Saving 20% As A Cash-Only Family: It Can Be Done - KMSP-TV

The Willis Report

Saving 20% As A Cash-Only Family: It Can Be Done

Posted: Updated:

What if I told you there is a way you can save your family 20% whether you are shopping at the grocery store or the mall -- guaranteed? You'd be surprised, right? We'll the reality is that most people who use cash only in their transactions spend 20% less than people who pay via credit cards, according to the National Foundation for Credit Counseling.

But how do you do it and just how difficult is it to dump the cards and pay in cash? That's the question we're asking viewers this week as we launch The Willis Report Cash Challenge. In the wake of the credit card breaches at retailers across the country, many of our viewers have been asking questions about just how hard it is to convert to paper (cash) over plastic (credit cards).

More and more people are opting for cash. According to a survey of shoppers conducted by Harris Poll on behalf of Feedzai, a cyber-security firm, forty percent of people who were aware of the data breaches are using cash more and plastic less. The breaches, more than anything else, seem to be spurring people to change their habits. Just last week, beauty retailer Sally Beauty Holdings, became the most recent retailer to go public with the news that hackers had broken into their systems. But the biggest breach occurred at Target, where information about 70 million customers was hacked during the Christmas season. Cyber security experts say it's no longer a question of whether your personal information will be stolen, but when.  

To be sure, the adjustments can be difficult, but the payoffs are greater than just protecting your personal identity, although that's no small thing. Surveys show that people who use cash instead of credit cards spend less. And, it's easy to see why. Giving a cashier your cold, hard cash --the money you toiled to earn -- is a much different experience that handing over your credit card. Using plastic distances you mentally and emotionally from the transaction. It becomes an exchange that will happen in the future, say a month from now when you get your credit card statement, instead of something that's happening right now. I believe that credit cards are a powerful tool, if used correctly, but most of us use them as a crutch to upgrade our lifestyles beyond what we can afford.

Dumping the cards, then, has more appeal than ever. But making the change is no small task. What do you do if you have to fly cross country for a family emergency? What if the kids need something for a class assignment Monday and it's already late Sunday night? The challenges are real, but planning is the key to making going cash free work.

Most all-cash families make it work by planning their spending, developing a budget and buying only those things that fit the budget. Look, credit cards, in my view, are a powerful tool, but no substitute for actually figuring out what you should be spending. As a result, different people adopt a "Cash is King" lifestyle in different ways. Some use debit cards, others use checks. Some online shoppers buy gift cards. But the message is all the same. Pay now for what you buy now.

In the coming weeks and months will be following viewers who agree to take the challenge. If you believe cash is king, join us. Send us an email at gerriwillis.com or tweet or Facebook me.

  • Political NewsMore>>

  • Former Virginia Gov. Bob McDonnell's corruption case goes to jury

    Former Virginia Gov. Bob McDonnell's corruption case goes to jury

    Tuesday, September 2 2014 6:02 PM EDT2014-09-02 22:02:25 GMT
    The corruption case that could send former Virginia Gov. Bob McDonnell and his wife to federal prison was in the hands Tuesday of jurors who must decide whether the couple sold the influence of the office to a wealthy vitamin executive seeking legitimacy for his company's signature product.
    The corruption case that could send former Virginia Gov. Bob McDonnell and his wife to federal prison was in the hands Tuesday of jurors who must decide whether the couple sold the influence of the office to a wealthy vitamin executive seeking legitimacy for his company's signature product.
  • Ex-Va. Gov says he knows in heart he's innocent

    Ex-Va. Gov says he knows in heart he's innocent

    Friday, August 22 2014 6:33 PM EDT2014-08-22 22:33:08 GMT
    Former Virginia Gov. Bob McDonnell says he knows in his heart he's innocent of the federal corruption charges he's facing.
    Former Virginia Gov. Bob McDonnell says he knows in his heart he's innocent of the federal corruption charges he's facing.
  • Rolex passed among jurors in ex-Va. gov trial

    Rolex passed among jurors in ex-Va. gov trial

    Thursday, July 31 2014 7:08 PM EDT2014-07-31 23:08:18 GMT
    The requests for lavish gifts were frequent. Jonnie Williams — the star witness in a corruption trial against the former Virginia governor and his wife — was being asked for everything from a joy ride in his Ferrari to stock in the company he led.
    The requests for lavish gifts were frequent. Jonnie Williams — the star witness in a corruption trial against the former Virginia governor and his wife — was being asked for everything from a joy ride in his Ferrari to stock in the company he led.
  • PoliticsMore>>

  • Hagel, Dempsey Defend US Plan To Target Islamic Extremists

    Hagel, Dempsey Defend US Plan To Target Islamic Extremists

    Tuesday, September 16 2014 10:34 AM EDT2014-09-16 14:34:56 GMT
    The nation's top military leader told Congress on Tuesday that if President Barack Obama's expanded military campaign to destroy Islamic extremists fails, he would recommend that the United States consider deploying American ground forces to Iraq.
    The nation's top military leader told Congress on Tuesday that if President Barack Obama's expanded military campaign to destroy Islamic extremists fails, he would recommend that the United States consider deploying American ground forces to Iraq.
  • Mideast Complexities Confound US Coalition Effort

    Mideast Complexities Confound US Coalition Effort

    Monday, September 15 2014 10:23 AM EDT2014-09-15 14:23:05 GMT
    The Middle East has confounded outsiders for years, so it is no surprise that another U.S.-led project with a straightforward goal - destroying a marauding organization of extremists - is bumping up against age-old rivalries and a nod-and-a-wink-style political culture.
    The Middle East has confounded outsiders for years, so it is no surprise that another U.S.-led project with a straightforward goal - destroying a marauding organization of extremists - is bumping up against age-old rivalries and a nod-and-a-wink-style political culture.
  • Can President Obama Wage War Without Consent Of Congress?

    Can President Obama Wage War Without Consent Of Congress?

    Friday, September 12 2014 10:38 AM EDT2014-09-12 14:38:11 GMT
    As a U.S. senator from Illinois running for the White House in 2007, Barack Obama sponsored a resolution to prohibit President George W. Bush's administration from taking military action against Iran unless it was explicitly authorized by Congress.
    As a U.S. senator from Illinois running for the White House in 2007, Barack Obama sponsored a resolution to prohibit President George W. Bush's administration from taking military action against Iran unless it was explicitly authorized by Congress.
Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices