“Overspending is a very attractive trap. If people like what they are doing, despite the worry of debt, they won’t do anything about it” – Adriane Berg
We live in the times where instant gratification has finally been wed with the dream of “everything at an easy disposal’. Overspending doesn’t seem to be a problem which could be controlled very easily. And though the mind warns against the hazards, the heart desires— well, what the heart desires. The consequent glaring debts and the closets filled with items one wouldn’t need in the next 365 days or perhaps 6 years either signal one thing: a dire need for savings.
And the next big question arises about how one could go about saving while there is so much to do and perceived needs must be analyzed too.
Going ‘cashless’ is one idea which is said to have saved many cases of overspending and has some of the splendid benefits which results in control over overspending. Though with the ease of credit and debit cards at one’s disposal, cash plays the pivotal role when it comes to overspending. Hence it has to be targeted first.
Going cashless has its own benefits for people with a habit of overspending:
a) It saves time
One thing you cannot separate when it comes to shopping on cash and using it for day to day expenditures (we are talking about the unnecessary ones here), is calculation. Firstly, it takes time to manage cash, and going cashless could reduce that to a great extent. Secondly, going cashless might restrict spending overall which results in less trips to the malls or spending time browsing different deals, offers etc.
b) Encourages savings
Not using cash actually helps saving directly, the cash you won’t be using would be saved in your bank account. This technique of going cashless gradually inculcates the habit of saving which might have been absent in the presence of an overspending style. Not only would this have a healthy impact on your bank account but also would help in contingency planning and to have enough capital at the time of investment opportunities that may suddenly arise.
c) A halt to impulse purchases
Emotional spending is what drives many of the buyers and that is exactly what is targeted by almost all of the advertising agencies; know the truth and save yourself from overspending. And if that piece of knowledge doesn’t work, going cashless comes as the knight in shining armor. The cashless option helps people curb the desire to make emotional decisions. This almost always leads to overspending, whether you think you desperately need a different piece of furniture only because you have none in ivory at home, or it is any of the bonds you haven’t researched about but seem important because of the advertisement.
Going cashless is one of the strategies, which greatly help in controlling overspending and encourages savings so to help control unnecessary spending and help a person grow in financial terms.