This doesn’t work for everybody, but it’s a big problem for a lot of people. I’ll be the first to admit that if i have cash in my wallet, i still go for the debit card because it hurts to spend the cash.
Dave is so right. I did my envelopes the other day and dear god. I think about my money all the time. I set money aside for personal spending. I see it decrease and it makes me NOT want to spend. The mindfulness is amazing.
Yes. Probably that’s one of the reasons. Another reason is - in a cashless society, the government/corporates can keep a tab on everything...what you spend on, where you spend, how you spend, when do you spend etc. Evasion of taxes is more difficult in a cashless Transaction because it leaves a trail behind. It can always be tracked. So I think that is the bigger reason why cashless transactions are encouraged.
Great advice! I stopped using my credit cards exactly 2 months ago, and it is changing how I feel about my money! I started a plan at the beginning of the year to get out of debt. Tomorrow I'll have my truck paid off, and in the next 2 months I'll have 2 credit cards paid off, and by May of next year, I'll have rid myself of $36k of debt!! It's liberating when you stop using credit cards!
Great Mike! I paid off one loan company in October ‘17. They call me occasionally, offering me money if I need it. I labeled their phone number with “No mas” before their company name. One call included “I have good news for you . . .” I got news for THEM - I’m done with borrowing!
For me there's absolutely no difference between cash and virtual money. If I'm trying to justify if something is worth buying I measure it by the time it takes me to work for that money. I save around 50% of my salary every month without problems.
Thank you, this is so true!! I'm a fitness instructor and as soon as I started taking credit cards, people would easily give me $800 for 10 sessions. I couldn't believe it!! $800!! Like it was nothing. But had I asked for cash that would never happen. Very insightful.
Even when grocery shopping, plastic does not provide any purchase restriction. If you go in with a set amount of cash, you make sure you don't overspend.
Michelle J I never carried cash or saw the inside of my bank before jumping on the cash envelope system. Now I purposely get fifty dollar bills because I know it's going to hurt to break it!
The opposite is true for me, I watch my online account balance like a hawk and make all budgeting and purchasing decisions based on the balance. When I have cash it's like i don't even think of it as real money because it isn't even in the budget.
Listened to Dave Ramsey, as i was preparing to relocate to the US, got hooked up. Two years into the US, I have bought a house with full down payment, zero debt, bought my cars on cash....Listern to Dave people
I was shocked how little Americans save but always spending on the most needless things to give value to themselves. Hence few ever have a true quality of life. Just work and work.
That’s why with a little bit of self control, IMO it’s better to just use a debit card. You pay the exact amount and that change stays in your bank account
This is so true Dave!! As a waitress I mainly have cash on me, and it makes it a lot easier to NOT spend. I refuse to pay for anything other than bills with my debit card, anything I purchase for myself is done with CASH. It makes it so much more difficult to spend when you have to see the cash physically leave your wallet. I feel if other people followed this way of spending they would spend a LOT less.
I’m starting a new budget, every Monday, I fill my car with my credit card, then withdraw $20 cash and put my credit and debit card in my safe and that’s my money for the week. I almost never spend that $20 and now I have cash piling up and getting ready to deposit it back in my bank account and start over. It’s amazing!
I remember it was a Friday night about a year ago, my girlfriend and I went out to eat at an Asian buffet. The payment was taken up front, I put the tip on the bill and added it to the total. As we were leaving, the server comes up to me and asks in a strong accent if I was not going to leave a tip. Once I finally understood her, I informed her that I had left a tip on the tab. Definitely an awkward experience, especially as others stared at her. Lesson learned, cash is still king.
@@matthewkoch6937 It's not necessarily asked with a rude intent. As tips are a big indicator of the quality of the service, if a customer leaves without tipping you might want to look into how they perceived their experience in your establishment.
Until a couple of weeks ago i was a "pay the credit card off at the end of the month" person. Now i take the cash out at the beginning of the month and my thinking has completely changed. I'm now keen to have a few notes left at the end of the month. Swiping a card never gave me that feeling. Uncle Dave is right as usual.
Can’t stand people that use debit for everything. It won’t kill you to take cash out and stretch it instead of always using your debit card all the time or credit cards. It’s so annoying.
Yes you are so right, I was ordering things I really didn't need, it was too easy to buy, and I just canceled prime and am so very happy right now, the temptation isn't there anymore.
There's nothing wrong with Amazon Prime. Admittedly, I got a bit addicted to buying cheap stuff at discounted prices, but when you realize that doing that makes your bank account look so sad, you start getting that wake up call. AP is still good for getting stuff you need, just don't go overboard with it.
I only use amazon prime for the amazon fresh or groceries keep it simple and other tiny items I see alot of people who are addicted to it though lol. Like folks it’s the same as being in the store don’t buy what you don’t need.
I do the same thing. I have an excel spreadsheet that I intentionally keep track of all my spending. Every time I use my debit card I record it in the spreadsheet just so I feel the same pain as using cash.
Wow Dave! I'm a neuroscientist trying to teach my 20 year daughter financial responsibilities...gosh it's been a challenge. I love this video and how you're using neuroscience examples. She's getting this video via text! Thank you👏🏼🧠
But I wonder about the demographics of this study, maybe the older generation who is used to cash get this response yet the younger generation tgat grew up on debit cards has opposite reaction
My wife and i got our credit card debt under control with a cash only budget. Im so glad when we were done with that. It would hurt to buy gas for the car. That was 5 years ago and we've been able to stay out of credit card debt.
I am completely debt free. I have paid with cash the last 30 years with the exception being my utilities which I pay with my debit card. When I tried to get a loan for updating my paid for home I was denied because I had no credit history even though I had half a million in debt free assets. I ended up having to sell my home to access my cash. It's a double edged sword.
This is so accurate. I’m going cash only to try and curb my random spending. It required me to get a new debit card because I had literally memorized my number and CVV. Only being able to use cash really has changed the way I look at a lot of things. Especially when what I pay for isn’t good, like food. If I gave over my paper and got back a subpar, cold burger, I’m much more ready to ask for my paper back. It just means more to me.
I like tipping with cash because too many restaurants make everyone share the tip. When it's not on a card the server or delivery person can keep the full amount.
I went to the store today w/cash envelopes ✉️ it kept me from buying a lot of stupid stuff. It seemed like I appreciated what I got because it cost me something and I felt it.
I've never thought about it this way before this lesson. And it makes total sense to me as I've done and felt those exact same things. Thanks Professor Ramsey..
Learned this the hard way when I discovered I wasted $140 of unplanned money. Now planning every dollar and using cash, which now allows me to save that 140 for a ring.
Mr. Ramsey sir I don't care what time the person you are in life you keep me laughing and I love watching your videos and most importantly I sincerely appreciate your truth on the matters and subjects that are important to me and I'm pretty sure other people in the nation but God bless you continue to do the good work and thank you for speaking the truth
I actually spend more with cash. With my debit card, I spend nothing until I consult what's left in my budget, which curbs my spending. Once cash is in my pocket, I don't account for it, so it's easy to let it go.
I'm the same way... I consider cash in hand as already out of the bank and not going back in so I blow it faster. I'm more cautious with credit cards because I consider it building up a monthly bill that I have to pay so I don't spend as much.... my wife is the complete opposite though. she has to have cash in hand or she can't keep track of what she's spending
My dad listened to your talk show on the radio for years and it drove me nuts to listen to your voice when I was only a child. I'm now 24 years old and wish I had listened way back then. I'm in debt, have low income and I am ready to be debt free
Niseygirl, I couldn't agree with you more! I used to live and die by my debit card, since getting on Dave's plan, I am now to the point where I pay cash for 90% offline purchases.
I had 2 before, didn't have much on it but interest was stupid. Kept growing all the time. I really struggled. I'm all done with those stupid cards, never again.
There is also the fact that cash can get you out of trouble quickly if you need to (it’s very liquid) and people are very enticed by it so you can buy favours and get work done quickly. You also notice that people who carry around cash have a far more “giving” type of personality and that is the counterintuitive trait which makes you are richer person than the “hoarding” mentality of the card-only user.
This is definitely my problem lol. There’s no friction really in using plastic and it feels like you haven’t lost anything until you look at your bank account 😂
Well that would be impossible to do considering I'm in my late 50s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2million.
@@MarcelPhilips Very true, If you're looking for help building a retirement nest egg, you most likely want a certified financial planner with expertise in retirement planning. With the aid of a coach, I grew my reserve from $160k to almost $600k during this Red season.
@@harrisonjamie794 How can one find a verifiable financial Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.
@@MarcelPhilips KRISTIN GAIL CUNNINGHAM. On the internet, that’s the financial advisor I use. She’s verified; you could also read more about her and then communicate with her. it’s always good to do your research before putting your money into any investment.
Also with cash you feel like you own more, there's more mental weight when you hold a stack of cash than when you hold a credit card. Try it for yourself.
J. A. Lol so true. I get that look all the time. Even before becoming financially literate, I didn't do normal stuff like having credit cards and paying for things with debit card despite the fact I have 3debit cards I mostly pay with cash and people just look at me from head to toe and try to decode my worth torturing themselves. Who cares?!
This is very true but I feel it may be able to be countered (to a certain extent) by setting up mobile alerts that tell you when you spend. "You spent 150 at X shop, your remaining balance is Y" sort of thing.
Best video on the internet about this topic. Being a student, I exclusively paid cash unless I had to pay using card e.g. Uber, Trains. The amount of money saved is incredible, especially at the supermarket and pub.
Working changed the way I look at money. I have worked since I was 11. Debt is something I never liked. The only loan I had was a 30 year mortgage I paid off in 11 1/2 years. I do have a credit card I use occasionally, but never carry a balance. It doesn't gauge how I spend. A long time ago, I gave up " things " for my freedom. The more wealth you have, the less others control your life. It's great!
I Never go shopping without a shopping list and less money that I expect myslef to spend in order to push myself to limit my expenditures and haggle everything.
Cash holds you accountable !!! Of course Chase would try and argue against that, then turn around and offer you a brand new, bright and shiny pair of shackles, sorry credit card .😐😐😐
Nicole Williams With stupid people paying trillions of dollars interests on credit card debt and debit card overdraft fees why would credit card companies need to argue about anything? Even I received a several thousand percent return and get around $700 a month in tax free dividends from Visa and MasterCard in my Roth. And I've been using my credit cards since high school and never have a debt or paid a fee. It's up to you to attach and lock those shackles and nobody else.
@@matthewkoch6937 Check the constant rise of Visa/MasterCard stock price and dividend increases since I posted this two years ago. Can’t argue with the truth.
This is very true and funny. I remember as a kid at the grocery store my mom would get upset if someone at the checkout would write a check because it held up the line 😄😜
My first comment on a Dave Ramsey video, and I've watched countless.. this man is a genius. I'm sorry, if the majority of us thought/acted/behaved like he suggests, we'd all be millionaires. Debt(credit cards, car loans) is slavery.. CASH is KING, period!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@BrandonIvan-c6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
Another great thing about paying cash as a tip is that it doesn’t get taxed. More money for the server and less money going into greedy corrupt politicians hands! Double win
This is called “tax evasion”.Tips are supposed to be declared,but the server will realize their short sightedness when they receive social security based on their declared earnings 😖
Totally agree that using plastic tends to encourage you to spend more. I'm trying to transition back to only using cash and debit. I think the primary difficulty with using cash is practicality. To get cash, I need to physically go to the bank. Compared to paying via plastic.
There is something satisfying having stacks of 20s, 50s, and hundreds laying in front of you instead of just looking at the number. The number is great as well, but I like seeing the progress I've made so I started keeping 20-30% of my income out of the bank.
Also, when we used to write checks, many places had a minimum amount that you could write a check for, which made you spend more. Husband carries zero cash, uses debit card for every thing. Sooo...I always carry some just in case a restaurant’s charge system is down, or parking doesn’t take a card, etc. I love getting change; I save every bit of it, including ones. Then once a year I donate it all.
It's never too late to know this type of stuff, but its actually really good that you know this stuff now, so that later in the future, you will not run into trouble
Glad to be one of the few now to only use cash.. No credit cards, cheques here.. LOVE carrying and using cash.. Definitely agree with the consciousness when spending cash.. Now if we had REAL money instead of CURRENCY.. Inflation makes people spend more than they want to as well..
We work the concession stand at our local HS stadium. Candy is a $1, pizza $2, popcorn $2, drinks $2 etc. You should see the amount of people that TAP their card to buy $5 worth of stuff and we tell them ahead of time that there is a $1 charge. Cash saves a lot of money.
Dave Ramsey is exactly right about how cash is so powerful and how we feel differently when using cash compared to cards! I am still going to eventually get 1 of each and see how it goes.
Consider the fact that using cash can keep you anonymous rather than using plastic.I think it also gives you a better connection to money and what you are spending.
Thanks Dave!...that was probably the most revelatory video I've ever seen on youtube!....makes me realize I need to accept apple pay for payment at my business
I'm the exact opposite. I normally do everything on card and know I have to watch what I spend. If I happen to have cash in my wallet its because it isn't for anything specific and I can free spend it on whatever I want.
I like cash for almost all purchases. Shop very little online. Yes, i know the day is coming when cash will be gone, but until then, i like handling money.
But also, u incur a 3% fee when u use plastic💳... vs. Cash 💵 processing fee at most places. Also gas is a few cents cheaper when Paying n cash vs credit or debit cards...
This couldn't be more true!! Two years ago Costco & Aldi only took cash, I had to use a debit card at these stores and had to be VERY mindful of what I got. Then they started taking credit cards, and boy did I get stuff from Costco I didn't need. Going forward, I think I'll use cash/debit card only for all transactions.
I agree... to some extent because no one is totally perfect with cash either. Once you have trained your mind to pay with plastic money then you can can reap the rewards from credit cards. The rewards such as money rewards, frequent flier miles and most important of all credit in itself are beneficial in life’s functionality. I have done just that...
Yep. That is why my two of my credit cards are debit cards. The amounts come directly out of my available cash and a little message pops up on my phone saying what I have just spent. It keeps me very aware of how much cash I have. I am now disciplined enough to have two other credit cards that I very rarely use. If I do use them, I pay the balance off every month. Thanks, Dave!
Not only do you wave a magic wand and get free things, but you get a little "ding" on your phone and a green check mark. So not only does it not activate the pain center of your brain, it actually activates the reward center. You get the reward of getting the item, getting the fun vibration/boop on your phone, and you get a green checkmark. That's the ultimate gamification and we should be getting as far away from it as we can.
Was at the grocery store with my honey yesterday. Our budget was $30 because that’s all we had in cash. Left credit card / check card in the car. We are at the cash register and the total was $34. The wife decided to go buy her half and half for her morning coffee. The wife decides to nix the cream. It felt so good and so painful to pay cash. We stayed under budget. The feeling is priceless. We are just getting started on step 1 since we fell off the bandwagon.
This whole video os a very good explanation of the temptation to buy tools off the Snapon and Mac Tools trucks. First of all it's easy, because you don't go to them, they come to you. In addition to that the high price purchases don't hurt as much because you can buy a $400 item and only pay $20 each week towards it. Even though the markup is insane, and you can buy store brand tools, most of have comparable quality, it still always feels necessary, and more comfortable to buy tools off the truck. This is something I've been trying to break myself of for months, but you get on the truck to make your payment and the whole theme of the truck is designed to trigger impulses. Next thing you know your walking off the truck with some fancy new tools, that you had no intentions of buying beforehand, and your account balance is another $600 higher. I've had both accounts cleared before, and thought I was good, but then one day needed a tool warrantied, and when I got on the truck to bring it to him, I found my self with another impulse purchase and a new $20 weekly payment again. Currently I owe just under $800 total on tools, and $2,400 on my toolbox. I've been working on paying them off and not buying anymore tools off the truck. It's hard but so far I've been maintaining my self control. I've found that it actually helps me out a lot to go "tool shopping" on the weekends to different stores. Even if I don't buy anything, or don't buy much, the fact of looking at tools in person, seeing what else is out there and what they cost helps me out a lot to resist buying tools on the truck when they come to our garage.
Spending Cash makes you think twice .
Last Greatest
As a child that's the way I was.
I'm a financially responsible adult now.
@@blackworldtraveler3711like your respond☺
Makes you think incessantly about how you’ll spend that physical cash in your hand. 🤔💸
It’s revolutionary to curb spending.
@@sjf426 it's really not. Not for people who were raised understanding how numbers on a screen work anyways.
This doesn’t work for everybody, but it’s a big problem for a lot of people. I’ll be the first to admit that if i have cash in my wallet, i still go for the debit card because it hurts to spend the cash.
Can confirm. The first month I used cash only, we ended up saving $1k for the month. Previously we were living way beyond our means
Congratulations!
Right on, and like Dave says saving money isn’t a math problem it’s an emotional one
WOAH!
Spread the word
yes close for me. next month for me will be 1,245.
I'm 19 years old (graduated HS 4-5 months ago) and I feel like this guy's gonna be important for me to watch.
AtheismDies he is, and it’s great you are starting young.
What a wise young man you are👍👍
Bro, I wish I would've discovered him at your age
AtheismDies
Yes, please keep watching!!!
Watch Jordan Peterson too!
Tipping with cash and being generous makes you feel good. Hope the person receiving the tip makes them feel good too. Thanks for the advice Dave!
Dave is so right. I did my envelopes the other day and dear god. I think about my money all the time. I set money aside for personal spending. I see it decrease and it makes me NOT want to spend. The mindfulness is amazing.
Ong
Faxx
I guess that's why a cashless society is being promoted.
James Moore
Figured this out as a kid watching the Jetsons.
BlackWorldTraveler
Yup loved that cartoon.
Yes. Probably that’s one of the reasons. Another reason is - in a cashless society, the government/corporates can keep a tab on everything...what you spend on, where you spend, how you spend, when do you spend etc. Evasion of taxes is more difficult in a cashless Transaction because it leaves a trail behind. It can always be tracked. So I think that is the bigger reason why cashless transactions are encouraged.
Bingo!
Yep. Keep everyone enslaved to debtors.
Great advice! I stopped using my credit cards exactly 2 months ago, and it is changing how I feel about my money!
I started a plan at the beginning of the year to get out of debt. Tomorrow I'll have my truck paid off, and in the next 2 months I'll have 2 credit cards paid off, and by May of next year, I'll have rid myself of $36k of debt!!
It's liberating when you stop using credit cards!
Great Mike! I paid off one loan company in October ‘17. They call me occasionally, offering me money if I need it. I labeled their phone number with “No mas” before their company name. One call included “I have good news for you . . .” I got news for THEM - I’m done with borrowing!
For me there's absolutely no difference between cash and virtual money. If I'm trying to justify if something is worth buying I measure it by the time it takes me to work for that money. I save around 50% of my salary every month without problems.
Yeaaaaaaah!!!! 🤘🤘🤘🤘
Credit cards aren’t the problem! Being irresponsible with them is the problem!
its just about discipline. i hvnt used debit cards or cash for 7 years.
Thank you, this is so true!! I'm a fitness instructor and as soon as I started taking credit cards, people would easily give me $800 for 10 sessions. I couldn't believe it!! $800!! Like it was nothing. But had I asked for cash that would never happen. Very insightful.
Even when grocery shopping, plastic does not provide any purchase restriction. If you go in with a set amount of cash, you make sure you don't overspend.
Of course it does. You do realize you can call the bank and have them lower your credit limit, right?
You can misplace or lose cash, plenty of family members lost 100s, credit cards at least mine are protected from misuse.
Or if you go in with your budget in mind, you won't over spend. We do it all the time.
I only carry a small amount of cash and if I need more I go to the ATM. I just spend so much more with my debit card.
At some point, if we want to win with money, we all just need to act like an adult and follow the budget we set, regardless of how we chose to pay.
So true! Breaking a hundred, fifty, twenty hurts
Michelle J The correct way to spell fifty
Bryan Stoeltzing thanks
Michelle J I never carried cash or saw the inside of my bank before jumping on the cash envelope system. Now I purposely get fifty dollar bills because I know it's going to hurt to break it!
The opposite is true for me, I watch my online account balance like a hawk and make all budgeting and purchasing decisions based on the balance. When I have cash it's like i don't even think of it as real money because it isn't even in the budget.
@Austin Martín Hernández what is?
Listened to Dave Ramsey, as i was preparing to relocate to the US, got hooked up. Two years into the US, I have bought a house with full down payment, zero debt, bought my cars on cash....Listern to Dave people
That's amazing, from which country did you move?
I was shocked how little Americans save but always spending on the most needless things to give value to themselves. Hence few ever have a true quality of life. Just work and work.
@@KittyKat-vb1ndI agree, it's madness 😔
Good for you. Welcome to the US.
Another thing with cash is always save your change. It adds up big time.
Justin Shaw agree. I’ve accumulated over $100 in 6 months in just change using only cash just a few more times.
That’s why I love bank accounts though. It automatically saves you all of the change, instead of it sitting in a jar or getting lost
That’s why with a little bit of self control, IMO it’s better to just use a debit card. You pay the exact amount and that change stays in your bank account
@@xdevvsyt7264 Exactly
Right a years worth change adds up in the end.
Bank called me up the other day, you have been approved for a credit card sir, annual fee is waived! NOOOOO go away, I’m now a Dave Ramsey convert :)
This is so true Dave!! As a waitress I mainly have cash on me, and it makes it a lot easier to NOT spend. I refuse to pay for anything other than bills with my debit card, anything I purchase for myself is done with CASH. It makes it so much more difficult to spend when you have to see the cash physically leave your wallet. I feel if other people followed this way of spending they would spend a LOT less.
Caller: "Hey Dave, I'm just calling in to ask about this $20 bet I lost..." Dave: *"YOU NEED TO SELL THE CAR, ITS GOTTA GO"*
John this is brilliant!😂
True af
And I bet you have a nice big car payment? Hmmm.
John
Yup.
Eh John kinda trivializing people for wanting advice, that's so sweet of you.
I’m starting a new budget, every Monday, I fill my car with my credit card, then withdraw $20 cash and put my credit and debit card in my safe and that’s my money for the week. I almost never spend that $20 and now I have cash piling up and getting ready to deposit it back in my bank account and start over. It’s amazing!
Good for you!!! Keep it up!! BLESSINGS ❤️
I remember it was a Friday night about a year ago, my girlfriend and I went out to eat at an Asian buffet. The payment was taken up front, I put the tip on the bill and added it to the total. As we were leaving, the server comes up to me and asks in a strong accent if I was not going to leave a tip. Once I finally understood her, I informed her that I had left a tip on the tab. Definitely an awkward experience, especially as others stared at her. Lesson learned, cash is still king.
@@matthewkoch6937 It's not necessarily asked with a rude intent. As tips are a big indicator of the quality of the service, if a customer leaves without tipping you might want to look into how they perceived their experience in your establishment.
This is why I love his advice on this subject: it’s about the MINDSET
Until a couple of weeks ago i was a "pay the credit card off at the end of the month" person. Now i take the cash out at the beginning of the month and my thinking has completely changed. I'm now keen to have a few notes left at the end of the month. Swiping a card never gave me that feeling. Uncle Dave is right as usual.
Wise up people, cash is king !!!
Can’t stand people that use debit for everything. It won’t kill you to take cash out and stretch it instead of always using your debit card all the time or credit cards. It’s so annoying.
Cash is trash
Friction or Barrier to entry is good in most times. I like how he explains the Psychological effects of money
I agree with everything said here. Spending cash makes you think twice about the purchase.
The ease of buying things is why I cancelled my Amazon prime.
Yes you are so right, I was ordering things I really didn't need, it was too easy to buy, and I just canceled prime and am so very happy right now, the temptation isn't there anymore.
The only thing the ease of buying things helped in is ease of buying the stocks/shares❤
There's nothing wrong with Amazon Prime. Admittedly, I got a bit addicted to buying cheap stuff at discounted prices, but when you realize that doing that makes your bank account look so sad, you start getting that wake up call. AP is still good for getting stuff you need, just don't go overboard with it.
So if you cancel amazon prime you just pay for shipping now ?
I only use amazon prime for the amazon fresh or groceries keep it simple and other tiny items I see alot of people who are addicted to it though lol. Like folks it’s the same as being in the store don’t buy what you don’t need.
I just pick up my cell phone and look at the money that went out of my account after each transaction. That hurts too.
Ivar Losna same!!!
I do the same thing. I have an excel spreadsheet that I intentionally keep track of all my spending. Every time I use my debit card I record it in the spreadsheet just so I feel the same pain as using cash.
lol “you are freaking Harry Potter buying stuff” love it, so funny, so real Dave!
😂😂 like waving a wand
Wow Dave! I'm a neuroscientist trying to teach my 20 year daughter financial responsibilities...gosh it's been a challenge. I love this video and how you're using neuroscience examples. She's getting this video via text! Thank you👏🏼🧠
But I wonder about the demographics of this study, maybe the older generation who is used to cash get this response yet the younger generation tgat grew up on debit cards has opposite reaction
My wife and i got our credit card debt under control with a cash only budget. Im so glad when we were done with that. It would hurt to buy gas for the car. That was 5 years ago and we've been able to stay out of credit card debt.
I am completely debt free. I have paid with cash the last 30 years with the exception being my utilities which I pay with my debit card. When I tried to get a loan for updating my paid for home I was denied because I had no credit history even though I had half a million in debt free assets. I ended up having to sell my home to access my cash. It's a double edged sword.
This is so accurate. I’m going cash only to try and curb my random spending. It required me to get a new debit card because I had literally memorized my number and CVV. Only being able to use cash really has changed the way I look at a lot of things. Especially when what I pay for isn’t good, like food. If I gave over my paper and got back a subpar, cold burger, I’m much more ready to ask for my paper back. It just means more to me.
I like tipping with cash because too many restaurants make everyone share the tip. When it's not on a card the server or delivery person can keep the full amount.
I went to the store today w/cash envelopes ✉️ it kept me from buying a lot of stupid stuff. It seemed like I appreciated what I got because it cost me something and I felt it.
I've never thought about it this way before this lesson. And it makes total sense to me as I've done and felt those exact same things.
Thanks Professor Ramsey..
I needed to hear this. I spend way too much because I don't use cash. I just know it.
I love hearing him say "cash"
Learned this the hard way when I discovered I wasted $140 of unplanned money. Now planning every dollar and using cash, which now allows me to save that 140 for a ring.
Smart move friend.
Mr. Ramsey sir I don't care what time the person you are in life you keep me laughing and I love watching your videos and most importantly I sincerely appreciate your truth on the matters and subjects that are important to me and I'm pretty sure other people in the nation but God bless you continue to do the good work and thank you for speaking the truth
The study of consumer behavior is real.
Wisdom...! Love Dave. Truthful honest and tells us like it is. It hurts sometimes but he’s doing us all good.
I actually spend more with cash. With my debit card, I spend nothing until I consult what's left in my budget, which curbs my spending. Once cash is in my pocket, I don't account for it, so it's easy to let it go.
Kathi Clark good point, i am a mixture of you and Dave on this.
Enida Bonghit you are a dave ish
I spend 2-5x more with the plastic debit card then I do with cash :?
I'm the same way... I consider cash in hand as already out of the bank and not going back in so I blow it faster. I'm more cautious with credit cards because I consider it building up a monthly bill that I have to pay so I don't spend as much.... my wife is the complete opposite though. she has to have cash in hand or she can't keep track of what she's spending
Same. I don't track my cash spending the way I do my checks and debits.
I’ve been Using cash for a few months now and it really dose change the way you spend and look at your money
I love cash. Rather have $100 in cash in my wallet than use my debit card all day, just me. Cash is king!
Yes this exactly!!!!
My dad listened to your talk show on the radio for years and it drove me nuts to listen to your voice when I was only a child. I'm now 24 years old and wish I had listened way back then. I'm in debt, have low income and I am ready to be debt free
Great vid. I've been paying cash for stuff more now and there is definitely a difference.
hahahaahahahha
Niseygirl, I couldn't agree with you more! I used to live and die by my debit card, since getting on Dave's plan, I am now to the point where I pay cash for 90% offline purchases.
Small business owners love you when you purchase their stuff with cash. It costs them less. I pay cash at places I like.
Lash 🐶)😂👭😊
Lightbulb just went off!
back in the 50's when everything was so cheap EVERYONE carried cash and i still carry cash to this DAY!!!
NEVER had a credit card and NEVER will. Thanks but NO thanks.
caro james same here
I had 2 before, didn't have much on it but interest was stupid. Kept growing all the time. I really struggled. I'm all done with those stupid cards, never again.
Its true for me. I spend less when I have to give cash.
There is also the fact that cash can get you out of trouble quickly if you need to (it’s very liquid) and people are very enticed by it so you can buy favours and get work done quickly. You also notice that people who carry around cash have a far more “giving” type of personality and that is the counterintuitive trait which makes you are richer person than the “hoarding” mentality of the card-only user.
This is definitely my problem lol. There’s no friction really in using plastic and it feels like you haven’t lost anything until you look at your bank account 😂
Well that would be impossible to do considering I'm in my late 50s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2million.
As you plan your retirement, be sure to
talk with a financial advisor who can help you make the most of your retirement investing scheme.
@@MarcelPhilips Very true, If you're looking for help
building a retirement nest egg, you most likely want a certified financial planner with expertise in retirement planning. With the aid of a coach, I grew my reserve from $160k to almost $600k during this Red season.
@@harrisonjamie794 How can one find a verifiable financial Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.
@@MarcelPhilips KRISTIN GAIL CUNNINGHAM. On the internet, that’s the financial advisor I use. She’s verified; you could also read more about her and then communicate with her. it’s always good to do your research before putting your money into any investment.
@@harrisonjamie794 Thank you so much! Found her webpage and left a message. Hopefully, she responds.
Omg! I love this video! It literally just opened my eyes 👀, how plastic is skewing our perception on spending. Great lecture, Dave! 👏
OMG OMG I can't believe I've been duped! no company will manage MY spending anymore.
Also with cash you feel like you own more, there's more mental weight when you hold a stack of cash than when you hold a credit card. Try it for yourself.
People look at you weird when you pay with cash...and I love it. Lol. By the way, when did people stop learning how to count back change properly??!
J. A. Lol so true. I get that look all the time. Even before becoming financially literate, I didn't do normal stuff like having credit cards and paying for things with debit card despite the fact I have 3debit cards I mostly pay with cash and people just look at me from head to toe and try to decode my worth torturing themselves. Who cares?!
I recently started paying cash. The supermarket cashiers looked at me counting it out as though i just invented fire. It's wierd!
equisader Good to be WEIRD!
Answer, 1986.
Most cashiers stopped counting up change in the 80's. I'm only 40 and I know this.
This is very true but I feel it may be able to be countered (to a certain extent) by setting up mobile alerts that tell you when you spend. "You spent 150 at X shop, your remaining balance is Y" sort of thing.
Best video on the internet about this topic. Being a student, I exclusively paid cash unless I had to pay using card e.g. Uber, Trains.
The amount of money saved is incredible, especially at the supermarket and pub.
Working changed the way I look at money. I have worked since I was 11. Debt is something I never liked. The only loan I had was a 30 year mortgage I paid off in 11 1/2 years. I do have a credit card I use occasionally, but never carry a balance. It doesn't gauge how I spend. A long time ago, I gave up " things " for my freedom. The more wealth you have, the less others control your life. It's great!
So many people still don't understand this fundamental basic of personal finance. Greetings from a Dave Ramsey fan in in the UK.
I Never go shopping without a shopping list and less money that I expect myslef to spend in order to push myself to limit my expenditures and haggle everything.
who are you haggling with?
Cash holds you accountable !!!
Of course Chase would try and argue against that, then turn around and offer you a brand new, bright and shiny pair of shackles, sorry credit card .😐😐😐
Nicole Williams
With stupid people paying trillions of dollars interests on credit card debt and debit card overdraft fees why would credit card companies need to argue about anything?
Even I received a several thousand percent return and get around $700 a month in tax free dividends from Visa and MasterCard in my Roth.
And I've been using my credit cards since high school and never have a debt or paid a fee.
It's up to you to attach and lock those shackles and nobody else.
@@matthewkoch6937
Check the constant rise of Visa/MasterCard stock price and dividend increases since I posted this two years ago.
Can’t argue with the truth.
This is very true and funny. I remember as a kid at the grocery store my mom would get upset if someone at the checkout would write a check because it held up the line 😄😜
Imagine the pain centers of the brain when people used gold and silver coins.
You could actually feel the weight and density.
Some of us still can.
My first comment on a Dave Ramsey video, and I've watched countless.. this man is a genius. I'm sorry, if the majority of us thought/acted/behaved like he suggests, we'd all be millionaires. Debt(credit cards, car loans) is slavery.. CASH is KING, period!
Tipping with cash is so much appreciated!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@BrandonIvan-c6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Bestjudy001 Oh please I’d love that. Thanks!.
@@BrandonIvan-c6e Clementina Abate Russo is her name.
Lookup with her name on the webpage.
I’ve moved to cash and I usually save about 60-70% of my pay check vs card was like 20%
Another great thing about paying cash as a tip is that it doesn’t get taxed. More money for the server and less money going into greedy corrupt politicians hands! Double win
This is called “tax evasion”.Tips are supposed to be declared,but the server will realize their short sightedness when they receive social security based on their declared earnings 😖
Totally agree that using plastic tends to encourage you to spend more. I'm trying to transition back to only using cash and debit. I think the primary difficulty with using cash is practicality. To get cash, I need to physically go to the bank. Compared to paying via plastic.
Mr. Ramsey, thank you for this explanation. Life changing when applied. God bless !!
He is so right when spending cash your much more likely to end up being more conscious about your speidning
I don't mind paying with cash is just that never have any.
🤣🤣🤣🤣
Maybe you should get some then.
Erika Hatziyannakis 🤣🤣🤣🤧🤧
Erika Hatziyannakis buy u some
“Todd Shaw”
🤣🤣😂🤣🤣😂🤣🤣
There is something satisfying having stacks of 20s, 50s, and hundreds laying in front of you instead of just looking at the number. The number is great as well, but I like seeing the progress I've made so I started keeping 20-30% of my income out of the bank.
Also, when we used to write checks, many places had a minimum amount that you could write a check for, which made you spend more. Husband carries zero cash, uses debit card for every thing. Sooo...I always carry some just in case a restaurant’s charge system is down, or parking doesn’t take a card, etc. I love getting change; I save every bit of it, including ones. Then once a year I donate it all.
Wish I would of known this in my 20’s
It's never too late to know this type of stuff, but its actually really good that you know this stuff now, so that later in the future, you will not run into trouble
Glad to be one of the few now to only use cash.. No credit cards, cheques here.. LOVE carrying and using cash.. Definitely agree with the consciousness when spending cash.. Now if we had REAL money instead of CURRENCY.. Inflation makes people spend more than they want to as well..
We work the concession stand at our local HS stadium. Candy is a $1, pizza $2, popcorn $2, drinks $2 etc.
You should see the amount of people that TAP their card to buy $5 worth of stuff and we tell them ahead of time that there is a $1 charge.
Cash saves a lot of money.
So true...another fantastic video..thanks Dave. The retailers know that credit/cards that more will be spent..we’re being manipulated
Lol wow! So true you’re more conscious of your spending with cash verses plastic! I certainly agree!
Dave Ramsey is exactly right about how cash is so powerful and how we feel differently when using cash compared to cards! I am still going to eventually get 1 of each and see how it goes.
Consider the fact that using cash can keep you anonymous rather than using plastic.I think it also gives you a better connection to money and what you are spending.
Thanks Dave!...that was probably the most revelatory video I've ever seen on youtube!....makes me realize I need to accept apple pay for payment at my business
Lmaooooaaa
More than agreed to this. spending cash that hurts and so that you have to think twice before you say good bye to Mr. Franklin :)
I'm the exact opposite. I normally do everything on card and know I have to watch what I spend. If I happen to have cash in my wallet its because it isn't for anything specific and I can free spend it on whatever I want.
I like cash for almost all purchases. Shop very little online.
Yes, i know the day is coming when cash will be gone, but until then, i like handling money.
But also, u incur a 3% fee when u use plastic💳... vs. Cash 💵 processing fee at most places.
Also gas is a few cents cheaper when Paying n cash vs credit or debit cards...
This couldn't be more true!! Two years ago Costco & Aldi only took cash, I had to use a debit card at these stores and had to be VERY mindful of what I got. Then they started taking credit cards, and boy did I get stuff from Costco I didn't need. Going forward, I think I'll use cash/debit card only for all transactions.
I'm going to start to pay with cash next month and see how it change my expenses
I agree... to some extent because no one is totally perfect with cash either. Once you have trained your mind to pay with plastic money then you can can reap the rewards from credit cards.
The rewards such as money rewards, frequent flier miles and most important of all credit in itself are beneficial in life’s functionality.
I have done just that...
I'm backwards if I have cash in my pockets it doesn't last long
Mr kadiz agreed. It is always been "spending money" at our house and it tends to disappear.
Mr kadiz you're blowing on on strippers lolol make it rain !
Same.
Just because you actually see and feel it disappear doesn't mean it disappears faster
You've been mistreating it.
This is so true. I tested it out before. I took all my money out my account after every paycheck and I racked up money so fast
This is awesome stuff. Thanks Dave. I am going to start using cash a lot more often.
Yep. That is why my two of my credit cards are debit cards. The amounts come directly out of my available cash and a little message pops up on my phone saying what I have just spent. It keeps me very aware of how much cash I have. I am now disciplined enough to have two other credit cards that I very rarely use. If I do use them, I pay the balance off every month. Thanks, Dave!
That's so true. On Amazon it's literally three or four clicks nd its shipped. So very easy to buy
Not only do you wave a magic wand and get free things, but you get a little "ding" on your phone and a green check mark. So not only does it not activate the pain center of your brain, it actually activates the reward center. You get the reward of getting the item, getting the fun vibration/boop on your phone, and you get a green checkmark. That's the ultimate gamification and we should be getting as far away from it as we can.
Much more difficult to pay in cash for me because I see an hour of hard work gone to pay for this or that. Definitely more of emotional response 😂
Was at the grocery store with my honey yesterday. Our budget was $30 because that’s all we had in cash. Left credit card / check card in the car. We are at the cash register and the total was $34. The wife decided to go buy her half and half for her morning coffee. The wife decides to nix the cream. It felt so good and so painful to pay cash. We stayed under budget. The feeling is priceless. We are just getting started on step 1 since we fell off the bandwagon.
I'm done with credit card getting rid of mine since I've seen this
7:16. Thank you Mr Dave for tipping the valet guys and housekeeping staff ❤
I prefer cash, cause I like to count my money
This whole video os a very good explanation of the temptation to buy tools off the Snapon and Mac Tools trucks. First of all it's easy, because you don't go to them, they come to you. In addition to that the high price purchases don't hurt as much because you can buy a $400 item and only pay $20 each week towards it. Even though the markup is insane, and you can buy store brand tools, most of have comparable quality, it still always feels necessary, and more comfortable to buy tools off the truck. This is something I've been trying to break myself of for months, but you get on the truck to make your payment and the whole theme of the truck is designed to trigger impulses. Next thing you know your walking off the truck with some fancy new tools, that you had no intentions of buying beforehand, and your account balance is another $600 higher. I've had both accounts cleared before, and thought I was good, but then one day needed a tool warrantied, and when I got on the truck to bring it to him, I found my self with another impulse purchase and a new $20 weekly payment again.
Currently I owe just under $800 total on tools, and $2,400 on my toolbox. I've been working on paying them off and not buying anymore tools off the truck. It's hard but so far I've been maintaining my self control. I've found that it actually helps me out a lot to go "tool shopping" on the weekends to different stores. Even if I don't buy anything, or don't buy much, the fact of looking at tools in person, seeing what else is out there and what they cost helps me out a lot to resist buying tools on the truck when they come to our garage.
Cash... cash never changes! :D
U