What should I use for payment? - Really?? Cash?? Only??

First advice you will hear when you want to start cutting down your spending, will be START USING CASH - and give up all the credits you may receive from using credit cards.

Really?? Do I have to?? Was my response to it. We are living in a such a technology developed era. Is it really necessary to use paper money when you can simply carry a single thin(and pretty) credit card? And who wants all the heavy and dirty coins? Right? (My mom always made me wash my hand after touching coins, you never know where it's been) 

I always questioned this advice until when I was half forced to use cash. I was planning a trip to Koh Samui, Thailand and I had to put all my expenses and my friend's expenses on my credit card. And then of course, my friend paid me back  after the trip, but in cash. I didn't have ATM nearby my place and I was really busy after the trip so I didn't have time to put the money back into my account. Instead I started using cash(cause I clearly was on my limit for credit card and had no balance in debit card) 

But that first week of me started using cash, I felt something different whenever I paid for something. It felt like everything was expensive, even the normal lunches I used to have everyday. Because I was physically watching my money handed of to another person, and feel my wallet getting thinner and thinner. And believe me here, I was the girl who would spend crazy amount of money on the clothes and feel like it's a bargain all the time - because I bought it 30% off and if I put it on monthly installment plan it was like nothing. 

Ok. There's a really long story behind me getting into this trap of spending massive money, but we will get into that deeper another time. 

Anyways, that is the first time I felt like I need to spend less money. Also it was literally impossible for me to buy any luxury goods I love and used to buy so easily because there was no way I was able to hand off that much bundle of cash. No way. 

That's when I learnt my lesson. So there WAS reason why professionals suggest you to spend cash rather than credit cards. 

After than, there was a phase when I was  thinking, hold on, what's the big difference if I pay by my debit card? It should be same as using cash because you can only spend the amount you have in your account. And then I started using debit cards. It was totally working for me for the few month. I was feeling really good because it felt like I was doing a great job spending not so much money. But once I got used to it, I noticed myself sending more money whenever I needed to, to my debit card account. It was great in a sense that I don't get to spend more than I have, but with that pattern it was clear that I was not able to save any money. And personally, I think debit card somehow makes my unconsciousness remember what it was like to use credit card, and spend it little more. I don't know why but I always imagine myself to be looking so cool whenever I hand off my credit(or debit) card to the sales person. 

Maybe from all those Sex and the City and Shoppaholic movies. It looks cool, but not so cool when you look at you balance. 

So here's my suggestion when you are really trying to get out of debt and cut down some of your spendings, USE CASH. 
If it's too much effort to carry a big wallet with bills and coins, at least use debit card, unless you have total control of yourself - and I believe who visit my blog would be similar to me ; totally not able to control myself.
Girls, if you really want to change your spending habit, cut your credit card.

With Love, V