Do you often pay by 💳, or even with your smartphone📱 these days, because it’s convenient?

You don't always need to carry your wallet. It's quick.

And let's be honest: you're not leaving the house without your smartphone anyway, right?

But is it really such a good idea?

The convenience of paying by card or smartphone can lull us into a false sense of control. After all, there’s no fumbling for cash, and you can easily tap and go. However, that ease comes with a hidden price.

When you pay digitally, it’s almost like the money isn't real—there’s no physical exchange, no tangible reminder that money is leaving your hands 💸. This makes it far too easy to overlook just how much you're actually spending.

Maybe you’re thinking:

"Wait a second. But if I pay by card, I can always see exactly what I've spent through my online banking. I even get it categorized and structured, so it's easy to track!"

That’s true! After the fact, you do get a good overview of where your money went. But in the very moment of making a purchase, you lose a sense of connection to your spending. There's a psychological disconnect between the act of paying and the reality of losing money.

This is rooted in what's known as the 'pain of paying' - a concept where physical cash 💰creates a stronger emotional response compared to digital payments. When you hand over cash💸, you feel the immediate impact of the loss, which makes you more cautious. With digital payments, that emotional trigger is weakened, leading to higher spending without the same sense of loss.

When was the last time you consciously realized how much you've spent?

Our tip ☝️

Calculate 🧮 your fixed expenses and the amount left over for the month after those have been covered. As soon as you receive your monthly salary, withdraw 🏧 that disposable amount in cash 💵. Apart from your fixed expenses, aim to pay everything else in cash!

For example, spending $1.49 here for a chocolate bar 🍫 or $2.99 there for a soda 🥤 might seem like nothing when you're using your phone to pay. But when you have to break a $50 bill 💵 just to buy a $1.49 chocolate bar, you might think twice. Suddenly, those small expenses are much more noticeable, and you may find yourself reconsidering.

But how can you track where your money goes if you're paying in cash?

After all, you can't just check your bank statement to see your cash spending. This is where a classic budget book📕 or an app 📱can come in handy to record your expenses. It takes a bit of discipline 💪, but it greatly increases your chances of having more money left at the end of the month compared to paying by card!

You shouldn't just track your daily expenses to get a clear overview of your finances. Keeping a record of your trading activities in the stock market is also essential!

Have you tried MindTrajour yet?

Test the new trading journal with our Emotiontracker now for free!

Your MindTrajour Team