Most likely we feel that money online is virtual money and not real.
I am surprised to hear that, so you go on spending sprees when you spend through online means because you feel the money is not real, lol. That is very funny to me and i would advise that you withdraw all your money and bury the cash behind your house, so you can start spending more responsibly.
I don't really understand what some of you are saying. You spend online, you get debited, you can see your balance and what you have left, yet it does not feel real. Does it feel real when it reads $0?
Maybe the reality of thinking that online money is not real will set in when he becomes indebted. In some societies,, cash is rarely used, so it doesn't make sense that people see it as unreal.
Since online banking shows the balance each time a transaction is made, it puts users under check. It is not like cash which you might not have the patint to coin how much is remaining after spending.
Spending responsibly is not a function of the means of payments. A prudent spender will always soend responsibly regardless if it is online or physical fiat.
It's not surprising; it's simply a psychological phenomenon. It doesn't mean I'm spending irresponsibly or going into debt because of it. It's simply that you don't experience the same feeling you get when you pay a large sum of cash. I'm not the only one who says this; many others have said they feel the same way, and scientific studies confirm it.
In my country here, we still mainly use cash and only use electronic payment for some services, so perhaps we don't feel that we spend a lot.
One truth we should not fail to realize is that, convenience many times than not, leads to how we feel the impulse to make some spending decisions as in this case of how one feels about spending cash or digital currency.
Different control tricks can be used to know how to manage our expenses both in physical form or digital form and at the core of this trick lies the discipline of bankroll management.
