How many of you remember when grocery stores would ask whether you wanted paper or plastic? Surprising as it is, I now live in an area where most of the local stores still ask this question! I choose paper 99% of the time as I can, in turn, crumple it up and reuse it as dunnage for inventory I send to Amazon.
While you may not live in an area that offers you a choice in what type of bag you might want, at least for the most part, we do have a choice when it comes to how we are going to pay for the items we purchase. Paper or plastic? Again, I’ll choose paper 99% of the time!
In both cases, I come out ahead. Free dunnage for my business-yes, I am that frugal! Paying with cash-yep, I like being in control of my dollars! In both cases, what a beautiful thing to have such a choice!
Paper or plastic does make one think. Why does a person choose one over the other? While the choice at the grocery store is for the most part fairly insignificant, how we use our hard earned dollars is anything but that! Statistics readily show that a person spends more when using plastic opposed to using cash. There are plenty of articles out there on the subject, but here is what Dave Ramsey has to say about it. Ouch, that is a huge difference!
A very close friend of mine used to be a person who would reach for her plastic for pretty much everything! I jokingly dubbed her “the debit card queen.” On the positive side, at least she was using debit opposed to credit. But even with that, she was still spending more than with using paper! How do I know this? Well, when she decided to jump on board of the get-out-of-debt train, I challenged her to go to a cash envelope system. She took me up on my challenge, and yes, she is spending less!
For those of you also digging your way out of debt, what do you choose? Paper or plastic? If you’re a plastic user, I give you the same challenge I gave my friend. Try using paper! What do you possibly have to lose, other than a whole lot of debt?!
I know I’m the odd woman out, but I do use credit cards, on purpose. I never pay fees, and I never carry a balance, so they don’t cost me anything unless I’m spending more like Dave Ramsey says. Am I spending more? I’ve REALLY thought about this. I don’t think so. For example, I know this week when I go to the grocery store, I have $140 to spend, period. It’s not, “Gee, I hope this cart rings up under $140, but it’s okay if it’s over because I have plastic,” but rather, “I can’t buy beef this week because I have to buy dog food, and buying both would send me over $140.”
Also, an apartment I used to live in got broken into. The cash was gone forever, but I was not responsible for any credit card charges. Similarly, I lost my purse one time. Same thing with respect to the cash and credit cards. I now keep zero cash at home or in my purse except that which goes from the glass bottle deposit to my purse to the next purchase. (We can’t put our deposits back on a credit card.)
Instead of having a number, like $140, in his head, Dear Husband envisions a stack of money. When he hands a credit card over, he imagines the dollars coming off the stack of money. I think that’s his way of making a transaction more visceral (and more painful!) so he won’t spend so much.
Plus, we don’t live near an ATM. We’d have to make a trip into town whenever we needed to withdraw cash.
I learned a long time ago that if I had cash with me, vending machines are too tempting. When I quit carrying cash I got totally got out of the vending machine habit. Imagine my surprise when I recently learned that a lot of vending machines take credit cards now! (Fortunately for me, the temptation is truly gone.)
I also like the way my credit card sends me an email with the store and the amount charged. When I sit down to enter numbers in the budget, I don’t have to fish for receipts. Everything is already on my computer.
And finally, in December, Dear Husband and I see how much we have built up that year on our cash-back cards. That money goes toward a special Christmas donation for a favorite charity and a special romantic gift for each other and maybe a date.:-)
After saying all that, I totally support those who use cash envelopes. Some of my friends and family do, and do it well. DH’s method of imagining the dollar bills works for the quiet, introverted man that he is. It wouldn’t work for everyone.
Hey, it works for you and that is all that matters!
We still have a choice of paper or plastic bags, but if we want one, we have to pay for it – needless to say, I always bring my own and if I forget….I’m walking out to the car with my arms full of groceries….no WAY am I paying for a bag 🙂
I do use the debit card as opposed to cash – I find that I don’t spend any more when shopping (as opposed to a CREDIT card where I definitely do) than with cash and I tend to go through cash quickly…for some reason in my head that cash is already “accounted for” so it is “free money”. Where do I get that idea – I HAVE NO IDEA, but I have found it is better for me not to carry cash around OR a credit card.
I’d carry my groceries too! Sure am glad we still have a free option!
I wish I were more disciplined with plastic, but unfortunately, I’m not. Glad you have found out what works for you.
We only have a mortgage, so no consumer or car debt. It’s a blessing as my husband has been out of work due to an injury for almost a year and a half. With no debt, my job has carried us without changing our lifestyle.
One way we do that is to keep cars much longer than most people. We also budget every dollar of income and every possible expense. We also have a hearty emergency fund that really is only for emergencies. We never travel or even eat out if we can’t cashflow the expense. It works for us.
We use credit cards for needs and regular budget items that we have agreed to buy…. like health care, groceries, cheap cell phone plan, internet, gasoline, repairs, etc….but we update the budget weekly, pay it monthly and never carry a balance.
For groceries and toiletries, tp, etc…We have a stockpile, so we only buy at the lowest price and if there is money left in my budget for that item. If the money is gone, we just use the stockpile.
We tried the cash, buy my husband would take money for a need, spend most of it on a want and it really did not work.
For WANTS, we each have a set amount. You can buy whatever you like or save it. Over the years, I have saved a lot from this category, but my husband has spent most of his, lol.
After that money is gone, it’s gone. It really helps my husband for that budget item to be cash, he won’t help pay the bills or do the budget, so it’s not like money to him. When it comes to budgeting, I do the budget, explain it to my husband and he approves it or we discuss it further. That’s all I can get out of him, but our finances are working. Sigh.
Keep fighting the debt the best way you know how.
Kudos for having no consumer debt! Wow, that is a long time to be out of work. Good for you for managing your finances as you have!
I am one of those folks who actually spends less using my debit card, mainly because I refuse to use it for all those piddly one dollar or two dollar things. I haven’t carried cash in over ten years. Although, yesterday when I left the grocery and saw the cute girl scouts, I told myself perhaps I should keep like ten ones on hand. Also, I find it SO much easier to track expenses with a card.
My hubby sees other people put those piddly amounts on their cards all the time. We’ve never understood it! I admire those who can manage without cash. I’m just not one of them!
I just can’t do cash. Plus I like being able to earn cash back with my debit card, so I try to use it for everything I can. I think with cash I would be totally unaware of how much I have left. Our small town grocery still offers paper or plastic. Once in awhile I need a paperbag and I will take paper, but most I just use plastic. Most of the time they don’t even offer, they just put it in plastic.
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Looks like I’m the minority when it comes to cash vs plastic!
WHATEVER WORKS!!!! Seems to me you are doing pretty darn well!!
Thank you! You are right in that making it work is really all that matters!
I have started just trying to carry it out without a bag if it’s just a few items. As for paying for things, I am a cash girl, mostly.
Good for you!