Why do you feel bad about spending cash, but not about making online payments?

[bhadz]

It does matter who says what because I feel the loss when I spend. It is both same for me, funds leave my hands or my account the figures drops and that has some degree of impact on me.

Both have a degree of regret when we spend it. But I think that through online payments, we feel sort of relief that we've paid for the convenience compared to paying in cash, there's a different feeling that I feel for both of it. Although after spending either of the ways, I still feel that I have to spend wisely rather than do an impulsive buying. I think in the sense of spending, we all feel bad after doing it even if it's done with a purchase of important things even with the bills. Because money that we have earned is going away but, it comes back and will be with even more.

[leonair]

This is our psychology, and since childhood we have been hearing that money is a valuable resource. When we can touch and hold that money, we feel a little bad about spending it, but when we pay the same amount of money online, it doesn't feel so bad to us. This is because it is electronic money, it cannot be touched, only a digit is visible. That is probably why our psychology cannot think of it as valuable as physical cash money. That is why we feel much better about online payments than spending cash money. Again, if you use a credit card, it feels less bad to pay with your card card money than with your own money. Because at that time you have to pay with your own money immediately.

[Dogedegen]

Have you noticed one thing?
As bad as it feels when you take out cash or paper notes from your pocket, sending three times more money than you do with a card or digital payment does not feel as bad. In both cases, your money is going. So why doesn't our brain treat both expenses the same way?
There is an interesting explanation for this in behavioral economics, it is called "The pain of paying".
 https://cir.nii.ac.jp/crid/1360011146037792896
https://www.ovid.com/journals/mlett/abstract/00125025-200112010-00001~always-leave-home-without-it-a-further-investigation-of-the

This is a really good topics, thanks for bringing it up. There are also many books that talk about this and how humans are tricked to do things the wrong way. People think that they are being trendy and modern by using cards and tapping to make payments, but this was created intentionally to make you spend money easier. Spending money should be hard and slow, so that you think about each thing before you buy it. I think there are some other studies that investigate just how much people are impulse buying but also how much they are buying unnecessary things, and it is a lot unfortunately. It is much better to stick with cash, also for reasons of privacy but you get this benefit of better spending discipline automatically with it.

There is no physical friction here, no paper notes are changing hands. Just one tap, one OTP, and Done. And the interesting thing is that when the pain of payment decreases, the control of spending also decreases.

Friction is not always bad as we can see in this case.

A study by MIT has shown that when people use cards and digital payments instead of cash, their tendency to buy unnecessary things increases by 20%-30%. Because the brain cannot fully feel that money as a loss. And that is why spending often goes unnoticed in today's digital economy. Subscriptions are running, auto-renewal is running, one small payment after another is being deducted from your account, but it does not bother or pain you.

I now wonder how Bitcoin is and how other shitcoins are in comparison to this. I think that the ideology behind Bitcoin and scarcity is able to mitigate away this effect completely, even if the person has some kind of low friction setup like a Bitcoin debit card. Those that have things in cold storage and in complicated solutions are the best positioned because there is a very large friction involved. I think that ideology and large friction combined lead to very conservative spending habits.

[Juse14]

This is our psychology, and since childhood we have been hearing that money is a valuable resource. When we can touch and hold that money, we feel a little bad about spending it, but when we pay the same amount of money online, it doesn't feel so bad to us. This is because it is electronic money, it cannot be touched, only a digit is visible. That is probably why our psychology cannot think of it as valuable as physical cash money. That is why we feel much better about online payments than spending cash money. Again, if you use a credit card, it feels less bad to pay with your card card money than with your own money. Because at that time you have to pay with your own money immediately.

psychologically it was born from the mindset, when your mindset considers the size of the digits you have is low then the attitude will definitely be different, we must see how the mindset is important in assessing money either digitally or in cash because both are the same money you get from the hard work you do, the drops of sweat that fall to get the money need to be remembered when you use the money.
Some people may fall asleep because of using
the card is much easier even without looking at the balance you have, as if you don't lose anything when you take it out.

The Mindset is very bad, especially in the current era where the price of goods is on the rise, which makes many people unaware that the more money spent on living expenses is coupled with the psychological that has been formed from not seeing the value of each digit that is recorded.

[Davidloki]

It does matter who says what because I feel the loss when I spend. It is both same for me, funds leave my hands or my account the figures drops and that has some degree of impact on me.

Both have a degree of regret when we spend it. But I think that through online payments, we feel sort of relief that we've paid for the convenience compared to paying in cash, there's a different feeling that I feel for both of it. Although after spending either of the ways, I still feel that I have to spend wisely rather than do an impulsive buying. I think in the sense of spending, we all feel bad after doing it even if it's done with a purchase of important things even with the bills. Because money that we have earned is going away but, it comes back and will be with even more.

Spending money on something satisfactory is never a regret to me, it's more like feeding my cravings so I would not really categorize it as a loss. The use of online payments are literally the best and relieves a lot of stress, because cash is not always available as one would need to visit the bank or a withdrawal outlet to have cash, compared to online payments that could be made from the comfort of your home. The most comfortable means is making more money, because expenses cannot be avoided.

[bakasabo]

This is our psychology, and since childhood we have been hearing that money is a valuable resource. When we can touch and hold that money, we feel a little bad about spending it, but when we pay the same amount of money online, it doesn't feel so bad to us. This is because it is electronic money, it cannot be touched, only a digit is visible. That is probably why our psychology cannot think of it as valuable as physical cash money. That is why we feel much better about online payments than spending cash money. Again, if you use a credit card, it feels less bad to pay with your card card money than with your own money. Because at that time you have to pay with your own money immediately.

I want to add that in childhood children are often suggested to save money and "not to waste them unwise" (because it is not known when they will get money again since they dont earn and have no job). Maybe that psychologically push us not to spend cash as we remember from childhood that we should keep them in piggy bank for as long as possible and save for a major purchase. But maybe those who understand value of cash (that they can do more with it, for example negotiate better deal because buyer wont pay taxes if he is paid by cash, or that cash is in a way uncontrolled financial resource) prefer not to spend it for no reason but use digital money instead.

[viljy]

So that’s why some people find it hard to part with money. They literally suffer when making a payment. And they drag their feet when it comes to repaying a debt. They hold on to money for a long time. I remember this from the times when only cash was in circulation in the country, and there were no bank cards.

And now? It’s really easy to add a bunch of items to a marketplace cart, because the price is just numbers (and you can even pay with a credit card). Psychologically, shopping has become easier. But people’s ability to save has also decreased. This is understandable - a market economy needs a person who lives to consume as much as possible.

[Grace333]

Technically they are both the same thing, when you make a transaction online or spend the same amount of money in cash you are basically still spending money the only problem here is that once it comes to disbursing physical Cash it feels like you are overspending, that's just a mental thing. But I think this only affects people that haven't developed their psychology to handle money. The fact is that money either has to be invested, saved or spent, either way you are going to be debited, that's if you transact with an online bank or you are going to spend physical cash, one way or the other it is going to leave your possession. Anyone having such mindset just needs to adjust their thinking.

[Judith87403]

Psychologists have found that when you take out cash from your hand, the brain treats it like a physical loss. This is why people used to count the cash they had in hand when going to the market earlier. Because taking out each paper note was visibly painful. But digital payment has changed the entire system. There is no physical friction here, no paper notes are changing hands. Just one tap, one OTP, and Done. And the interesting thing is that when the pain of payment decreases, the control of spending also decreases.

I understand your point but it doesn't make any difference whether you take paper money from your pocket or you use digital transfer methods to make payments. I can argue with you that the digital transfer system is the most painful because do you know how it feels to always have access to your money all the time? It means you are most likely to spend extravagantly even on frivolous things because as soon as your brain tells you that you need to get something, you will find yourself already getting it because you have access to the money. It might be later on that you will start regretting your actions when the deed has already been done. If we were still in strictly paper money era, you won't spend much because each time you run out of the physical cash in your possession, you will need to go to bank to get morw money which will take you time, possibly transportation money to get to the bank and the stress you will need to pass through which can even demoralised you in the end.

[Umulala-alala]

Technically they are both the same thing, when you make a transaction online or spend the same amount of money in cash you are basically still spending money the only problem here is that once it comes to disbursing physical Cash it feels like you are overspending, that's just a mental thing. But I think this only affects people that haven't developed their psychology to handle money. The fact is that money either has to be invested, saved or spent, either way you are going to be debited, that's if you transact with an online bank or you are going to spend physical cash, one way or the other it is going to leave your possession. Anyone having such mindset just needs to adjust their thinking.

You are right spending on a physical cash feels like one is spending a lot but it's just same thing as transacting online, it does happen to me using cash to buy some goods always feels much for me but when a i make it on a transfer i don't feel much of it but it's just the same thing but at some point in life the mentality went off because both are just technically the same because it all resulted to be debit and not credit.

[cryptomaniac_xxx]

Technically they are both the same thing, when you make a transaction online or spend the same amount of money in cash you are basically still spending money the only problem here is that once it comes to disbursing physical Cash it feels like you are overspending, that's just a mental thing. But I think this only affects people that haven't developed their psychology to handle money. The fact is that money either has to be invested, saved or spent, either way you are going to be debited, that's if you transact with an online bank or you are going to spend physical cash, one way or the other it is going to leave your possession. Anyone having such mindset just needs to adjust their thinking.

Yeah, most likely that is the case, as our mind thinks that we are spending more with cash and we feel bad about it. But using online, it's quite very easy as everything is very smooth specially if you pay bills.

Nevertheless, there might not be any difference at all, as it boils down on our spending habits and how we are using our hard earn money. Perhaps it was also due to the fact that everything can be done in online now that we think it's smooth and seamless and there are no problem whatsoever.

[Jasmyne]

Technically they are both the same thing, when you make a transaction online or spend the same amount of money in cash you are basically still spending money the only problem here is that once it comes to disbursing physical Cash it feels like you are overspending, that's just a mental thing. But I think this only affects people that haven't developed their psychology to handle money. The fact is that money either has to be invested, saved or spent, either way you are going to be debited, that's if you transact with an online bank or you are going to spend physical cash, one way or the other it is going to leave your possession. Anyone having such mindset just needs to adjust their thinking.

Yeah, most likely that is the case, as our mind thinks that we are spending more with cash and we feel bad about it. But using online, it's quite very easy as everything is very smooth specially if you pay bills.

Nevertheless, there might not be any difference at all, as it boils down on our spending habits and how we are using our hard earn money. Perhaps it was also due to the fact that everything can be done in online now that we think it's smooth and seamless and there are no problem whatsoever.

Honestly it still feel same way to me, I see no difference because both ways, I’m still spending my money and the only difference I see here is that spending online is fast, easy and more convenient.
In as much as it’s something I really want to get and I have the funds to get, be it cash or online, it leaves no regret on me or a weird feeling for the means of payment I used and the only thing I see here is reduction of funds after spending, which not everyone will be happy about.

[Fortify]

So that’s why some people find it hard to part with money. They literally suffer when making a payment. And they drag their feet when it comes to repaying a debt. They hold on to money for a long time. I remember this from the times when only cash was in circulation in the country, and there were no bank cards.

And now? It’s really easy to add a bunch of items to a marketplace cart, because the price is just numbers (and you can even pay with a credit card). Psychologically, shopping has become easier. But people’s ability to save has also decreased. This is understandable - a market economy needs a person who lives to consume as much as possible.

You should not confuse these two things. Owing a debt when you have money to pay it and should be paying it is a different matter. If you owe a debt then it shouldn't matter to you whether you have a digital version or a cash in hand version - it doesn't belong to you in the first place. You're mixing in paying debt which might have a whole other set of rules and research required to untangle it. Failure to pay your debts should come with a separate pain of itself where the form of repayment is not relevant. Some people are honest and know their responsibilities in life, plus they honor their commitment to promises made - like repaying borrowed money. Then there are just scoundrels who will borrow from all and anyone who is foolish enough to lend, but they have no regard for paying it back.

[PVequalNRT]

Spending money on something satisfactory is never a regret to me, it's more like feeding my cravings so I would not really categorize it as a loss. The use of online payments are literally the best and relieves a lot of stress, because cash is not always available as one would need to visit the bank or a withdrawal outlet to have cash, compared to online payments that could be made from the comfort of your home. The most comfortable means is making more money, because expenses cannot be avoided.

I think he is making emphasis on spending cash looks big. Have you ever wonder why people go to club and spend $100k and feel like it's nothing, it's because we are now in a cashless policy where people don't see problem spending large amounts of money. If that money are been paid in cash, some people will not be able to spend the money that way.

The existence of cashless policy has makes the way people spend money the way they like, they don't see any problem spending money anyhow.

[Pi-network314159]

Have you noticed one thing?
As bad as it feels when you take out cash or paper notes from your pocket, sending three times more money than you do with a card or digital payment does not feel as bad. In both cases, your money is going. So why doesn't our brain treat both expenses the same way?

Initially I didn't see different in both, I have said it before that both are the same and I don't think there's any different, but within the week i made a transfer of about $300 in a simple online figure, but when I withdrew that same money in our own fiat, it was so huge in the hand that I changed my mind in what I intend doing before. Sometimes I prefer paying loan by transfer because I may send all at once and never feel the absence. But whenever I want to pay in cash, I take time to check if the fiat is complete, and this is the sign of beginning to feel the absence of the money.. truely it feels sad spending physically cash onlike online.

[Makus]

It is all mental, when people spend physical Cash they feel tend to feel the value more because it's tangible but they actually spend more than that when making online transactions but they don't really take it as a big deal. The value of physical cash and money you spend doing online transactions are actually the same and personally I don't have such mindset. The reason why a lot of people think that tangible cash seems bigger is because they don't make use of it more often as the way they deal on online payments, this is what their brain has become adapted to.

[Spaceman1000$]

This analysis is very correct, I recently had some cash at hand that I wanted to use to get some items in the market, I brought it out and I counted it for making payment on those items, I felt something had left me as I was making that payment, it was making it look like me losing my money, this is because I could easily or physically see the money leaving my pocket, funny enough the item I was getting wasn't my problem, my mind was not counting on the item rather it was on the money I was losing while paying for it. However the feeling is different when I make transfers for items or I want to purchase something, there is no feeling, and the funny part is that, sometimes you make bigger money in online transfers than with cash, yet the feeling is different when you pay with cash. The study was really well observed as it's our daily experience.

[Freeveto]

It is all mental, when people spend physical Cash they feel tend to feel the value more because it's tangible but they actually spend more than that when making online transactions but they don't really take it as a big deal. The value of physical cash and money you spend doing online transactions are actually the same and personally I don't have such mindset. The reason why a lot of people think that tangible cash seems bigger is because they don't make use of it more often as the way they deal on online payments, this is what their brain has become adapted to.

I thought I was the only feeling the same; I see more value in physical money emotionally than the money I spent online, because I see online money as something I will just send because it’s just figures, but holding row cash is and spending them is always emotional, you will look the physical money gone, and that’s where you know the value of the money you spent.
So I think if you don’t want to be boarded with the money you are spending, prefer online transaction over using physical cash to make payment to avoid being affected emotionally because that’s when you will know the level of inflation.

[Mate2237]

I hardly keep cash in my possession not because I don't think it's easy to use or because I feel bad about spending it but personally it is more convenient for me to do digital transfers to making online payments than to carry Cash around. If you have a huge amount of money that you are planning on paying to someone probably based on a transaction there's no point in giving that person cash unless they specifically request for it due to some reasons that are best-known to them but this is the 21st century and transactions have been made a lot easier. You can only make of cash when you are making payments for things that are not too high in cost.

[bhadz]

It does matter who says what because I feel the loss when I spend. It is both same for me, funds leave my hands or my account the figures drops and that has some degree of impact on me.

Both have a degree of regret when we spend it. But I think that through online payments, we feel sort of relief that we've paid for the convenience compared to paying in cash, there's a different feeling that I feel for both of it. Although after spending either of the ways, I still feel that I have to spend wisely rather than do an impulsive buying. I think in the sense of spending, we all feel bad after doing it even if it's done with a purchase of important things even with the bills. Because money that we have earned is going away but, it comes back and will be with even more.

Spending money on something satisfactory is never a regret to me, it's more like feeding my cravings so I would not really categorize it as a loss. The use of online payments are literally the best and relieves a lot of stress, because cash is not always available as one would need to visit the bank or a withdrawal outlet to have cash, compared to online payments that could be made from the comfort of your home. The most comfortable means is making more money, because expenses cannot be avoided.

There's a sort of regret with most of our purchases. But if you're the type of person who feels no regret in that moment due to the happiness of what you do, that's better. But keep in mind, not all are like that, and I think each of us needs to learn from you on how it should satisfy each of us. Because even paying the bills and other obligations that we have feels like there's a bit of regret. I know that it's a responsibility but, I think that most breadwinners feel that way whenever they have done something good and paid for their family.