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Try This Cash Experiment for Just One Month

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Services for Real Estate Pros with SendOutCards

 

Tom Peters was out running errands when he realized he had left his wallet home. Fortunately, he had stowed some cash in the glovebox for just such an occasion.

As he quickly depleted the reserve, he noticed something. "I, doubtless like you, pay for stuff with plastic," he writes in his blog at TomPeters.com. "There is many an 'ouch' in the process. But the credit-card 'ouch' is a far cry from peeling off $138 at the grocery store, $37 to fill a ... Subaru, $77 at one of my ordinary stops at the book store and a couple of others. One's sense of the true cost of living goes up by an order of magnitude."

Peters believes the lesson can be applied to business, where it's all too easy to lose track of what supplies and other elements of your day-to-day operations actually cost. His recommendation: Choose a month, and pay in cash whenever possible. You might be surprised to learn that you're not as comfortable with your overhead as you thought you were.

The Po!nt: Peters states: "After paying the office supply bill in $20s, I'd bet a pretty penny or 10 that the next month would inaugurate an era of tighter purse strings."

Source: Tom Peters! Web site. This post created a real buzz. You can read it in its entirety by going here.

Show All Comments Sort:
Joeann Fossland
Advantage Solutions Group - Tucson, AZ
Master Certified Coach to Motivated Agents
It is a great exercise. I pay all credit cards every month Always!
Nov 13, 2007 08:28 AM
Zen Ziejewski
Keller Williams Realty - Laguna Niguel, CA
Laguna Niguel Real Estate
I try to pay in cash as often as possible. It keeps me down to earth and in check somwewhat with what I spend. More people try this to save on their needless spending habits. Great Blog!
Nov 13, 2007 08:31 AM
Wes Guptill
McLean Lending, LLC - McLean, VA
Thanks for bringing this item to my attention. It is so easy for us to spend frivolously without regard these days, because somehow we have managed to anesthetize ourselves against the shock of spending money because our purchases are made with a small rectangular piece of plastic. How odd is it that we have a one mindset for 'plastic' and a different one entirely for hard cash? I know from past experiences that the use of credit cards gives me a sense of financial liberty, but it is a different kind of story when it comes time to siphon cash out of my bank account for the credt card payments. 'Ouch' is right. This offering just jarred me back to the fact that i just need to be a bit more conscious of my spending habits, and that I should treat every purchase as if it were being made in cash. Great post!
Nov 13, 2007 08:36 AM