and they affect each and everyone of us everyday.
There is no doubt that behaviour and habits play a part here. That is why Cash Control exists. But we also believe that the proliferation of Efptos and “plastic” is a big factor. Eftpos and plastic makes it so easy to spend. You can quite easily forget that you have don’t have an infinite supply of money. Whenever that magic card comes out it’s almost as though money does not exist. Eftpos and plastic is an extremely easy way to achieve what the industry calls “liberation of cash from consumers”.
One of our principles is to put people on what we call a financially wholesome "Cash Diet”. This means cash only for weekly spending, no plastic! This one small change can produce massive results. When you have a certain amount of cash in your wallet it is very easy to keep to your budget. You don’t have to recheck statements, log onto the net, or ring the bank – you just open your wallet and take a peek. It is also very hard to ignore the fact that you have blown out – it’s not a see no evil, spend no evil Eftpos trap. You see cash fly out of your wallet and know where your money is going and how much more you have left until the end of the week.
The key is making it easy to do, and easy to win. It may not be tasty to start with but it is good for you and after a few weeks you hardly notice your diet at all. Except for your hassle free attitude to money management and the cash stacking up in your savings account.