9
Tried a cash envelope system vs. my credit card rewards approach for 3 months
I always thought I was winning with my cash back card, getting like 2% back on everything. But I kept overspending by hundreds each month on random stuff. Switched to cash envelopes for groceries and eating out in January, and I saved $180 in my first month alone. Has anyone else found that the psychological barrier of handing over physical cash beats the rewards game?
3 comments
Log in to join the discussion
Log In3 Comments
taylorc4015d ago
Dude I did the same thing last fall and it's crazy how much it changed my spending. I was using a Chase card that gave me 3% on dining but I'd end up hitting Chipotle like 4 times a week because "I'm getting cash back" so it felt free. When I switched to cash envelopes for fun money and restaurants I saved almost $200 in the first month too. The physical act of watching that envelope get thin really hits different than swiping a card. Now I only use my credit card for recurring bills and gas where I don't impulse buy.
8
nancycooper15d ago
Same here. I used a Capital One card that gave me 2% on everything. Thought I was being smart. But I'd grab coffee every morning because "it's on the card." That adds up fast. Switched to cash for dining and random buys. First week I actually felt the money leaving my hand. It hurt. Made me skip a lot of junk I didn't need.
1