How A Little Inconvenience Can Save You Big Money

Inconvenience can be your friend as this young man’s story proves.

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 This is a very cool story, really. I was looking through feedback from people using spending summaries. That’s why we just did another video on their incredible power. Anyway, one note really jumped at me and I felt it justified its own video. Pay attention here – there’s definitely something to grab a hold of.

One of the people I pushed to use a spending summary was a 35ish-year-old government worker. He loved it – he found some leaks, he tweaked his budget and he saved more effectively. All good. After he described his success and politely thanked me, I suggested, “Now try this: Go all cash for a month. No credit cards. No debit cards. The old-fashioned way. See what happens.”

He did. And he spent $355 less that month doing so. “Ah,” you argue, “but he had less fun.” Not according to him. In fact, he said he didn’t really notice the change too much. But having a finite resource – only a certain amount of cash on hand, did make him think through a little bit more, say, buying that third drink or buying Pro V golf balls instead of a lower-cost brand.

He wasn’t as quick to part with his cash. He could see it leaving. The spending registered and that’s a good thing. “Ah, yes,” you counter. “But I have to fumble with my wallet and I have to go to an ATM occasionally. It’s all so inconvenient.” Exactly.