Use Cash, Spend Less. Boo Credit.
I read this article on CNN.com today. Bascially it was talking about the shopping habits of Americans this Christmas season.
“Most Americans have put themselves on a budget this holiday season and are sticking to it,” said Phil Rist, executive vice president of strategic initiatives at research firm BIGresearch, in a statement. “Retailers are finding that consumers who pay with cash or a debit card may be less likely to make impulse purchases, but recognize that these shoppers are also trying to put themselves in a better financial situation to spend in the future.”
I don’t get the feeling that the article is pointing out the problems of this approach, but its funny that this is possibly conceived as bad news. At least, I’ve seen this logic used in the past few weeks other places asa a means of saying how we are in trouble. I’ve always said, that we have an economy that is dependent on the people spending money they don’t have is a rather significant problem.
So, stop using plastic and start spending cash. My wife and I are in the midst of transitioning to a cash system and I’m kinda excited to see how much of a difference it makes in the way we spend our money.