Sunday, December 14, 2014

Tip 57: Don't carry small bills

Tip 57: Don't carry small bills

I like to carry some cash in my wallet for situations where credit cards are not accepted.  I find that carrying larger bills- $20 or bigger- makes it less likely that I will spend the money unless I really need to buy something.  This is a tactic that helps you avoid spending money by making it inconvenient.  Any time you can put a psychological barrier between you and spending money, it can help you keep the money in your wallet.

Small bills are just right for spending on small unnecessary impulse items like soda and unhealthy snack food.  Vending machines often accept $1 and $5 bills, so avoid carrying these.  My favorite bill to carry in my wallet is $20 bills.  Everyone accepts $20 bills, but it is too much of a hassle to break a $20 and get all of those small bills and coins back for change that I won’t do it unless I really need to buy something.
For a long time, I simply did not carry any cash at all.  Then one time I had a tire that was nearly flat and the only nearby place to add air charged a quarter to run the air pump.  I had to go in and ask for a quarter since I did not have any cash with me.  I did not like the feeling of asking for money, so now I always try to keep some cash with me.  Cash could also be handy if the credit card reader at the gas station is not working and I need to buy gas to get home.  I don’t want to risk getting stranded in the event that I am low on gas and the credit card system is out of order.


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