Remember when you got money as a kid and would think about what you wanted to purchase for a while before spending? Especially if you knew that you were paying for the purchase? Revert to your old ways as a kid thinking about every purchase before you make it.

My mother accuses me of being very tight fisted with my money as a kid. I did save and thought carefully about purchases before I made them. I had no credit card to use and no safety net so I learned to make good choices. I didn’t always make good choices but the ones I did make after some side steps were definitely good ones.

Spending like a drunken sailor on the other hand is what many people do when the credit card comes out. The sailor part is optional but have you ever been out with friends who set up a bar tab and then spend more than they thought since they were charging everything and not paying for their drinks as they were served? Many people spend way more than they think when they are not paying with cash.  A “couple” of drinks that would cost under $25 with tip generally ends up being more like $50 or so because the tabholder will keep buying and maybe buy a round for friends and lose track of what was spent.

It may seem easy to keep a tab open when you are drinking at a bar, but paying cash also helps you keep track of what is in your wallet. When you have to keep opening your wallet and see the cash dwindling then you are more likely to drink and spend less.