Daily Archives: February 5, 2011

Cash is Closer to Home

A post on the allure of using smart phone mobile payments from blogger Shopping to Saving caught my attention.

Basically, she wrote about a Starbucks application which can be used as payment at Starbucks.  Even though I think this is a nifty idea (and wish I thought of the idea to patent), alas, I will not be using any app to pay for anything any time soon.

My reason for this is “cash is closer to home.”  I find that the more separation there is between physically paying for something with cash, the less I feel I am “paying” for it.

Take this weekend for example.  I took out $160 cash from the bank machine to pay for my hair cut ($70) and my bus tokens ($50).  Physically using those $20 bills was much more painful for me than simply swiping my credit card, even though the amount spent is still the same.

Even the motion of just counting the money, gives me a few extra seconds to debate whether I really want to be spending this money.  This is not to say that I operate on a cash only basis.  Most purchases I make are on my credit card (which is paid off in full every month), and I carry about $60 in cash on my most times.

If I had an app to buy things, there is yet another layer of separation between me and my cash, which makes it easier for me to spend money.  So for me, by just using sticking to my cash and credit cards, I’m inadvertently saving money by removing layers of separation to my money.

Readers, would you like to use apps and other devices to pay for things?  Do you think these apps would make shopping more convenient or too tempting?



Filed under Finance, Personal