Cash is very powerful. When you load $ 20,000 pesos in your pocket, you know that it will hurt when the time comes to deliver it. It hurts to spend in cash, isn’t it? Cash helps you spend less because it is emotional. Cash is also very visual, it is not like electronic money that is transferred from computer to computer; It is physical. It is not the same as paying with a card. Cash is real, real money.
Cash also communicates the meaning immediately
right now. It is not like a check where you have to deposit it and confirm the account and in 2 days you have your money. We are talking about “I am ready and I will take it NOW!” When I arrive with $ 20,000 bills there is no concern that if the card will pass or if the credit is approved. Cash is a deal, it has already been done, it is a commitment, it is emotional and we will negotiate if I put the money under your nose. If you do not have cash you lack the most important tool to negotiate.
When you spend in cash, you feel it
There is an emotional link with cash that does not exist with anything else. McDonald’s did a study and they realized that people who buy with plastic spend 47% more than those who pay in cash. The one who arrives with a card buys everything, everyone in the restaurant before feeling the sensation of spending money. There is a study in Carnegie Samelon magazine where a person had a MRI to see the neurological impact with large purchases. What they found is that when people spend cash neurologically it is recorded as pain. When they use a debit card the pain is less and when they use a credit card the pain is much less. So we have to stay as a guardian at the door of our finances, because if it doesn’t escape us – be very careful with that.