Episode 003: The Power of Using Cash

Posted Jul 28, 2016 | Updated July 29, 2019

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In this episode of Money Peach TV, we break down the 7 common myths about using cash, and how we ended up saving $27,000 by switching to a cash lifestyle.

But first, let me share with you what is really going on…

Sadly, we are moving away from using cash as a society, and this bugs the crap out of me. First, let me share this little nugget with you:

Carnegie Mellon, Stanford, and MIT did a study in 2007 on the relationship of feeling pain when using credit cards vs using cash. What they found was the further you get away from using cash, the less you actually feel you are spending money.

Here is a direct quote from the article:

Credit cards effectively anesthetize the pain of paying,” said George Loewenstein, Carnegie Mellon

For you and I, this is more of a gee-wiz fact, but for companies all over the world, this is big money. If a company knows you are going to feel pain when using cash and that same pain can be minimized whenever you spend, companies are going to develop a plan. Their plan(s) may include:

Accepting Credit Cards
Apple Pay
Amazon One Click
Bitcoin
Mobile Phone Apps

Think back to where you were or what you were doing in 2003. Did you know this was right around the same time McDonalds started to first accept credit card?! Prior to 2003, McDonalds would only accept cash or debit cards, however they also began to realize this whole idea of feeling money.

McDonalds later went on to report that when you use a credit card inside their restaurants, you will spend 47% more on average!

How could this even be possible?

It’s simple: You stopped feeling the money.

The first step to solving your problems with money is to take back control of your money. This always starts with the Budget.

Download the Budget

I’ll see you inside the next Episode of Money Peach TV & Podcast each and every Thursday!

-Chris Peach

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Chris Petrie

Chris (Peach) Petrie is a personal finance expert, money coach, speaker and podcaster.

In 2011, Chris and his family were exhausted from living paycheck-to-paycheck and facing a mountain of debt. They started going against the society standards of misbehaving with money and made the decision to take back control of their lives and money. Within seven months they paid off $52,000, started saving like crazy and began building real wealth.

The word spread fast and Chris started showing friends how to create a budget over dinner. Soon after he started showing their friends how to do the same and eventually Chris started teaching personal finance classes around the community. As the need for the classes grew, Chris launched Money Peach in 2015.

Money Peach was created to help everyday people remove the stress and fear of money by showing them how to save more, make more, and keep more of their money.

Chris Peach has been featured in places like Business Insider, The Huffington Post, Elite Daily, and CheddarTV.

When Chris isn’t at “work” he can be found at the Crossfit gym or riding on the fire truck — Chris is also a full-time firefighter in Phoenix, Arizona.