Do cash control spending more than digital or crypto currency?

[jossiel]

When you handle plain cash, you really can budget it for sure because it's on your hand. While if you're going to transact with credit cards or debit card, you feel convenient to spend through it and you won't notice how much you've got left.

There's a known disorder; compulsive buying disorder and that makes a person spends like there's no tomorrow through cards. So, I do agree that it's better to spend cash as you can monitor your expenses and budget.

[Gozie51]

There's a known disorder; compulsive buying disorder and that makes a person spends like there's no tomorrow through cards. So, I do agree that it's better to spend cash as you can monitor your expenses and budget.

Funny likewise because sometimes this makes me to think out of the box if the cards are actually made for someone to spend more because if you look at it deeply, you spend more with cards probably because it is more convenient as you can stay right there in your closet and shop online, make payments and get delivery. Carrying cash about does not give that kind of comfort and convenience.

[Hydrogen]

here have been high increase in cash deposit and withdrawals in Britain.

There are so many potential motives behind upticks in cash withdrawal and deposit. Its difficult to pinpoint a prime mover or single cause.

Greater cash deposit could be one indication that more side jobs and freelancing gigs are being taken on in response to rising inflation. There could also be greater transaction volume in second hand markets. More garage and bake sales. Which could be another reactionary movement to inflation.

Greater cash withdrawal could be linked to concerns of electronic payment outage. Recent bank runs abroad. Consumers needing more cash on hand to cover rising prices due to inflation.

I would be interested to know the real reasons behind these trends.

[virasisog]

When you handle plain cash, you really can budget it for sure because it's on your hand. While if you're going to transact with credit cards or debit card, you feel convenient to spend through it and you won't notice how much you've got left.

There's a known disorder; compulsive buying disorder and that makes a person spends like there's no tomorrow through cards. So, I do agree that it's better to spend cash as you can monitor your expenses and budget.

I certainly agree because I myself have experienced it a lot of times. I could easier break down my expenses and do the right budgeting when I have cash on hand but when I have a credit or debit card, I usually buy more than I need. I feel guilty for that but I believe that cards could tempt us to purchase things that we only want but are not necessary. I prefer having cash on hand because I can control it easier than using cards.

[el kaka22]

I do agree that when you are holding the cash in your hands, you spend it less and realize how much you are spending and seeing it go down. When you have it on your card or if you have a credit card then you do not perfectly understand what you are spending that on. As a married person I can tell you that for my wife "we need this" things are a lot, and that's why I have been living in a debt world for the past 10 years, because she thinks that we need things that we do not actually "need", the word lost its meaning on her.

You need water, you need food, you need a house to live in, those are things that you need, "we need a pepper and salt shaker" is not a real thing, use the old ones. So when people are like that, you end up seeing the money go down digitally and not realize the mistake you are in, but if it is cash then you would have a better understanding of it.

[romero121]

The world is moving towards cashless system. This can have the positive as well as negative part. Whenever I have currency in hands I used to spend it, and I don't have the clear picture on which I've spend the money. I could've taken note of it, but I don't.

When I use with the card or with some form of digital transaction I have the clear data on my spending. Through this I can restrict the spending on the upcoming weeks/months. So, it is not about the cash or the digital transaction. It is all about the way we take note of our spending.

[jackg]

There are so many potential motives behind upticks in cash withdrawal and deposit. Its difficult to pinpoint a prime mover or single cause.

Retail forex rates are very low in the UK from what I remember because of the closeness with other countries and how many euros/kronas/francs etc can be moved and how much the market can handle. I've seen rates being well advertised and it's likely because they're offering lower rates than what's available from banks (even without bank fees factored in - although I think they also tried to nullify theirs if you order in advance). My guess here is that banks and larger institutions try to run off trust - it works out well for them with the older generations.


Cash makes me more aware of what I'm spending (or it used to when it was paper). There's a cost to using cash and that cost of change. If you're trying to save money and budget better with it then sure use cash and you could probably save money even if you donate the excess (if you're bad at budgeting or really impulsive) but for a lot of people I don't think this is the case.

[mm2543363580]

The world is moving towards cashless system. This can have the positive as well as negative part. Whenever I have currency in hands I used to spend it, and I don't have the clear picture on which I've spend the money. I could've taken note of it, but I don't.

When I use with the card or with some form of digital transaction I have the clear data on my spending. Through this I can restrict the spending on the upcoming weeks/months. So, it is not about the cash or the digital transaction. It is all about the way we take note of our spending.

That is valid point you have proof and you can control the more money you have in your wallet you spend almost all of them
so its better to keep a limited cash in your hand and try to hold your spending to be on the safer side ...

[Findingnemo]

A recent research by the Britsh Post Office unveiled that 71% of Brits planning on going on vacation in the UK this year intends to take out cash before leaving. There have been high increase in cash deposit and withdrawals in Britain. People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

What do you think?


https://www.bbc.com/news/business-62437819

I don't know how much billions were transferred in this way but its not going back still people prefer the cards so counting paper money can help us to save money is just a myth or for people who is more weaker. But the good thing is they start realizing it so in future either its stored in any form they will be aware of savings.

[AmoreJaz]

The world is moving towards cashless system. This can have the positive as well as negative part. Whenever I have currency in hands I used to spend it, and I don't have the clear picture on which I've spend the money. I could've taken note of it, but I don't.

When I use with the card or with some form of digital transaction I have the clear data on my spending. Through this I can restrict the spending on the upcoming weeks/months. So, it is not about the cash or the digital transaction. It is all about the way we take note of our spending.

That is valid point you have proof and you can control the more money you have in your wallet you spend almost all of them
so its better to keep a limited cash in your hand and try to hold your spending to be on the safer side ...

in my opinion, it depends on how the person is managing his funds, whether cash or via his debit/credit card. sure, debit or credit card has their records of your expenditures. but if you know where your cash is going, you can also track it. but a lil bit tedious if you make a record of it. at the end of the day, it is how you spend your funds, no matter what form you are paying, when it comes to controlling your expenses.

[btc78]

I  must admit the fact that people are just starting to enjoy the freedom of having crypto to spend for and with this the control is really not that tight comparing when it uses fiat , so indeed for now it is more controllable in using Money Physically than crypto or other digital form of money.
but in the coming years as the innocence will get lessen ? then people inside digital world will become more controlling in crypto than cash.

[Darker45]

I completely agree. And although I am not from the UK, that's what I am also doing. Every time I go on a vacation or even just an outing, I always withdraw a certain amount of cash for it. There's a number of reasons for that, but one of the main reasons is to limit my spending within the amount of cash that I'm bringing.

It has been a widely accepted observation here in my country that spending with a card, especially with a credit card, will often make you go beyond your supposed limit.

[amishmanish]

I think the lesser money we carry in our pocket on any day, the lesser we end to spend. In that sense i believe using cash will help us to budget better. However I think spend trackers can also be a good tool for budgeting. They help in determining long term losses well thuus tell us how to minimize them

[Lambe Ndumble]

The central bank certainly has a means and data to be able to control Fiat circulation, but I'm sure that direct transactions are difficult to control and even monitored, while Cryptocurrencies are chain networks that are easily traced and data validity is certainly guaranteed compared to data from the Central Bank that controls FIAT.

[Letieonard]

Although cash is easier to control spending, compared with digital currency, cash still has many disadvantages, such as inconvenient to carry and easy to lose. In addition, the trend of the development of The Times is becoming more and more digital. As for the problem that digital currency is easy to overspend, mobile phone prompt can be set. When you spend a certain amount, mobile phone will prompt you.

[jaberwock]

A recent research by the Britsh Post Office unveiled that 71% of Brits planning on going on vacation in the UK this year intends to take out cash before leaving. There have been high increase in cash deposit and withdrawals in Britain. People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

Depends on the person isn't it? I mean I have a friend who has both cash and a high amount credit card, and a lot of crypto, he is a super wealthy person, he made 500k dollars just this year. But he doesn't spend it all in one place or he doesn't waste money, he knows how to handle it and he makes a good chunk of profit from having that kind of income and investments.

He could retire right now at age 35 and would never need money again and he still doesn't because he knows that the higher he has, the longer he could stay retired without needing to work again. I guess cash or digital depends on the person but if you are good at not spending more than you should, it would probably not matter.

[Gyfts]

A recent research by the Britsh Post Office unveiled that 71% of Brits planning on going on vacation in the UK this year intends to take out cash before leaving. There have been high increase in cash deposit and withdrawals in Britain. People are going back to cash because they believe that it keeps tighter control on their spending as living costs soar.

It is believed that cash helps people budget, as using it means you literally can count the pennies. Paying with a card or crypto currency make spending easy and convenient that sometimes one tends to overspend. Sometimes one might not even know the balance of his account but with cash you are always aware of how much you have.

What do you think?


https://www.bbc.com/news/business-62437819

People take cash out before traveling all the time. For the reason if credit cards get stolen or they receive transactional errors from the merchant's end, it's good to keep cash on hand. This isn't indicative of a trend back towards cash, that ship has sailed a long time ago.

I suppose it's easier to budget when you're spending actual cash instead of putting everything on credit -- I'd just caution that this sort of method doesn't apply to most folks and it certainly isn't a rebuke of cashless payment methods.

[erep]

People take cash out before traveling all the time. For the reason if credit cards get stolen or they receive transactional errors from the merchant's end, it's good to keep cash on hand. This isn't indicative of a trend back towards cash, that ship has sailed a long time ago.

I suppose it's easier to budget when you're spending actual cash instead of putting everything on credit -- I'd just caution that this sort of method doesn't apply to most folks and it certainly isn't a rebuke of cashless payment methods.

Although there are many merchant applications that support various payment needs while on vacation, but I need more cash to spend in tourist areas except for the cost of airline tickets, hotels and other large payments via credit cards. But regarding crypto, I prioritize crypto payments if merchants accept them, but unfortunately crypto payments are only accepted in certain places and sometimes not at all in other countries because of the prohibition on their use other than fiat if based on law.

[nakamura12]

It is because many countries have used digital in spending money either by buying stuff online, pay bills online and check your balance online. It is the same in my country where most people use an app to store their fiat money and there is also an interest when you deposit like 2.6 interest rate that you will get per month. It is more convenient than crypto because not all country accept cryptocurrency so, that's more likely the reason why paying crypto in other country is not always the payment method used all the time but cash is.

[BRINIRHA]

Am I the only one here who feels that every time I hold fiat money, I become more wasteful?

sometimes every money I withdraw from an ATM (cash) is easier for me to spend. because here there are more shops that only accept fiat cash and do not accept payments via digital (ATM and crypto).

then I only withdraw the money that I will spend to make ends meet. and the rest I save by not withdrawing it at all. sometimes i save in stablecoin and then i stake it to grow.